Nutrient Budgets: What Farmers Need to Know for the 2027 Crop and 45Z

Nutrient Budget
By: Mitchell Hora, Continuum Ag CEO & 7th Generation Farmer

As we work through harvest and start thinking about the 2027 growing season, there’s something farmers need to have on their radar: Nutrient Budgets.

If you want to participate in 45Z with your 2027 crop, you’re going to need a nutrient budget for every field you plan to enroll. And here’s the important part: You need to have that nutrient budget completed BEFORE applying fertilizer, manure, or planting legume cover crops.

That means if you’re planning to apply fertilizer this fall, now is the time to get your nutrient budgets put together.

Let’s break down what a nutrient budget is, why it matters, and how you can get yours completed.

What Is a Nutrient Budget?

A nutrient budget is a simple plan that documents the nutrients going into and coming out of your field for the growing season.

Think of it as balancing your checkbook, but instead of dollars, we’re tracking nutrients.

Your nutrient budget accounts for the planned sources of nitrogen (N), phosphorus (P), and potassium (K), along with the nutrients expected to be removed by the crop.

This includes things like:

  • Commercial fertilizer applications
  • Manure applications and nutrient credits
  • Nitrogen credits from legume cover crops
  • Other nutrient sources
  • Expected nutrient removal from the harvested crop

The goal is to document where your nutrients are coming from, how much you’re planning to apply, and what your crop is expected to use or remove.

Why Do Farmers Need a Nutrient Budget?

There are a couple of reasons nutrient budgets are important, but the big one we’re talking about right now is 45Z eligibility for the 2027 crop.

Under the 45Z requirements we’re preparing farmers for, a nutrient budget needs to be established for each field before nutrient applications begin.

That means you can’t wait until next spring or after you’ve already applied fertilizer to start putting your plan together.

Beyond 45Z, nutrient budgets are just good agronomic management.

Fertilizer is one of the biggest expenses on the farm. Understanding what nutrients your soil already has available, what you’re adding, and what your crop actually needs can help you make better management decisions.

It’s about being more efficient with your inputs, improving profitability, and making sure we’re documenting the practices that matter.

How Do You Create a Nutrient Budget?

The good news is that putting together a nutrient budget doesn’t have to be complicated.

There are two ways to support your nutrient budget:

Option 1: Use Recent Soil Samples

You can develop your nutrient budget using soil sample results from within the past two years. These results help establish what nutrients are already available in your soil and provide a foundation for planning your applications.

Option 2: Work With a Certified Crop Adviser (CCA) or Ag Expert

You can also have your nutrient budget reviewed and approved by a Certified Crop Adviser (CCA) or qualified agricultural expert.

Regardless of which route you take, your nutrient budget needs to document the planned nutrient inputs and removals for each field.

You’ll want to have information available about your planned crop, fertilizer applications, manure applications, legume credits, and expected nutrient removal.

And remember, this needs to happen before you begin applying nutrients for the 2027 crop.

How Do You Use Your Nutrient Budget?

Once your nutrient budget is created, it becomes your plan for managing nutrients throughout the growing season.

It helps you understand what you’re planning to apply and provides documentation of your nutrient management decisions.

As you move through the growing season, you’ll want to keep accurate records of what actually happens in the field, including fertilizer applications, rates, timing, and other management practices.

That documentation is important when it comes time to report your farming practices and complete the verification process for 45Z.

Your nutrient budget is the starting point, and your actual application records help tell the rest of the story.

Don’t Wait Until Spring!

We’re already working on getting our nutrient budgets put together because we know we’ll need them before making any nutrient applications for the 2027 crop.

This is something farmers need to be thinking about right now, especially if you’re planning fall fertilizer applications or planting legume cover crops.

The last thing we want is for farmers to miss out on potential 45Z opportunities because they didn’t have the right documentation completed ahead of time.

Get Your Nutrient Budget Through TopSoil.ag

At Continuum Ag, we’re helping farmers prepare for 45Z through our TopSoil platform.

Nutrient budgets are part of our CI Certification® process, and our team can help you get the documentation you need for your fields.

If you’re interested in participating in 45Z with your 2027 crop, don’t wait until after you’ve started applying fertilizer.

Get ahead of it now.

Visit TopSoil.ag to get started or contact our team at 855-805-5700 to learn more about nutrient budgets and CI Certification.

Let’s make sure you’re ready to take advantage of the opportunities ahead.

More Posts

In the ever-evolving landscape of agricultural and energy policy, few programs hold the transformative potential of 45Z. As we face

Meet David, Kelly, Curtis, and Carl, four forward-thinking, midwest farmers who have accomplished low Carbon Intensity® (CI) Scores through their

With harvest winding down, we’re already thinking about what comes next, and believe it or not, the 2025 crop year