Farmland Assessment Overview - Government of New …

1 Farmland Assessment Overview July, 2015. New Jersey Department of Agriculture What is Farmland Assessment ? The New Jersey Farmland Assessment Act of 1964 permits Farmland and woodland acres that are actively devoted to an agricultural or horticultural use to be assessed at their productivity value. The Act does not apply to buildings of any kind, or to the land associated with the farmhouse. Buildings and home sites on farms are assessed like all other non-farm property. When and if the land qualified under the Act changes to a non-agricultural or non-horticultural use, it is subject to a rollback tax. Minimum Eligibility Requirements for Farmland Assessment : 1.

2 Applicant must own the the 5-acre minimum area land. needed to qualify. 5. Gross sales of products from 2. Owner must annually apply the land must average at for Farmland Assessment on least $1,000 per year for the Form FA-1 with the first 5 acres, plus an average municipal tax assessor on or of $5 per acre for each acre before August 1 of the year over 5, except in the case of immediately preceding the woodland or wetland where tax year. the income requirement is $500 per year for the first 5. 3. Land must be devoted to acres plus $.50 per acre for agricultural and/or any acreage over 5; or horticultural uses for at least there is clear evidence of two years prior to the tax anticipated yearly gross year the applicant is sales, payments, or fees applying for.

3 Within a reasonable period of time dependent on the 4. Land must consist of at least agricultural or horticultural 5 contiguous (adjoining) products being produced. acres being farmed and/or under a woodland 6. Owner must represent that management plan. Land the land will continue in under and adjoining the agricultural or horticultural farmhouse is not counted in use to the end of the tax year. 1. Note: There are additional requirements for the boarding, training, or rehabilitation of livestock and woodlands under a woodland management plan. Additional Land Requirements: To be eligible for Farmland Assessment , land actively devoted to an agricultural or horticultural use must have not less than 5 acres devoted to the production of crops; livestock or their products; and/or forest products under a woodland management plan.

4 In determining the area of such land, all the land under barns, sheds, seasonal farm markets selling predominantly agriculture products, seasonal agriculture labor housing, silos, cribs, greenhouses and like structures, lakes, dams, ponds, streams, irrigations ditches and like facilities are included (provided their use is related to agriculture or horticulture). Also included is appurtenant woodland acreage that is equal to or less than the acreage in cropland and pastureland. Ineligible land area is land under the farmhouse and additional land used in connection with the farmhouse, including, but not limited to, land used for lawns, flower gardens, shrubs, recreation and for like purposes.

5 This land is excluded in determining the qualified area. Where individual parcels of land in agriculture or horticultural use under single ownership are located in the same taxing district, compliance with the five-acre minimum area eligibility requirement is considered to have been met if the individual parcels are contiguous (adjoining) and the total eligible area is at least five acres. Land under single ownership, separated by a public right of way, is considered to be contiguous. Where contiguous land in agricultural or horticultural use in single ownership, is located in more than one taxing district, compliance with the five-acre minimum area requirement is determined on the basis of the total eligible area of such land and not the area which is located in a particular taxing district (an application must be filed in each respective taxing district).

6 2. Where separate, noncontiguous (non- adjoining) parcels of land in agricultural or horticultural use, in a single ownership, are located in the same taxing district, a separate application for Farmland Assessment must be made with respect to each parcel. Each separate parcel must individually meet the qualifications of the Program, 5. acre minimum land area, gross sales, etc. Devoted to agricultural or horticultural use means: 1. Land under and used with production for sale of trees barns, sheds, packing and forest products;. houses, farm storage facilities, seasonal farm 3. Land on which crops are markets selling produced, harvested, and predominantly agricultural sold, either at retail or products, seasonal wholesale.

7 Agricultural labor housing, silos, cribs, and like structures 4. Land on which cover crops when used in direct support are grown as part of a of the producing crops for regular crop rotation sale; program;. 2. Land that consists of lakes, 5. Land on which poultry are ponds, streams, stream housed or ranged, but if buffer areas, hedgerows, ranged, the land must be wetlands, and/or irrigation enclosed by a fence ponds that are supportive sufficient to retain such and subordinate or animals;. reasonably required for the purpose of maintaining 6. Land on which crops are agricultural or horticultural grown for on-farm use, but uses of a tract of land, not including land that is which tract of land has a used to produce crops only minimum area of at least for personal consumption.

8 Five acres devoted to agricultural or horticultural 7. Land kept fallow during a uses other than to the growing season using 3. cultivation or chemical such animals that are control to eradicate or themselves or their products reduce weeds for future sold, except that "livestock". agricultural or horticultural shall not include dogs;. production;. 12. Land that is used for 8. Land on which farm animals boarding, rehabilitating, or may be maintained, training livestock for a fee pastured, or ranged whose (not including acres products or the animals pastured) where the themselves are produced livestock is owned by a for market, either retail or party or parties other than wholesale; the property owner(s), and the land is contiguous to five 9.

9 Land enrolled in a soil or more acres that otherwise conservation program qualify for valuation, administered by an agency Assessment , and taxation of the Federal Government under the Act;. that meets the annual maintenance requirements 13. Land that is supportive and for future agricultural or subordinate woodland or horticultural production or wetlands and that is an equivalent program such contiguous to, part of, or as the Conservation Reserve beneficial to land that is Program, Wetlands Reserve cropland harvested, Program and Conservation cropland pastured, or Reserve Enhancement permanent pasture;. Program;. 14. Land that has limited 10.

10 Land on which trees and farming or grazing potential, forest products are is managed in an erosion- produced for sale within a control program, and is reasonable period of time supportive and subordinate and such land is managed or reasonably required for in compliance with a written agricultural or horticultural woodland management production of land that has plan approved by the State a minimum of five acres Forester; classified as cropland harvested, cropland 11. Land on which livestock is pastured, or permanent boarded, raised, pastured, pasture;. rehabilitated, trained, or grazed, and enclosed by a 15. Greenhouses or poultry or fence sufficient to retain livestock facilities in which 4.