Land used exclusively for commercial agriculture can be valued, for property tax purposes, based on the gross proceeds from the agricultural use. To qualify, you need to have used the land for agricultural purposes for three years producing an average gross income of at least $2,500 (or, if you have 10+ acres, there is no income requirement).

Once you qualify, file DTE Form 109 with the county auditor. You need to re-assert the commercial agricultural use each year to continue CAUV status. If the land ceases to be used for agriculture, three years of “makeup taxes” are owed — however much you would have been taxed minus the amount actually paid.