Agricultural Land Classification
The State of Colorado has an Agricultural Land Classification designed to help legitimate farmers and ranchers continue agricultural operations on their land. When an agriculture property is purchased, the new owners must continue using the land in an agricultural endeavor in order to keep the agricultural classification.
As of January 1, 2012, "residential land" also includes 2 acres or less of land on which a residential improvement is located and where the improvement is not integral to an agricultural operation conducted on the land; complete the Integral Use Activity Checklist (PDF).
Agricultural Land Classification Questionnaire (PDF) The information submitted in the agricultural questionnaire will assist our agriculture department in determining the surface use of the land and properly classify parcel according to Colorado Revised Statutes.
Actual Value Determined-When
The actual value of agricultural lands, exclusive of building improvements thereon, shall be determined by consideration of the earning or productive capacity of such lands during a reasonable period of time. (§ 39-1-103(5)(a), Colorado Revised Statutes (CRS))
Improvements & Water Rights - Valuation
(6.3) "Improvements" means all structures, buildings, fixtures, fences and water rights erected upon or affixed to land, whether or not title to such land has been acquired. (§ 39-1-102, CRS)
(1) Improvements shall be appraised and valued separately from land, except improvements other than buildings on land which is used solely and exclusively for agricultural purposes, in which case the land, water rights, and improvements other than buildings shall be appraised and valued as a unit. (§ 39-5-105, CRS)
Agricultural structures used as an ancillary part of the operation are typically valued using the cost approach. The actual value is multiplied by the statutory 29% assessment rate.