Small Farms

Do you make something on your farm that could be sold online?  If so, you are not alone.  There are many farmers that are earning a second stream of income from products that are either produced on their property or are made from what they produce.

Some products that you’ll find online from farmers include:

• Goat’s milk soap
• Dressed heritage turkeys
• Wine
• Garlic
• Syrup
• Honey
• Beeswax candles

These are just a few of the many things that can be marketed online.  If you live in a rural area and have nowhere to sell your products, perhaps starting your own website would be profitable.  After writing about the cost of vendors insurance for farmer’s markets in my post yesterday, I realized that selling online is definitely cheaper than paying for a summertime vendors license and insurance!

If the thought of setting up your own website frightens you, there is always help available, and with the right people it won’t cost you an arm and a leg.  One of my favorite website companies that can help you integrate a shopping system into your website is Homestead.com .  You could literally setup a website today and be online selling tomorrow (even earlier if you don’t want a personalized domain name).

If you have any questions about setting up a website, don’t hesitate to drop me a line here in the comments section.  I’m a webmaster and would like to see you succeed on the Internet!

~~Charlotte

SmallFarms4You.com

I love farmer’s markets.  Whether I’m selling merchandise or just enjoying shopping there, it makes for a festive atmosphere.  If you’ve never been to one, even to look around, you may be missing out.  Each one has a different atmosphere- many of the people working there have been friends for a long time.  The vendors look out for each other, sometimes sell for each other and swap lots of stories to pass the time.

I recently received my Farmers’ Market Federation of New York Farmer/Vendor Membership application and insurance form.  I knew the membership always costs $25, but honestly, I wasn’t prepared for the insurance cost.  Just to let everyone know, yes, insurance is mandatory at these markets- at least in NY.  The insurance- vendor liability- is now going for $357.  Yikes!  Talk about eating up the profits.  I’m tempted to just sell at the roadside this coming year on my own property, or get together with someone near the local highway to save money.

I’m not stupid; I understand why the insurance is needed.  What I don’t get is what a bunch of farmers on a Wednesday afternoon could possibly do to the village square that would cost this amount of money (just a guesstimate- 20 farmers x $357 = $7,140).  Heck, half of these farmers are selling melons, squash and one just sells quilts, soaps and candles.  For $7,140 we could open a produce shop on the square year ’round….

Now there’s an idea!

It is amazing to think that some people (non-farmers) think farm subsidies are unnecessary.  This, after all of the bailouts for the nincompoops who can’t manage their own businesses.  Perhaps these people don’t understand what farm subsidies are, or perhaps they are SO wealthy that they don’t care how much meat and dairy products would cost if there weren’t subsidies.

Farm subsidies help both the farmer and the consumer.  They keep the prices stable so that the consumer doesn’t end up paying $6-7 for a gallon of milk or $6 per pound for beef or $5 for a dozen eggs.  I can hear people saying, “So what?  I’ll just eat vegetarian.”  Hah!  Good luck with that.  Who do you think raises fruits and vegetables?  Farmers!

Farm subsidies help American farmers compete with International products that, thanks to NAFTA, are brought into this country.  So, the next time you hear people saying that farm subsidies aren’t necessary think about how all of your food gets to the table.  Do you want food imported from other countries, like China?  Or would you rather buy food locally, which incidentally, helps to stimulate our tanking economy?  The choice, and the cost, is up to you.

As today is the last day of the year, it is time to look forward to doing our taxes.  I’ve written about this in my other blogs, but now the actual activity is upon us.

As any taxpayer in the U.S. knows, preparing taxes isn’t a lot of fun, and even more so if you don’t keep your paperwork together in one place during the year.  For that reason I’d like to remind everyone to remember the vet bills.  This is an expense that can be written off for your business.  I mention this because I’ve forgotten to do this from time to time.  If you haven’t kept those receipts, your local vet office may be so kind as to print them out and either mail them or have you pick them up.

