In a significant development for farmers in Arkansas, the state legislature passed a new agricultural law on February 19, 2026, that will bring about changes to property tax exemptions for agricultural land. The new law, Senate Bill 1234, aims to provide more clarity and consistency in determining which farmers are eligible for property tax exemptions and to ensure that the exemptions are being applied fairly and equitably across the state.Under the previous system, farmers were eligible for a property tax exemption on agricultural land based on their annual gross income from farming activities. However, there were inconsistencies in how this income was calculated and verified, leading to some farmers receiving exemptions that they may not have been entitled to, while others were missing out on the benefits.The new law establishes a more streamlined process for determining eligibility for property tax exemptions. Farmers will now be required to provide documentation of their annual gross income from farming activities, including income from crop sales, livestock sales, and other agricultural products. This documentation will be subject to auditing by the state Department of Revenue to ensure accuracy and compliance with the law.Additionally, the new law also clarifies the definition of "agricultural land" for the purposes of property tax exemptions. Previously, there was some ambiguity over whether certain types of land, such as vineyards or orchards, could qualify for the exemption. The new law now explicitly includes these types of agricultural operations under the definition of agricultural land, ensuring that farmers engaged in these activities can benefit from the tax break.The Arkansas Farm Bureau, a leading agricultural advocacy group in the state, has praised the passage of Senate Bill 1234, hailing it as a much-needed reform to the state's agricultural tax system. The bureau believes that the new law will help level the playing field for farmers and ensure that property tax exemptions are being applied fairly and consistently.Farmers across the state have also expressed support for the new law, recognizing the importance of a fair and transparent tax system that recognizes the unique challenges and contributions of agricultural producers. With the implementation of Senate Bill 1234, farmers in Arkansas can expect greater certainty and clarity in their property tax obligations, allowing them to focus on what they do best – producing food and fiber for the state and the nation.