Agricultural property – Assessor
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Agricultural property

Agricultural Property Classification – Garfield County, Colorado

Agricultural classification is available for land that is actively used for farming and/or ranching. Under Colorado law, qualifying agricultural land is assessed based on its productive or earning capacity rather than its market value. Proper classification directly affects property valuation and taxation.

Quick Self Check: Does My Property Qualify?

Use this checklist as a starting point. Answering “yes” to all required items does not guarantee qualification, but answering “no” to any required item generally means the property does not qualify.

Your property is more likely to qualify if:

  • The land is actively used as a farm and/or ranch
  • The primary purpose of the farm and/or ranch is to make a monetary profit, not personal or recreational use
  • Agricultural products originate from the land itself (not in pots, raised beds, greenhouses, or other systems not dependent on the natural soil)
  • Livestock are domesticated animals used for food for human or animal consumption, breeding, draft, or profit
  • Livestock graze the property
  • You can provide documentation supporting the agricultural use

Your property likely does NOT qualify if:

  • The use is a hobby, personal garden, or residential in nature
  • Agricultural products are grown in pots, raised beds, greenhouses, or other systems that are not dependent on the natural soil.
  • Animals are kept in pens or corrals rather than grazing the land
  • Agricultural use or livestock belong to someone else and there is no lease agreement
  • The operation does not generate, or is not intended to generate, income
  • The activity is incidental to residential use

If you are unsure after reviewing this checklist, please contact the Assessor’s Office before applying.

Purpose of Agricultural Classification

Colorado law provides preferential assessment for qualifying agricultural land.

This classification exists to:

  • Encourage the preservation of farm and ranch land
  • Support the continued production of food and agricultural products
  • Prevent the forced conversion of farm and ranch land to more intensive uses due to tax pressures

The Assessor’s Office is required to apply state law fairly and consistently. Agricultural classification is not intended to reduce taxes for rural or large parcels unless the land meets the statutory requirements.
Article X, Section 3 of the Colorado Constitution requires that qualifying agricultural land be valued based on its earning or productive capacity, rather than market value.1

What Is Considered a Farm?

A farm is land used to produce an agricultural product that originates from the land itself for the primary purpose of obtaining a monetary profit.2

To qualify:

  • The land must produce an agricultural product
  • Products must be grown in the natural soil of the land
  • The primary purpose of producing agricultural products must be to obtain monetary profit
  • The full agricultural cycle must occur (planting, growing, harvesting, and selling)
  • The agricultural product must remain in a raw or unprocessed state

Examples in Garfield County:
Due to elevation, climate, and water availability, common examples include hay production and grain crops grown for sale.

What Is Considered a Ranch?

A ranch is land used for grazing livestock for the primary purpose of obtaining a monetary profit.3

To qualify:

  • Livestock must graze the land (not be confined to pens or corrals)
  • Livestock are domesticated animals used for food, breeding, draft, or profit. Animals not used for these purposes do not meet the definition of a ranch, even if income is earned from the grazing activity
  • Use of the grazing livestock is to obtain monetary profit

Examples in Garfield County:
Cattle or sheep operations where animals graze native or improved pasture.

When Agricultural Classification Applies

To qualify for agricultural classification, land must have been used as a farm or ranch for the previous two years and must currently be in use for agricultural purposes.4

How classification works:

  • Land must have been used the previous two years as a farm or ranch
  • Land must be currently being used as a farm or ranch

Agricultural classification generally requires actual use over a three-year period. If a property is newly beginning agricultural use, it must complete three years before the classification can be granted—except for land qualifying under decreed water rights or agricultural forest land.

Please notify the Assessor’s Office in the first year a property is used agriculturally so that the use can be properly documented and reflected in the property records.

Forest Land

Agricultural forest land does not qualify as a farm or ranch as described above. Instead, it qualifies under the forest land category. Forest land must consist of at least forty acres that are forested and used to produce tangible wood products that originate from the land itself for the primary purpose of obtaining monetary profit.5

To qualify, all of the following must apply:

  • The land is not classified as a farm or ranch
  • The parcel consists of at least forty (40) acres
  • At least ten percent (10%) of the parcel is stocked with forest trees
  • The land produces tangible wood products
  • Wood products are grown in the natural soil of the land
  • The primary purpose of the forest operation is to obtain monetary profit
  • The land is subject to, and in compliance with, an approved forest management plan

Agricultural Land with a Residence

Land underlying a residence may be included as agricultural land only if the occupants of the residence are integral to the agricultural operation.6

A residence is considered integral if the individual occupying it either:

  • Regularly conducts, supervises, or administer material aspects of the agricultural operation, or
  • Is the spouse, parent, grandparent, sibling, or child of the individual conducting the operation.

If this requirement is not met, up to two acres of land underlying the residence will be considered non-integral agricultural land and valued at market value.

