Ag Valuation
Farmland can be taxed on what it produces, not what it sells for
If your land is actively used for farming or ranching, it may qualify for a much lower tax bill under agricultural special appraisal.
Texas has a special rule for farm and ranch land. Instead of taxing it on what a buyer would pay, the state taxes it on what it can produce. In Yoakum County, cotton, sorghum, and cattle are common. This rule can cut your tax bill a lot.
Many people call it an 'ag exemption.' That name is not quite right. It is not an exemption. It is just a different way of figuring out the value.
To qualify, your land must have been used for farming or ranching for at least five of the last seven years. The use must be at a level normal for this area. You apply at the Yoakum County Appraisal District. That is the local office that sets property values.
Watch out for rollback taxes. If you stop farming the land and switch it to another use, you owe back taxes. The rollback is the difference between what you paid and what you would have owed at full market value, plus interest. Check the official source below for current rules before you apply.
Source to confirm: Texas Comptroller — Agricultural Special Appraisal