What is an agricultural exemption in Texas?
Reviewed August 2026 by Shannon Miles Group
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.
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.
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.
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 may apply. If the land changes use or is sold to a non-agricultural owner, you may owe rollback taxes covering up to 5 years of the tax difference.
- 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.
More answers you might find useful.
We are happy to help you think it through.
Not every land question fits neatly into a guide. Call us, stop by the office at 2322 Lamar Ave. in Paris, or send a note. We answer real questions from real people every day.