Sod also falls under the definition of “plants” where 26 CFR 1.263A-4(a)(5)(i)(A) states “A plant produced in a farming business includes, but is not limited to, a fruit, nut, or other crop bearing tree, an ornamental tree, a vine, a bush, sod, and the crop or yield of a plant.”
Seems pretty clear cut right? So where is the disconnect? Well, 26 CFR is a section of the Code of Federal Regulations (CFR) that is relevant to the Internal Revenue Service. Does a highway patrol officer have all sections of the current IRS Tax Code committed to memory? Likely not, nor should they.
As recently as April and May of 2025 I have personally worked with two TPI members in Tennessee and Oklahoma to try to resolve trucking issues where sod on their trucks was not being granted the appropriate exemptions. I have done this many times in the last few years, and in most cases, it is as simple as sharing the appropriate federal codes with local or state officials. So, what’s the value of this? Tat’s a question I often get asked, what do I get for joining TPI? Well, in cases like this, I’d like to think TPI’s dues are less than the cost of a trucking ticket, or at least less than the cost of attorneys to fight them! Is that true all the time? Maybe not, I’ll never know. Te point is though, that often a simple email or phone call to explain laws or codes that we at TPI helped enact can make a big difference.
Figure 2.
Tis is not an issue specific just to the United States either. Canada for example, also defines farming and includes sod in its definition to state that “Farming” is defined by a non-exhaustive list in subsection 248(1) of the Income Tax Audit (ITA) manual; the courts have also found these activities to be farming: tree farming, hydroponics, Christmas trees, sod farming, and others. Despite this specific inclusion in the Canadian tax audit manual, I worked recently with an attorney in Canada to make sure sod production was accurately defined in proposed legislation in Ontario.
Making sure sod is accurately reflected in current and future policy is something that we constantly keep an ear to the ground for at TPI, and often it’s our members that bring items to our attention. Tere are many examples of TPI working at the federal and state level to advocate for sod producers.
One of the earliest examples of TPI’s far-reaching impact was getting sod included in the 2008 U.S. Farm Bill. Tat 1,108-page document laid out U.S. policy on agriculture and TPI at the time, working alongside our government relations team and Kevin Morris at the National Turfgrass Federation, got a simple sentence included on page 925 to state “Te Senate definitions are the same as in the House Bill, but also includes turfgrass sod in the definition of specialty crops.” Tat one sentence still has a positive impact on our industry today. It makes sod farmers eligible for Non-insured Crop Disaster Assistance Programs (NAP), among others.
TPI Turf News July/August 2025
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