Farmland and Ranch Land Can Be Taxed at Agricultural Value, Not Market Value

Texas lets farm, ranch, and wildlife management land be valued at its productivity value. That means your tax is based on what the land can earn, not its sale price. In the Panhandle, land prices have gone up while farm income has not always kept pace. This difference can mean big tax savings.

To qualify, the land must have been in active agricultural use for at least five of the past seven years. It must also meet local standards for the type and level of farming or ranching. You apply through the Hartley County Appraisal District.

Watch out for the rollback tax. If you change the land to a non-agricultural use later, you may owe back taxes — the gap between what you paid and full market-rate taxes for the past three years, plus interest. Confirm current requirements with the appraisal district before you make any changes.