Acknowledgements - Cornell Small Farms€¦ · equipment and are involved in production; ... Farmers are exempt from paying sales tax on purchases of supplies used in farming. Some

Acknowledgements

ThisguidewasproducedinresponsetomanyphonecallsandofficevisitstoCornellCooperative

ExtensioncountyofficesbyindividualsinterestedinthebusinessoffarminginNewYorkState.

LeadAuthor:

MonikaRoth,AgricultureDevelopmentandMarketingSpecialist,CCESouthCentralNY

AgricultureProgram–[email protected]

ContributingAuthors:

JacobSchuelke,formerlyaFarmManagementSpecialist,CCESouthCentralNYDairyTeam

AnitaDeming,ExecutiveDirectorandAgriculturalProgramLeader,CCEEssexCounty

ChandaLindsay,formerlyAgricultureResourceEducator,CCECayugaCounty

EricaFrenay,ProjectManager,NYBeginningFarmerProject,CornellSmallFarmProgram

LynnBliven,Agriculture&NaturalResourcesIssueLeader,CCEAllegany

OlgaPadilla-ZakourandthestaffattheFoodVentureCenter,Geneva,NY

WorkGroupCommitteemembers:

MonikaRoth,KrysCail,ChandaLindsay,BernadetteLogozar,AnitaDeming,andEricaFrenay.

Manythankstofarmer-advisorswhoreviewedthecontentofthefirstversionin2007:LouLego,David

andDaniBelding,LindaGillilland,GaryWill,andPierreDionne.

KeepingcurrentwithalltheinformationinthisGuideisabigtask,andweareindebtedtoallthe

CooperativeExtensioneducatorsandSFPstaffmemberswhohavehelpeduswithit.

Suggestionsfortextimprovements,additions,andcorrectionsshouldbereferredto:

NortheastBeginningFarmerProject

15BPlantScience

CornellUniversity

Ithaca,NY14853

Phone:607-255-9911

Email:[email protected]@cornell.edu

HowtoUseThisGuide

Thisguideiscomprisedofaseriesofindividualfactsheetsaddressingtopicspertinenttoplanningand

operatingafarmbusiness.Itisnotenterprisespecific.Ratheritaddressestopicscommontooperatinga

farmbusinessinNewYorkState.Thefactsheetsaremeanttobebriefandtothepoint.Additional

detailscanbefoundviatheweblinksprovidedorbycallingtheofficeslisted.

Theguideismeanttobearesourceforbothbeginningandestablishedfarmers.Forbeginning

farmers,therearecertaintopicsthatarenotrelevant.Tohelpguideyoutothosethatarerelevantto

yourstageofbusiness,refertothelistbelow.

What’sImportantForNewAgriculturalEntrepreneurstoKnow?

Matchingthefarmlandtothechosenenterprise:Besuretoresearchsoil,climate,forestand

infrastructureresources.Buyingorleasingtherightpropertyandtherightamountoflandiscriticalto

thesuccessoffarming.

RECOMMENDEDREADING:FactSheets#1,2,3,8,9,11

Legalformsofbusiness:Don’tsweatthisattheoutset.Asoleproprietorshipisthewaytogoanddoes

notrequirealawyer;howeveritisagoodideatoregisteryourbusiness(DBA)atyourCountyClerk’s

office.Ifthereareunrelatedbusinesspartners,optionsaretodevelopalegalpartnershipor

incorporate,butwillrequirelegalassistance.

RECOMMENDEDREADING:FactSheets#12,13

WherecanIgetmoneytostartmyfarm?Therearetwobasicoptions:usepersonalresourcesor

developabusinessplanandpresentittoalenderorinvestor.Therearenograntfundsavailabletostart

afarm.

RECOMMENDEDREADING:FactSheets#4,12,31

AmIafarmeryet?Thereisnosolidanswertothisquestion.Sometestsare:youhavepurchased

equipmentandareinvolvedinproduction;youarekeepingrecordsonyourfarmpurchases;youare

filingtheFederalFarmTaxreturn(ScheduleF);youaresellingagriculturalproducts.


WhatcanIraiseprofitably?Thisisanimportantquestionthatcanbeansweredthroughgoodresearch

andbusinessplanning.Identifywhatyouwanttoraise,investigatethecostsandpotentialreturns,and

thendecideifitmeetsyourgoalsonpaper,beforeyouinvestrealmoney.

RECOMMENDEDREADING:FactSheets#12,14,23,24,25,26,28,29

Whatarethetaxbenefits?Farmersareexemptfrompayingsalestaxonpurchasesofsuppliesusedin

farming.Somefarmbuildingsarewhollyorpartiallyexemptfrompropertytaxesandonceafarm

generatesover$10,000insales,thelandcanalsoreceiveapropertytaxexemption.Additionaltax

exemptionsapplyoncefarmincomebecomes2/3oftotalincome.

RECOMMENDEDREADING:FactSheets#17,20,21,22

…What’sImportantForNewAgriculturalEntrepreneurstoKnow?

