Purchases that Qualify for Farming and Ranching Exemption

Purchase Requirements

An item qualifies for the exemption, if it meets all of the following requirements:

  • Primarily used in the farming or ranching process. This means it’s mostly used for farming or ranching. (See Idaho Code section 63-3607A.)
  • Reasonably necessary or essential – you can’t produce your goods without it.
  • Directly used or consumed in or during the farming or ranching process – includes any operation reasonably necessary to the total business:
    • The farming or ranching process begins when you perform an activity that’s reasonably necessary to your total business.
    • The process ends when you remove the product from initial storage, and it’s ready for transportation.
  • Tangible personal property – must not become real property
  • Allowable by law – must not be specifically excluded from the farming and ranching exemption

Examples of items that qualify:

Examples of items that don’t qualify:

Exempt Purchases — Farming and Ranching

The production exemption guide lists items that are exempt from tax. Qualifying farmers and ranchers can also buy the following items exempt:

Farm Implements


  • Dry and liquid fertilizer spreaders, combines, discs
  • Harvesting and stacking equipment, swathers, harrows, hay balers
  • Pesticide applicators, plows, farm wagons

Agricultural irrigation – equipment and supplies

  • All irrigation equipment and supplies used directly for agricultural irrigation are exempt. This includes materials that are attached to real property:
    • Concrete for irrigation ditches
    • Well casings
  • Irrigation equipment and supplies don’t qualify if they’re:
    • Incidental or only indirectly related to the agricultural irrigation process
    • Used to install or maintain the irrigation system
    • Used on a golf course

The installer must use pdf Form ST-103C – Sales Tax Exemption Certificate – Real Property Contractors, to buy qualifying irrigation equipment and supplies exempt.

The equipment can be installed by either the farmer, the rancher, or the contractor.

Milking activities – equipment and supplies

Includes disinfectants used in clean-in-place systems

Seeds and plants for growing crops

Including seedlings and cuttings for orchard trees and grapevines

Fertilizers and pesticides

If used on crops

Feed and vaccines

For livestock

Farm produce beds

If easily removed from a licensed vehicle (e.g., spud beds)

Hand tools

If used directly and primarily in the farming or ranching process


  • Shovels, pitchforks
  • Reusable syringes, emasculators
  • Branding irons, cattle prods
  • Ropes, whips

Note: Hand tools used in maintenance and repair activities are taxable.

Equipment for transporting produce

Equipment mounted on a licensed motor vehicle and used to move farm produce to initial storage can be purchased exempt from sales tax if:

  • It can be easily removed from the vehicle,
  • It’s separately stated on the vendor’s invoice, and
  • The buyer is a qualified farmer or rancher that gives the seller a completed exemption certificate.

Note: The licensed motor vehicle is taxable; only the equipment is exempt.