I am designing a little pcb where I want to read out impedance from an irrometer soil moisture sensor (example). The manufacturer describes preventing ground loops like this:
Since WATERMARK sensors provide a direct path from earth to any device, protection via Zener or TVS diodes should be included on all sensor lines. In the interest of simplicity these are not included in any of examples to follow, but are highly recommended. Any such components will influence the measured readings and will have to be factored in to the reading program.
So I put the diodes like this:
Since this looks good to me I don't know how the diodes work and what they are protecting exactly.