WherecanIsellmyproducts?Thisisthefirstquestionyoushouldconsider.Whatisyourproductand

whowantsit,andwherearethosepeoplelocated?Marketplanningshouldnotbeoverlooked.Most

beginningfarmersthinkaboutdirectmarketingastheplacetostartbutthistakestime,soconsider

whatamountoftimeyouhavetoinvestinmarketingandprojectpotentialreturnsbymarketchannel.

RECOMMENDEDREADING:FactSheets#22,23,24,25,26,27,28,29,30

Whataresustainablefarmingpractices?Therearebenefitstoorganicfarming,butconventionalfarmers

whofollowintegratedpestmanagementandrecommendedagriculturalenvironmentalmanagement

practicescanalsofarmsustainably.Becomeknowledgeableaboutfarmingpracticesanddecidewhichof

thesebestmeetyourgoals.


WherecanIgethelp?StartwithyourcountyCornellCooperativeExtensionofficeandthecountySoil

andWaterDistrictoffice,andbeginnetworkingwithotherfarmers.Readuponfarmtopicsofinterest,

butexperienceisthebestteacher.Onceyoudoyourhomework,businessplanningisacriticalstep.


What’sHelpfulfortheEstablishedFarmEnterprise?

Doyouhave$10,000ingrosssalesperyear?Ifso,haveyoufiledforagriculturalassessmentofyour

propertyasawaytoloweryourpropertytaxbill?If2/3ofyourincomeisderivedfromfarming,youalso

qualifyfortheFarmers’SchoolTaxCredit.Loweroverheadcostsbyclaimingthesebenefits.

RECOMMENDEDREADING:FactSheets#15,16,21,22

Areyoureadytohireemployees?Ifso,beawareofallofthepaperworkrequirements.Planahead

beforehiring.


Areyoumakingmoney?Recordkeepingisessentialtoseeifyouaremakingmoney.Keepaneyeonthe

businessandadjustasnecessary.Ifyouhavenotdevelopedabusinessplan,itcanbeatoolfor

monitoringprogresstowardsyourgoals.

RECOMMENDEDREADING:FactSheets#12,13,14,15,16

Areyoumanagingrisk?Anestablishedbusinesshasinvestedovertimeandshouldbeadequately

insuredtoprotectthatinvestment.Productliabilityiscritical.Forfarmsthathostvisitors,makesureyou

havesufficientgeneralliabilitycoverage.


Contents

PARTONE:

ConsiderationsforGetting

Started

1-FindingaFarmtoBuyorLease...........1

2-ClimateandSoilConsiderations...........7

3-InfrastructureConsiderations............

11

4-FinancingaFarmOperation.............15

5-FarmRiskManagement................19

6-FarmInsurance.......................21

7-FarmVehicles........................23

8-ZoningRegulations&Farming..........25

9-LegalAspectsofRuralLiving............26

10 -EnvironmentalRegulations. . . . . . . . . . . .

.28

11-ForestLandResources.................

31

PARTTWO:

RunningaSuccessfulBusiness

12-BusinessPlans........................34

13-BusinessStructures....................37

14-MakingMoney.......................

.39

15-RecordKeeping.......................41

16-IncomeTaxes........................

.43

17-SalesTaxExemptions/Refunds.........46

18-LaborLaws...........................48

19 - Payroll andWorkerDocumentation. . . . . .

51

20-AgriculturalDistrictLawProvisions......54

21 -AgValueAssessment for Farmland . . . . . .

.56

22 - Property Tax Exclusions for Buildings. . . . .

59

PARTTHREE:

SellingWhatYouProduce

23 -AssessingyourMarketPotential. . . . . . . .

.62

24-PricingFarmProducts.................65

25-FindingPriceInformation..............67

26-DirectMarketingOptions..............

68

27-MarketingRegulations.. . . . . . . . . . . . . . .

.71

28 - Becoming a Small Scale FoodProcessor.. .

77

29 - Collecting Sales Tax on Farm Products. . .

.82

30-OrganicCertification...................

84

PARTFOUR:

HelpfulResources

31-GrantOpportunitiesforFarmers........86

32–OpportunitiesforVeteransinFarming..91

33-AgriculturalAgenciesandOrganizations…93

34-InformationSourcesforGettingStarted..96

1–FindingaFarmtoBuyorLease

GuidetoFarminginNewYorkState

LeasingLandandBuildingsforFarming

Thecostofbuyinglandandpayingamortgagecanaddtothecostofstartingafarmingoperation.

Leasingmaybeanoptionforenterprisesthatrequirelessinfrastructureorwheretheinvestmentin

infrastructure—suchasirrigationpipes,agreenhouse,orfencing—isportable.Ifinfrastructure

involvesimprovementsthatarenoteasilyremoved,likediggingapondorconstructingbuildings,thenit

maynotbewisetoinvestonlandyoudonotown,unlesstheownerpaysfortheseimprovements.Ifthe

propertythatyouwanttoleasehasbuildingssuitabletoyourenterprise,thenarentalagreementmight

alsoincludeuseofbuildings.

