![]() ![]() The Buyer Intention Survey can be used to demonstrate that there is a demand for your crops.Ĭredit history – the U.S. ![]() Marketing plan – this will show how you intend to get your product in front of your customers. Insurance information – many lenders will request proof of insurance before lending you money. Statement of Cash flows – this is important! Income statement – this shows what profits (or losses) you have had in the past year. Sources and Uses of Funds – you will want to know exactly how much you are asking for, and what you intend to do with it.īalance sheet – this shows what assets you have in your farm business, along with any money you are owed or debts that you owe to others (liabilities). You should have the following information in hand before you speak with a lender: If you have a record of sales, and you can show that there is demand for your products, your lender will be thrilled. When you approach a lender, they will appreciate that you have started your farm with your own resources. Use a government grants like the NRCS Hoophouse initiativeīusiness loans are hard to get.Use a micro loan to expand your farm (Kiva Zip Loan or Accion USA).Start with your own savings, and begin with a few smaller customers.The downside is that you will have more moving parts to manage, and the learning curve for each crop can be steep. The benefits are that you may have a larger crop mix to offer each customer, and may be able to reach a higher volume of sales. They may be looking at root crops like garlic or carrots vine crops like tomatoes or cucumbers, and a full line of leafy greens and herbs. Other farmers will explore crop diversification strategies to expand their offerings. The downside is that your volume may be limited while you find your niche and scale up. The benefits of this approach are that you are able to focus on a few crops with similar growing requirements, and avoid the confusion of managing multiple crops and multiple customer categories. In particular, you will want to know if there is competition from local producers, or if all the herbs are trucked in from out of state. Herbs in general are among the most profitable crops, and if you haven’t explored this niche, we often recommend that you begin looking at grocery store shelves and speaking with restaurants about their herb supply. Basil is at the top of the list for first time farmers, and many growers are finding success replacing out of state basil imports. ![]() Read our Frequently Asked Questions ( en español)to learn more.Some farmers will focus on one or two crops, and try to expand to fill the niche throughout their region. Please consult a tax professional with all tax-related questions regarding the FSA IRA assistance you received in 2022. USDA cannot and does not provide tax advice but wants you to be aware of options that may help manage your tax liability. For example, if a borrower received Section 22006 assistance on three different FSA loans, they would receive one corrected Form 1099-G and three Form 1099-Cs.ĭepending upon your circumstances, the IRA payment reported on your new 1099-C may be excluded from your income based on individual analysis filed with your tax return. Please note: Borrowers who received Section 22006 assistance in 2022 will receive one new Form 1099-C for each loan the borrower received a Section 22006 payment on. If you are a direct loan borrower who received financial assistance in 2022 from FSA under Section 22006, you will receive a new IRS 1099-C form and a revised 1099-G form, along with a letter directing you to available resources. Section 22006 of the Inflation Reduction Act (IRA) provided $3.1 billion for USDA to provide relief to distressed borrowers with certain FSA loans and to expedite assistance for those whose agricultural operations are at financial risk. Tax Resources for Recipients of Inflation Reduction Act Assistance
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