The Agricultural Property Tax Law is a Minnesota Statute that is commonly referred to as "Green Acres." With this law, bare farmland is valued for tax purposes on its agricultural value, rather than its future development potential or highest and best use value.

These "green acres" are entitled to valuation and tax deferments. Otherwise, taxes on potential development land could get so high they would force farmers off the land prematurely.

Certain requirements must be met to qualify for green acres. First the property must qualify for agricultural classification for property tax purposes. If the ag class is met, then:

• The real estate must consist of ten or more deeded acres.
• The real estate must have been in possession of the applicant or immediate family member for at least seven years prior to application for benefits OR the real estate must be the homestead of the owner, or a surviving family member of that homestead.
• The real estate must be actively and exclusively devoted to agricultural use and is within four townships or cities or combinations thereof from other qualifying real estate.
• Real property shall be considered to be in agricultural use provided that annually:
  
  1. at least 1/3 of the total family income of the owner is derived from the farm, or the total production income including rental from the property is at least $300 plus $10 per tillable acre.
  2. Applications for deferment of the taxes and assessment must be filed by May 1 of the year prior to the year in which the taxes are payable.