Findinggoodfarmlandtoleasemaybeaschallengingasfindinggoodfarmlandtopurchase.Youmay

findthatpeoplewillrespondtoadsplacedinsmallcommunitypapers,farmpapersorincounty

CornellUniversityCooperativeExtension 2 CornellSmallFarmsProgram

ExtensionorSoilandWaterDistrictnewsletters.Contactingownersofadesirablepropertybypersonal

letterand/orphonecallcanbeeffectivetoo.Also,checkwitharearealtorsandfarmers.Onceyoufind

somepossiblepropertiestolease,considerthesoiltype,drainage,ifthereisawatersupply,andwhatit

willtaketobringthelandintoproduction.Itisimportanttofindasitethatmatchestheproduction

requirementsoftheenterpriseyouwanttodevelop.

WrittenLeases

Awrittenleaseoragreementisagoodideawhetheryouarepayingrent,workingonsharesor

permittedtousethelandfreeofcharge.Aleasewillspecifythetermsunderwhichtherenterandthe

ownerwilloperate.Themaingoalofaleaseistodevelopafairagreementunderstoodbybothparties.

Landownerandtenantneedsandgoalsshouldbeidentified.

Awell-writtenleaseshouldinclude:

1. Descriptionofthelandandbuildingstoberented,andequipmentifapplicable.Anaccurate

assessmentoftheconditionsattimeofrentalisagoodidea,includingphotostodocument

such.

2. Rightsofeachparty:ownerandtenantaccessanduse.Spelloutanyrestrictions.

3. Improvementsthatwillbemadeandwhopaysforthese.Ifbuildingsareinvolved,specifywho

paysforimprovementslikeroofing,painting,etc.thatarenormalinfrastructure,versus

improvementsmadespecifictothefarmenterprise.

4. Agriculturalpracticestofollow–outlineorganicoragronomicallysoundpracticestobeused,

specifythatfieldsbeplantedtoacovercropafteruse,listprohibitedpractices

5. Conditionoflandatendoflease–commonpracticecallsforlandtobeleftinthesame

conditionaswhenfirstrented.However,landthatwasnotbeenfarmedforsomeyearspriorto

theleasemayactuallybeleftinbettercondition.Inthiscaseconsiderationshouldbegivento

thecostofthoseimprovements.

6. Paymenttermsundernormalgrowingconditionsandintheeventofacropfailure.Payments

shouldbebasedonthevalueofthepropertyforfarmingpurposesonly(notfordevelopment).

7. Leasepayment:leasescanbepaidincash,incroporlivestockshares,orinsomecases,

landownersarewillingtoforgofeesifthetenantmakesimprovements.

8. Bringinglandbackintoproduction–iflandhasnotbeenactivelyfarmedinmanyyears,thecost

ofbringinglandbackintofarmingisconsiderable.Considerationneedstobegivenastowho

shouldpayforthesecosts.Theownerbenefitsinthelongrunfromimprovementsthatare

made.

9. Lengthoftheagreementandtermsofrenewal.Aone-yearrenewableleasemightbeagood

startingpointforannualcrops,orifplantingperennialcrops,a3-5yearleaseispreferable.

10. Earlyterminationifinitiatedeitherbytheownerortenantandtheconsequences.

11. Insurancepaidbyowner(forland,buildings,equipment)andpaidbytenant(forcrops/livestock

andproductionrelatedimprovementsmadebytenant).

12. Taxesaretheresponsibilityoftheowner.


13. Provisionsforarbitrationinthecaseofdisagreements.

DeterminingCashRent

Thereareseveralapproachesthatcanbetakenwhenestablishingafairrentalrate.Theseinclude:1)

thedemandforlandandgoingrateinaparticulararea;2)thecostandreturnassociatedwithacrop

allowingforanacceptableprofitandrentalpayment;3)whatthelandownerneedstocoverwithregard

tofixedcostsortaxes.Generallyacombinationoftheseapproachesmaybeneededtoarriveatafair

rate.

DeterminingShareRent

Asharedrentalagreementassumesthatthelandownerandtenantaccountforwhateachcontributes

totheproductionofacroporlivestockincludingfixedandvariablecosts;thencalculatethepercentage

contributedbyeachparty.Thispercentagecanbeusedinsettingreturn(croporharvestreturns)

receivedbyownerandtenant.Flexibilityisneededincaseoflowharvestorprices.Ownersmayhaveto

relinquishsomesharesifthetenantisdependentonsalesfortheirlivelihood.

RentingFarmBuildings

Akeyfactorinfluencingbuildingrentaliswhethertheownerneedstoobtainaminimumrenttocover

fixedcostsornot.Variablecostssuchasutilitiescanbeassignedproportionatetousebythetenant.A

keyconsiderationfortenantsiswhetheradditionalinsuranceisneededtocoverlossesofstoredcrops,

livestockorequipment.

SampleLeaseAgreement

Asimpleleasefollowsasastartingpoint.Consultanattorneyifamoredetailedleaseisdesired.

Thisleaseisenteredinthis____dayof______________between___________________,landlord,

and______________________________,tenant.Thelandlordleasestothetenanttouseforagricultural

purposes_________acresofpastureand_______acresofcropland,andthefollowingbuilding:(listorattach

alist)locatedintheTownof____________andCountyof____________andcommonlyknownas

__________Farm.

Thetenantwillpaythelandlord$________peryear(orotherspecifiedtimeperiod)withpaymentto

bemadeasfollows:_______________________________.Thetenantwillalsopayallthecostsofplanting,

growingandharvestingcropsgrownontheland.Thetenantwillberequiredtomaintainandrepairfences,

tiledrains,anddiversionditches,andmakeordinaryrepairstomaintainbuildingsandequipmentused,and

payforutilitiessuchaselectricityandwater(ifrelevant)duringtheperiodofthelease.

