An introduction to the ins and outs of ag exemption in Texas – How to apply, minimum requirements, an option other than livestock or crops and more.
One of the factors that makes land investment in Texas specifically so attractive is agricultural exemption, also called ag exemption. If you’re purchasing a piece of property and it does not have ag exemption on it, you will have to have owned it for five years before you can apply for the 1-d-1 ag exemption. At that point, you can put cattle on the property or work with the farmer to produce a certain type of crop and then you’ll be able to apply for ag exemption which significantly reduces your property taxes.
Now, each county has their own minimum amount of acreage that is required, so you’ll need to speak with the county that you’re purchasing land in. If you already are buying a piece of land that has ag exemption currently on it, generally speaking, that will be able to transfer to you as the new owner. One caveat here is that it’s not guaranteed. We are finding this out the hard way which we’ll discuss in another video here.
Another thing to keep in mind is you can actually get ag exemption by beekeeping, by actually having and curating bee hives on your property. The Texas property code says if you have five acres of land that you are devoting to that, you can get ag exemption with bees. A lot of people don’t know that. The counties cannot dictate the minimum amount of acreage for beekeeping. The Texas property code says it’s five to twenty acres in every county in Texas. So, that could be another resource for you as well if you don’t want to manage cattle or growing a certain type of crop. Of course, we always recommend you consult with your CPA and an attorney when discussing this about potentially purchasing properties and pursuing ag exemption.
Feel free to reach out to us with questions or other topics you’d like to see covered.
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