Farm Reasons:
Click here for Primer
For further information please visit:  http://www.nj.gov/agriculture/divisions/md/pdff/primerfarm.pdf

5Acre first

Farm Form-reverse side:  “Appurtenant Woodland”  …”beneficial to a tract of land” which is 5 acres or more and is otherwise actively devoted and qualified farmland (land uses 1, 2, or 3)

“Beneficial to a tract of land” means land which enhances the use of other land devoted to agricultural or horticultural production by providing benefits such as, but not limited to, windbreaks, watershed, buffers, soil erosion control, or other recognizable enhancements of the viability of the qualifying land.

Use   Land area requirement from the Primer (4)

To be eligible for Farmland Assessment, land actively devoted to an agricultural or horticultural use must have not less than 5 acres devoted to 1) the production of crops; 2) livestock or their products; and/or 3) forest products under a woodlot management plan.

Case Law – Tax Court Appellate Division
Brighton v Rumson  23 NJ Tax 60  Appellate Division
Dominant Use is the issue.  When the agricultural use is subservient to the dominant use, the property is not devoted to agricultural use.  In this case, the raising of several miniature horses on a 6.176 acre property was not considered farming by the court, since the activity was deminimus. So no acres were qualified.

Idle Land is not farmland  Primer (6)
Example 3
(3) 20 acres of cropland….In that the 20 acres has become idle in the current year, a change of use has occurred.  The 20 acres is subject to rollback taxes.  To qualify for Farmland Assessment in the future, the land will need to be actively devoted to an agricultural or horticultural use for two full calendar years before the tax year for which the application is made.

Wetlands & Land under barns/buildings from Primer (4)
Once the minimum of 5 acres is actively devoted to an agricultural or horticultural use, all the land under barns, sheds, seasonal farm markets selling predominantly agricultural products, seasonal agricultural labor housing, silos, grain bins, greenhouses and like structures, lakes, dams, ponds, streams, irrigation ditches and like facilities is included (provided their use is related to agriculture or horticulture).

Additional lots from Primer (5)

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 for the program, ie 5 acre minimum land area, gross sales etc.

Income w/o Active Devotion primer (6)
Example from Primer:
(4) 5 acres of land are unmanaged but naturally produce wildflowers, berries, herbs and firewood.  The owner sells between $750 and $900 of plant material and firewood annually from the parcel. The parcel of land is ineligible for Farmland assessment because the land was not in a managed or horticultural use. The mere haphazard use of land that results in sufficient income to meet the requirements of the Farmland Assessment Act does not necessarily qualify the land for Farmland Assessment.

 

Land Use Change (11)
..the Farmland Assessment Act provides for levy of rollback tax if the use of the land changes.  Change includes the abandonment of agricultural activity.

 

 

Livestock
Horses Boarded:  Primer (8)
The boarding, rehabilitating, training and grazing of livestock is also and agricultural use, but only when the boarding, rehabilitating or training facility is contiguous to land which otherwise qualifies under the Farmland Assessment Act.

Fees received for boarding, rehabilitating or training livestock are not counted when qualifying the initial five acres of land…

Example (2)
…the fees from boarding may not be included to meet the minimum gross income requirements…

Example (4) owners animals – a/k/a “pets”
..the land would be ineligible for farmland assessment since the livestock are not raised for sale, the livestock do not produce products for sale, and the grazing is not connected with breeding, raising, boarding, rehabilitating or training activities.

 

Rented Farmland Primer (11)
Rent received from a farmer is not considered the sale of an agricultural or horticultural commodity, and cannot be used to meet the gross sales requirement for Farmland Assessment.  Instead, the value of farm products sold from the land is used.

 

 

 

 

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