Agricultural Exemption

Land “actively devoted” to agriculture may qualify for the Agricultural Exemption, which aims to assess agricultural land at a value commensurate with what it will produce, rather than the price it will sell for.

Reference Idaho Code 63.604 Land Actively Devoted to Agriculture Defined

Timber and Agricultural Department

Mailing Address
P.O. Box 9000
Coeur d'Alene, ID 83814

Phone: 208-446-1526

Fax: 208-446-1501

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Must be ACTIVELY DEVOTED to agriculture and part of a BONA FIDE FOR-PROFIT enterprise.


Parcels More Than 5 Acres:

The total area of a parcel, including the homesite, is more than five (5) contiguous* acres, and is actively devoted to agriculture, which means:

(i) It is used to produce field crops (and/or)
(ii) It is used by the owner or bona fide lessee for grazing livestock to be sold as part of a net for-profit* enterprise
(iii) It is in a cropland retirement or rotation program.


Parcels 5 Acres Or Less:

The area of such land is five (5) contiguous* acres or less and such land has been actively devoted to agriculture during the last three (3) growing seasons; and

(i) It agriculturally produces for sale or home consumption the equivalent of fifteen percent (15%) or more of the owner’s or lessee’s annual gross income; or
(ii) It agriculturally produced gross revenues in the immediately preceding year of one thousand dollars ($1,000) or more.
(iii)  Landowner must provide proof of these minimum incomes annually to remain in qualifying status, due April 15th.

 LAND USED FOR GRAZING HORSES OR OTHER ANIMALS KEPT PRIMARILY FOR PERSONAL USE OR PLEASURE SHALL NOT BE CONSIDERED. 

 LAND PART OF A PLATTED SUBDIVISION WITH STATED RESTRICTIONS PROHIBITING AGRICULTURAL USE SHALL NOT BE CONSIDERED. 

 *”Contiguous” means being in actual contact or touching along a boundary or at a point, except no area of land shall be considered not contiguous solely by reason of a roadway or other right-of-way.        

*"For-profit" means the enterprise will, over some period of time, make or attempt to make a return of income exceeding expenses.


Yield Tax On Agricultural Land:

If grazing ground is timbered or there are small areas of timbered ground included in the acres classified as cropland, the landowner will be required to pay a 3% yield tax on timber harvested and delivered to a mill. The agricultural rates per acre do not account for potential income from the trees. The total taxable value depends upon the species of trees and the quantity harvested (by the thousand board feet). Yield tax bills are processed bi-annually.

The first-half billing covers the period of January 1st – June 30th. Bills are mailed in October and are due December 20th

The second-half billing covers the period of July 1st – December 31st. Bills are mailed in March and are due June 20th.


For Questions Or More Information:

 Call the Timber and Agricultural Department 208.446.1526 or email us at kctimberag@kcgov.us .