### Question
How does the law define substantial farmland?


### Answer
Under *26 U.S.C. § 147*, **substantial farmland** is defined as:

> any parcel of land unless—


(i) such parcel is smaller than 30 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 REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart A-Private Activity Bonds**

