Agricultural Exemption

See Idaho Code 63-604.

The agricultural program, also known as the ag exemption, reduces the taxable value of agricultural land. Idaho Code describes agricultural land as: land actively devoted to agriculture and a part of a bona fide profit-making agricultural venture. The land is further described as follows.

  • Used to produce field crops (and / or)
  • Used by the owner or bona fide lessee for grazing of livestock to be sold as part of a net profit-making enterprise
  • Land shall not be classified or valued as agricultural land which is part of a platted subdivision with stated restrictions prohibiting its use for agricultural purposes
  • Land utilized for grazing of a horse or other animals kept primarily for personal use or pleasure shall not be considered land actively devoted to agriculture

Acreage Requirements

If the total area of such land, including the home site, is more than five contiguous acres (may be a group of separately assessed parcels with common boundaries), the owner may make initial application for the program. To continue the agricultural classification in future years, the owner must then ensure that the land continues to be devoted to agricultural use or show that it has been placed or continues to be in a crop retirement or rotation program.

When the area is five acres or less, such land shall be presumed to be non-agricultural land until it is established that the requirements below have been met.

  • The owner must make an initial application and must show that the land was actively devoted to agriculture during the last three growing seasons (and)
  • Agriculturally produces for sale or home consumption the equivalent of 15% or more of the owners' or lessees' annual gross income (or)
  • Agriculturally produced gross revenues in the immediately preceding year of $1,000 or more, including net income per sale of livestock
  • The landowner must provide proof of these minimum incomes each year for the land to remain in qualification

Application Deadline

Initial application must be made in the Assessor's office by April 15th of the year in which the owner is seeking the agricultural classification on the land. For land that is over five acres, you should fill out the Agricultural Eligibility Determination Form  (PDF).

For land that is five acres or less in size, the landowner must provide proof of income (from the year before) by April 15th each year. The land needs to show evidence that the use is in accordance to the application by the time of inspection which will be before mid April (i.e., fencing is up, fields have been prepared or worked (weather permitting) and proof of past use by stock, or they are present at time of inspection). The Income Requirements Certification form (PDF).

Valuation of Agricultural Land

When property is accepted into the agricultural program, it is given one of the following classifications: dry cropland, irrigated cropland, dry grazing, or irrigated grazing. There are a number of different assessment rates that apply to the land according to its ability to produce crops or grazing grasses. The value is calculated by multiplying the acres in the program by one of these rates, which are lower than the per acre rates for full market value. These rates are provided by the State Tax Commission, and change each year.

For Questions or More Information

Contact the Timber and Agriculture Department at 208-446-1526 or 208-446-1527.