When Is a Farm Building Exempt from Nebraska Zoning Laws?
Landowners in Nebraska are sometimes surprised to learn that not every structure built on rural property is exempt from zoning laws. While agricultural operations enjoy important protections, the exemption for “farm buildings” under Nebraska law is narrow and specific—and misunderstanding it can lead to costly permitting or compliance issues.
Under Nebraska Revised Statute § 23-114.03, a structure qualifies as a “farm building”—and may therefore be exempt from county building permit requirements—only if all three of the following criteria are met:
- The building is used for agricultural purposes;
- It is located on a farm consisting of at least 20 acres; and
- The farm generates at least $1,000 annually from the sale of agricultural products.
These thresholds are more than technicalities. They reflect the law’s intent to protect bona fide agricultural operations, not recreational landowners or rural residents with incidental farming activity. Owning rural land or erecting a barn-style building is not enough—the structure must actively support a productive, income-generating farm.
What Qualifies—and What Doesn’t
Buildings that typically meet the exemption include barns, grain bins, equipment sheds, and livestock shelters that are integral to ongoing agricultural production. In contrast, structures used for personal storage, non-agricultural businesses, or residential workshops generally do not qualify, even when built on otherwise rural land.
Hobby farms, small acreages under 20 acres, or properties that generate minimal agricultural income are also unlikely to qualify for the exemption.
Residences present a more complex question. While the statute gives counties discretion over whether farm homes are subject to permit requirements, interpretations vary by jurisdiction. Landowners should consult local zoning authorities before assuming an exemption applies.
Nebraska Supreme Court Clarifies the Limits
Two key Nebraska Supreme Court cases shed light on how these rules play out in real-world disputes:
Premium Farms v. County of Holt
In Premium Farms v. County of Holt, 640 N.W.2d 633 (Neb. 2002), the Court addressed whether a large hog confinement facility was exempt from Holt County’s zoning rules. The Court held that counties cannot require building permits for structures that meet the “farm building” criteria—but can impose zoning regulations, such as conditional use permits, setback requirements, or environmental conditions.
This distinction between regulating construction (prohibited under the exemption) and regulating land use (permitted under local zoning authority) remains foundational in land use law.
Hochstein v. Cedar County Board of Adjustment
In Hochstein v. Cedar County Board of Adjustment, 940N.W.2d 251 (Neb. 2020), the issue was whether a new residence near a large livestock feeding operation (LFO) was subject to a one-mile residential setback. The landowners, Mark and Carla Goeden, owned a 240-acre property and proposed to build a home on an 80-acre portion.
The Court found that even though the land was leased and the Goedens were not directly farming it, the property met the statutory acreage and income requirements—and the residence was incidental to the agricultural operation. As such, it qualified for the exemption.
Practical Takeaways for Landowners and Developers
These cases underscore that while Nebraska law protects qualifying farm buildings from building permit requirements, it does not insulate agricultural properties from all zoning regulations.
Landowners and developers should keep in mind:
- The “farm building” exemption is limited to qualifying structures on large, income-producing farms;
- Counties may still regulate land use, including environmental safeguards, conditional uses, and residential setbacks;
- Residences may or may not be exempt, depending on local zoning interpretations and how closely they are tied to the agricultural operation.
Before building, it's wise to consult with legal counsel familiar with Nebraska zoning laws and agricultural land use. Missteps can delay projects or result in costly retroactive compliance.
At Lamson Dugan & Murray LLP, our Agricultural Law team understands the unique legal challenges faced by farmers, landowners, and developers across Nebraska and Iowa. We help clients navigate local zoning ordinances, protect their agricultural exemptions, and plan strategically for growth.
For more information or assistance with your ag project, contact our Agribusiness team to learn more.
