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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 53 Pa.B. 7346 (November 25, 2023).

61 Pa. Code § 91.211. Family farm corporation.

§ 91.211. Family farm corporation.

 (a)  A corporation shall meet the following requirements to constitute a family farm corporation:

   (1)  In the aggregate, the book value of the corporation’s assets that are primarily devoted to the business of agriculture continuously comprise at least 75% of the book value of all of the corporation’s assets.

   (2)  At least 75% of each class of stock of the corporation is owned by individuals who are members of the same family.

 (b)  To qualify as an asset devoted to the business of agriculture for the purpose of subsection (a), the assets must be:

   (1)  Owned and either used directly by the corporation claiming the exemption or leased to, and used directly by, a member of the same family that owns at least 75% of each class of stock of the corporation claiming the exemption.

   (2)  Principally devoted by the corporation to the business of agriculture or used by the member for agricultural purposes.

   (3)  Property of the sort commonly used in the business of agriculture principally for agricultural purposes.

   (4)  Used by the member principally for agricultural purposes or set apart and directly used by the corporation primarily for commercial:

     (i)   Cultivation of the earth to produce food products suitable for human or animal consumption, seeds, tobacco, turf or sod.

     (ii)   Rearing, feeding, breeding and management of livestock.

     (iii)   Raising and harvesting of orchards and vineyards.

     (iv)   Beekeeping.

     (v)   Rearing, feeding, breeding and management of fish or other aquatic animals for use as a food or food product.

 (c)  For the purposes of subsection (a), an asset does not qualify as an asset devoted to the business of agriculture if it is set apart and directly and principally used in:

   (1)  Recreational activities such as hunting, fishing, camping, skiing, boating, show competition or racing.

   (2)  Raising, breeding or training game animals or birds, fish, cats, dogs or an animal intended to be used in sporting events or for recreational activities.

   (3)  Fur farming.

   (4)  Stockyard and slaughterhouse operations.

   (5)  Manufacturing or processing operations.

   (6)  The business of holding property for rental income.

 (d)  For the purposes of subsection (a), §  91.201(b) (relating to real estate company) applies.

 (e)  For the purposes of this section, the business of agriculture includes a leasing of property to a member of the family having the ownership of at least 75% of each class of its stock if the property is used by the member directly and principally for an agricultural purpose.


   The provisions of this §  91.211 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. §  8107-C).


   The provisions of this §  91.211 adopted September 9, 1988, effective September 10, 1988, 18 Pa.B. 4096; amended December 14, 2007, effective December 15, 2007, 37 Pa.B. 6516. Immediately preceding text appears at serial pages (233385) to (233386).

Cross References

   This section cited in 61 Pa. Code §  91.221 (relating to family farm partnership).

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