Volume 3 - Opinions of Counsel SBEA No. 110
Agricultural exemption (gross sales requirement) (intermediate use of livestock) - Agriculture and Markets Law, §§ 301, 305:
Livestock or livestock products must be produced for sale in order to be considered eligible agricultural production for computing the gross sales requirement of section 305 of the Agriculture and Markets Law. Gross sales from the intermediate uses of livestock, such as boarding fees, purses, and farm stock dividends are not includable.
Our opinion has been requested as to whether (1) boarding fees, (2) purses and (3) farm stock dividends are agricultural products pursuant to the requirements of the Agricultural Districts Law (Article 25AA of the Agriculture and Markets Law) and thereby eligible gross sales.
Section 305 of the Agricultural Districts Law provides that ten acres or more of land used in the preceding two years for the production for sale of agricultural products having a gross average sales value of $10,000 or more, shall be eligible for an agricultural value assessment. Section 301(3) defines “agricultural production” as the production for commercial purposes of livestock and livestock products.
Section 305 in conjunction with section 301(3) requires that livestock, or livestock products, be produced for sale in order to be considered eligible agricultural production for computing the $10,000 gross sales requirement. The Agricultural Districts Law does not make provision for the inclusion of gross sales derived from the intermediate uses of livestock. Therefore, moneys derived from racing purses, farm stock dividends or boarding fees are not eligible “products” for purposes of determining eligibility for an agricultural value assessment.
June 11, 1974