Agricultural Property

Definition of "Agricultural Property"

Heidi Reis real estate agent
Heidi Reis, Real Estate Agent Abode Agency Real Estate

The term agricultural property means a type of land that has been designed or is permitted to engage in agricultural activities. Also referred to as agricultural land, agricultural properties are usually dedicated to producing food for human consumption. 

Types of Agricultural Property

Agricultural properties are ideal for those interested in growing vegetables around the house for a more bio way of life by making homemade recipes from their garden. The United Nations Food and Agriculture Organization (FAO) defined agricultural properties, and other industries follow that definition. However, the definition for agricultural real estate is a collection of terms that can all describe agricultural properties.

  • Arable land - any land used to produce annually replanted crops;
  • Permanent cropland - any land used to produce annual crops without replanting;
  • Permanent pastures - any land used for grazing livestock.

Agricultural Property and Tax Exemptions

When it comes to agricultural property, the land pertaining to the owner can be used to either cultivate crops or livestock grazing. Production of timber can also be accepted on agricultural property, but states have different means to define what is and isn’t an agricultural property. It’s always best to check with your state or local government, or assessor because tax exemptions are available for agricultural land.

Depending on the state in which you live, the definition of agricultural property can change, similarly to the qualifications for agricultural land tax exemptions. The size of the land, the type of agricultural land, the revenue coming from the agricultural land, and the agricultural use value can affect how the state views the land itself or, in some cases, how the county sees it.


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