### Question
How is the term substantial farmland defined?


### Answer
The term **substantial farmland** is defined in *26 U.S.C. § 147* as the following:

> any parcel of land unless—


(i) such parcel is smaller than 15 percent of the median size of a farm in the county in which such parcel is located, and


(ii) the fair market value of the land does not at any time while held by the individual exceed $125,000

#### Citation:
  - *26 U.S.C. § 147*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIRE- > Subpart A-Private Activity Bonds**

