These will depend on an individual county’s climate, since rainfall impacts how much land animals need to survive. This will depend on your county’s “intensity standards.” Standards are established based on how many acres of land are necessary to sustain an animal unit (1 cow, for example, or 5 sheep). How many animals are needed for Texas ag exemption?.Make sure to check with your county appraisal district. However, horse racing, showing, boarding, or training do not typically qualify for ag exemption. Usually if you breed or sell horses as part of your regular business, you might qualify. Many counties have minimum acreage requirements, and some also consider the agricultural degree of intensity. Agricultural purposes include crop production, livestock, beekeeping, and similar activities. Only land that is primarily being used – and has been used for at least five of the past seven years – for agricultural purposes may qualify for an ag exemption in Texas. What qualifies as ag exemption in Texas?.For example, if you’re a beekeeper, you’ll need a minimum of approximately 5-10 acres to qualify. Make sure to check with your county appraisal district. These rules could also vary based on the type of agriculture activity. But you will usually need a minimum of 10-15 acres to be eligible for ag exemption. What is the minimum acreage to qualify for ag exemption in Texas?.We’d love the opportunity to work with you! If you are interested in learning more about Texas Farm Credit and the products, we offer – give us a shout. We ensure that all our mortgage products allow ag exemptions to stay in-tact, and the only thing our customers have to worry about is how to make a little slice of Texas feel like their perfect home. Long story short, Texas Farm Credit understands the significance of ag valuations for our customers and the future of the Texas agricultural industry. This can be a tremendous financial burden for brand new landowners – which is why we work so hard to help our borrowers keep their exemption. The next question we often get is: Why do other lenders ask for the exemptions to be removed?Īll we know is that if an ag exemption or valuation is lost on a property, the current or new owners could be responsible for three to five years of rollback taxes including interest. Properties are eligible for ag valuations for the production of everything from honey to hay and can even be eligible for wildlife management depending on the location and rules of the county.Īg valuations are not easy to get, so it’s very important to keep and maintain them. The idea of agricultural land valuation is literally rooted in the Texas Constitution, and can equate to significant tax savings, because let’s face it any type of agricultural land is not cheap to maintain or operate. In simple terms this means agricultural landowners will have their property’s taxes calculated based on productive agricultural value, as opposed to market value of the land. Well, an ag exemption is not really an exemption, but instead is a special valuation. One of the principals we feel really separates us from traditional mortgage lenders is that we allow agricultural exemptions to remain on the property. To serve our clients that live on acreage, we here at Texas Farm Credit have some unique products and guidelines. We offer products for individuals that thrive in the hustle and bustle of the city as well as those that need a little more wide-open space. The type of properties we lend on are as diverse as our group of borrowers.
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