Started By
Message

Starting a buisness (farming) and curious where to start

Posted on 2/17/17 at 4:12 pm
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 2/17/17 at 4:12 pm
I really have no idea how to do this or what needs to be done. Id like to set it up so I can write off business expenses and protect personal assets. Business owners will be me and my wife so no real issues with feuding partnerships

I know I will need a tax ID but should I make it an LLC, Partnership/Co-op, LLp, etc?

TIA
Posted by GREENHEAD22
Member since Nov 2009
19626 posts
Posted on 2/17/17 at 4:32 pm to
You talking a little tree farm on the family land or you talking commercial row crop?
Posted by Decisions
Member since Mar 2015
1488 posts
Posted on 2/17/17 at 4:57 pm to
I'd set it up as either a partnership or just you and your wife in business together so that you can qualify for more than one FSA payment limit (for in the event that a disaster happens in the area and government payments are made to you).

Also, go by your local FSA office and talk to them about Beginning Farmer loans for things such as operating expenses. They are practically zero interest and the limits will be way higher than anything you'll need.

NRCS also has a few programs out there that you might qualify for: CSP, EQUIP, etc., that you should definitely look at. All of these government programs and offices are here to help in some way. Use them.

Also, BUY INSURANCE. No matter what you're farming, I can't stress it enough. Buy insurance. If you're row cropping read up on the ARC and PLC (and STAX if you plant cotton) programs.

That's all I can think of right now without more info on what kind of operation you're running.
Posted by FelicianaTigerfan
Comanche County
Member since Aug 2009
26059 posts
Posted on 2/17/17 at 7:34 pm to
Will be livestock and orchards. Will not be a main source of income, and already have the financing in place.

Just curious about what's the best way to set it up as a registered business so I can write off the expenses
Posted by MrSpock
Member since Sep 2015
4364 posts
Posted on 2/17/17 at 9:11 pm to
I would start with chickens.
Posted by LSU Tiger Bob
South
Member since Sep 2011
3003 posts
Posted on 2/17/17 at 10:04 pm to
You need a tax attorney.
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89618 posts
Posted on 2/18/17 at 12:33 am to
quote:

I really have no idea how to do this or what needs to be done.


So, instead of writing a business plan and consulting with professionals, you come to an internet message board?

The best way to start a small business is to start a big one and wait. Do you at least know the basics of the type of farming you intend to do?

quote:

LLC, Partnership/Co-op, LLp, etc?



This is all going to depend on a huge range of factors. It is hard to go wrong with an LLC - because you have partnership (or sole proprietor) rules of management, but limited liability of a corporation. You can also elect flow through taxation, which I assume you're going to want.

Posted by LSUAlum2001
Stavro Mueller Beta
Member since Aug 2003
47138 posts
Posted on 2/18/17 at 7:01 am to
Moved to Oregon or Washington and grow weed.
Posted by prostyleoffensetime
Mississippi
Member since Aug 2009
11460 posts
Posted on 2/18/17 at 11:45 am to
A good many husband/wife owned farms are set up as general partnerships.

Like others have said, you need to find out who the local accountants and lawyers who are most familiar with agriculture. You said you already have financing in place, but it wouldn't hurt to pick an ag lenders brain either. You just have to piece enough info together from different sources and go from there.

Good luck to you and keep us updated.
Posted by GeneralLee
Member since Aug 2004
13104 posts
Posted on 2/20/17 at 7:49 am to
Farming is a tough business to be in, if you do it it should be because you love it not because you expect it to generate large profits.

Livestock, particularly feeder cattle, is probably a breakeven business at best most years because a large portion of the nation's herd is from mom and pop 50 cow herds where they have no idea of their cost of production and are just doing it for the lifestyle.

Orchards are tough but there is more profit opportunity there than in livestock imo, but it's all from higher risk/reward. I know the peach industry is about wiped out in Louisiana because the EPA banned methyl bromide use.

I think the main opportunity in ag right now for small producers is in organic/niche markets, piggybacking on the local food movement.
Posted by KillTheGophers
Member since Jan 2016
6223 posts
Posted on 2/21/17 at 10:42 pm to
FSA, Farm Credit and a farming CPA are your needs.

What state do you plan to operate your business and I may can help point you in the right directions.

You will qualify for beginning credit with FSA and Farm Credit - and it is the best leverage deal in town.

Get to know the guys and gals at your local co-op.

first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram