Tactical Honey

What is Ag Valuation?

The process might seem overwhelming at first, but it’s simpler than it sounds. The county appraisal district calls it a 1-d-1 Open Space Special Valuation, so it’s good to use their terms. In casual conversation, it’s often called an ag exemption. When you apply, you’re applying for a 1-d-1 valuation. (The older 1-D valuation, which requires profit, doesn’t apply here.)

Land use requirements

Land designated for “raising or keeping bees for pollination or producing human food or other tangible, commercially valuable products” meets the criteria for farm and ranch use and qualifies for special agricultural appraisal after five consecutive years of documented activity (or five out of the last seven years). Once approval is granted in Year 6, the land will be appraised at a reduced value due to its involvement in agricultural and pollination activities tied to beekeeping or the production of valuable beekeeping-related products.

Once the property has the agricultural Special Valuation, activities in agricultural usage must continue or the property owner can be liable for significant rollback taxes. If the land is already under Special Valuation for another qualifying activity, such as livestock management or hay production, it is possible to transition to managing honey bee colonies. The previous activity can be discontinued, and the land can maintain its special valuation, provided it continues to meet the requirement of five out of the last seven years of qualifying agricultural use.

For land without an existing Special Valuation, you must document five consecutive years of agricultural or beekeeping use to qualify. The reduced land valuation will take effect in Year 6, once eligibility is established.

Land size Requirements

Texas law requires property covered by this valuation to be at least 5 acres and can cover up to 20 acres. Many counties remove an acre for a homestead or buildings, and in that case, the minimum acreage would be 6 acres.

This valuation applies regardless of whether the landowner personally manages honey bee colonies on the property or hires a beekeeper to do so, as the qualification is tied to the land itself rather than the landowner. To qualify, the open-space land must primarily support agricultural use at an intensity level generally accepted in the area and must have been used for agricultural purposes for at least five of the past seven years.

How many Hives Do I need?

Rules differ across counties, but most require 6 hives for the first five acres, and 1 hive for every additional 2.5 acres. It’s important to confirm with your local appraisal district, and the required number of colonies is referred to as “intensity” by the appraisal district. You can buy and manage the bees yourself, or you can have a beekeeper manage the bees on your land with a Turn-Key Lease.

Tax savings

The savings achieved can vary widely depending on a county’s productivity values, tax rates, and the amount of land that qualifies. However, property owners often see reductions amounting to thousands of dollars in annual property taxes. The savings depends on the difference between the market value of your property and the production valuation you receive from the appraisal district. The higher the market value of your property now, the greater the savings.

Support

Many landowners choose hassle-free turn-key bee leases rather than managing the bees on their own. For those without beekeeping experience, the practice can be both daunting with a single healthy hive in mid-summer containing over 50,000 flying, stinging bees. In addition, commercial beekeepers have been losing 30%-50% of their bees each year to colony collapse disorder, varroa destructor mites, and other causes. Replacing lost hives can be expensive for a beginner beekeeper, but with a turn-key bee lease, any lost colony will be replaced with a new colony, usually in the spring or early summer.