Special Agricultural Homestead

To qualify, property must be:

• Classified as agricultural
• At least 40 acres in size
• Farmed by a qualifying person or qualifying relative
  • A qualifying relative is a child, grandchild, sibling, or parent of the owner or the owner’s spouse
• Actively farmed by someone who:
  • Participates in the day-to-day labor, decision making, and management of the claimed homestead
  • Assumes all or part of the financial risks of the farm
  • Lives near the agricultural property

Note: Actively farmed does not apply to occupied entity-owned agricultural property.

Farm property owned by an individual may qualify for a special agricultural homestead if:

• The owner and active farmer of the land are Minnesota residents and live within four townships or cities of the agricultural property.
• The owner and their spouse (if married) do not claim another Minnesota agricultural homestead.
• The active farmer is one of the following:
  • Owner of the agricultural land
  • A qualifying relative of the owner or owner’s spouse
  • A qualifying relative who farms the land on behalf of their farming entity
  • A non-qualifying relative’s entity that farms the land, provided:
    • The owner is a member of the farming entity 
    • They meet additional requirements for the farmer found in the “Land Owned by a Qualified Entity” section

Farm property owned by a trust may qualify for a special agricultural homestead if: 

• The grantors of the trust and the active farmer of the land are Minnesota residents and live within four townships or cities of the property.
• The grantors and their spouses (if married) do not claim another Minnesota agricultural homestead.
• The active farmer is one of the following:
  • The grantor of the trust that owns the agricultural land
  • A qualifying relative of the grantor or grantor’s spouse
  • A qualifying relative who farms the land on behalf of their farming entity
  • A non-qualifying relative’s entity that farms the land, provided:
    • The grantor is a member of the farming entity
    • Additional requirements for the farmer can be found in the “Land Owned by a Qualified Entity” section

Farm property owned by a qualified authorized entity may qualify for an agricultural homestead if certain criteria are met. Qualified authorized entities include:

• Family farm corporations
• Joint family farm ventures
• Family farm limited liability companies
• Partnerships operating a family farm

Unoccupied Entity-Owned Agricultural Property

The active farmer of the land must: 

• Be a Minnesota resident
• Be a member of both the owning and operating entity if they are different
• Live within four townships or cities of the agricultural land
• Not claim another agricultural homestead in Minnesota and neither can their spouse

Occupied Entity-Owned Agricultural Property

The occupant must: 

• Be a member of the owning entity and, if they are different, the farming entity
• Be actively engaged in farming
• Not claim another agricultural homestead in Minnesota and neither can their spouse

Note: Someone actively engaged in farming is a person who occupies the agricultural property and has substantial involvement in the farming operation, but less direct involvement and participation than actively farming.

The owner must submit a special agricultural homestead application to the county assessor by December 31. Contact your county assessor’s office for a special agricultural homestead application.

The county may also require:

• Federal Form 156 EZ from the county Farm Service Agency
• Schedule F or an equivalent form 

If you have agricultural property in more than one county, you must include those parcels on your application.