Everything Texas landowners need to know about qualifying for and maintaining a 1-D-1 agricultural tax valuation.
Note: While commonly called an "agricultural exemption," the correct term is "1-D-1 agricultural special appraisal" or "open-space land valuation." It is not technically an exemption — your property is still taxed, but at its agricultural productivity value rather than its market value.
Under Texas Tax Code §23.51, land that is primarily used for agriculture can be appraised based on its capacity to produce agricultural products rather than its market value. For most Texas properties, this reduces the taxable value by 90% or more. A property with a market value of $500,000 might have an agricultural productivity value of just $5,000-$25,000 — a tax savings of $10,000-$20,000+ per year depending on local tax rates.
To qualify for a 1-D-1 agricultural valuation, your property must meet several criteria. The land must be currently devoted principally to agricultural use. It must have been in agricultural use for at least 5 of the preceding 7 years (or continuously for the preceding 3 years if the applicant owns the land). The use must be to the degree of intensity generally accepted in the area. And the property must meet your county's minimum acreage requirements (typically 10+ acres, though beekeeping may qualify with as few as 5 acres).
New applicants file Form 50-129 (Application for 1-d-1 Open-Space Land Appraisal) with their county appraisal district. The application deadline is typically April 30. Late applications may be accepted with a penalty. Some counties require annual renewal filings; others require filing only for initial applications and changes. Contact your county appraisal district for their specific requirements — LandComply's county directory has contact information for all 254 Texas counties.
Once approved, maintaining your agricultural valuation requires ongoing compliance. You must continue using the land for agriculture at the required intensity level, maintain documentation of your agricultural activities, respond to any CAD requests for information or inspections, and file any required annual reports or renewals by the deadline. This is where LandComply provides the most value — tracking your activities year-round so you're never caught unprepared during filing season or a CAD audit.
If your property loses its agricultural valuation, you face rollback taxes — the difference between the taxes you paid at productivity value and the taxes you would have paid at full market value, for up to 3 years (under HB 3833, effective 2022), plus 7% interest if delinquent. For detailed information, see our rollback taxes guide.
Stop worrying about whether your documentation is complete. LandComply tracks your activities year-round and tells you exactly where you stand.
Start Your Free Trial