Starting a buisness (farming) and curious where to start

You talking a little tree farm on the family land or you talking commercial row crop?

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.

It has to be a line of credit. They wouldn't be in business if they had to get a loan for a million every year.

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

Is there a straight answer for my question?

I understand the "hobby loss rules" and such. I've been doing it for a while now and just paying out of personal accounts and not claiming any expenses. I don't write off fuel, or any maintenance cost and if I can just get a little break on that it would be an improvement.

I've had people tell me to stay away from doing a LLC and others say it's the way to go.

I would start with chickens.

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Is there a straight answer for my question?

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It's a simple question, but there can be multiple correct answers. I'd talk to an accountant or lawyer (or both) if I were you. Bonus points if they specialize in tax.

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How much money can you make from selling what you grow?

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Not as much right now as a few years ago. Corn price is practically below cost of production ATM. Cotton and soybeans are looking up, on the other hand. If you're smart and run a lean operation the potential is there for a good living.

You need a tax attorney.

About a thousand acres each of corn and cotton. We're probably the only people in our area still growing cotton and not growing any beans, but hey we like it and are very good at it.

Farming nowadays is big business or huge business, no little guys left. Go to the LA/ARK/MS delta areas and 2000 acres is about a medium to small size operation.


For the OP

So see a tax attorney or CPA who specializes in AG businesses and taxes, they are out there just have to find them. Talk to farmers and ranchers to run down some names. If you wouldn't mind keeping this updated I would appreciate it, I plan on doing the same exact thing in the next year or two.