What is the agricultural value of a property?

Simply stated, the agricultural value of a property is its value when used for agricultural purposes. Unfortunately, it has been nearly impossible to find sales of agricultural property that are not affected by non-agricultural factors such as development pressure or sales of recreational land. In an effort to develop statewide uniformity, the Legislature directed the Commissioner of Revenue to develop a fair and equitable method for determining the agricultural values of each county.

Determining Agricultural Value

The Department of Revenue studied statewide sales of largely tillable agricultural property across the state from 1990 to 1996. The department found that sales in several southwestern Minnesota counties were affected the least by non-agricultural factors, and thus were as close as possible to true agricultural sales. They are known as the base counties. Sales in the other 82 Minnesota counties during the same period were then compared to those in the base counties. This comparison yielded a set of individual county factors that measure the percentage relationship between each county and the base counties.

Each year, the Department of Revenue reviews current sales and calculates a base value that is used to determine agricultural values for all properties enrolled in the Green Acres program. The base value is adjusted for each county to determine the average tillable value per acre for that county. The County Assessor then applies this average value to individual properties. The value may differ on each individual parcel due to quality of land, location, or other factors.

Show All Answers

1. What is the Green Acres program?
2. Why do some counties administer the Green Acres Program?
3. Who qualifies for the Green Acres Program?
4. How will Green Acres benefit an agricultural property owner?
5. How does the Green Acres Program work?
6. What is the agricultural value of a property?
7. Can special local assessments be deferred under the program?
8. If a property no longer qualifies for Green Acres, how many years can the County Auditor-Treasurer go back to collect additional taxes on the deferment?
9. What if a property loses its eligibility prior to the expiration of the three-year period?
10. If a property has deferred special local assessments and loses its Green Acres eligibility, when does the deferment become due?
11. Are deferred taxes and special assessments considered a lien on the property?
12. What if only part of the property is sold or ceases to be used for agricultural purposes?
13. Does the tax deferment continue if the property is sold and used for agricultural purposes?
14. What if the property no longer qualifies for Green Acres because it loses its agricultural classification?
15. How do I qualify?
16. How do I apply?