Agricultural Valuation
Farm and ranch land can be taxed on productivity, not market value
If you use land in Fayette County for farming or ranching, you may qualify for ag valuation — which taxes the land based on what it produces, not what it would sell for.
Texas allows qualifying agricultural land to be appraised at its productivity value instead of its full market value. In a rural county like Fayette, that difference can be very large. Common qualifying uses include crops, livestock, and wildlife management.
The land generally must have been in agricultural use for at least five of the past seven years. You apply with the Fayette County Appraisal District. If you stop the ag use, a rollback tax applies — meaning you pay back some of the taxes you saved. The Texas Comptroller's website explains the full rules. The Fayette CAD also publishes its own local agricultural guidelines.
Source to confirm: Texas Comptroller — Ag Special Appraisal