We classify agricultural land based on ownership, size, and use (15-7-202, MCA).
A parcel of land is classified as agricultural land if it is 160 acres or greater.
Land parcels under 160 acres must meet the following basic criteria to be classified as agricultural land:
Summary of Agricultural Land Classification Eligibility Requirements (PDF, 114 KB)
To qualify for agricultural land classification for the current tax year, submit an Agricultural Land Classification Application (Form AB-3) online or to your local field office by March 1.
Property owners of a fruit orchard, vineyard, or Christmas tree farm, may apply for provisional agricultural land classification for five years to allow their agricultural product to reach salable maturity. (15-7-202, MCA)
To qualify for provisional agricultural land classification for the current tax year, fill out the provisional agricultural land classification section within the Agricultural Land Classification Application (Form AB-3) and submit the completed form online or to your local field office by March 1.
Agricultural land has six subclasses to determine the productive value for property tax purposes.
Land Type | Use | Productivity | Commodity |
---|---|---|---|
Grazing Land | Land used for grazing livestock and includes irrigated grazing land | Animal unit months per acre (aum/ac) | Private Grazing Fee |
Tillable Irrigated Land | Land that is irrigated the majority of the time | Tons of alfalfa hay per acre | Alfalfa Hay |
Non-Irrigated Continuously Cropped Hay Land | Land used to produce hay the majority of years | Tons of hay per acre | Alfalfa Hay |
Non-Irrigated Summer Fallow Farm Land | Land used for dry land farming | Bushels of spring wheat per acre | Spring Wheat |
Non-Irrigated Continuously Cropped Farm Land | Land used to grow crops three out of four years. This must be an accepted practice for the area. It's mostly found in northwestern Montana | Bushels of spring wheat per acre | Spring Wheat |
Specialty Crop Farm Land | Land used to produce specialty crops | Bushels of spring wheat per acre | Spring Wheat |
We value agricultural land by dividing the net income per acre by the capitalization rate. (15-7-201, MCA)
Net Income Per Acre/Capitalization Rate = Value Per Acre
For more information on agricultural land valuation, refer to the 2025-2026 Montana Agricultural Land Classification and Valuation Manual (PDF, 847KB).
Non-qualified agricultural land is:
For more information, please see 15-6-133, MCA and ARM 42.20.681.
Nonproductive patented mining claims are land purchased from the federal government for the sole purpose of a mining operation and are:
Nonproductive patented mining claim land is valued as agricultural grazing land. (ARM 42.20.681)
To apply, submit a Nonproductive Patented Mining Claim Application (Form AB-13) and return it to your local field office within 30 days from the date on your classification notice to be considered for the current tax year.
(15-6-133, MCA and ARM 42.20.301-307)
The elected county treasurer in each county bills and collects agricultural land property tax.