Conservation

Land may retain its agricultural classification while being restored through conservation practices, but this only applies to land already classified as agricultural. In other words, land cannot receive agricultural classification solely because it is enrolled in conservation, if it was not previously classified as agricultural.7

Common types of conservation practices include:

  • Letting land lie fallow
  • Restricting grazing to reestablish grass growth
  • Tillage to retain water and soil rather than allowing runoff
  • Replanting native grasses to retire cropland
  • Planting windbreaks to prevent soil erosion
  • Participation in government programs, such as the Conservation Reserve Program

Statutory requirements:

  • Land must be enrolled in a government program in writing, or
  • Land must be managed under an approved conservation plan in writing through a conservation district

Decreed Water Rights

A decreed water right may support agricultural classification if:8

  • The water right is attached to the parcel
  • The water is used to water livestock or produce agricultural products
  • The land is used as a farm or ranch

Water used for residential purposes does not qualify. Agricultural use in the prior two years is not required under this provision; classification may apply the following year.

All Other Agricultural Property

Agricultural-related businesses that do not meet the statutory definition of agricultural land are classified as all other agricultural property. These properties are valued using the appropriate consideration of the three approaches to value. This category includes agribusinesses, commercially oriented agricultural operations, and agricultural activities where the products are not maintained in a raw or unprocessed state.9

Examples include:

  • Apiaries (bee farms)
  • Fur bearing animals operations
  • Greenhouses and controlled-environment agricultural facilities
  • Hobby farms or personal-use operations
  • Boarding or pleasure horses
  • 4-H or youth project animals
  • Small pens or confined animal operations
  • Commercial feedlots
  • Dairy farms
  • Chicken or pig operations
  • Mushroom farms
  • Aquaculture (fish farms)
  • Products or services derived from animals, such as milk, honey, cheese, soap, lotions, packing animals, hunting use, herding, or processed grains or meats

Supporting Documentation

The Assessor’s Office may request documentation to verify agricultural use, including:

  • Proof of use: lease agreements, sales invoices, bills of sale
  • Financial records: IRS Schedule F (or equivalent) forms, profit and loss statements
  • Operational records: receipts for agricultural supplies or services, veterinary or livestock records, brand inspection certificates
  • Program enrollment: proof of participation in conservation or government agricultural programs
  • Water rights: decreed water rights documentation

Frequently Asked Questions (FAQ)

Cattle

Qualify as agricultural livestock if used for food, breeding, draft, or profit. No minimum herd size is required, but grazing must reflect sound ranching practices. The primary purpose of the cattle operation must be to produce a profit.

Horses

Do not generally qualify unless income is derived directly from the animals themselves, such as in a legitimate breeding operation. Boarding, training, packing, hunting, or recreational riding does not qualify.

Chickens & Pigs

Do not qualify for agricultural classification, as they cannot meet nutritional needs through grazing alone.

Bees

Do not qualify as ranch livestock. Honey production is considered a byproduct, and income from honey does not meet statutory requirements agricultural land.

However, apiaries may qualify as all other agricultural property.

Goats, Llamas and Alpacas

May qualify when used for food, breeding, draft, or profit. Products such as milk, fiber, or other processed goods do not qualify. Income from services (packing, herding, hunting) does not qualify.

4-H Animal, Youth Projects, & Personal Gardens

Do not qualify, as these are considered hobby or educational uses.

Greenhouse & Nursery

Greenhouse and nursery operations generally do not qualify as a farm because the agricultural products are not grown directly in the ground using the natural soil of the property. These products are typically grown in pots, raised beds, or other controlled systems rather than being dependent on the land’s natural soil and conditions.

Lease Agreements

Required to support classification. Grazing or farming without a lease or contract is considered trespass and does not qualify.

When Classification Takes Effect
Generally requires three years of agricultural use: the prior two years plus current-year use.

Notify the Assessor’s Office in the first year of agricultural use so it can be documented.

Water Rights
Properties with decreed water rights that are used for agricultural purposes are exempt from the prior two-year use requirement; agricultural classification may be granted the year after agricultural use begins, which is the following year.

Residential Occupants
If occupants of a residence are integral to the agricultural operation, the land underlying the residence may remain classified as agricultural land.

If not, up to two acres of land must be considered non-integral and valued as residential land at market value.

Inspections and Questions

All land classified – or requested to be classified – as agricultural is subject to physical inspection by the Garfield County Assessor’s Office. Inspections may include visual verification of land use, grazing patterns, crops, and review of supporting documentation.

If you have questions about agricultural classification or your specific property, please contact the Assessor’s Office or Amber Knox, Agricultural Appraiser, at 970-945-9134 |  Online Contact Form. 

Statutory References

  1. Colorado Constitution, Article X, Section 3 – Valuation of agricultural land
  2. § 39-1-102(3.5), C.R.S. – Farm
  3. § 39-1-102(13.5), C.R.S. – Ranch
  4. § 39-1-102(1.6)(a)(I), C.R.S. – Agricultural land (two year/current use)
  5. § 39-1-102(1.6)(a)(II), C.R.S. – Forest land
  6. § 39-1-102(1.6)(a)(I)(A)-(B), C.R.S. – Land under residential improvements (integral residence)
  7. § 39-1-102(1.6)(a)(I), C.R.S. – Conservation and restoration land
  8. § 39-1-102(1.6)(a)(IV), C.R.S. – Decreed water rights
  9. § 39-1-102(1.6)(b)(I)-(II), C.R.S. – All other agricultural property

These citations are provided for reference; statutory language governs all classification decisions.