Agricultural Classification

Please check out our new Ag Classification Questionnaire

You may qualify for Homestead Exemption and Agricultural Classification on your property. The portion of land and any buildings that are primarily used for your residence are considered your homestead and will be assessed separately (generally one acre minimum). By applying for Agricultural Classification on homesteaded property, you certify that some of the land is used primarily for commercial agriculture. The land used for the commercial agricultural operation is excluded from the Homestead Exemption and other assessment limitations including the Save Our Homes Benefit (Portability).

Each year, the amount of the Save Our Homes Benefit (Portability) that you have accrued is shown on your Notice of Proposed Property Taxes. If you decide to apply for Agricultural Classification on your homesteaded property, you will be limiting your homestead land, thereby reducing your portability should you decide to sell your home and take your accrued Save Our Homes benefit with you. Over time, the Agricultural Classification annual savings may outweigh the one-time portability in homestead savings, but may not outweigh the potential tax savings after a new home is purchased.

In cases involving homestead properties, it is typically more beneficial to forego the Agricultural Classification in order to protect the property from future assessment increases in case you or your tenant stop using your land for commercial agriculture or if you decide to sell the property.

We cannot accurately calculate how much agricultural classification will save you ahead of time. It is not an exemption and many variables go into calculating the assessment of a property with agricultural classification such as:

• How many acres qualify and for what use? Only the acres being used for commercial agriculture qualify and each use has a different rate. The acreage is measured after the use is in place.
• For approved acres, the use value overrides the market value. However, if this is not the first year under the current ownership, the assessed value may be lower than the market value because of homestead or non-homestead assessment limitations.
• Your use must be in place as of January 1 of the year you apply, but we do not finish estimating market values, agricultural use values, or reviewing applications until July 1.
• If your taxes increased because of new construction, agricultural classification would not reduce this value. It only applies to land value.
• Please review "Will Agricultural Classification affect my Homestead Exemption?" above for more information.

The Property Appraiser cannot pre-approve agricultural use classifications. The granting of all or part of an application for agricultural classification is made only after all relevant information on the parcel has been analyzed by the Property Appraiser. A determination by the Property Appraiser on whether or not agricultural classification is approved will be made on or before July 1st.

Complete the Agricultural Application Packet and return it to the Property Appraiser’s office.

• January 1st is the statutory assessment date. Therefore, the property must be in bona fide commercial agricultural use, or reasonable effort must have been made and continues to be made, on this date.
• The application must be signed and returned by March 1st
• Provide supporting documentation with application (see guidelines below)

If you are leasing your land to another party, then a written lease is required and must be included with your application. Bona fide leases shall include:

• A start date and an end date. The lease must be in effect on January 1st.
• Names of the land owner and tenant (lessor and lessee)
• Number of acres leased
• Address or legal description of parcel leased
• Rental rate per unit (acre, etc.)
• Use of the leased land
• Terms of the lease
• Must be arm’s length (unrelated parties).

A lease alone is not sufficient evidence that a parcel is in commercial agricultural use. A copy of the tenant’s IRS Form 1040F or equivalent from the most recent year’s federal tax return must be submitted with the application. If you lease your property to a tax-exempt organization, a copy of their 501(c)(3) status must be submitted with the application.

• All information submitted will be held in strict confidence, as mandated by Florida Statute 195.027.
• All applications are field checked to verify the usage and to ensure correct assessments.
• If equipment or machinery is being used for the commercial agricultural use, a Tangible Personal Property Tax Return ( Form DR-405) must be submitted with the application.

• If the agricultural classification is approved, it will be shown on the annual Notice of Proposed Property Taxes that is mailed in August. 
• The value on the approved acres will be assessed at a lower value, which is determined by the agricultural use.  Only the acreage that is actually used for the agricultural operation can be approved.  The classification does not blanket your entire property.  Agricultural classification applies to land only.  It does not apply to improvements on the land, such as barns and stables.  
• Additional information will be requested on a regular basis from the property owner to determine the continuance of eligibility.  This information is usually in the form of IRS Form 1040F or equivalent from the most recent year's federal tax return. 
• If for any reason we determine your agricultural operation does not continue to meet the proper criteria, you may be denied.
• If your agricultural business changes (increase or decrease in acreage, change in use, etc.), please contact our office immediately.  

If your application for agricultural classification is denied, you will receive a denial letter on or before July 1st. The letter will explain the appeal process.

When the property is sold, the agricultural classification is removed and a new application must be made on the Agricultural Application Packet. It is the responsibility of the property owner to notify this office of any change in the status or use of the property with an agricultural classification. Failure to provide this information could result in incorrect assessment of your property or the loss of agricultural classification. Please note that it is unlawful to give false information for the purpose of continuing the agricultural classification of lands.

Warning! When the agricultural classification is removed, the land that has been assessed at a low agricultural use value will be reset to the current market value. This reset of value will cause a significant increase in property taxes because agriculturally classified land is not protected by homestead exemption or other assessment limitations. 

• An agritourism activity does not include buildings primarily used to accommodate the general public (i.e. buildings used primarily for event venues such as weddings).
• In order to maintain agricultural classification on the land beneath the buildings, they must be used as an integral part of the commercial agricultural operation.

• Proper care and management of the land must be evident, and records must be provided upon request. This data will be compared to typical operations.
• Production and sale of livestock or crops must be present. Production or ownership for personal use does not qualify.
• Additional information, including a current lease or tax return, will be requested on a regular basis to document bona fide commercial agricultural use.

