Mark for follow up Question 10 of 15. What is the limitation on the soil and water conservation expense deduction a farmer may claim each year? 10% of gross ordinary income from farming plus gains from the sale of livestock and other assets used in the production of farm income 10% of net income from all farm sources plus net gain from the sale of livestock held for draft dairy breeding or sporting purposes 25% of gross ordinary income from farming plus gains from the sale of livestock held for draft. dairy breeding or sporting purposes 25% of net income reported on Schedule F plus net gain from the sale of livestock and other assets used in the production of farm income. Mark for follow up Summary Next >