Agricultural Preserve" is governed by Minnesota Statute
473H.01.
The Agricultural Preserve Program is designed to value and tax qualifying agricultural property located in the metropolitan area, in a manner similar to out-state Minnesota.
Market Values for Agricultural Preserve property is based on sales of similar agricultural property not located in a metropolitan area.
What is required to enroll in the Agricultural Preserve Program?
The property must be zoned long-term agricultural by the local community, with a maximum residential density of one house per forty acres.
The parcel must (normally) be forty acres in size, however, smaller tracts may qualify in certain instances. Contact the County Assessor or the City/Township authority for information.
The owner(s) apply for Agricultural Preserves with the Local City/Township.
The owner signs an eight-year perpetual covenant/agreement to leave the property in agricultural use, and farm using acceptable practices as approved by the County Agricultural Service.
The Agricultural Preserve application must be filed with the County Recorder.
Filing deadline changed to June 1st.
Who can qualify and who has approval authority?All owners of qualifying agricultural property may apply regardless of homestead status.
The Local City/Township approves or denies the application.
The Agricultural Preserve agreement transfers with the land if it is sold, and does not remain with the owner.
What are the property tax benefits of Agricultural Preserves?
There is no deferred tax like there is in "Green Acres."
Special assessments cannot be levied on Agricultural Preserve property.
Annual property taxes are based on the agricultural market value only.
An additional property tax credit of $1.50 per acre is applied; or
The tax calculated using 105% of the statewide average tax rate is used if that tax is less than calculated using the $1.50 per acre credit.
How do I get out of Agricultural Preserve?
The owner(s) may file an "Expiration Notice" at any time and file the Expiration with the County Recorder and Assessor.
The local city/township may file an 'Expiration Notice" with the County Recorder and Assessor.
Eight years after the Expiration Notice is filed, the property is out of Agricultural Preserve.
A waiver of the eight-year requirement may be granted only by action of the Governor due to some emergency.
Contact Dakota County Assessing Services for additional information