Chapter 03. Agricultural Use Assessments
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Actively used land” means land that is actually and primarily used for a continuing farm or agricultural use.
(2)
“Actually devoted land” means that portion of actively used land which is engaged in an approved agricultural activity.
(3)
“Agricultural land unit (ALU)” means the combination, for the purpose of qualifying for agricultural use assessment, of not more than three parcels of land located in the same county and under the same ownership.
(4)
“Approved agricultural activity” means those activities recognized as agricultural pursuits under Regulation .03 of this chapter.
(5)
“Associated land” means that portion of actively used land which is not actually devoted land but is located on the same parcel as actually devoted land, including woodland under Regulation .06A—C of this chapter, and other vacant land which is devoted to passive use.
(6)
“FCMA” means a forest conservation and management agreement under Tax-Property Article, §8-211, Annotated Code of Maryland.
(7)
“Gross income” means the actual income that is received in a calendar year that results directly from the farm or agricultural use of the land.
(8)
“Parcel” means a piece of land of any size in one ownership.
(9)
“Ratio requirement” means the ratio of associated land to actually devoted land which determines the total amount of actively used land eligible for agricultural use assessment.
(10)
“Same ownership” means, in terms of the ownership of two or more parcels, that at least one common name appears as grantee in all deeds to those parcels.
Regulation .02 Criteria to Be Considered.LinkCopy Citation
The following criteria shall be considered in determining whether land that appears to be actively used is in fact actively used and qualifies for agricultural use assessment under Tax-Property Article, §8-209, Annotated Code of Maryland:
A.
Zoning applicable to the land, in particular if land is zoned to a more intensive use than is permitted under agricultural zoning;
B.
Present and past use of the land;
C.
Participation in governmental or private agricultural programs;
D.
Extent of production for sale of plants, timber, livestock, and food for human and animal consumption;
E.
Size of the parcel or parcels farmed, in particular, whether the size is economically compatible with the agricultural use to which the land is devoted;
F.
Amount of acreage in crops, pasture, and woodland;
G.
Amount of livestock or poultry;
H.
Inventory of farm buildings and equipment and condition of same;
I.
Marketing of the land as evidenced by multiple sales of parcels out of a tract;
J.
Ratio of associated land to actually devoted land; and
K.
The gross income that is derived from the agricultural activity on the land.
Regulation .03 Approved Agricultural Activities.LinkCopy Citation
A.
Approved agricultural activities are as follows:
(1)
Raising grains, fruit, herbs, melons, mushrooms, nuts, seeds, tobacco, or vegetables;
(2)
Raising poultry, for example, chicken, turkeys, or eggs;
(3)
Dairy, for example, milking cows;
(4)
Raising livestock, for example, cattle, sheep, lambs, hogs, or pigs;
(5)
Horse boarding, breeding, or training;
(6)
Turf farming;
(7)
Ornamental horticulture with the raising and marketing of ornamental trees, shrubs, plants, and flowers, including aquatic plants;
(8)
Aquaculture with the raising and marketing of aquatic organisms such as fish and shellfish; and
(9)
Silviculture, as defined in Regulation .06 A(4) or (5) of this chapter.
B.
An activity not listed in §A of this regulation may be recognized as an approved agricultural activity at the discretion of the Department.
Regulation .04 Parcels of 20 acres or more — Ratio Requirements.LinkCopy Citation
A.
The ratio requirements are established by regions as follows:
(1)
Western region—Garrett, Allegany, and Washington counties, 10:1;
(2)
Central region—all counties on the western shore of Maryland, except Harford County and those listed in §A(1) of this regulation, 5:1; and
(3)
Eastern region—all counties on the eastern shore of Maryland, and Harford County, 10:1.
B.
Only Class 3 land under Regulation .08 of this chapter may be used in developing the ratio requirement.
C.
Five acres or more must be actually devoted land.
D.
Examples of Ratio Requirements.
(1)
A taxpayer owns a 401-acre parcel in the western region (10:1 ratio). None of the land is Class 1 or Class 2 land under Regulation .08 of this chapter. Twenty acres are actually devoted. There is a 1-acre homesite. The amount of actively used land eligible for agricultural use assessment is 220 acres, calculated as follows:
(2)
A taxpayer owns a 400-acre parcel of vacant, passively used land. Because there is no actually devoted land, a ratio requirement cannot be met and no land qualifies for agricultural use assessment.
Regulation .05 Parcels of Less Than 20 Acres — Use Test vs. Income Test.LinkCopy Citation
A.
