What are Agricultural Exemptions and How Do They Impact Buying Land? | United Country Real Estate

February 19, 2024
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Discover the value of agricultural exemptions in land investments and how they can lower tax obligations while enhancing property value.

What are Agricultural Exemptions and How Do They Impact Buying Land?



A little more than 1 billion acres of land across the USA is considered agricultural and is designated for a variety of purposes, from owning a farm to cultivating crops. There are exceptional benefits to purchasing land that has agricultural exemptions (sometimes called AG exempts).

Explore how AG exempts can improve the value of a home, lower its tax obligations and make the land more attractive for investing.

What are AG Exempts?

Agricultural exemptions are defined as the idea of operating a farm or growing more attractive space. The thin profit margins of farmers and ranchers can sometimes threaten the reliable food supply our nation demands for feeding the rest of the population.

What Type of Land is Agricultural?

Working with a local real estate agent or well-informed investment firm will give you the best agricultural land access. These tend to fall into one of these categories:

§  Ranches: Land used for livestock production or grazing.

§  Farms: Land used to rear animals or grow crops.

§  Hobby Farms: Farms or ranches used for pleasure or recreational purposes.

§  Homesteads: Homes using the surrounding property to “live off the land.”

Why Invest in Agricultural Land?

Besides the AG exemptions in tax incentives, you are bound to find a more stable long-term investment with agricultural property compared to others. This is due to the historical increases in farmland values and the potential revenue from crop yields or rental payments.

What Types of Land Use Qualify for an AG Exemption?

First, it’s important to note that it can be tough to turn non-ag-exempt land into compliant territory. That is another reason why buying a property that already has these exemptions is so beneficial. You won’t have to spend 5-10 years cultivating the land with crops or cattle to qualify. You can use quite a bit of “out of the box” thinking to turn a property into something that qualifies as AG exempt.

As long as you are compliant with local zone and AG-board rules, you have a lot of leeway to get innovative. The end goal is helping to improve, maintain, or expand food and natural resources.


To learn more about AG exemptions and how you can benefit from them, read the full article on United Country’s designated land real estate website or watch the video below! As the leader in land sales with the best marketing and networking resources for country and rural properties, we possess all the knowledge of the intricacies and nuances of lifestyle real estate. If you are interested in buying or selling land in the U.S., Canada, Mexico, Costa Rica, Panama or Colombia, contact one of our land and agricultural property experts to begin your journey to Finding Your Freedom today! 

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