Keep My Acres
The land’s use matters, not your job
You do not have to run the cattle or cut the hay yourself. A tenant can do the work. The district looks at what happens on your acres, not whether farming is your main job.
The law calls this 1-d-1 open-space appraisal. The Comptroller’s ag manual says it "Has no occupation, income or profit requirements. Instead, it focuses on whether the land is used to the degree of intensity typical in the area for a particular agricultural enterprise."
Texas A&M AgriLife puts it plainly: "Open-space valuation depends how the land is used, not on any characteristics of the landowner."
The old 1-d rules required farming to be the owner’s main job. That is not the test described here. For 1-d-1, your tenant’s work must meet the district’s intensity requirements in the current year. The land also needs the 5-of-7-year agricultural use history under §23.51(1). A lease alone does not meet those tests.
Match the tenant’s work to your district’s requirements
Before agreeing to a lease, ask your CAD in writing what your acres need. Then make sure the tenant can deliver that use. Cattle numbers, pasture acreage, and hay cuttings matter.
These district examples show why you should not borrow a neighbor’s plan from another county:
- Trinity CAD cattle: 5 mother cows, 1 per 5 acres, and 75% open.
- San Jacinto cattle: About 15 acres and 5 cows.
- Angelina cattle: 20 acres of native pasture or 15 acres of improved pasture.
- San Jacinto hay: About 10 acres and 2 cuttings.
- Trinity hay: 2 cuttings.
- Angelina hay: 10 acres and 3 cuttings.
These are examples, not a decision on your tract. Ask the district to confirm how its requirements apply to your land in writing. If your land is in Polk, Tyler, or Walker County, ask that district for its requirements rather than using these examples.
Put the work agreement in writing
Leasing is a normal way to run farm and ranch land. The Comptroller’s manual describes cash leases as "an agreement between a landowner and tenant to lease for a fixed cash payment". It also describes share leases. Districts use typical lease rates when setting ag values.
As practical advice, a short written lease or a letter from your tenant can make approval easier. Keep it specific. Describe the work, not just the permission to use the land.
- Who owns the land and who will use it.
- Which acres are included.
- What the tenant will do: cattle, hay, or goats.
- How many head will be kept or how many hay cuttings are planned.
- The start and end dates.
- Who handles fences, water, and fertilizer.
Use the same approach with family. The manual warns that family leases or leases "not at arm's length" may not be typical. That warning concerns how values are set. It does not, by itself, mean a family tenant cannot qualify the land. Still, write down the arrangement so the work and responsibilities are clear.
Know what the district is asking for
The Comptroller’s manual says: "Information contained in income statements, income tax returns, land lease rates and lease agreements is not necessary to determine whether the land qualifies."
If a district requests those records, the request should say you are not required to provide them. Some districts still ask for a lease copy or a tenant letter.
There are also specific local requirements to check. San Jacinto CAD requires a lease agreement with the application when land is leased to a commercial beekeeper. It also requires a management/business plan with every ag application.
Do not assume every request works the same way. If you are unsure what you must submit, ask your district in writing. A useful question: What documents are required for my leased acres and planned use?
A hunting lease does not replace cattle or hay
Hunting income and agricultural use are separate questions. Under §23.51(4), net to land includes "any income received from hunting or recreational leases". That does not make hunting alone a qualifying agricultural use.
The manual’s Question 21 describes a cattle ranch also leased for hunting. It still qualifies even when hunting brings in more money, because ranching remains the primary use.
Question 7 describes land with no grazing or crops, leased only for hunting. That land does not qualify.
If your tenant runs cattle and you also lease hunting rights, ask the district in writing how it will review the combined uses on your tract.
Have a plan if the tenant leaves
If the tenant leaves and nothing replaces the agricultural use, the land can lose eligibility. A change of use can also bring a rollback under §23.55. Do not assume the lease paperwork keeps the land eligible after the work stops.
You must notify the district in writing before May 1 after eligibility ends or the category of use changes. Failing to notify can bring a 10% penalty under §23.54(h).
Before the lease ends, ask the tenant whether the work will continue. If it will not, ask your district in writing how a gap or replacement use would affect eligibility. The lease records the agreement. The use of the land is what must qualify.
Your county
General information, not legal or tax advice. Your appraisal district makes the final call.