Good morning, Shana Acquisto, broker of Acquisto Real Estate here with Dr. Blake Bennett, and let me give him a proper introduction.

Blake Bennett

So he is Dr. Blake Bennett. He is an associate professor at Texas A&M. And you are an extension economist management at the Research and Extension Center. Yes, at Texas A&M and Dallas. I am. We have two Aggies and we talked about that a little bit before we started here, although he went to Texas Tech. That’s point they let him teach there. Anyway, I really tried to surprise with that.

But anyway, so we want to let you guys know what should you do? We have a lot of clients that are moving here. They want some land. They’re having to go outside of the area a little bit just to find properties. So if your client is going to purchase some land, there’s some key things that you need to know. And that’s what you’re going to tell us right now.

Yes, absolutely. Well, it all comes down to the central appraisal district, OK? And the appraisal district is the one that puts the value on the land. They don’t actually their only job is to value that land.

Ok, you can value it at market or you can value it based on the productivity.
If it’s in agriculture, it’s based on the productivity value of that land, not market value. So it can result in significantly lower property taxes. That’s what’s so sought after.

Ok, and this would be, you know, to save them a lot of money on their taxes.Exactly. On their property taxes. But it doesn’t just happen just because you have land. No, it does not. No, it does not.

Do you? The central appraisal district is looking for six characteristics of that land. OK, number one, it’s only the dirt itself, the dirt, the roads, the fences, the ponds, any structure that’s built on that property. Absolutely not. That’s valued at market. It’s only the dirt that they’re looking at. Number two, active agriculture has to be taking place. You have to be engaged in agriculture.

Ok, but that’s not just cows.

No, no, absolutely not. It can be cows. It can be horses. You can grow crops. You can get it for bees, wildlife, managing the wildlife is even an option. OK, the next criteria, the principal use of the land has to be agriculture. So a garden outside your house will not qualify.

Darn, I know all of that for me because I can’t grow anything that wouldn’t work out for us.

Next thing is, the intensity on your property has to be similar to what it is around the county. So what does that mean. No. Say like the number of number of livestock that you have out there, production of different crops. They’re looking for yields that are the same across the county.

So if you need 15 cows and you only have two, there’s a problem. Yeah. OK. Next thing is, is you have to be in production for five out of the last seven years. And finally, you have to file file a valid application on time. OK, that’s it. That’s all the central appraisal district has to go back.

But that’s not an easy process for someone who may have never done this before, right?

Exactly right. So you do have sources to help you out, such as Texas life extension. That’s what we do. OK, we are there to provide education to the public. We’re part of the Texas A&M University system, but we don’t teach classes to students. We teach the public. We go out and help the public.

That’s why I’m sitting here with you. Yeah. Yeah. I’m doing my job right now. You are doing a great job right now. And so tell us about so you talked a little bit about the intensity, but let’s move on to actually let’s make this a new topic about God.

Episode Recorded Live on YouTube 3.10.21

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