Buying a Farm in PA vs MD: Taxes, Programs and Preservation
Buying a Farm in PA vs MD: Taxes, Programs and Preservation
I work farm deals on both sides of the Mason-Dixon. The state line changes more than you’d think.
I’m Collin Boyer. I sell farms, and I also build homes, build or place manufactured homes, and develop and subdivide land. So your options aren’t only sell or don’t sell. You can list it, sell it directly to me, or split off a lot and build.
What drives a farm’s value
Soils and tillable acres, buildings, water, road frontage, location, and any easements or farm-tax status. Prices vary a lot by county and by farm, so look at recent sales of similar farms near the one you want.
Transfer taxes at closing
PA: 1% state plus a local share, usually about 1%. Some farm transfers can be exempt. Ask your attorney (PA Revenue).
MD: 0.5% state (Md. Tax-Prop. §13-203), plus county transfer and recordation taxes.
The farm-tax programs
PA Clean & Green: lower taxes while the land stays in farm or forest use. A change of use triggers rollback of up to 7 years plus 6% interest.
MD agricultural land transfer tax: when land leaves farm-use assessment, it’s 5% for 20+ acres, 4% under 20 acres, 3% under 20 with improvements, plus a 25% surcharge. Some counties add more (Md. Tax-Prop. §13-303).
If you plan to keep farming, these mostly protect you. If you plan to build or split, price them in.
Preserved farms
Both states have big preservation programs: PA’s state program (PDA) and Maryland’s MALPF.
A preserved farm can be a good buy if you want to farm. The easement keeps it a farm forever. Just know you can’t subdivide it.
Buyer checklist
Soils and tillable acres
Buildings: condition, age, what they’re worth to you
Water and septic for the house
Road frontage and access for equipment
Clean & Green or MD ag assessment status
Easements on the deed
Financing: talk to an ag lender early
Call or text Collin at 717-991-5085.
In practice, buyers comparing the two states are often weighing southern York or Lancaster County farms against farms in northern Carroll, Frederick, Harford or Baltimore County.
FAQ
What drives farm prices in PA and MD?
Soils, tillable acres, buildings, water, frontage, location and easements. Compare recent sales of similar farms nearby.
What is Maryland’s agricultural transfer tax?
It applies when land leaves farm-use assessment: 5% for 20 or more acres, 4% under 20 acres, 3% under 20 acres with improvements, plus a 25% surcharge. Some counties add their own.
Can I buy a preserved farm?
Yes. Preserved farms in PA and MD can be bought and sold. The easement stays with the land, so it can’t be developed.
Sources:
- USDA NASS 2026
- 2022 Census of Ag: PA · MD
- PA Revenue
- Md. §13-203 · §13-303
- PDA
- MALPF
Collin Boyer is a real estate agent with Real of Pennsylvania, serving all of Pennsylvania and Maryland. Licensed in Pennsylvania (RS353567) and Maryland (5014481). Call or text 717-991-5085. Real of Pennsylvania · (717) 344-5577. Equal Housing Opportunity. This post is general information, not legal or tax advice.