Thelandlordwillpaythetaxes,fireinsuranceonbuildings,majorrepairsorimprovements,suchas

newfence,ponds,draintiles,diversionditches,etc.


Thetenantwillfollowrecommendedconservationandagronomicpracticesinworkingtheland.No

greenorgrowingtimbermaybeharvestedfromthepropertybythetenant.Thelandlordhastherightto

inspectorenterthepropertyatanytime.

Thisleaseshallbefor___yearsbeginning(date)_____________________withautomaticrenewalfor

(howlong):________(years)unlesseitherpartygiveswrittennoticetothecontraryatleast3months(90

days)beforetheexpirationofthecurrentrentalperiod.Therentalratemaybeadjustedannuallytoaccount

forincreasesintaxes,insuranceorothercostsofownership.

Anymeadowlandplowedforannualcropswillbere-seededtoaperennialforagecropattheendof

theleaseperiod(unlesstheleasehasbeenautomaticallyrenewed).

Anydifferencesbetweenthelandlordandtenantsastotheirrightsandobligationsunderthislease

thatarenotsettledbymutualagreementshallbesubmittedtoanarbitratororothersuchpersonwhohas

authoritytomakeafinaldecision.

Itisagreedthatthestipulationsofthisleasearetoapplytoandbindtheheirs,executors,

administrators,andassignsoftherespectivepartiesandismadeandexecutedinduplicate.

Inwitnesswhereofthepartieshavesignedthisleaseonthisdateof________________.

Landlord________________________________Tenant__________________________________

Witness_________________________________Witness_________________________________

Materialsadaptedfrom:PennsylvaniaFarmLinkworksheet(outofprint)andfromRichardEschler,

formerCornellFarmBusinessManagementEducator.

WebResources:SampleLeaseAgreements

TypeofLease DownloadOnline

SimpleFarmLease http://www.uslegalforms.com/us/US-801LT.htm

Note:Youmustpayafeetogetacopy.

ShortTermLease http://landforgood.org/wp-content/uploads/Sample-Short-Term-Lease.pdf

Note:Requiresemailaddress.

MultiYearLease http://landforgood.org/get-resource/?fid=http://landforgood.org/wp-

content/uploads/Multi-year-lease-template.doc


LongTermLease

onPublicLand

http://landforgood.org/wp-content/uploads/Sample-Long-Term-Lease.pdf


AdditionalleaseandlandtenureresourcesontheLandForGoodWebsite:

http://landforgood.org/resources/toolbox/leasing/

HelpfulContactsforFindingaFarm

Organization Description Contact


NYFarmLink ThisisaprogramofNYFarmNet.FarmLink

providesinformation,consulting,referralsand

resourcesrelatedtotransferringfarmownership

tothenextgenerationornon-familymember.

www.newyorkfarmlink.org

1-800-547-3276

NOFA-NY ThePropertyforRent/Salelistingsarestandard

classifiedadsandareshorterinlengthandare

notfilteredbytheirdetails.LandOfferedand

LandSoughtlistingsaremorein-depthformsand

listingsforNOFA-NY’slandlinkingdatabase.

http://www.nofany.org/cla

ssifieds/land

FingerLakes

LandLink

AprojectofCornellCooperativeExtension

TompkinsCountyandGroundswellCenterfor

LocalFoodandFarming.

http://www.fingerlakeslan

dlink.org

CatskillsFarmLink AprojectoftheWatershedAgriculturalCouncil,

CatskillsFarmLinkmaintainstheregionalworking

agriculturallandscapebyconnectingfarmerswith

underutilizedland.

http://www.catskillsfarmlin

k.org

FarmerLandowner

MatchProgram

TheColumbiaLandConservancyestablishedthis

programin2008,andsincethattimeithasgrown

toincludemorethan200activeparticipants.The

programservesColumbiaandDutchessCounties

inNY.

http://clctrust.org/working

-farms/farmer-landowner-

match-program

FarmlandMatch WestchesterLandTrust’sFarmlandMatch

programconnectsWestchesterfarmerswho

needlandwithpropertyownerswhohaveland

tolease.

http://www.westchesterla

ndtrust.org/land-match

LandforGood Aserviceforfarmers,landowners,andfarm-

seekersinNewEngland,thisgroupprovides

trainings,toolsandcounselingtokeeplandin

agriculturalproduction.

www.landforgood.org

NewEngland

LandLink

NELLisaprogramtohelpfarmersand

landholderslocateandtransferfarmsinNew

England.NELLwillalsoadviseonlandleaseand

transferoptions.

http://www.smallfarm.org/

main/for_new_farmers/

new_england_landlink

LandLinkPrograms

AcrosstheCountry

AcompiledlistbyCFRA http://www.cfra.org/resou

rces/beginning_farmer/link

ing_programs

Cornell

Cooperative

Extension

Agricultural

Educators

TheBeginningFarmercontactinyourcounty

extensionofficemayalsobeabletodirectyouto

farmsforsaleorfarmrealtors.

