Farmland Assessment in New Jersey: How It Works and What Happens When You Sell
Farmland assessment lets New Jersey land that is actively farmed be taxed at its value as farmland instead of its market value, which can cut the property tax bill sharply. To qualify, you generally need at least 5 contiguous acres in agricultural or horticultural use for two years, gross sales of at least $1,000 a year on the first 5 acres plus $5 for each extra acre, and an application filed with your town’s tax assessor by August 1 every year. When the land stops being farmed, roll-back taxes can apply, so the tax break matters a lot when you sell.
This guide is written for landowners: what the rules are, what the forms are, and how farmland assessment affects a sale.
This is general information, not tax advice. Your tax assessor, accountant or attorney can confirm how the rules apply to your land.
Who qualifies for farmland assessment in New Jersey?
According to the NJ Division of Taxation, you must meet all of these:
- At least 5 contiguous acres devoted to agricultural or horticultural use.
- Two years of use. The land must have been in that use for at least two consecutive years before the tax year.
- Continued use through the end of the tax year you apply for.
- Gross sales of at least $1,000 a year from crops or livestock for the first 5 acres, plus $5 per acre for each additional acre.
- For woodland or wetland under a Woodland Management Plan, gross sales of at least $500 a year for the first 5 acres, plus 50 cents per additional acre.
- For farm units under 7 acres, a short narrative of the farm use, a sketch of where it is, and the number of acres in use.
Your town’s assessor applies these rules, so it is worth a call if your situation is unusual.
Which forms do you file, and when?
File with your municipal tax assessor on or before August 1 of the year before the tax year:
- Form FA-1, the Application for Farmland Assessment.
- Form FA-1 G.S., the supplemental gross sales form.
- Form WD-1, the Woodland Data Form, if any of the acreage is woodland.
The state also runs an online Farmland Assessment portal that is replacing the paper forms. Miss the August 1 deadline and the land can lose farmland assessment for the following year.
How much does farmland assessment save?
It depends on the land and the town, so be wary of anyone who quotes a single percentage. The Division of Taxation explains that the State Farmland Evaluation Committee sets values for agricultural productivity each year, and assessors use those values for qualifying farmland. Because productivity values are usually far below what the same acres would sell for, the tax difference can be large, especially on land near growing towns.
What happens to farmland assessment when you sell?
The sale itself does not end farmland assessment. A change in use does. That distinction decides who pays what.
- If the new owner keeps farming the land, roll-back taxes are not generated, according to the Division of Taxation.
- If the land’s use changes, for example because it is going to be developed, roll-back taxes apply for the year of the change and the two tax years before it, as long as the land was farmland-assessed in those years.
- The roll-back amount is the difference between the farmland assessment and the regular assessment for those years, and it becomes a lien on the land.
Because a developer will usually change the use, who pays roll-back taxes is something to settle in the contract. Our guide to farmland roll-back taxes in New Jersey walks through the calculation, and your attorney should review that clause before you sign.
Selling farm-assessed land?
Send the block and lot. An Acquisitions Manager calls for 15 minutes, then you get a written, formula-based offer within 48-72 hours. No fees or commissions.
Farmland assessment is not farmland preservation
People mix these up. Farmland assessment is a tax program you apply for every year, and you can leave it. Farmland preservation is permanent: the development rights are sold, and deed restrictions keep the land in farming for future owners. We buy land that is farmland-assessed. We do not buy preserved farmland.
Selling farm-assessed land: what to check first
- Your last three tax bills, to see how many years the land was farmland-assessed.
- Your FA-1 filings, so a buyer can confirm the history.
- Zoning and utilities, because a developer prices farmland on what can be built, not on the farm value. Our guide to how much an acre of land is worth in NJ explains how that works.
- Any preservation or Green Acres restrictions on the deed, which change everything about a sale.
If your land is in Hunterdon County, where farmland is common, our Hunterdon County page covers the local rules, including the Highlands.
Want a number on your land? Tell us about your parcel. An Acquisitions Manager calls you for 15 minutes, and you get a written, formula-based offer within 48 to 72 hours. Or call (732) 852-9571.
Frequently asked questions
How many acres do you need for farmland assessment in NJ?
At least 5 contiguous acres devoted to agricultural or horticultural use, used that way for at least two consecutive years before the tax year.
What are the sales requirements for farmland assessment in New Jersey?
At least $1,000 a year in gross sales for the first 5 acres, plus $5 per additional acre. Woodland under a Woodland Management Plan needs $500 for the first 5 acres plus 50 cents per additional acre.
When is the farmland assessment application due in NJ?
On or before August 1 of the year before the tax year, filed with your municipal tax assessor on Form FA-1 and Form FA-1 G.S., plus Form WD-1 if woodland is included.
Do I lose farmland assessment if I sell my land?
Not because of the sale. Roll-back taxes are triggered when the land’s use changes. If the new owner keeps farming it, roll-back taxes are not generated.
Is farmland assessment the same as farmland preservation?
No. Farmland assessment is a yearly tax program. Farmland preservation permanently restricts the land to farming through a deed restriction.
Sources checked
Checked on October 20, 2026.
- NJ Division of Taxation, New Jersey Farmland Assessment: eligibility (5 contiguous acres, two years, continued use), gross sales minimums including woodland, units under 7 acres, Forms FA-1, FA-1 G.S. and WD-1 due August 1, State Farmland Evaluation Committee values, roll-back rules.
- New Jersey Government Services, Farmland Assessment portal: online application replacing paper forms.
- NJ State Agriculture Development Committee, Farmland Preservation: preserved farms and deed restrictions.
About the authors
Chris Muldoon, MBA
COO & Director of Acquisitions
Chris Muldoon is COO and Director of Acquisitions at BayfordBridge, a New Jersey land acquisition and entitlement company based in Red Bank. He leads the team that evaluates and makes offers on land across the state.
Mitchel Rubinstein, MBA
CEO & Founder
Mitchel Rubinstein is CEO and Founder of BayfordBridge, with roots in the family’s 30+ year residential development business.
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