Get Title: Agricultural Exemption ST28F Rev

What qualifies as ag exemption? To qualify, the land must have been used for agricultural purposes for at least 5 of the last 7 years, and it must be in ag use currently. Agricultural purposes include crop and livestock production, beekeeping and similar activities. Many counties have minimum acreage requirements.

California, like every other state, offers property tax breaks for agricultural land. Specifically, farmers are able to take 20 to 75 percent off their property tax bill if they agree not to develop their land for ten years and do so with at least 100 acres.

The value of an ag exemption Market values for the same land could be as high as $20,000 per acre. “If you average all the market values from Peaster to Millsap to Aledo, you get an average of about $5,000 per acre,” he said. “The tax savings is just huge if you've got ag.”

Summary. California provides a partial exemption of the state's sales and use tax for farm equipment and machinery. The exemption only applies to taxes levied by the State, and not sales and use taxes levied by local governments.

Purchases of farm equipment and machinery (including repair and replacement parts) for use by a qualified person and primarily used in producing and harvesting agricultural products, are subject to a partial exemption from tax.

As you may know, most diesel fuel sales and purchases are taxable, but the state of California offers various tax exemptions for businesses engaged in agricultural activities, like farms, nurseries or food processing.

Typically a minimum of five acres or used in conjunction with other properties. Must be fenced as of January 1st. 2. Breeding requires documented proof of being an established breeder, i.e. foaling records, stud contracts, etc.

USDA defines a farm as an operation with the potential to sell at least $1000 of agricultural products in a year.