AG EXEMPTIONS | Bee Mindful Honey Farms

"AG EXEMPTIONS"

Can I really get an "Ag Exemption" by putting honey bees on my land?

If you own between 5 and 20 acres of rural or residential land in Texas, you may qualify for a special "Open Space" land valuation by raising honey bees on your property for the purpose of honey production or pollination, and save substantial amounts on your annual property taxes.

Land ranging from 5 to 20 acres may qualify for a 1-d-1 Open Space special land valuation (commonly referred to as an "Ag Exemption" or "Ag Valuation") if it meets the requirements outlined in the Texas Property Tax Code Chapter 23, Subchapter D, Section 23.51 (1) and (2), and complies with the specific land valuation rules established by your county's Central Appraisal District (CAD). This provision applies whether the landowner personally owns and manages honey bee colonies on the property OR rhe landowner hires a beekeeper to manage their own colonies onsite, because the qualification is tied to the land itself, not the landowner. Qualified open-space land must be primarily devoted to agricultural use at a level of intensity generally accepted in the area and must have been used primarily for agricultural purposes for at least five (5) of the previous seven (7) years.

Land used "to raise or keep bees for pollination or for the production of human food or other tangible products having a commercial value" satisfies the specific requirements related to farm and ranch use, and is eligible for special agricultural appraisal after 5 consecutive years of documented qualifying activity (or 5 out of 7 years). Essentially, this means that, once approved in Year 6, land will be appraised at a reduced value due to its engagement in agricultural and pollination activities associated with beekeeping, and/or for the purpose of producing valuable beekeeping related products.

It is important to note that, within the context of the Texas Tax Code, each local appraisal district establishes their own standards and requirements for beekeeping valuation. In most counties, the minimum number of hives to qualify is six (6) for the first 5 acres, usually with additional hives needed per additional qualifying acreage (up to 20 acres). Properties with a homestead may require more than 5 acres minimum to qualify, usually (but not always) one (1) additional acre. See below for a list of posted county guidelines.

Incidentally, if the land is already under "Ag Valuation" based on another qualifying activity, like livestock management or hay for example, it is possible to transition to managing honey bee colonies instead, and discontinue the previous activity while retaining the land's special valuation, because it still satisfies the 5 out of the last 7 years of qualifying agricultural activity. And again because it's the land that qualifies, not the landowner, new property owners may benefit from existing AG valuations, or from past qualifying AG activity performed by the previous owner.

How much can I save on my taxes? Is it really worth it?

The amount saved will vary greatly based on the county's productivity values, tax rates, and the amount of land qualifying, but the savings may often amount to thousands of dollars less on property taxes every year. Property resale value might also increase significantly ("Ag" land is very sought after). In addition, land under 1-d-1 Open Space Land Valuation for at least 1 year may be converted to Wildlife Management Valuation, regardless of acreage!

Because of the much lower valuation on the land, one of our Hays County customers saved over $18,000 in yearly taxes on their 7-acre lot (going from close to $19,000 per year to $300 per year despite a homestead on the land: that's over 98%). The savings may be so significant that landowners are willing to pay up to 30% of their yearly savings to have a beekeeper help keep them qualified each year.

What's the catch?

If your land does not currently have an "Ag Exemption," you will need to establish and document five consecutive years of agricultural or beekeeping use before becoming eligible for the new land valuation in Year 6, when the tax reduction will take effect.

To ensure quality service and avoid the increasing number of scams or inexperienced providers, keep in mind that not all beekeeping service companies are equal. For reliable and professional service, we recommend confirming that the company 1) is insured, 2) holds a current registration with the Texas Apiary Inspection Service, and 3) employs only certified master beekeepers to service your property.

How can I get this special land valuation and save money on my taxes?

While both DIY and leasing options are available, many landowners opt for beehive rental/leasing or consulting services rather than managing their own colonies. For non-beekeepers, beekeeping can be intimidating and costly—consider that a single healthy hive in mid-summer may house over 50,000 flying, stinging insects. Additionally, the learning curve is steep, with national colony loss rates exceeding 50%.

TURN-KEY LEASES

A hassle-free option is to lease bees from a professional beekeeper who, for a monthly or annual service fee, will:

Provide and set up hives and bees on your property
Manage all beekeeping tasks
Maintain accurate and complete records required for qualification
Assist in filing your application with the Appraisal District
Replace lost colonies at no additional cost

SELF-MANAGED

For those willing to take on the challenge, a DIY approach involves:

Purchasing equipment and bees
Learning beekeeping and setting up an apiary
Managing colonies and replacing any losses
Keeping detailed records
Filing applications and documentation independently
Hiring a beekeeper for consulting, if needed

For these ambitious individuals in Central Texas, we offer a one-stop shop for hives, bees, and top-notch beekeeping education, including apprenticeships, workshops, and introductory classes. Handy DIY enthusiasts can also access free, easy hive plans!