What type of property includes farms and ranches?

The correct response identifies agricultural property as the type that encompasses farms and ranches. Agricultural property is specifically designated for agricultural activities, which primarily include the cultivation of crops and the rearing of livestock. These properties are usually larger tracts of land, utilized for the production of food, fiber, and other goods. They are often characterized by their zoning and land-use regulations that support farming practices.

In this context, residential property pertains primarily to homes where people live, commercial property is geared toward business activities and services, and industrial property is focused on manufacturing and production facilities. These designations do not typically apply to farms and ranches, which are specifically categorized under agricultural use due to their unique operational needs and purposes. Recognizing this distinction is crucial for understanding various real estate classifications and the specific regulations and practices that govern each type.