Fresno farmers are at a crossroads in 2025 as the Williamson Act, offering 20% to 75% in property tax savings, faces growing scrutiny. While intended to support agriculture, Fresnoland reported that the benefits now favor large-scale and out-of-state investors, with half of enrolled farmers receiving just $800 annually, while the top 0.3% claim the bulk of nearly $800 million in statewide subsidies.
As Fresno County reconsiders the program amid a $15 million deficit, local growers must reevaluate their land-use and tax strategies. At DeMera DeMera Cameron, we help Central Valley farmers make smart financial decisions by helping them leverage the Williamson Act and other tax tools to keep their operations strong and sustainable.
An Overview of the Williamson Act and Its Impact
The California Land Conservation Act of 1965, commonly known as the Williamson Act, allows landowners to enter into voluntary 10-year contracts with the county in exchange for significantly reduced property taxes, calculated based on agricultural use rather than market value. Fresno County alone has over 1.5 million acres enrolled across approximately 14,450 parcels, a testament to the program’s importance for regional agriculture.
How the Benefits Are Unevenly Distributed
Despite its original intent to support family farms, the benefits of the Williamson Act are not evenly shared. A recent analysis revealed that while the program costs Fresno County over $50 million annually, half of the enrolled farmers receive less than $800 in tax savings. Meanwhile, around 120 mega-farms, including pension and hedge funds, claim the majority of benefits, raising concerns about equity and program effectiveness.
Pitfalls Fresno Farmers Should Avoid
With Fresno County considering reforms, or even reductions, to the program, farmers must follow eligibility standards, including minimum acreage and verified agricultural activity. Violating contract terms or misreporting land use can result in hefty penalties. Additionally, exiting a Williamson Act contract without meeting cancellation criteria can trigger tax repayment fees and complicate future land-use changes.
Who’s Most at Risk?
- Small & Beginning Farmers: Already squeezed by land prices and water challenges, they often see the smallest benefit from Williamson Act savings.
- Mid-size Landowners: Caught between mega-farm advantages and limited subsidies.
- New Applicants: With Fresno County pausing new enrollments, newcomers face uncertainty about their ability to access future savings.
What to Watch for in 2025
This year may bring key changes that affect your eligibility and tax liability:
- County-level reviews: Fresno is reassessing whether the program still serves its intended purpose, particularly amid budget pressures.
- Statewide audits: Oversight groups are questioning the distribution of benefits and may recommend reforms.
- Alternative programs: Landowners may want to consider the Farmland Conservancy Program or Sustainable Agricultural Lands Conservation grants as additional or alternative tools.
Why Strategic Tax Planning Matters Now
With so much in flux, now is the time to take the initiative of making financially educated decisions regarding your farm’s taxation. DeMera DeMera Cameron CPA supports Fresno farmers by:
- Reviewing Williamson Act eligibility to help maximize your savings.
- Implementing additional tax strategies, including Section 179 equipment deductions or conservation easements.
- Navigating contract renewals and terminations to avoid costly errors.
- Ensuring audit-ready documentation that aligns with the current state and federal expectations.
Contact DeMera DeMera Cameron today for a customized farm tax strategy session. With local roots and unmatched expertise of serving the Central Valley for 80 years, we’re committed to helping Fresno farmers grow stronger, season after season.
