How to Get an Agricultural Tax Exemption in Louisiana

To get an agricultural tax exemption in Louisiana, you apply to the Louisiana Department of Revenue (LDR) for Commercial Farmer Certification using Form R-1085. Once approved, LDR issues you a certificate called Form R-1091, which you pair with the appropriate exemption certificate at the point of sale to buy qualifying feed, seed, fertilizer, fuel, equipment, and other farm inputs free of sales tax. Since January 1, 2025, a consolidated statute (R.S. 47:305.3) extended these exemptions to cover parish and local sales taxes on top of the state’s 5% rate, which meaningfully increased the dollar value of the certification.¹

Who Qualifies as a Commercial Farmer

Louisiana defines “commercial farmer” narrowly. Under R.S. 47:301(30), you must be a person, partnership, or corporation occupationally engaged in producing food or agricultural commodities for sale — vegetables, fruits, crops, livestock, poultry, or other agricultural products — and you must report that farm income on a federal Schedule F, Form 1065, Form 1120, or Form 1120S.² Your operation must also have a North American Industry Classification System (NAICS) code beginning with 11, which is the federal signal for an agricultural business.³

If your livestock or crops are for personal consumption, recreation, or a hobby, you do not qualify. LDR draws a firm line between operations that sell into commercial markets and those that don’t.⁴

Landowners Leasing to a Farmer

A landowner who leases property to a commercial farmer can also qualify, but only through a joint venture. You must submit documentation of the joint venture along with proof of farm income (including lease income) on a federal Schedule F or similar form, and the LDR secretary makes an individual determination of eligibility.²

Crawfish, Catfish, and Aquaculture

Not every agricultural producer uses the Commercial Farmer Certification. Crawfish and catfish producers, including those harvesting from public waterways, use separate exemption certificates — Form R-1319 for crawfish and Form R-1387 for catfish — to buy bait, supplies, equipment, and fuel tax-free without the R-1091 process. Aquaculture operations in an artificial reservoir or enclosure on private property that prevents fish from entering or leaving public waters count as commercial farming and can use the standard certification. Anything that doesn’t meet that test falls back on the standalone crawfish or catfish certificates.⁵

What You Can Buy Tax-Free

R.S. 47:305.3 governs what qualifies. Purchases fall into two broad groups: agricultural inputs and farm equipment.

Inputs

Under the statute, exempt inputs include:⁶

Feed, seed, and fertilizer, and any raw agricultural commodity used to prepare, finish, or produce crops or animals for market.
Livestock pharmaceuticals administered for agricultural purposes.
Seeds sold to a commercial farmer for any crop type.
Diesel fuel, butane, propane, and other liquefied petroleum gases used or consumed for farm purposes.

Pesticides used for agricultural purposes, including insecticides, herbicides, and fungicides, remain exempt under R.S. 47:305.8.⁷

Equipment

The equipment exemption covers tractors, cane harvesters, cotton pickers, combines, hay balers, cultivators, plows, sprayers, and irrigation equipment, among other items. Watch the cap: the exemption applies only to the first $150,000 of the sale price per piece of farm equipment, and anything above that is taxable. Agricultural fencing materials, including gates, wire, posts, electric fence components, and premixed concrete for setting posts, are also exempt, with no dollar cap.⁶

How to Apply for Commercial Farmer Certification

The application is Form R-1085 for new applicants. (Form R-1091 is not the application; it is the certificate LDR issues after approval.)⁸

Documents You Need

Every application must include your most recent federal income tax return or schedule showing farm income. Which form depends on how your business is organized:³

Sole proprietors: Schedule F (Profit or Loss From Farming).
Partnerships: Form 1065.
C-corporations: Form 1120 (NAICS code on Schedule K, Line 2a).
S-corporations: Form 1120S.

You will also need your Social Security Number or Federal Employer Identification Number and your NAICS code. If your farm is registered with the Louisiana Workforce Commission, use the LWC-issued NAICS code; otherwise pull it from your federal return. Missing documents or a missing signature will result in denial.³

Where to Send It

LDR accepts applications four ways:⁹

Online through the Louisiana Taxpayer Access Point (LaTAP) at Revenue.louisiana.gov/latap. LDR notes that electronic filing reduces processing time.
Email to commercial.farmer@la.gov.
Mail to Louisiana Department of Revenue, Revenue Processing Center, P.O. Box 4998, Baton Rouge, LA 70821-4998.
Fax to (225) 237-6765.

