Bona Fide Farm Informational Hub
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Collapse ▲What constitutes a “bona fide farm” in North Carolina?
In North Carolina, a “bona fide farm” is a legal label for a farm that qualifies for certain exemptions from zoning rules and property taxes. This label helps protect farming operations from land use rules that could interfere with their activities.
Key aspects of a bona fide farm in NC:
Exemptions:
Bona fide farms qualify for exemptions from different zoning laws and may also receive tax relief.
Agricultural Activities:
The designation applies to land used for various agricultural purposes, including crop production, livestock, poultry, and other farming activities.
Structure and Housing:
The exemption also extends to housing and other structures supporting the farm operation, as long as they meet specific requirements such as being located on the farm and occupied by the farm owner, lessee, or operator.
Sales Tax Exemption:
A farm sales tax exemption certificate, issued by the Department of Revenue, is also a vital part of the bona fide farm status.
Present-Use Value Program:
A copy of the property tax listing indicating the property qualifies for the present-use value program is another supporting document.
Documentation:
To qualify, farmers might need to submit documentation such as an affidavit, aerial maps, and evidence of farming operations.
What Qualifies as a Bona Fide Farm in NC?
Under state law, the following uses are considered bona fide farm purposes and are exempt from county zoning rules:
- Production of crops, grains, fruits, vegetables, ornamentals, dairy, livestock, poultry, and other agricultural products.
- Activities directly related to farming, such as storage structures, farm residences, energy/processing facilities, and agritourism (if specific conditions are met)
Acceptable Proofs of Farm Status
To qualify legally, you must provide at least one of the following:
- Farm sales tax exemption certificate from the NC Department of Revenue (“qualifying farmer” status)
- Property tax listing showing eligibility for the Present-Use Value (PUV) program
- A copy of your most recent Schedule F (farm income/expenses) from your federal tax return
- A forest management plan, if applicable (sometimes used for forestry operations)
Special Considerations for Agritourism
If you plan to host agritourism activities such as public events like weddings, pick-your-own operations, tours, or demonstrations, the exemption only applies if you hold either:
- A sales tax exemption, or
- Enrollment in the Present-Use Value (PUV) program
Required Forms & Applications
- Sales Tax Exemption Certificate (Qualifying Farmer)
This certifies your status as a bona fide farm and grants exemptions on certain farm-related purchases.
Form E-595QF — Application for Qualifying Farmer Exemption Certificate Number
You’ll report your farming operations and income (typically $10,000+ annually for the last year or averaged over three years) and submit supporting documentation such as Schedule F or business tax returns.
- Present-Use Value (PUV) Assessment Application
This allows for significant property tax savings by classifying your land according to its agricultural, horticultural, or forestry use instead of market value.
Required for enrolment in the PUV program under NC General Statutes 105-277.2–.7.
Eligibility Requirements:
- For agriculture and horticulture: must generally generate at least $1,000 gross income annually over three years.
- For forestry: a minimum of 20 acres in timber production plus a detailed forest management plan.
Deadlines: Submit by January 31 each year, or within 60 days of property transfer for new owners.
- Supporting Evidence for Bona Fide Farm Designation
Under NC General Statutes § 160D-903, these documents prove your property qualifies as a bona fide farm:
- Farm sales tax exemption certificate (Form E-595QF)
- PUV eligibility listing/certificate (Form AV-5 )
- Schedule F from your federal income tax return
- Forest management plan (for timber operations)
- Submitting to Guilford County
Once your forms are completed, here’s where they go:
- Sales Tax Exemption (E-595QF): Submit to the NC Department of Revenue.
- PUV Application (AV-5): Submit to the Guilford County Tax Assessor’s Office.
Disclaimer:
Some of the information provided here is specific to Guilford County, North Carolina, and may not apply in other counties or municipalities. Requirements for the Present-Use Value (PUV) program, bona fide farm status, and related agricultural exemptions can vary based on local interpretations of state law, zoning regulations, and county procedures. Always confirm details with your local tax assessor’s office, zoning/planning department, or state agencies before submitting applications or making business decisions.