FAQs - Green Acres

"Green Acres" is a tax and special assessment deferral program for certain agricultural property, according to Minnesota Statute 273.111 (view the statute on the State of Minnesota Web site).

If you own agricultural property and that property is devoted to the “production for sale of agricultural products”, you may be eligible for the Green Acres Program. The property must be used primarily for agricultural use/purposes. IF the property is primarily agricultural use, the following must also be met:

• The property must have at least 10 acres that are used agriculturally. There are some exceptions for certain intense uses such as nursery stock.

• The property must be homestead, farmed in conjunction with the homestead property; or the property must have been in the applicant’s family for at least seven years.

Green Acres applications are made to, and approved by, the County Assessor. Proper documentation to verify agricultural income must be submitted with the application.

• The Assessor determines two values on Green Acres property:

  • The ‘actual market value’ based on sales of similar property.

  • The ‘agricultural value’ based on sales of agricultural property in Southwestern Minnesota.

• Taxes are calculated on both market values, but paid on the lower, agricultural value, each year.

• The difference between the tax calculated on agricultural market value and the actual market value is deferred until the property is sold or no longer qualifies for the program.

• When the property is sold, or no longer qualifies, the deferred tax may be due for three years, on the part sold or no longer qualifying.

• If a property enrolled in Green Acres is sold to another person who may qualify for continuation of the Green Acres program, it is critical the new owner apply to the County Assessor within thirty days of their purchase.

• If the classification on the property changes from agricultural to another primary use, the three-year deferred tax may, in certain instances, be forgiven.

• Payment for special assessments shall be deferred, but may continue to accumulate interest as long as the property qualifies for Green Acres status.

Initial application must be made no later than May 1 of the assessment year for which deferment is sought.

Contact the Assessors office at 763-323-5475.