http://smallfarms.cornell.e

du/contact/local-contacts

Grassroots:The

VoiceofNewYork

FarmBureau

FarmNewspaperwithListingsofFarmProperties

forSale

www.nyfb.org

800-342-4143

CountryFolks:Lee

Publications

FarmNewspaperwithListingsofFarmProperties

forSale

www.countryfolks.com

800-218-5586



FarmRealEstateBrokers*

Whileconventionalrealestatebrokerslistfarmsforsale,mostactivefarmsareconsideredcommercial

propertyandarelistedbyrealestateagentsspecializinginfarmtransactions.Thelistbelowdoesnot

implyendorsementofanyofthefollowingbusinesses:

HelpfulContactsforFindingaFarm


MLSResidential

Search

Thelargestmultiplelistingserviceforresidential

realestate.Oftencontainssmallandmedium

farms.

http://realtor.com/

FarmCredit Agriculturallenderwithanappraisalservices;

theywouldknowoffarmsforsale

www.farmcrediteast.com

FarmService

AgencyRealEstate

forSale

ListingofhomesandfarmsforsalebytheFarm

ServiceAgency,manyavailablewithlowinterest

financing

www.resales.usda.gov/

LandAndFarm Ruralpropertylistingservice http://landandfarm.com

UnitedCountyReal

Estate

Ruralrealestatebrokerage

www.unitedcountry.com

ComeFarmwithUs FarmrealestatelistingsinJeffersonCounty,NY www.comefarmwithus.co

m

Farm&Country

Realty

RuralNewYorkStatepropertylistingsand

brokerage

http://www.farmandcount

ryrealty.com

*Thislistingofrealtorsisnotintendedtobecomplete,andlistingdoesnotimplyendorsementbyCornell

CooperativeExtension.Checkwithfolkslocatedintheareanearwhereyouhopetofarmtofindrealtors

whospecializeinfarmproperty.


2–ClimateandSoilConsiderationsGuidetoFarminginNewYorkState

Climate

Considerations

NewYorkState’sclimateis

verydiverse.Itisnot

uncommonthatjust10

milesaway,youcouldmove

fromonemicroclimatetoa

completelydifferentone.

Forexample,precipitationis

doublethestateaveragein

theTugHillPlateauregion

andtherecommended

winterhardinesslevel

changesfrom–5oFto–40

oF

ina100-miledistanceasyou

travelfromWayneCountyto

theAdirondacks.

Climaticfactorsthatimpactcropgrowthinclude:

§ Minimumtemperatures

§ Hardinesszones

§ Frost-freedates

§ Growingdegree-days

§ Precipitation

§ Airdrainage

§ Windexposure

YoucanlearnmoreaboutthesefactorsontheNortheastBeginningFarmerwebsite:

http://nebeginningfarmers.org/farmers/land/land-environment-facilities-tutorial/

ForinformationabouttheclimateinaparticularareaofNYS,contact:

NortheastRegionalClimateCenter

www.nrcc.cornell.edu/index.htmlorcall607-255-1751

FeaturedResourceCornell’sClimateSmartFarmingprogramis

aninitiativethathelpsfarmersinthe

NortheasternUSreducegreenhousegas

emissionsandincreasefarmresiliencyto

extremeweatherthroughadoptionofbest

managementpractices

http://climateinstitute.cals.cornell.edu/cli

mate-smart-farming/


SoilConsiderations

Soilsvaryintheirpropertiesand

influencewhatcropswillgrow.

Importantsoilcharacteristics

include:

§ Texture–thepercentof

sand,siltorclayparticles

thatmakeupthesoil,as

depictedinthechart

§ pH–acidityoralkalinityof

thesoil

§ Fertility–nutrients

availableforcropgrowth

§ Drainage

Selectthebestsoilpossibleforhigh

valuespecialtyandagronomic

crops;forhayorpasture,soil

qualityisslightlylesscritical.

Developinganunderstandingofthebasicsofsoilphysiologyandthefactorsthataffectplantfertilityis

essentialforsuccessfulagriculturalproduction.

WhatisSoil?

Inadditiontoair,water,andnutrients,soilsprovidemechanicalsupporttogrowingplants.Thereare

fourmajorcomponentstosoil:minerals,organicmatter,water,andair.Theapproximatecomposition

ofasoilforoptimumplantgrowthwouldhavethesolidspacemadeupof45%mineraland5%organic

matter,andtheremainderwouldhaveroughly25%waterand25%air.Thewaterandairwouldbe

containedwithintheporespacesofthesoil.

SoilTexture

Soiltexturereferstothesizeofmineralparticles,specificallytherelativeproportionofvarioussize

groupsinagivensoil.Thispropertyhelpsdeterminethenutrient-supplyingabilityofsoilsolidsandthe

supplyofwaterandairthatsupportplantlife.

