Commercial Real Estate in Herald: Agricultural Zoning, Farm Businesses and Rural Service Limits

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Herald is a rural unincorporated community in southeastern Sacramento County, east of Galt, in farm and ranch country that also holds SMUD’s Rancho Seco site and Rancho Seco Park. Commercial property here rarely means storefronts. It means farm businesses, agricultural processing, wineries and farm stands, rural service and contractor properties where zoning allows, and land held for agriculture. Sacramento County decides every use, so confirm the zone of the specific parcel with County Planning before relying on this page.

Who controls the parcel

Herald has no city government. Land use follows the Sacramento County Zoning Code, with business licensing by the County and building permits through County development services. The City of Galt is nearby but regulates only land inside its own limits.

Fire protection. The Herald Fire Protection District, formed October 21, 1946, covers the area. According to the Sacramento LAFCo municipal service review finalized December 6, 2017, the district:

spans about 96.4 square miles and serves roughly 4,500 residents in a mainly rural and agricultural area
includes Rancho Seco, the Ethos Energy power plant, Rancho Seco Park and Arcohe School
runs stations on Ivie Road and Clay Station Road
has about 40% of its territory in a State Responsibility Area for wildland fire
contracts with SMUD to provide personnel and equipment for emergencies at Rancho Seco

The State Responsibility Area status matters for commercial buyers, because it brings state fire-safe standards for access, water supply and defensible space into play for new buildings and some changes of use.

Herald zoning for commercial, industrial and agricultural business

The County zoning map shows the district for each parcel. These Chapter 2 districts are the ones a Herald buyer is most likely to see:

District	Intended uses	Notes for Herald
AG-20, AG-40, AG-80, AG-160	Long-term agriculture, limiting conversion to urban uses	Lot minimums of 20 to 160 acres; the main setting for farm businesses
AR-1 to AR-10 Agricultural-Residential	Small farms with rural homes on 1 to 10 acre lots	Home-based and small farm businesses
UR Urban Reserve	Agricultural land held for future urban development	Interim farm uses
LC Light Commercial	Retail goods and services	Only where mapped; rare in rural areas
M-1 Light Industrial	Fabrication, assembly and processing with few emissions	Check the map for any rural industrial sites
C-O Commercial Recreation	Active recreation and resort uses in remote areas	Relevant near park and lake recreation

What farm businesses the County allows

Chapter 3 of the County Zoning Code carries the agricultural use standards that matter most here:

Farm stands and markets. Field retail stands, farm stands, produce stands and agricultural markets are permitted by right in the AG zones and in AR-2, AR-5 and AR-10 (Section 3.4.7). In AR-1 a field retail stand needs a Zoning Administrator use permit. Events at farm stands follow Table 3.4.
Primary processing. Processing farm products is permitted by right on up to 5 acres in agricultural zones, with a Zoning Administrator use permit above that (Section 3.4.3). In AR-5 and AR-10 the by-right limit is 1 acre, and processing is prohibited in AR-1 and AR-2.
Food processing industry. Allowed only in AG-20 through AG-160, with a Board of Supervisors conditional use permit after a Planning Commission recommendation (Section 3.4.10).
Wineries and breweries. Small wineries and craft breweries follow Section 3.4.8, which covers tasting, events, parking and signs; winery events follow Table 3.6. Large winery events in AG-20 through AG-160 need a conditional use permit (Section 3.4.9).
Kill floors. Need a Zoning Administrator use permit plus a state license (Section 3.4.5).

Retail, restaurant or lodging uses outside these farm-related categories generally need commercial zoning, which is uncommon around Herald. A rezone of agricultural land faces the County General Plan’s farmland policies, so price that risk in.

Rural infrastructure limits

Water and wastewater. Rural Herald properties commonly rely on private wells and septic systems. For a winery tasting room, event space or processing operation, the County’s environmental health requirements for water systems and wastewater can be the deciding factor, so test well yield and septic capacity early.

Fire access. Because a large share of the fire district is in the State Responsibility Area, new commercial buildings may need fire-safe road widths, turnarounds, water storage and defensible space. Ask the fire district and County what applies to the parcel.

Lodging. Lodging in the unincorporated County pays the 12% transient occupancy tax plus tourism district assessments, per the County’s short-term rental page, which also sets hosted-only rules for homes rented short term.

Transfer tax, business tax and property tax

A Herald sale pays Sacramento County documentary transfer tax of $0.55 per $500 of value, less assumed loans, through the County Clerk-Recorder; no city tax applies. Businesses located in the unincorporated County need a County General Business License, per the Department of Finance. Farmland under a Williamson Act contract is taxed on agricultural value with use restrictions, so check for a contract on title. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Herald

Start with our commercial due diligence checklist, then add:

Confirm the zone and lot size; AG minimums run from 20 to 160 acres.
Match the planned use to Chapter 3: farm stand, processing acreage, winery size or events.
Test well yield and septic capacity for the planned employees and visitors.
Check whether the parcel is in the State Responsibility Area and what fire-safe standards apply.
Look for a Williamson Act contract or conservation easement on title.
Confirm road access and any County road improvement conditions for truck traffic.

Questions people ask

Is Herald part of Galt?

No. Herald is unincorporated Sacramento County; Galt regulates only land inside its city limits.

Can I open a farm stand in Herald?

In AG zones and in AR-2, AR-5 and AR-10, farm stands are permitted by right. AR-1 needs a Zoning Administrator permit.

How much agricultural processing is allowed without a permit?

Up to 5 acres by right in agricultural zones, or 1 acre in AR-5 and AR-10.

Can I build a winery with events?

Small wineries follow Section 3.4.8 and Table 3.6; large winery events in AG zones need a conditional use permit.

Who provides fire protection in Herald?

The Herald Fire Protection District, formed in 1946, with stations on Ivie Road and Clay Station Road.

Is Rancho Seco in Herald’s fire district?

Yes. The district includes Rancho Seco and Rancho Seco Park and has a contract with SMUD for emergency response there.

Does Diamond handle commercial property in Herald?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Herald.

Emergency access planning

Sacramento Ready’s Zone 83 map covers Wilton and Herald. It identifies Jackson Road and Highway 104 as east–west routes, Dillard and Colony as north–south routes, and no bus routes. Check the parcel’s exit options and emergency plan.

Sources & notes

Note: We did not confirm the zoning of specific Herald parcels, Herald’s community plan area or the County’s use table for commercial uses in agricultural zones. Well and septic statements are general.

This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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