The Short Answer:
To get a Texas “ag exemption” (legally known as a 1-d-1 Open Space Agricultural Valuation), your land must be primarily used for agriculture for at least five of the preceding seven years, and the activity must meet your specific county’s intensity standards. To maintain it, you simply continue the agricultural use—you generally do not need to reapply annually unless requested by the Chief Appraiser.
While people commonly call it an “ag exemption,” it is actually a special valuation. Instead of taxing your land based on its full market value (what it would sell for), the county taxes it based on its productive agricultural value (what it can produce). For landowners in Central Texas counties like Fayette, Lavaca, and Colorado, this can reduce the land portion of a property tax bill by 50% to 90%.
The 2026 Rules at a Glance
Before buying land or starting an agricultural project, you need to understand the baseline requirements. Here is how the 1-d-1 valuation works across Texas:
| Requirement | What You Need to Know |
| True Identity | It is a 1-d-1 Special Valuation, not an exemption. |
| History Required | 5 out of the last 7 years of active agricultural use. |
| Minimum Acreage | Set by the local appraisal district (often 10-15 acres; 5-20 for bees). |
| Primary Use | Agriculture must be the main use of the land, not recreation. |
| Rollback Taxes | Triggered if you change the land use. Costs 3 years of tax savings + 5% interest. |
| Transferability | The history stays with the land, but a new buyer must reapply. |
The Step-by-Step Process to Qualify
If you are buying raw land with no agricultural history, you cannot get the tax break on day one. You have to establish the history first. Here is the exact sequence to secure your 1-d-1 valuation:
1. Determine County Intensity Standards: Research phase.
Every Central Texas county is different. Contact the local Central Appraisal District (CAD) (e.g., Fayette CAD or Colorado CAD) to find out their specific minimum acreage and “animal unit” requirements. For example, the acreage required to support one cow in Schulenburg may differ from the requirement in Hallettsville due to soil and rainfall differences.
2. Establish 5 Years of History: The waiting period.
You must actively farm, ranch, or manage bees on the land for five years. Document everything: keep feed receipts, lease agreements (if you lease the land to a local cattle rancher), and take dated photographs.
3. File Form 50-129: Deadline: April 30th.
Once you have your five years of history, file the application for 1-d-1 Agricultural Appraisal with your county’s CAD between January 1st and April 30th of the tax year.
How to Maintain Your Valuation
Once approved, keeping your 1-d-1 valuation is straightforward, but failing to maintain it carries a heavy penalty.
- Keep up the work: The land must continue to be used for agriculture to the degree of intensity typical for your area. Token efforts (like keeping a single pet horse on 20 acres) will not qualify.
- You don’t need to apply every year: Unlike other exemptions, the 1-d-1 automatically renews. You only need to file a new application if the Chief Appraiser explicitly requests one, or if the ownership of the land changes.
- Beware the Rollback Tax: If you stop using the land for agriculture or build a commercial enterprise on it, the county will levy a “rollback tax.” You will be forced to pay the difference between the ag taxes you paid and the market taxes you would have paid for the previous three years, plus 5% interest.
At Bubela Real Estate, our agents live and work in the regions we serve. Whether you are looking for a sprawling ranch in Lavaca County or a 15-acre beekeeping tract near Schulenburg, we can help you navigate the local CAD requirements and find land with a strong agricultural history.