Soiltextureisdividedintothreeparts—sand,siltandclay—basedonparticlesize.Siltandclaysoils

impartafinetextureandslowwaterandairmovement.Theyalsohavehighwaterholdingcapacitydue

tothehigherpercentageofporespaces.Thesearereferredtoasheavysoils,withclaybeingtheheavier

ofthetwo.Clayisalsotheprimaryplantnutrient-holdingmechanisminthesoil.


Soiltexturalnamesarehowwerefertoandidentifyoursoils.Sandytogravellysoilsarereferredtoas

lightersoils,aswatermovesthroughmorerapidlythantheheaviersoils,andtheyhavelowerwater

holdingcapacities.Sandysoilscontain70%ormoresandbyweight.Claysoilshaveatleast40%clayand

mayhavenameslikesandyclayorsiltyclay.Loamysoilspossessthedesirablequalitiesofsandandclay

withoutexhibitingtheundesirablecharacteristicsofextremelooseness,lowwaterholdingcapacityand

slowwaterandairmovement.Someexampleswouldbeclayloam,sandloam,siltloam,andsiltyclay

loam.

SoilpH

SoilpHisusedasameasureofitsrelativealkalinityoracidity.SoiltestresultsforpHarebasedonapH

scalewhere7.0isneutral,above7.0isalkalineandbelow7.0isacidic.

SoilpHiscriticaltohealthplantgrowth.Itdirectlyaffectstheavailabilityoftheessentialnutrientsto

plants.ItisimportanttoknowtheoptimumpHfortheplantstobegrown.SoilpHalsoaffectsthe

adaptabilityofplantsinagivensoil.MostagriculturalplantspreferaslightlyacidicpHof6.4.However

thereareexceptionssobefamiliarwiththepHandnutritionalneedsofallthecropstobegrown.

Theadditionofanyliming(alkalinizing)oracidifyingmaterialsshouldalwaysbebasedontheresultsofa

reliablesoiltest.Over-applicationofeithercanleadtocropinjury.

SoilOrganicFraction

Agood,loamysoilcontainsaboutone-halfporespace(airandwater)andone-halfsolidmaterial.Of

thisone-halfsolidmaterial,90%iscomposedofminerals(bitsofrock).Theremaining10%isthe

organicfraction.Theinfluenceofthissmallpartofthesoilonthesoil’sabilitytosupportplantgrowthis

significant.

Thesoil’sorganicfractionisdynamicandisalwaysundergoingaprocessofchange.Theorganicfraction

consistsoflivingorganisms,plantandanimalresidues,andplantroots.Adequatelevelsbenefitsoilin

manywaysincluding;improvedphysicalcondition,increasedwaterinfiltration,improvedsoiltilth,

decreasederosionlosses,enhancednutrientavailability,andretentionforplants.

SoilCompactionandDepth

Finetexturedsoilsaremoreeasilycompactedthanlightersoils,especiallywhentheyarewet.

Compactionreducesporespacesthatholdairandwater.Plantgrowthincompactedsoilswillbe

significantlyreduced.Operatingequipmentonwetsoilscancreateproblemsinafieldforanentire

seasonorlonger.

Sometimesasoilisreferredtoasbeingdeeporshallow.Soildepthcanbedefinedasthatdepthofsoil

materialfavorableforplantrootpenetration.Deep,well-drainedsoilsofdesirabletextureand

structurearefavorableforplantgrowth.Shallow,poorlydrainedsoilsareveryrestrictivetoplant

growth.


SoilTestingServices

Agro-OneServiceswilltestsoilfornutrientsandpHandindicateamountsoflimeandfertilizer

needed.Soilsamplescanbemailed,shippedviaUPS,ortakentoDairyOne’ssamplepick-uppoints(see

website),whereyouwillfilloutformsandpayforthetesting.Formoreinformation,contactthelab:

Agro-OneAgronomicLaboratoryServices

http://dairyone.com/

800-496-3344

TheCornellComprehensiveAssessmentofSoilHealthofferssoiltestingservices.Theymeasuresoil

texture,availablewatercapacity,fieldpenetrometerresistance,wetaggregatestability,organicmatter

content,soilproteins,respiration,activecarbon,andmacro-andmicro-nutrientcontentassessment.

Additionalindicatorsareavailableasadd-ons,includingrootpathogenpressure,salinityandsodicity,

heavymetals,boronandpotentiallymineralizablenitrogen.Formoreinformationandhowtosenda

sample,contactthedepartment:

CornellUniversityComprehensiveAssessmentofSoilHealth

http://soilhealth.cals.cornell.edu/

[email protected]

Yourcountyextensionofficemayalsoacceptsamples;contactthemtocheck.ManyCCEofficescanmail

thesamplesforyou,assistinanalyzingresults,takepaymentfortestingorprovideformsandboxesto

farmersiftheywishtomailtheirownsamples.Resultswillbemailedinapproximately2weeks.

SoilMaps

Tolearnaboutthesoiltypesonyourproperty,ausefultool

availableinalmostallNYcountiesistheUSDA-NRCSSoilSurvey

thatconsistsofsoilmapsanddescriptionsofsoilcharacteristics

andcapabilities.

FindingaSoilSurveyContactyourlocalUSDAServiceCenter,yourNRCS

StateSoilScientist,oryourcountyCornellCooperative

Extensionoffice.

