Agricultural Classification (a.k.a. Greenbelt)
One of the most common calls that I receive as an Extension agent is 'How can I Greenbelt my land?' Agricultural Classification, commonly known as 'Greenbelt,' is a land classification that provides a lower use assessment value (not market value) to agricultural land. Agricultural producers are taxed based on the income potential of the land in production rather than the market value of the land. While some refer to this as the 'ag exemption,' it is more of an adjustment based on the commodity being produced.
The Florida Greenbelt Law requires property to be used primarily for 'bona fide agricultural purposes' to be classified as agricultural. It is up to the discretion of the County Property Appraiser's Office to determine the status of the property; however, focusing on farm planning and running your farm as a business may help you increase your chances to qualify.
Tips to Prepare Your Operation
- Plan your farm as a bona fide agricultural operation. Create a business plan and run the farm as a business with an expectation of making a profit. Utilize industry standard practices. For cattle, this could include breeding cows and selling weaned calves as your income source. It should be clear that they are more than pets. For crops, operate as a commercial farm with consistent production and standard production practices.
- Focus on one or two enterprises. With smaller acreage properties, avoid diversifying too much. Your operation should be at a scale appropriate for a bona fide agricultural business. Producing too little of several enterprises can make the operation appear to be a hobby rather than a farm business.
- Keep production and financial records. Be prepared to provide documentation such as receipts for supplies, veterinary records, livestock sales receipts, Schedule F tax forms, income and expense statements, and business plans.
- Understand what qualifies. Agricultural Classification applies only to the portions of the property used for agricultural production. Homes and areas not used for production are excluded from the Greenbelt assessment.
The agricultural application deadline for filing a timely Agricultural Classification application is March 1 of the year for which you are applying. However, the agricultural operation must already be in effect as of January 1 of that year. Applications are reviewed and the property is inspected to determine eligibility.