Farmers encouraged to apply for new agricultural exemption numbers by January 1

The laws on agricultural exemptions haven't changed, but the Kentucky Department of Revenue (DOR) requires farmers to pre-qualify for tax exemption. So Kentucky Commissioner of Agriculture Dr. Ryan Quarles encourages the state's farmers to get their numbers at once. The deadline for current farmers is January 1, 2022.

"As the new rules take effect next year, we don't want our Kentucky agriculture producers to be caught off guard," Commissioner Quarles said in a written statement. "With inflation and supply chain issues affecting farm input costs, now is the time for farmers to get their new exemption number so they can protect the sales and use tax exclusions available to them."

On March 27, 2020, Governor Andy Beshear signed a law that exempts all eligible farmers from sales and use taxes on certain items. Farmers will be designated a number by the DOR to use under these circumstances. The items and guidelines or exempt items can be found in KRS Chapter 139. These include items for raising livestock for human consumption or producing crops.

The statement from the Department of Ag explains how and where to apply for an exemption number: "The Application for the Agriculture Exemption Number, Form 51A800, is available at under Sales Tax forms. Completed applications should be submitted by email to or mailed to DOR's Division of Sales and Use Tax, Station 66, P.O. Box 181, Frankfort, KY 40602-0181." In addition, it's recommended that applicants file an IRS Schedule F, Profit or Loss from Farming form with their application.

If farmers have questions, they can contact the Division of Sales and Use Tax at (502) 564-5170 or

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