FLORIDA ADMINISTRATIVE CODE CHAPTER 12D-5 AGRICULTURAL AND OUTDOOR RECREATIONAL OR PARK LANDS

Current 11/2015

12D-5.001 Agricultural Classification, Definitions.

(1) For the purposes of Section 193.461, F.S., agricultural purposes does not include the wholesaling, retailing or processing of farm products, such as by a canning factory.

(2) Good faith commercial agricultural use of property is defined as the pursuit of an agricultural activity for a reasonable profit or at least upon a reasonable expectation of meeting investment cost and realizing a reasonable profit. The profit or reasonable expectation thereof must be viewed from the standpoint of the fee owner and measured in light of his investment.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461 FS. History–New 10-12-76, Formerly 12D-5.01.

12D-5.002 Purchase Price Paid as a Factor in Determining Agricultural Classification.

(1) Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461 FS. History–New 10-12-76, Formerly 12D-5.01.

(2) ) Additionally, should the purchase price paid exceed the agricultural assessment by three or more times, a presumption that the land is not used primarily for good faith commercial agriculture purposes is created by Section 193.461(4)(c), F.S. The mere filing of a return is not sufficient to overcome this presumption created by the purchase price. Instead, the landowner must make a showing of special circumstances such as, but not limited to:

  1. need of the acquired property to expand a previously owned agricultural operation;
  2. need of the acquired property to facilitate proper drainage of a previously owned agricultural operation;
  3. need of the acquired property for ingress or egress related to a previously owned agricultural operation;
  4. the need of the acquired property to reestablish an agricultural operation after the owner’s previous agricultural operation was terminated due to eminent domain proceedings or other similar circumstances; and
  5. when the purchase price includes payment for other than real property, such as improvements on or to the land or deferred income, e.g., forestry.

(3) Furthermore, the presumption created by Section 193.461(4)(c), F.S., may be defeated by overcoming the appraiser’s presumption of correctness as to the agriculturally classified value and demonstrating that the purchase price paid was not three or more times what the agriculturally classified value should be. However, such a showing, while defeating the presumption, would not prevent a denial of the classification if the purchase price paid was, nonetheless, indicative of a lack of good faith commercial agricultural use.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461, 195.032 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-5.02.

12D-5.003 Dwellings on Agriculturally Classified Land.

The property appraiser shall not deny agricultural classification solely because of the maintenance of a dwelling on a part of the lands used for agricultural purposes, nor shall the agricultural classification disqualify the land for homestead exemption. So long as the dwelling is an integral part of the entire agricultural operation, the land it occupies shall be considered agricultural in nature. However, such dwellings and other improvements on the land shall be assessed under Section 193.011, F.S., at their just value and added to the agriculturally assessed value of the land.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461 FS. History–New 10-12-76, Formerly 12D-5.03.

12D-5.004 Applicability of Other Factors to Classification of Agricultural Lands.

(1) Other factors enumerated by the court in Greenwood v. Oates, 251 So. 2d 665 (Fla. 1971), which the property appraiser may consider, but to which he is not limited, are:
  1. Opinions of appropriate experts in the fields;
  2. Business or occupation of owner; (Note that this cannot be considered over and above, or to the exclusion of, the actual use of the property.) (See AGO 70-123.);
  3. The nature of the terrain of the property;
  4. Economic merchantability of the agricultural product; and
  5. The reasonably attainable economic salability of the product within a reasonable future time for the particular agricultural product.
(2) Other factors that are recommended to be considered are:
  1. Zoning (other then Section 193.461, F.S.), applicable to the land;
  2. General character of the neighborhood;
  3. Use of adjacent properties;
  4. Proximity of subject properties to a metropolitan area and services;
  5. Principal domicile of the owner and family;
  6. Date of acquisition;
  7. Agricultural experience of the person conducting agricultural operations;
  8. Participation in governmental or private agricultural programs or activities;
  9. Amount of harvest for each crop;
  10. Gross sales from the agricultural operation;
  11. Months of hired labor; and
  12. Inventory of buildings and machinery and the condition of the same.
(3) A minimum acreage cannot be required for agricultural assessment in determining whether the use of the land for agricultural purposes is bona fide.

Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461, 213.05 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-5.04, Amended 11-1-12.