If you haven’t already done so, now is the perfect time to create a real bookeeping system for your small farm.  I use a expandable file folder to keep my records at hand, and it stores them nicely when tied shut (all of those feed receipts stay put!).  I also keep records using accounting software and Excel.  Find one that works well for you and keep a copy of the records on the computer and one on a CD or floppy.  They’ll help you avoid a lot of headaches in the future.

See you next year!

~~Charlotte

It is almost that time again- the end of the year and time to organize all of your small farm paperwork for taxes.  Personally, I usually do all of my paperwork around this time of December each year because I hate playing beat the clock on tax day.  Since I’ve been married I’ve always done the taxes, with the exception of a friend who worked for H&R Block and did my taxes the first year I was married.

Ever since that first year, I realized doing taxes wasn’t that big of a deal, especially with all of those do-it-yourself tax programs on CD.  For about $20-30 dollars, I could do my taxes and save a bundle!  While I know I can deduct the cost of my taxes every year, I don’t like having to pay up front a few hundred dollars for the privilege of having someone do what I could easily do in the same amount of time.  (Last year I would have paid $318 to have a tax preparer do my paperwork!).  This isn’t an advertisement, but I usually use TaxCut.  It saves my information from the previous year and imports it in the new tax year.  This is especially handy if you are depreciating expenses, such as farm equipment.

Hopefully, you have already saved certain receipts for your farm projects, such as receipts for any equipment you bought during the year.  Have these receipts ready:

• Animals bought, sold or expired
• Expenses for advertising the sale of any animals, farm equipment or crops
• Expenses related to farm vehicles, equipment repair or insurance
• Property taxes
• Worker-related expenses
• Receipts for any books, magazines or farm-related memberships (such as Farm Bureau)
• Receipts for registering any purebred animals
• Records for any losses

If you are using a tax program computer CD, just follow the prompts- it is that easy!  It will provide you with information on what goes in every field of the program, and they all come with pop-up help programs so you can get specific information each step of the way.  While you have to pay a fee to file the taxes on the state and federal level (usually around $12-$20 each for state and federal),  it can be deducted from your refund if you wish.

These tax preparer programs are just like the ones a professional preparer uses, so give them a try if you want to save money and do your taxes accurately.  These programs can be purchased at stores like WalMart, Staples and Target, usually starting in early January.

Filing online will save you time and money- you’ll receive your refund usually within 14 days or less, especially if you file in January.  So, get those small farm records together and file early this year!

~~Charlotte

I think people have taken this “going green” thing a little too far.  When we start taxing people and animals based on their gas emissions, we’re interfering with life, liberty and pursuit of happiness in the United States.  Especially in light of the fact there are plenty of other countries around the world who also produce gas- the point being, we can’t regulate everyone and we aren’t the Sheriff of the World.

If you didn’t read my previous post, or simply don’t care, the EPA is planning on taxing farmers an exhorbitant amount, based on the type of animal they raise and how many of these animals they own.  The taxes would be on milk cows, beef cows and pigs (I’m guessing that is just a starting point, though).  Milk cows for a herd of 100 or more would be taxed at $175 per head, beef cattle at $87.50 per head if you own 50 or more head, and pigs $20 per head if you have 20 or more.  If you don’t raise these kinds of animals, you probably aren’t aware that you need a certain number of animals for your herd to sustain it and to make a living from raising these animals.

To make matters worse, a permit would be required to operate a farm with these animals, and this permit alone will cost $17,500.00.  Most farmers I know wouldn’t be able to raise this kind of money for a permit.  With the banks in such disarray, who would be willing to lend this kind of money?

Perhaps the people reading this could care less about farmers, and you may believe that getting rid of the small farmer is unimportant.  If so, consider the following:

• Organic farmers use the waste from local farmers (beef cows, milk cows and pigs!) to fertilize their gardens.
• Milk and milk products would be imported from other countries, mainly China.  If you follow the news, China isn’t where I would like to get my food products from since the inspections are very lax.
• Imported beef and pork would be very cost prohibitive.  If you think prices are high now, expect them to double or even triple.
• Expect the unemployment rate to soar, as well as public assistance programs such as welfare, food stamps and Medicaid.  When you put a bunch of farmers out of work, they’ll have to go on public assistance.  In addition, they aren’t qualified to do many other jobs, so there will be the cost of training them for other careers.
• Many small towns will lose income- their taxes come from rural farmers
• There will be a rash of farm foreclosures - again - because the government is interfering with farmers and their ability to make a living.  I don’t think there will be a “farmer bailout” either.

