What Is an Agricultural Exemption in Texas?

First, let's clear up a common misconception: Texas doesn't technically have an agricultural "exemption." What it offers is an agricultural valuation — also called 1-d-1 open-space valuation — which appraises your land based on its agricultural productivity value rather than its market value. The effect is the same as an exemption: your property tax bill drops — a lot.

Under Section 23.51 of the Texas Tax Code, land that is "devoted principally to agricultural use" qualifies for this special valuation. Instead of being taxed on what a developer would pay for your 50-acre parcel near Austin ($2 million), you're taxed on what the land produces agriculturally (maybe $15,000 in productivity value). The difference in your tax bill can be $3,000 to $15,000+ per year.

This isn't a loophole or a special favor — it's state policy designed to keep Texas land in agricultural production and prevent skyrocketing property taxes from forcing farmers and ranchers off their land. But you have to actively apply for it, meet specific requirements, and maintain compliance year after year.

Who Qualifies for Agricultural Valuation?

Qualifying for agricultural valuation requires meeting several criteria simultaneously. It's not enough to just own rural land — you need to demonstrate active, ongoing agricultural use at a level your county deems sufficient.

The 5-of-7 Year Rule

Your land must have been devoted principally to agricultural use for 5 of the preceding 7 years. This is the historical use requirement and it's one of the most important. "Principally" means agriculture is the primary use of the land, not an incidental activity alongside residential or commercial use.

For new landowners, this creates a timing challenge. If the previous owner had an ag valuation, you can typically continue it by filing a new application within the first year. If the land wasn't in agricultural use, you may need to establish use and build the 5-of-7 history — though some counties will grant initial approval based on a credible management plan and demonstrated intent.

Degree of Intensity

This is where most applications succeed or fail. Your agricultural operation must meet your county's "degree of intensity" standard — the minimum level of agricultural activity the county considers genuine farming or ranching. This standard varies dramatically across Texas's 254 counties.

For cattle operations, a common intensity standard might be 1 animal unit per 10-25 acres, depending on the county's carrying capacity. In fertile Blackland Prairie counties, the standard might be 1 AU per 8 acres. In arid West Texas counties, it might be 1 AU per 40 acres. Appraisal districts set these standards based on what typical agricultural operations in the area actually look like.

This is exactly why local expertise matters. At Exemption.Land, we maintain current intensity standards for every county and can tell you within minutes whether your planned operation meets the threshold. Our soil composition data helps us predict carrying capacity before you invest in livestock or equipment.

Types of Qualifying Agricultural Use

Texas recognizes a broad range of agricultural activities:

  • Livestock — Cattle, goats, sheep, horses (when raised commercially), and other traditional livestock
  • Crop Production — Row crops, orchards, vineyards, vegetable farms
  • Hay Production — Cutting and baling hay at county intensity standards
  • Beekeeping — Minimum hive counts on qualifying acreage (as few as 5 acres)
  • Exotic Animals — Axis deer, emu, ostrich, and other exotics raised commercially
  • Timber — Commercial timber production (primarily East Texas)
  • Wildlife Management — Converting existing ag to wildlife (requires prior ag history)
  • Aquaculture — Fish farming and related water-based agriculture

The Application Process

Applying for agricultural valuation involves several steps, and the process varies slightly by county. Here's the general framework:

Step 1: Determine Your County's Requirements

Contact your county appraisal district — or better yet, let us do it. Each county has its own intensity standards, documentation preferences, and application nuances. What works in Travis County may not work in Williamson County, even though they're neighbors.

Step 2: Complete Form 50-129

The standard application form is Texas Comptroller Form 50-129 (Application for 1-d-1 [Open-Space Land] Agricultural Use Appraisal). This form requires detailed information about your property, your agricultural operation, and your production history.

Common mistakes on Form 50-129 include incorrect legal descriptions, vague agricultural use descriptions, and failure to document intensity levels. Our team pre-fills this form using data from our mapping platform, eliminating the most common errors.

Step 3: Gather Supporting Documentation

Your county will want evidence supporting your application. This typically includes:

  • Photos of your agricultural operation
  • Purchase receipts for livestock, feed, seed, or equipment
  • Lease agreements (if leasing your land for agricultural use)
  • Production records (bale counts, livestock inventories, harvest records)
  • Management plans or operational schedules

Step 4: File Before the Deadline

The standard filing deadline is April 30. Late applications are accepted through June 30 (or later in some counties) but may incur a penalty. Missing the deadline entirely means waiting another full year to apply.

Common Mistakes That Cost Landowners Thousands

Mistake #1: Assuming All Counties Are the Same

We cannot stress this enough: every county is different. The intensity standard in Harris County is not the same as Comal County. The documentation Bexar County wants is different from what Bastrop County expects. This is why cookie-cutter approaches fail and why local expertise is essential.

Mistake #2: Letting the Exemption Lapse

If your agricultural use drops below your county's intensity standard — or if you change the use of your land — your valuation can be removed. And when it's removed, you face rollback taxes: the difference between what you paid at ag value and what you would have paid at market value, going back 5 years, plus 7% annual interest on each year.

On a property where the tax savings were $5,000/year, rollback taxes could exceed $30,000. This is real money, and it's the single biggest financial risk landowners face with agricultural valuations.

Mistake #3: Waiting Too Long to Apply

Every year you wait is a year of savings lost. If you purchased land with existing ag use, the clock is particularly urgent — you typically need to file within the first year to maintain the prior valuation without a gap.

How Exemption.Land Makes This Simple

We built Exemption.Land because we saw too many landowners leaving money on the table — either because they didn't know they qualified, or because the process felt too confusing to tackle on their own.

Our platform combines mapping data, soil analysis, and county-specific knowledge into a system that handles the complexity for you. We know your property's soil composition before you call. We know your county's intensity standards before we start. And we know the people at the appraisal district who will review your application.

Whether you choose our Self-Service tier ($49/yr) for guided filing or our Full Service tier ($199/yr) for complete application preparation, you get the benefit of a team that has filed hundreds of successful applications across Texas.

Ready to find out what you qualify for? Our free eligibility assessment takes 2 minutes and tells you exactly which exemptions fit your land — and how much you could save.