Mapscanalsobeviewedonlineat:

http://websoilsurvey.nrcs.usda.gov


3–InfrastructureConsiderationsGuidetoFarminginNewYorkState

EvaluatingYourFarm’sInfrastructure

Differentfarmenterpriseswillrequiredifferenttypesof

infrastructure,equipment,andresources.Itisimportant

tohaveagoodideaofwhatsupportinginfrastructure

youroperationwillrequireandtoinventorywhatexists.A

goodinventorywillhelpindeterminingwhetherthe

enterpriseyouareconsideringisfeasibleatthispoint,or

whetheryouhavesomeworktodo.Asyouevaluatewhat

youwillneedforyourfarmingenterprise,alsobeginto

trackthepotentialcostsofnecessaryimprovements.

§ WhatdoIhave?

§ WhatdoIneed?(And,whatdoIreallyneed?)

§ HowwillIgetwhatIneed?

§ Howmuchwillitcost?

Buildings

Whattypesofbuildingswillbeneededfortheagriculturalenterpriseyouareconsidering?

¨ WillIhavelivestockthatneedhousing?Remember,livestockfacilitiesneedtobecorrectly

sized.

¨ WillIneedstoragefacilitiesforlivestockfeed,equipment,orproductthatIwillproduce?

¨ WillIneedabarn,greenhouse,washing/grading/packingshedforvegetableandfruit

production?Isrefrigerationneeded,orwillIneedspecializedfacilitiesforprocessing?

Inventoryexistingbuildingssuchasbarns,outbuildings,shedsandhouses.

¨ Arethesebuildingsingoodrepair?

¨ Aretheyadequatelysizedforyourenterprise?

Youmaybeabletorentfacilities,sokeepanopenmindwheninventorying.

PowerSource

Youneedtoensurethatyouhaveanadequatepowersourceforyourenterprise.Someoperationsmay

requiredifferentpowerlevels,somakesurethatthereisadequatepowercapacityonyourfarm.Over-

loadingolderorlimitedcircuitscanbehazardousandevendisastrous.Youmaywishtoconsultwitha

licensedelectriciantodetermineifyourelectricalsourceandwiringisadequatetosupplyyourneeds.If

yourelyonpowerforcriticalelementsofyouroperation,considerhavingaback-upgeneratoronhand

incaseofpoweroutages.


Fencing

Ifyouplantohavelivestock,youwillneedfencing–andeffectivefencing,asyouareresponsiblefor

animalsthatgetloose.Therearemanytypesoffencingfromportabletopermanent,andlivestock

speciesvaryintheirfencingneeds.Someanimalsdowellwithhightensileelectricfencewhileothers

requireameshstyleoffencing.Researchwhattypeoffencingyouwillneedforyouroperation.Check

withyourlocalNaturalResourceConservationService(USDA-NRCS)aswellasyourcounty’sSoiland

WaterConservationDistrict(SWCD)formoreinformationaboutlivestockfencingalternativesand

specifications.Theyshouldbeabletoreferyoutocontractorswhoinstallfencingandsellfencing

supplies,andmayevenbeabletoofferyouacost-sharegrantforfencing.Considerputtingupa

perimeterfenceandusingportable,temporaryfencingtoformsmallerpaddockswithintheperimeter

torotationallygrazelivestock.

PastureforHorsesorLivestock

Puttingtoomanyanimalsontoolittlelandcausesreducedproductivitytobothandcandamagethe

healthofthelandinthelong-term.Asageneralrule,allowforaboutoneacreofpastureforeach1000

lb.(orone“animalunit”)ofcows,sheep,orgoatsforthegrowingseason.Ifyouwouldliketoprovide

hayforyourlivestock’swinterfeedneedsalso,includeanotheracreofpastureper1000lbs.ofanimals.

Becausehorsesgrazeoveralongerperiodeachday(upto20hours),andbecausetheytramplealotof

forageintheprocess,it’saverygoodideatoprovide2.5acresperhorseofgrazinglandduringthe

growingseason.Togethelpestablishingasuccessfulgrazingsystem,contactyourlocalSoilandWater

ConservationDistrict.

DeerFencing

Deerareamajorlimitationtotheproductionofhorticulturalcropsincludingfruits,vegetablesand

ornamentals.Increasinglyfarmershavetoinvestindeerfencinginordertosuccessfullygrowthese

cropsandminimizelosses.Deerfencingisamajorinvestmentbutanecessityinthelongrun.Fencing

optionsinclude:3strandwirefencethatiselectrifiedor8foothighplasticfencingthatprovidesamore

securebarrier.Forinformationondeerfencing,checkthewebsite:

CornellCooperativeExtension:ReducingDeerDamagetoOrnamentalandGardenPlots

http://putnam.cce.cornell.edu/resources/reducing-deer-damage-to-ornamental-and-garden-plots

Unfortunately,therearenofederalorstateprogramstohelpoffsetthecostofdeerfenceinstallation.

Therefore,itisaproductionexpensethatmustbecalculatedintostartupcosts.

