Agricultural Valuation
Farm and Ranch Land Can Be Taxed at a Lower Value
If your land is used for farming, ranching, or wildlife management, Texas lets it be taxed on what it produces — not what it would sell for.
Texas has a program called agricultural special appraisal. Instead of taxing land at market value, the appraisal district uses a lower 'productivity value.' That is based on what the land can produce — crops, cattle, or similar uses. For rural Donley County, where ranching and farming are common, this can make a real difference in your tax bill.
To qualify, the land generally must have been used for agriculture for at least 5 of the last 7 years at a level typical for the area. You apply at the Donley County Appraisal District. The Texas Comptroller explains the full rules and provides the application forms. If land changes use after getting this status, a rollback tax may apply.
Source to confirm: Texas Comptroller — Ag and Timber Special Appraisal