Using the Certification at the Register

The R-1091 by itself does not make a purchase tax-free. At the point of sale you must present both the R-1091 and one of four exemption certificates matched to what you’re buying:¹⁰

Form R-1007 for farm-related products such as feed, seed, fertilizer, and pesticides.
Form R-1060 for farm equipment sales, including tractors, harvesters, and irrigation systems.
Form R-1065 for non-road utility vehicles used exclusively on commercial farms.
Form R-80001 for utilities used at on-farm storage facilities.

A valid copy of your R-1091 must be attached to whichever exemption certificate you use, and the vendor keeps both on file.¹¹ If you arrive at a farm supply store without one or both, expect to pay the tax and pursue reimbursement afterward, which is a process most farmers would rather avoid.

Renewing Before It Lapses

The Commercial Farmer Certification is not permanent. To renew, file Form R-80002 with updated federal tax documentation, using the same channels as the original application.⁹ Purchases made during a gap in certification are fully taxable at both the state and local level. On a single major equipment purchase, that gap can cost thousands.

Penalties for Misusing the Exemption

Louisiana’s exemption certificates state on their face that misuse subjects the buyer or seller to payment of the full tax owed plus interest and all civil or criminal penalties provided under Title 47 of the Louisiana Revised Statutes.¹² Buying an item tax-free and then diverting it to personal or non-farm use triggers the tax and penalties, and the vendor who accepted the certificate can also face liability.

Records to Keep

Keep copies of every exemption certificate you present, every tax-exempt receipt, your R-1091, and the federal tax returns that supported your application and each renewal. Louisiana state auditors can request documentation at any time to verify that exempt purchases were used for qualifying agricultural purposes, and incomplete records can sink an otherwise legitimate exemption. Scanning receipts and certificates into a folder organized by tax year, with a backup, is a cheap way to protect a large deduction on a piece of equipment that may have cost six figures.

The Separate Property Tax Break for Farmland

Louisiana also offers a property tax benefit that runs on a different track. Under R.S. 47:2301, bona fide agricultural, horticultural, marsh, or timber land can be assessed at its use value rather than fair market value. To qualify, the land must either be at least three acres or have produced an average gross annual income of at least $2,000 in one or more designated agricultural uses over the four preceding years. You apply through the parish assessor’s office, not LDR, and sign an agreement committing the land to agricultural use.

The application is generally permanent as long as the property remains eligible, with two exceptions: a new purchaser must file a new application within 60 days of buying the land, and in Orleans and Jefferson parishes applications must be refiled at least every four years regardless of ownership. This benefit is separate from the Commercial Farmer Certification and does not replace it; a working farm often uses both.

1
Louisiana Department of Revenue. Are There Changes to the Agricultural Exemptions and Exclusions
2
Louisiana State Legislature. Louisiana Code RS 47:301 – Definitions
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Louisiana Department of Revenue. Application for Certification as a Commercial Farmer
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Louisiana Department of Revenue. Louisiana Administrative Code 61:I.4301, 4404, and 4408 – Commercial Farmer Definition for Sales and Use Tax Exemption
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Louisiana Department of Revenue. I Raise Fish (or Crawfish) in a Pond on My Land – Do I Need a Commercial Farm Certification
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Louisiana State Legislature. Louisiana Code RS 47:305.3 – Exemptions; Agricultural
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Louisiana Department of Revenue. Louisiana Administrative Code 61:I.4408 – Pesticides Used for Agricultural Purposes
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Louisiana Department of Revenue. How Do I Obtain a Commercial Farmer Certification From LDR
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Louisiana Department of Revenue. Renewal of Commercial Farmer Certification
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Louisiana Department of Revenue. What Can I Buy With Form R-1091, Commercial Farmer Certification
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Louisiana Department of Revenue. Farm-Related Products Sales Tax Exemption Certificate
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Louisiana Department of Revenue. Crawfish Production or Harvesting Sales Tax Exemption Certificate