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Nov 21, 2022

Ag Exemptions

by Legacy Ag Credit

The world of agricultural finance is much easier to navigate if you’re equipped with the right information. At Legacy Ag Credit, we want to make sure that you get the most out of your land and one way we do that is via ag exemptions.

In legal terms, an ag exemption is a special valuation that allows you to get a tax break by calculating your property taxes based on production rather than by your land’s market value.

According to the Texas Comptroller of Public Accounts, acting as the chief treasurer for the state, “farmers, ranchers and timber producers can claim exemptions from some Texas taxes when purchasing certain items used exclusively to produce agricultural and timber products for sale.”

To get an ag exemption in Texas you first need to apply, either on paper or online, for an agricultural and timber registration number (Ag/Timber Number) from the Comptroller. Once you receive it, you’ll need to include this number on the agricultural or the timber exemption certificate when purchasing tax-exempt items.

Ag exemptions in Texas are reserved for land that has been used purely for agricultural purposes in the past five years. This includes a wide range of activities from livestock and beekeeping to crop production and wildlife management.

Contact a Legacy Ag Credit loan officer to learn more about ag exemptions and how they apply to your specific Texas county.

Frequently Asked Questions

What Animals Qualify for Ag Exemption in Texas?

Ag exemptions will vary by county based on various requirements. However, animals such as sheep, goats, cattle, and bees are usually eligible for special ag valuation. To get more details, contact your district’s chief appraisal by searching for your country on the Texas Comptroller site.

Does Ag Exemption Transfer to New Owner?

No. If you’re the one acquiring the property, do your research to confirm that the land is under an ag valuation and then apply for that valuation with the tax appraisal district. This way, you’ll avoid three to five years of steep rollback taxes if you start using the property for any other purposes than agricultural (the only exception is building a house for a personal homestead).

How Many Goats Per Acre in Texas for Ag Exemption?

The qualifying number of goats varies based on breed and county. Here’s Bexar’s example:

➢      Spanish Goat (Nanny) - 6 head per animal unit

➢      Boer x Spanish Goat (Nanny) 5 head per animal unit

➢      Angora Goat (Nanny) 8 head per animal unit

Keep in mind that these numbers will be multiplied by 3, as you need three animal units to run a goat operation in Bexar.

How Many Acres to Get Ag Exempt in Texas?

To qualify for the special valuation, you need at least 10 acres of agricultural land. However, this number also varies by county.

Do Chickens Qualify for Ag Exemption?

While some appraisal districts might allow poultry to qualify a property for Special Ag Valuation, there are certain county-specific qualifications that must be met. Those rules often change as a result of weather patterns. The comptroller's website has more information regarding agricultural appraisal guidelines around chickens in each Texas county.

How Many Cows for Ag Exemption in Texas?

Similar to chickens, the number of cows required to qualify for a special ag valuation is determined by each appraisal district based on intensity standards otherwise referred to as the number of acres of land necessary to support a grazing animal unit. This number is different from district to district.

How do I renew my Ag Exemption in Texas?

Agricultural and timber numbers “must be renewed every four years, regardless of when the number was first issued,” explains the Comptroller. Current numbers, both new and renewed, expire on December 31st, 2023.

Apply For a Loan

Start your loan journey today and discover more ways to save money while growing a thriving farm operation, expanding your livestock, and more. We’ll guide you through the loan application, approval, and appraisal processes and find you solutions that best fit your needs and budget.

Complete this short online questionnaire to get started or visit one of our branches