Hello money, goodbye farm exemption

txdon · Jan 10, 2005

The Texas Lawmakers want about $400 million and are looking into modifying the Texas farm exemption. This is the article in the Houston Chronicle. In case the site goes bad here is the main part
..." But a growing number of legislators would like to add a revamp of the agricultural valuations to the list.

Rep. Sylvester Turner, D-Houston, said the state could add $400 million to its school finance coffers by tightening the law.

"A lot of weekend farmers get an ag exemption and agriculture is not their primary income," said Sen. John Whitmire, D-Houston. "If we're going to really, really examine school finance and our tax system, everything should be on the table. No sacred cows."


I know in Lee County a lot of farmers supplement their income with other jobs. Will these jobs now make their farm land taxable at a higher rate? They will not like this. /forums/images/graemlins/mad.gif

sendero · Jan 10, 2005

I'm using the Wildlife Habitat exemption on my 40 acres. Monetarily, it is equivalent to the Ag exemption. Land that was Ag exempt can be converted to WH under certain conditions.

There are seven possible wildlife habitat enhancements you can make to your land. Each year, you have to do 3 of them. You have to file a report with the county every 3 years, detailing what you are going to do.

I bought my land as more or less a wildlife habitat anyway, I sure do hope I can retain the tax break /forums/images/graemlins/smile.gif When I bought it, it already had an Ag exemption, though just between you and me it was pretty questionable. No legitimate Ag activities were underway. And I suspect that is the case for a lot of Ag exempt land, IMHO.

cowboydoc · Jan 10, 2005

A lot of weekend farmers get an ag exemption and agriculture is not their primary income 

That just shows the sheer stupidity of lawmakers. Only about 3% of farmers rely on farming for their only source of income. 97% of farmers/ranchers have secondary incomes equal to or greater than their farm income.

I've got a better idea. How about learing to live within your budget like the rest of us do!!!! /forums/images/graemlins/mad.gif

jinman · Jan 11, 2005

( I've got a better idea. How about learing to live within your budget like the rest of us do!!!! )

Amen! We keep spending more and more money on schools, and we still graduate illiterate students. I think we need to raise our standards instead of our taxes.

Okay... Rant over. /forums/images/graemlins/blush.gif /forums/images/graemlins/smile.gif

Soundguy · Jan 11, 2005

( "A lot of weekend farmers get an ag exemption and agriculture is not their primary income," )

( I know in Lee County a lot of farmers supplement their income with other jobs. Will these jobs now make their farm land taxable at a higher rate? They will not like this.
)

Seeing stuff like this makes me really want to vote people like that out of office.

It is very common to bona-fide farms where the farmer also works a straight job. To me.. this does not diminish the fact that they ALSO farm. A gentleman down from me has 20 ac he custom bales hay off of, and also bales hay off of about a thousand acers around the county.. for people that have smaller 5-10 ac tracts, and no haying equipment.

He has a nice clean operation. he has a modest house, which is much much smaller than his hay and equipment barn.

I plan on running a bona-fide farm business as well, once I get my pasture good, also.. if I can get the land next to me.

On a similar issue is employment. I have a day job and night job. My night job is self employment. I make mor emoney at my night job.. byt a significant factor. However on things like loan apps, etc.. banks always like to use the 'job' with the w-2 as the 'primary' financial info.. they just don't like that self employment issue.. Reminds me of the farm stuff... primary income source.. etc. The gov't needs to quit making it hard on the farmer.

We really should be in a position that we can be self suficient. I imagine if america had to.. it would take us a good 2-3 years to become 'food' sufficient'... We need to encourage farming.. not discourage it. I don't know of any rich farmers.. with the possible exception of the horse industry.. and as we all know.. that is hit or miss depending on if your horses perform well.

At least here in florida, if you are running a bona-fide agr-business, you can still get the exemption. Even if it is not your primary income source. i think as long as it meets the legal tests.. it should fly. However.. that said. I don't theink the 1 chicken.. or 1-cow in the backyard people should get the exemption.. that's where the abuse comes from.... not from the guy who actually does a small side agri-businness. etc.

Had to rant... soapbox mode (off).

Soundguy

cowboydoc · Jan 11, 2005

I don't know of any rich farmers.. with the possible exception of the horse industry.. 

Even the top of the heap don't get rich from the horse industry!! They started with all that money and then declare bankruptcy years later when it all runs out. /forums/images/graemlins/tongue.gif

Wannafish · Jan 11, 2005

And then there was the farmer who took his wife to Las Vegas and won a million dollars. When asked what he was going to do with his winnings, he replied he figured he'd keep on farming till that was gone too! /forums/images/graemlins/crazy.gif

daedong · Jan 11, 2005

I have a small orange orchard that brings in a small profit but here in OZ there are many wealthy people that have made it from the land but still winge. I have never really understood why farmers should get tax breaks or relief over or above any other industry, if they are not viable without help practices should change or they should get out. To my way of thinking tax help or relief is anti capatilism,

rockyridgefarm · Jan 11, 2005

Hey, Vince, that is right, except that what is really in question is the tax on the Land. You don't want 80 or 800 or 8000 acres being taxed at the same rates they hit the little plots in town.

getut · Jan 11, 2005

Yep, this can't be done with the lower grade levels (younger kids), but at the high school level implement a 3 strike rule for kids.

If the kid thirsts for knowledge, then teach him all he can handle. If the kid is a repeat offender of high school age and disrupts everyone else, then out with them. Teach the kids who want to learn or have parents with enough disciplinary control to make their kids learn. Stop wasting money on the others.

I'm going to emphasize my statement here: Stop leading our schools toward the lowest common denominator. Aim for excellence, help those incapable of that standard, and get rid of those that are capable but unwilling. Thats why there are GED classes, so people who didn't have their mind straight could do it when they finally figured out which way is up.

I have actually heard people complaining in conferences over the fact that little Johnny had a problem (self induced) and the teacher wouldn't help because all their time was tied up in Accelerated Learning classes. The parent didn't have time to correct the problem.