We need less government instead of more.  This isn’t the kind of “change” we need where the family farm is driven into non-existence.  If this ridiculous tax bothers you, please send a letter to the EPA!  Follow this link to send an email from the Farm Bureau:

Oppose Greenhouse Gas Tax on Farm Animals

In yesterday’s blog I mentioned building a corn maze to create income for your farm (agritainment).  Since you may not know where to start on a project like this, I’m going to give you a few pointers and places to visit to get “corn maze patterns.”

If you’re worried that you need really high tech equipment and a gps to create your maze, don’t worry.  You can create great mazes that will attract people without spending a small fortune.

• First, check with your town’s business office to see if it is legal for you to operate a corn maze and get any applicable licenses first.
• Second, get some free corn maze creating software.  You can get this free at Corn Mazes America.
• Third, obtain insurance once you’ve decided the scope of your project.  Liability insurance will cover you in case someone gets injured while visiting your maze and surrounding property.  Insurance will cost in the neighborhood of $1,200.
• Fourth, decide on a marketing plan to get the word out.  Options include ads in local newspapers, fliers, brochures, radio ads and creating a website.
• Fifth, decide if you want to have any additional things to do on your property to increase profits, such as hayrides, pumpkin patches, selling cider, haunted houses or pony rides.  You may also need additional insurance if you plan to offer rides of any kind and licenses to sell food if you make it on your property.
• Sixth, decide what to charge for admission.  Most farmers charge around $6 per person, and are open on weekends only.  Most farmers can expect about 3,000 visitors per 4 weekends of operation.

Think you’re interested in this farm business sideline?  The USDA figures there will be a 30% growth in the agritourism industry over the next 10 years.  Find more resources for this project at these websites:

Precision Corn Mazes - when you want to hire someone to do this for you

The Corn Maze Directory

~~Charlotte

SmallFarms4You.com

Many small farms can make a modest income from the business they run, but what if they need to supplement their income to get through those tough winter months?  The answer for many is agritainment - agricultural entertainment.  If you haven’t heard of this before, consider this - how many pick-your-own pumpkin farms have you ever been too?  You’ve probably taken hay rides there or perhaps visited a corn maze.  Odds are you paid a small fee for the privilege.  These things are considered agritainment!

Some ideas to mull over for starting your own agritainment include the following:

• Wagon rides
• Pony rides
• Petting zoos
• School tours
• Birthday parties
• Ghost tours
• Haunted hayrides
• Haunted houses

In addition to these entertainment ideas, selling products also boosts sales:

• Cider
• Pies
• Canned goods
• Craft items
• Jams and jellies
• Honey
• Syrup

Basically, anything you grow or make on your property can be turned into an additional money maker to supplement your income.  Check out the following website on more ways to make money on your farm:  Alternative Farming Systems Information Center.

~~Charlotte

SmallFarms4You.com

Has the small farm business bug bit you?  If so, you may have a great idea, but not the financing for your dream.  While things may be a little tight with loans in the current economy, they aren’t out of reach if you have good credit.  There are financing options available for individuals with a business plan and the credit to back up their requests.

The Farm Credit System is comprised of the following:

• Production  Credit Association - operating and equipment loans
• Federal Land Banks - for farm real estate
• Bank for Cooperatives - for farm cooperatives

There are also these finance options:

• USDA Farm Service Agency  - makes and guarantees farm loans
• Beginning Farmer Loan Program - also known as “aggie bonds”

If you’d like to learn more about types of agricultural loan programs available for your small farm business, please visit the National Council of State Agricultural Finance Programs.

Have a great week!

~~Charlotte

SmallFarms4You.com