Ag exemption vs Wildlife exemption in TX

[C4Ranch]

Purchased 160 acres in April and trying to figure out best tax plan for me. The property is currently Ag exempt and at this point, I'm not ready to put the fields back into production or run cattle. Given how the year is flying by and how busy I am at work I can't say for sure when I'll be ready for agriculture.

From what I've read, it seems like it might be best to go ahead and apply for wildlife.

Thoughts? Any downsides for going wildlife?

TIA,
J

 

[farmgirl19]

I know a couple of folks that have their land in Wildlife. They have th game cameras, and also traps for raccoons, etc. They take photos of things trapped, after they shoot them, to document that they are active in trying to preserve songbirds, wild turkeys, deer, etc.

Putting something into Wildlilfe exemption still requires that you show it is being actively managed and used for such. Nothing you apply for an expemption will come just because you want to claim it on paper.

The easiest would be to lease it for someone else to run cattle on, for a year or two, or to have someone sign a lease to bale hay on it for the next 2-3 years. That gives you time to decide what you want to do, as well as get time to implement the plan, and also gets you a contract to show, for documenting Agricultural use.

 

[BillG_in_TX]

+1 on what farmgirl said. We have our acreage under lease to our neighbor who has a few pet longhorns. My understanding is that the appraiser drives by every couple of years and checks for cow patties, and so far we haven't had any problems. Other neighbors in the same area have had to show they are actively managing their property for wildlife in order to maintain their exemption.

By the way, wildlife management is an ag exemption. Whatever you do, don't let your exemption lapse, because it's a long and difficult process to get it back.

 

[Western]

+2 with FG19, I checked into the Wildlife exemption and it requires allot more work on your part. iirc, you have to submit a sound wildlife management plan that is much more extensive then controlling varmits. They told me they wanted a written plan and implementation plan to cover land practices and improvement ect tra. Call your county tax office and they will tell you in a nut shell.

A few cows or letting someone graze/ or cut hay on it would be the easiest, Unless you are a hunter and wildlife management is the only goal.

 

[EddieWalker]

I went to a class type seminar about small farm land that covered a variety of topics including changing your tax exempt status to a wildlife exemption. For me, its not possible to go from timber to wildlife. All other exemptions are allowed to change. There is a list of things that you pick from to get that status. It's like a dozen different things and you need to do 3 or four of them. Some are just clearing and maintaining trails, others where improving habitat, providing feed, water and nesting areas. You can specify it for hunting or photography use. From what the State Biologist and guys from the Ag Extension said, it's pretty simple and very easy to do. I would seriously look into it if it's an option for you.

Eddie

 

[C4Ranch]

Thanks! Great info. I've read a lot about what it takes and it definitely requires active management but is stuff that can be done on your own schedule vs ag where you have to plant, harvest, feed, birth on their schedule.

Leasing is a good option and I'm gonna meet my neighbor this weekend but not sure how I feel about others on the property without me.

Also not sure if its possible to go from wildlife back to ag if things change or if you have to requalify from scratch.

TIA!

 

[BillG_in_TX]

From: http://www.tpwd.state.tx.us/publications/pwdpubs/media/pwd_br_w7000_1121.pdf

What if I want to go back to agriculture?

Wildlife management is an agricultural practice, so landowners have never left agriculture. However, if a landowner no longer wishes to manage for wildlife as the primary agricultural use of the land, then all that is necessary is to contact your county Central Appraisal District and change back to a different agricultural use.

 

[farmgirl19]

Thanks! Great info. I've read a lot about what it takes and it definitely requires active management but is stuff that can be done on your own schedule vs ag where you have to plant, harvest, feed, birth on their schedule.

Leasing is a good option and I'm gonna meet my neighbor this weekend but not sure how I feel about others on the property without me.

Also not sure if its possible to go from wildlife back to ag if things change or if you have to requalify from scratch.

TIA!

Someone leasing for cattle pasture or hay baling, won't usually be the sort of folks you would deal with in the city. Most are hard working, and helpful. I have a couple of neighbors that have a key to my gates. Nice to know someone could help out, in case of wildfire, or other emergency. Country folks are the best kind!

 

[sseelhoff]

Purchased 160 acres in April and trying to figure out best tax plan for me. The property is currently Ag exempt and at this point, I'm not ready to put the fields back into production or run cattle. Given how the year is flying by and how busy I am at work I can't say for sure when I'll be ready for agriculture.

From what I've read, it seems like it might be best to go ahead and apply for wildlife.

Thoughts? Any downsides for going wildlife?

TIA,
J

We went wildlife this year. The property was ag when we bought it, but the previous owner had abused it, and we a) don't want to run cattle (or goats or anything like that and b) the land was over grazed and would not sustain it.

It took a lot of work to prepare the plan. We continue to work on our plan for reporting purposes knowing that we have to file our updated plan on an annual basis.

 

[ustmd]

Lots of good information here. Have you talked to your local appraiser? That would be my first step. The local county has a significant amount of discretion--in both directions (allowing/not allowing) and are allowed to develop their own general guidelines.