What is an agricultural valuation in Texas?
Reviewed August 2026 by Shannon Miles Group
An agricultural valuation (also called an ag exemption 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. It is not a tax exemption. It is a different method of calculating your tax burden.
How agricultural valuations work in Texas.
Texas law allows landowners to apply for an agricultural valuation on their property through the 1-d-1 open-space provision in the Texas Constitution. This shifts the tax basis from market value (what the land could sell for) to productive value (what the land can produce agriculturally). The result is often 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 if managed as a commercial operation.
- Timber. Managed timber production on qualifying acreage with a forest management plan.
- Wildlife management. Land managed for native wildlife habitat can qualify under the wildlife management use provision.
- Beekeeping. Beekeeping operations on qualifying acreage with sufficient hive density per acre.
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 in Texas is April 30 of each year.
Rollback taxes
If you change the land use from agricultural to non-agricultural, or if the land is sold to someone who does not maintain qualifying use, the county appraisal district can impose rollback taxes. These cover the difference between the ag valuation taxes and the market value taxes for the previous 5 years, plus interest. Rollback taxes can be substantial, so factor them into your plans if you intend to change the land use.
Ag valuations in Northeast Texas.
The Lamar County Appraisal District handles ag valuations for properties in Lamar County. Fannin, Grayson, and surrounding counties each have their own appraisal districts with their own guidelines. Requirements vary slightly by county but generally follow state guidelines.
Minimum acreage requirements typically start at 10 acres for most uses, though this varies by county and land use type. Many rural properties in Northeast Texas qualify for ag valuations. If you are buying a farm or ranch property, it likely already has an ag valuation in place.
An ag valuation can significantly reduce the carrying costs on farm and ranch property. In some cases, the tax savings alone can make the difference between a property being affordable or not. The Shannon Miles Group can help you understand the ag valuation status of any property you are considering.
Important things to know.
- Apply by April 30 each year. Missing the deadline means waiting another year. Plan ahead.
- Maintain qualifying use. Ag valuations are not permanent. You must continue the qualifying agricultural use or risk losing the valuation and facing rollback taxes.
- 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.
- An ag valuation reduces carrying costs. On a large property, the tax savings can be thousands of dollars per year. Always verify ag valuation status before closing.
Have questions about ag valuations?
Call us or stop by the office at 2322 Lamar Ave. in Paris. We help buyers and sellers understand ag valuations and how they affect property taxes.