Tax Code §11.16

(a) A producer is entitled to an exemption from taxation of the farm products that the producer produces and owns. A nursery product, as defined by Section 71.041 , Agriculture Code, is a farm product for purposes of this section if it is in a growing state. An egg, as defined by Section 132.001 , Agriculture Code, is a farm product for purposes of this section, regardless of whether the egg is packaged. (b) Farm products in the hands of the producer are exempt. (c) For purposes of this exemption, the following definitions apply: (1) "Farm products" include livestock, poultry, and timber. (2) "In the hands of the producer," for livestock, poultry, and eggs, means under the ownership of the person who is financially providing for the physical requirements of such livestock, poultry, and eggs on January 1 of the tax year and, for timber, means standing timber or timber that has been harvested and, on January 1 of the tax year, is located on the real property on which it was produced and is under the ownership of the person who owned the timber when it was standing.