A parcel of land or ALU less than 20 acres but greater than or equal to 3 acres shall receive agricultural use assessment if its meets one of the following tests:
(1)
If at least 3 acres but less than 5 acres are actually devoted and $2,500 gross income is derived from the approved agricultural activities; or
(2)
If at least 5 acres but less than 20 acres are actually devoted, the land qualifies for agricultural use assessment regardless of gross income.
B.
A parcel of land or ALU of less than 3 acres excluding the homesite shall receive the agricultural use assessment if it meets one of the following tests:
(1)
Gross income from the approved agricultural activity on the land:
(a)
Generates a minimum of $2500; and
(b)
Amounts to at least 51 percent of the owner’s total gross income:
(i)
The owner’s total gross income shall include all sources of income for the calendar year that immediately precedes the taxable year, whether or not the income is included in the definition of gross income for federal or State tax purposes;
(ii)
This income shall include any benefit under the Social Security Act or Railroad Retirement Act;
(iii)
No more than 2 parcels of land may qualify under the same ownership;
(2)
A family farm unit as defined in Tax Property Article, §8-209(g)(1)(iv), Annotated Code of Maryland; or
(3)
A parcel of land under the same ownership and contiguous to a parcel of land receiving agricultural use assessment and is actively used. No more than 2 parcels of land may qualify under the same ownership.
C.
Different approved agricultural activities may be combined to meet the requirements of §§A and B of this regulation.
D.
The Department may determine the reasonableness of gross income claimed by an owner.
E.
The ratio requirements under
Regulation .04 of this chapter are used to establish the associated lands.
F.
Only Class 3 land under
Regulation .08 of this chapter will be used in developing ratio requirements.
Regulation .06 Woodland.LinkCopy Citation
A.
A woodland parcel of 5 acres or more shall receive agricultural use assessment only if it is:
(1)
A part of a parcel of land which is determined to be actively used as defined in Regulation .01B(1) of this chapter:
(2)
A parcel contiguous to a parcel qualifying for agricultural use assessment provided both parcels are in the same ownership;
(3)
A parcel separated from a parcel of land which qualifies for agricultural use assessment, provided both parcels were purchased at the same time by the same owner;
(4)
Subject to and in compliance with a forestry management plan prepared by a registered professional forester;
(5)
Subject to and in compliance with an FCMA; or
(6)
Actually devoted land as defined in Regulation .01B(2) of this chapter.
B.
A woodland parcel less than 5 acres cannot be combined with another woodland parcel to establish an agricultural land unit as defined in Regulation .01B(3) of this chapter in order to meet the minimum parcel size of 5 acres.
Regulation .07 Homesites.LinkCopy Citation
A.
Except as provided in §B of this regulation, for each dwelling house located on a parcel for which agricultural use assessment is determined applicable, a minimum of 1 acre shall be designated as homesite and assessed at fair market value. If the amount of land serving the dwelling house as homesite exceeds 1 acre, that greater amount of acreage shall be assessed at fair market value.
B.
When a dwelling is located on a parcel under an FCMA of less than 6 acres, the Department may adjust the size of the homesite.
Regulation .08 Agricultural Use Value Rates.LinkCopy Citation
The following ranges govern the valuation and assessment of land eligible for agricultural use assessment, based on the capitalization of Statewide farmland rentals:
| Use Value/Assessment | ||
|---|---|---|
| Class 1 | FCMA land | $125 per acre/$125 per acre |
| Class 2 | Land under a private woodland management plan | $187.50 per acre/$187.50 per acre |
| Class 3 | Other eligible land | $125—$500 per acre/$125—$500 per acre |
Chapter annotations
Authority: Tax-Property Article, §§
2-201,
2-202, and
8-209, Annotated Code of Maryland
History: Effective date: January 7, 1982 (8:26 Md. R. 2106)
History: Chapter revised effective November 17, 1986 (13:23 Md. R. 2481); December 5, 1994 (21:24 Md. R. 1990)
History: Regulation .03A amended effective February 16, 2026 (53:3 Md. R. 123)
History: Regulation .04 amended effective January 20, 2014 (41:1 Md. R. 13)
History: Regulation .05 amended effective May 25, 2026 (53:10 Md. R. 455l90p[9)
History: Regulation .05D, E adopted effective January 24, 2022 (49:2 Md. R. 78)
History: Regulation .06 amended effective February 16, 2026 (53:3 Md. R. 123)
History: Regulation .08 amended effective October 16, 2000 (27:20 Md. R. 1841)