Odd question about agricultural expemption.

[fisherking73]

I know many that have larger homestead of an acre or more, that get agricultural exemption if they plant x amount of fruit trees etc.... (not sure what the exact definition is) So is it possible to get same exemption on smaller properties if you are using almost all your land for fruit and food growing? No really looking for the tax write off aspect of it, but more so for the ability to prosecute someone for stealing my fruit. I know with out the cops won't care, and the person will just get told to hit the road. But from my understanding, agricultural theft is a felony correct? and degree varies on how much was taken. Could be totally off base, but curious if anyone has tried to do it for a property less than a quarter acre.

[SeaWalnut]

For a quarter acre should be cheap to install a fence.

[pineislander]

There is no exemption, just a much lower classification and assessment. The statute does mention small acreage and doesn't preclude a plot which includes a dwelling or susbtantial improvements.
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0100-0199/0193/Sections/0193.461.html

This is an assessor judgement and they need to be approached carefully to get it right. Go to your assessor's website they usually have a page on "Agricultural classification" with a FAQ. Ask around farmers and you might find out who in the assessor's office does the actual field work, cultivate him/her as a friend, most will know who it is.
Some have abused this and counties are familiar with the scams like a millionaire's grassy yard becoming a "Palm Farm". You have to make a good faith effort and some investment, document expenses and income, file a return, renew every year.
I chose to plant out lots closest to the paved road which had the highest tax compared to land off the road which had a lower valuation.


Read this example look at citrus for what they will look for.
https://www.pa.martin.fl.us/learn-more/agricultural-classification

[Cookie Monster]

You can call the broward county prop appraiser and ask them about it. But, due to the number of fraudulent ag exemptions, they do require tax filings to show that it's a business. At least that's what I was told.

[fisherking73]

So I would have to sell the fruit in order to qualify or have a chance of qualifying.  Just a hypothetical cuz pretty sure they will never consider anything in the area I live "agricultural"

[Cookie Monster]

Correct. That's what I was told by BCPA. I decided that it wasn't worth the effort and just annexed the lot and homesteaded it .

So I would have to sell the fruit in order to qualify or have a chance of qualifying.  Just a hypothetical cuz pretty sure they will never consider anything in the area I live "agricultural"

[Coach62]

Correct. That's what I was told by BCPA. I decided that it wasn't worth the effort and just annexed the lot and homesteaded it .

So I would have to sell the fruit in order to qualify or have a chance of qualifying.  Just a hypothetical cuz pretty sure they will never consider anything in the area I live "agricultural"

I have the same understanding, but I was wondering if there might be a way around that?  I have a substantial investment in my 110 pr so trees. I PLAN to sell some day, but my trees are still very young and aren’t established enough to produce a saleable crop yet.  Once I figure out which trees do best here I plan on expanding even more.

It can take years for a citrus grove to produce, I assume they’re allowed the AG designation for example.

[geosulcata]

We have 2.2 acres. We received approval (filed a schedule F on our tax return the past 5 years), but the appraiser would only give the exemption for 1 acre and it made our taxes increase significantly because we lost our homestead exemption on that acre and have a significant “Save Our Homes” discount which was ported from our last property to this one. Ag exemption allows you to run agricultural business despite zoning, which is where the real benefit may come in for small parcel owners. The appraiser can also revalue your property/add things on when he does the exemption. Probably not worth it, and not sure they would approve without proof of selling a product you grow.

[Guanabanus]

"Agriculture Tax Rate", NOT "exemption."

[pineislander]

Correct. That's what I was told by BCPA. I decided that it wasn't worth the effort and just annexed the lot and homesteaded it .

So I would have to sell the fruit in order to qualify or have a chance of qualifying.  Just a hypothetical cuz pretty sure they will never consider anything in the area I live "agricultural"

I have the same understanding, but I was wondering if there might be a way around that?  I have a substantial investment in my 110 pr so trees. I PLAN to sell some day, but my trees are still very young and aren’t established enough to produce a saleable crop yet.  Once I figure out which trees do best here I plan on expanding even more.

It can take years for a citrus grove to produce, I assume they’re allowed the AG designation for example.

You are correct you do not have to show a profit at first, just show expenses. For it to continue you will need o report the income. Clearly with 110 trees you would be selling. Check the page it explains. You can't just plant and get the classification, there must be good faith effort which most of us do. I got a 1/2 acre lot this year, two other lots last year. It needs to be the "primary activity" on the plot. Some depends on the purchase price, for example a beachfront lot costing 10 miilion/acre might not qualify as a timber farm even if planted with pine trees.....
Broward:
http://www.bcpa.net/ag.asp

Collier:
http://www.collierappraiser.com/

Like I mentioned I highly recommend getting to know the ag appraiser, usually this is a dedicated position, they do a drive-by and take photos every year, plus everything is on aerial view nowdays.

[Coach62]

As usual, thanks for your helpful reply.  I guess the question is, which would give me the bigger tax break, my homestead, or the AG designation.

I did meet a guy that planted dozens of royal palm trees on his land and called it a palm tree farm.  He said it saved him (if memory serves) I think $12K a year in taxes, but I'm guessing he didn't have a homestead exemption on his land.  I know that figure seems high, but I'm pretty sure that's what he said.  I find that figure hard to believe as I think he only owned like 5-7 acres, but it was near Davis and County Barn area. 

[Cookie Monster]

Should be able to save some serious dough with ag classification. A friend of mine has a commercial lot, valued around 650k, but with ag classification its value for tax purposes is 3k.

[Coach62]

Should be able to save some serious dough with ag classification. A friend of mine has a commercial lot, valued around 650k, but with ag classification its value for tax purposes is 3k.

Good to know, thanks Jeff.