• At minimum, a typical orchard and grove has at least five (5) acres planted at a minimum density of one hundred (100) trees per acre. Best Management Practices and densities typical for the industry should be followed
• Provide the variety and number of trees per acre
• Provide a timeline and business plan for the sale of fruit
• A tax return will be requested on a regular basis to document income and expenses
• You should begin filing a tax return for your business as soon as it is established

Commercial beekeeping must be the primary use of the property for a significant portion of the year (6 months or more) with a minimum of 24 hives per parcel. A minimum of 24 hives per acre is required for classified acreage. If bees will not be on your property as of January 1^st in the year you apply for agricultural classification, then submit your application as soon as the bees are on site. The application will be reviewed for the following year. 

Please review the "Professional Standards and Uniform Criteria" for apiculture agricultural classification as established by the Florida Association of Property Appraisers and the Florida State Beekeepers Association.

• At minimum, a typical nursery operation has at least one (1) acre planted.  Best Management Practices and densities typical for the industry should be followed.
• Provide a copy of the Florida Certificate of Registration as required by Florida Statute 581.131. It must be obtained by January 1st and submitted with the application.
• Only land that is used for growing plants and necessary service areas shall be classified as agriculture. Land used for landscape service business is not an agricultural use.
• A bona fide commercial irrigation system must be in place. Irrigation by hose is not typical of a bona fide commercial operation.
• If plants are mature, an attempt to make a profit must be evident on an annual basis. The marketability of the type and age of in-ground trees will be considered.
• A tax return will be requested on a regular basis to document income and expenses. You should begin filing a tax return for your business as soon as it is established.

• At minimum, a typical cattle operation has at least five (5) head and ten (10) acres to be considered a commercial herd and a minimum of one (1) cow per three (3) acres on parcels larger than twenty (20) acres. 
• Provide receipts for the purchase of livestock with a new application
• The presence of livestock alone is not sufficient evidence that a parcel is in commercial agricultural use. We will consider the terms of the lease, the bona fide commercial nature of the owner and/or the tenant, and the relationship of the business plan to a specific parcel. This data will be compared to typical operations.

• At minimum, a typical goat/sheep operation has at least twelve (12) head and five (5) acres to be considered a commercial herd and a minimum of two and a half (2.5) head per acre on parcels larger than five (5) acres. 
• Provide a copy of the Premises ID and all goat/sheep identification numbers as required by Florida Administrative Code 5C-29.  These must be obtained by January 1st and submitted with the application.

BOARDING

• At minimum, a typical horse boarding operation has at least five (5) horses boarded and five (5) acres to be considered a commercial stable. 
• Provide the number of horses boarded along with a written agreement/lease between the stable and each boarder. Typically, agricultural classification is granted at one acre per boarded horse.
• The presence of horses alone is not sufficient evidence that a parcel is in commercial agricultural use. We will consider the terms of the boarding agreements, the bona fide commercial nature of the owner and/or the tenant, and the relationship of the business plan to a specific parcel. This data will be compared to typical operations.
• Proof of payment will be requested on a regular basis (i.e. tax returns, checks, etc.)

BREEDING

• At minimum, a typical horse breeding operation has at least three (3) brood mares. Each mare is expected to foal at least every other year.
• Provide registration documents for each brood mare
• Provide number of studs on the property or insemination reports and stud fee information
• Provide a copy of registration and State breeding license
• Provide breeding contracts
• Provide marketing information

• Provide a copy of the Florida Certificate of Registration as required by Florida Statute 597.004. It must be obtained by January 1st and submitted with the application.
• Provide a copy of the facility plan that was submitted to FDACS with the application. 
• Best Management Practices should be followed.
• The facility will be assessed in accordance with Florida Statute 193.4613.

• Minimum of 2 cuts per year
• Provide variety of hay harvested
• Provide estimated number of rolls cut per harvest and price per roll

• Free range chickens do not qualify as bona fide commercial agriculture. Chicken coops are generally too small by themselves to measure out for agricultural classification or primary use of the land. Requirements for commercial poultry and egg farms can be found in Florida Administrative Code Chapters 5K-4, 5K-5 and 5K-6 and Florida Statute Chapter 583. They may be considered as part of a larger bona fide farm.

• Hog pens are generally too small by themselves to measure out for agricultural classification or primary use of the land. They may be considered as part of a larger bona fide farm. 

• Permitting is the jurisdiction of the Martin County Building Department.  For more information, please call (772) 288-5916, or visit their website at www.martin.fl.us/building

• Agricultural classification applies to land only. It does not apply to improvements on the land, including non-residential farm buildings such as barns and stables. The market value of these improvements will be added to the tax roll.

• January 1st of each year is the statutory assessment date. Therefore, the property must be in bona fide commercial agricultural use, or reasonable effort must have been made and continues to be made, on this date. The Property Appraiser cannot pre-approve agricultural use classifications. The granting of all or part of an application for agricultural classification is made only after all relevant information on the parcel has been analyzed by the Property Appraiser.

• Agricultural classification is for land used primarily for “bona fide commercial agricultural purposes."  Bona fide commercial agricultural purposes means good faith, commercial agricultural use of the land with the intent of earning a profit from the production and sale of a farm product. Animals kept for petting zoos, sanctuaries, personal uses, hobbies, or education do not qualify.
• If your land is being used for commercial agricultural purposes, you are encouraged to apply for agricultural classification. 
• Only the acreage that is actually used for the agricultural operation can be classified. The classification does not blanket your entire property.
• Agricultural property use codes are assigned by the Property Appraiser to parcels that have been approved for agricultural classification.
• Zoning and future land use designations are not related to agricultural classification. These designations, as well as subdivision or neighborhood restrictions, determine the legal uses of your property.