Land and Acreage

What is an agricultural exemption in Texas?

Reviewed August 2026 by Shannon Miles Group

Quick Answer

An agricultural exemption (also called an ag valuation or 1-d-1 open-space valuation) reduces your property taxes by valuing land based on its productive agricultural use rather than its market value. In Texas, this can save landowners hundreds or thousands of dollars per year.

From Shannon & Scott

A tax break is not a reason to buy

An agricultural valuation can be a tremendous benefit, but we never want buyers choosing a property based primarily on the tax savings. We want to understand what they intend to do with the land, whether they can reasonably maintain its qualifying use, and how the property fits their long-term plans. We're also looking at the property's access, improvements, utilities, overall usability, and future resale potential. A favorable tax valuation doesn't automatically make something a good purchase. We'd rather help someone understand the entire picture, including what could happen if the land use changes, than have them discover later that the property doesn't fit the life they wanted.

Detailed Explanation

How ag exemptions work in Texas.

Texas law allows landowners to apply for an agricultural valuation on their property, which shifts the tax basis from market value (what the land could sell for) to productive value (what the land can produce agriculturally). This often results in dramatically lower property taxes.

Qualifying uses

Livestock. Cattle, horses, goats, sheep, and other livestock operations qualify if the acreage and stocking rate meet county standards.
Hay production. Growing and baling hay for sale or personal use can qualify.
Timber. Managed timber production on qualifying acreage.
Wildlife management. Land managed for native wildlife habitat can qualify under the wildlife management use provision.
Bees. Beekeeping operations on qualifying acreage can also qualify.

The application process goes through your county appraisal district. You must document the agricultural use and demonstrate that the use is the primary purpose of the land. The application deadline is typically April 30 in Texas.

Local Context

Ag exemptions in Northeast Texas.

The Lamar County Appraisal District handles ag exemptions for properties in Lamar County. Requirements include minimum acreage (typically 10 or more acres for most uses, but this varies by county), documentation of agricultural use, and annual compliance. Many properties in Fannin, Grayson, and surrounding counties also qualify.

Each county appraisal district has its own guidelines, so it is important to work with the specific county where the property is located. The Shannon Miles Group can help connect you with the right resources and advise on whether a property is likely to qualify.

What to Consider

Important things to know.

Ag exemptions are not permanent. You must maintain qualifying use. If you stop using the land agriculturally, the exemption can be removed.
Rollback taxes follow the use, not the sale. Under the 1-d-1 open-space appraisal, the modern ag exemption that most Texas agricultural land receives (including wildlife management use), a rollback tax is triggered by a change in use to non-agricultural use, not by a sale alone. Selling the property does not by itself trigger a rollback as long as the buyer continues the qualifying agricultural use and timely files for the appraisal. The rollback recaptures the difference between the taxes paid under the special appraisal and what would have been paid at market value for the previous three tax years, changed from five years by HB 1743 effective September 1, 2019, and no interest accrues on a 1-d-1 rollback unless the tax bill becomes delinquent (HB 3833, effective 2021). A separate, older designation, 1-d agricultural use under Tax Code Subchapter C, works differently: selling the property or discontinuing agricultural use can trigger a rollback there, and interest applies in addition to the rollback tax.
Application deadline is April 30. Missing the deadline means waiting another year, so plan ahead.
Consult with the county appraisal district. Each county has specific requirements. Contact the appraisal district in the county where the property is located for detailed guidance.