We serve a variety of clients and channel partners to get tax deductions for their farmland.
Who We Help
Owner – Operators & Land Investors
Boa Safra has served owner-operators and passive investors across 40+ states, with acreage as small as 12 acres and as large as 40,000 acres. These clients are the direct beneficiaries of the tax deductions for farmland enabled by Boa Safra. They use these deductions to protect their taxable income in the current and future years depending on their specific tax strategies. Depending on the specific structure with which they own their landholdings, the deductions may be allowed to “roll up” to their personal returns or otherwise to offset other sources of earnings.
In addition to working directly with landowners to get both large and small farm tax deductions and credits, Boa Safra has established programmatic channel partner relationships with banks and mortgage lenders, brokers, and land managers.
Banks & Mortgage Lenders
Banks and mortgage lenders hold large portfolios of agricultural land mortgages across the country, and they write new mortgages to new lenders as their ordinary course of business. These lending institutions evaluate the creditworthiness of their borrowers based on the borrowers’ ability to pay the loan back and by the collateral coverage of the underlying land asset in the event that the borrower cannot service the loan. Borrowers that use Boa Safra’s service to find tax deductions for farmland average $1,500 per acre of deduction, materially decreasing their tax burden. This translates to the borrower keeping materially higher cash positions on their balance sheet, which in turn makes the borrower a better credit risk for the bank.
When viewed across their existing mortgage portfolios, Boa Safra’s services can materially improve the credit profile of their loan portfolio. Similarly, when underwriting new borrowers, Boa Safra’s service can improve the credit profile of a new borrower, helping the bank qualify more customers, and more high-quality loans onto their books.
Several banks, such as a major regional lender in Nebraska, have formalized arrangements where the banks will refer existing and prospective borrowers to Boa Safra. The bank gets a better credit profile across its loan base and builds its reputation as a “trusted advisor” to its clients, their borrowers get to keep cash on their books through reduced taxes thanks to large and small farm tax deductions and credits related to soil fertility, and Boa Safra gets a systematic channel partner to expand its salesforce.
Like banks and mortgage lenders, brokers benefit from Boa Safra as well. With the rapid appreciation of farmland over the last few years, the bid-ask spread has widened. Brokers have expressed concern about efficiently closing transactions due to this dynamic and have begun referencing soil-related tax deductions for farmland as a way to help buyers justify higher prices. National brokers are including referrals to Boa Safra as a way to help show creative thinking and immediate underwriting value to their clients as a way to justify the asking price of deals to streamline closings and to highlight why they, as opposed to any other brokerage house, was the right group for that client to choose.
National CPA firms have also realized the value that referring clients and prospects to Boa Safra can drive for them. Many CPA firms keep business by instilling trust that they are evaluating all proven ways to help their clients from overpaying taxes. Soil-related tax deductions for farmland have existed for decades, but the absence of a scalable, scientific, and data-driven process such as Boa Safra’s has prevented many from recommending that their clients pursue such deductions. Many of these firms advertise their ability to work with these deductions as a way to help win clients from other firms that are not as proactive towards things of this nature.
DISCLOSURE: The content represented on this website is for informational purposes only. Boa Safra Ag makes no representations regarding the income tax implications or other use of Soil Fertility Load Analysis information and does not provide legal or accounting advice. Consultation with a tax and/or financial advisor is required.
Boa Safra Ag was founded by a team of Midwestern ag professionals to assist landowners in evaluating the presence and value of farmland soil fertility. Leveraging our extensive agricultural expertise, we help landowners maximize the value of an IRS section 180 deduction related to recently acquired farmland.
Our world class team of agronomists uses advanced technology and partners with industry-leading soil sampling and analysis organizations.
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