Agricultural Land

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The information below is to assist you in determining if you are eligible for agricultural classification. In order to qualify for agricultural classification you must meet the following requirements:

  • The owner of a leased property must provide a non-use statement to verify property does not carry personally-owned livestock
  • Contiguous parcels must have same deeded ownership
  • Primary use of the land must be agricultural. Ownership alone does not qualify property for agricultural classification
  • Property must have been in active production for three of the last five years
  • There must be a reasonable expectation of operating profit from the agricultural use of the property
    • The test of reasonable expectation of operating profit is whether a prudent rancher or farmer is managing or operating his unit similar to other experienced and successful ranchers or farmers and reasonably expects to make a profit in a reasonable period of time
  • If the property is non-contiguous, the non-contiguous parcel must be managed and operated on a unitary basis and each parcel must make a functional contribution to the agricultural use of the property. In general, non-contiguous parcels must be fenced, have an independent water source and have ingress and egress.

The following DO NOT qualify for agricultural classification:

  • Leased parcels under 20 acres, unless the parcel makes a functional contribution to the agricultural use of the main operation
  • Leased subdivided lots
  • Producer/rancher-owned non-contiguous parcels under 5 acres (unless the parcel contains a water supply for animals)

GRAZING

Additional requirements to gain agricultural classification for grazing:

  • Grazing land with a minimum Carrying Capacity of forty animal units and containing an economically feasible number of Animal Units (Carrying Capacity is the number of animal units supported by a section of land (640 acres) for one year. Animal Unit means one six-month-old beef, one cow with calf, one bull or five sheep or goats).
  • Animals are identifiable by brands, tags or tattoos
  • Animals are confined to the property and water is available

Required documentation for agricultural classification for grazing

  • Five years of business records containing Profit and Loss statement for the property.
  • Leases
    • Leases must report the fair market rate per animal unit
    • If lease includes “other considerations”, they must be defined and the fair monetary value of those considerations must be reported
  • Receipts for services rendered and items purchased relevant to the agricultural operation
  • Brand inspection certificates
  • Sales invoices of agricultural products or livestock sold
  • Grazing plan
  • Business plan
  • Agricultural Lease Abstract
  • Agricultural Land Use Application
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HIGH DENSITY 

To be considered high density use the property must meet be one of the following:

  • Field cropland in the aggregate of at least twenty gross acres
  • Permanent crops in the aggregate of at least ten acres
  • Devoted to high density use for producing commodities- nurseries, feed lots, dairies, poultry, swine, and fish production
  • Devoted to use in processing cotton
  • Devoted to use in processing wine grapes
  • Devoted to the commercial breeding, raising, boarding or training of equine

Required documentation required for agricultural classification for high density use: 

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