Agricultural Land

Agricultural Land

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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