Agricultural Valuation
Farm and ranch land can be taxed on production value, not market value
If your land is actively used for farming, ranching, or wildlife management, you may qualify for a special lower tax appraisal based on what the land produces, not what it would sell for.
Texas offers what is called a 1-d-1 open-space valuation. Instead of taxing rural land at its full market price, the appraisal district values it based on its average income from agriculture. In a county like Cooke where more than three-quarters of the land is in agricultural use, this benefit matters a lot to landowners.
You apply through the Cooke County Appraisal District. The land must have been actively used for agriculture for at least five of the past seven years. If you stop farming and the land changes use, you owe rollback taxes on the difference for the previous three years. Check with the CAD for current application requirements and deadlines.
Source to confirm: Texas Comptroller — Ag, Timberland and Wildlife Special Appraisal