LandownersmaybeeligibleforadeernuisancepermitfromtheDEC;eligibilityisbasedon“property

damageandthelackof,orfailure,ofotherpracticalalternativestoalleviatetheproblem.”TheDEC

issuestagsforalimitednumberofantlerlessdeeronthelandsspecifiedonthepermit.Findmore

informationinthefollowingguide:

DepartmentofEnvironmentalConservation

Landowner’sGuideforManagingDeer

http://www.dec.ny.gov/animals/7199.html


Equipment

Thereisawidearrayofequipmentavailableforallenterprises.“Equipment”couldmeanatractorand

moweroritcouldmeanahoeandarakeorspecializedequipmentforprocessing.So,wheredoyou

start?Onekeyistostartsmall,andbuildupyourfarmoperationgraduallytohelpyougettoknowwhat

youneedandwhenyouneedit.Forexample,beforeyoupurchaseequipmenttalkwithotherfarmers

tolearnwhatisessentialandinvestigateoptionsforequipmentrentaloroptionstobuyused

equipment.

CommonlyAccessibleEquipmentSuppliers

Organization Contact

TractorSupply http://www.tractorsupply.com/

Farmtek http://www.farmtek.com

EmpireTractors http://www.empiretractor.com/

A.M.Leonard http://www.amleo.com/

TractorSupply http://www.tractorsupply.com/

Thereareafewbasicquestionstoconsiderwhenthinkingaboutequipment:

¨ Assesswhatyouhaveandwhatyouneed.Ensurethatequipmentissizedcorrectlyforthejob

youintendtodowithit.Forexample,ensurethatyourtractorhasadequatehorsepowertopull

thebaleryouintendtouse.

¨ Doyoureallyneedit?Itmaybemoreeconomicaltorelyonacustomoperatortoassistyouor

toleaseequipment.

¨ Neworused?Thereareobviousadvantagestoeach.Consideryourneedsandfinancial

resourcescarefullytomakethebestpurchase.

WaterSupply

Waterresourcesincludestreams,rivers,lakes,ponds,wetlands,springs,wells,andaquifersaswellas

anymeansofconveyingthewatertoyourfacility.Youshouldbefamiliarwiththelocationofthewater

resourcesonyourfarm.Considerwhatthewaterneedswillbeforyourenterprise.Forexample,

horticulturalenterprisesneedasourceofwaterforirrigation.Livestockownerswillneedtohavea

reliableandpotablesourceofwaterfortheirlivestocktodrink.Whateverthewaterisusedfor,you

needtodetermine:

¨ Isthereenoughwaterforyouroperation?

¨ Isthereawaytobringwaterfromitssourcetowhereyouneedit?

¨ Or,willyouneedtoinstallwaterlines,irrigationstructuresoranimalwateringfacilities?

Keepinmindthatallwaterlinesandstructureswillneedtobeappropriatelysizedtofittheir

purpose.Forexample,ifwaterlinesaretoosmall,youmaynotbeabletodeliverenoughwatertoyour

livestock-wateringtroughtomeettheirneeds.


Resources


NRCSTechnical

Guide

Thisisanexcellentresourceforidentifying

conservationpracticesthatmaybeneededfor

yourfarmoperation.Landownersshouldseek

assistancefromtheirlocalUSDA-NRCSService

Centeroffice,RC&Doffice,ortechnicalservice

providerforadditionalinformation.

Eachstate’sNRCSFieldOffice

TechnicalGuidemaybefound

at

www.nrcs.usda.gov/technical/

efotg/

SoilandWater

Conservation

District

YourCountySoilandWaterConservation

Districtisavailableasatechnicalresourcefor

infrastructuredevelopment.

http://www.nys-

soilandwater.org/

Cornell

Cooperative

Extension

YourCountyCornellCooperativeExtensioncan

assistyouwithfindingsuppliersanddealersfor

thetypeofequipmentyouneed.

http://smallfarms.cornell.edu/

contact/local-contacts/


4–FinancingaFarmOperationGuidetoFarminginNewYorkStateGettingMoneyforYourNewFarmEnterpriseByfar,themostappropriatesourceofmoneyforyournewfarmisyourowncash–noloans,nohome

equity,nofamilyloans,andnocreditcards.Relyingonloanssubstantially(orentirely)putsyourfarm

dreamsattoogreatarisk.Itisworththepatiencetobuildupyourownfarmstart-upaccount.Most

farmscaneasilybeginoperatingwith$2-3,000cash.

Setasidethepersonalcashyouhaveavailableforyourfarminaseparatebankaccountcalledyour

“farmaccount.”Usethismoneyjudiciouslyforyourstart-upexpenses.Whenyouearnincomefromthe

saleoffarmgoods,replenishthisfarmaccountandcontinuebuyingwhatyoucanaffordforyourfarm.

Chancesare,youwillbemoreinspiredandcreativewithyourpurchasingknowingyouhavetostretch

thosedollars.Onceyourproductshaveacleardemandandyouarenotabletokeepupwithsales,then

itistimetoconsideraloanorfinancingtoallowmorerapidexpansionoftheprofitableaspectsofyour

farm.

Ifyoureachthestagewhereyou’rereadyforaloan,youwillneedtopresentpotentialinvestorsor

lenderswithasolidbusinessplanthatexhibitsarealisticstrategyforpayingitoff(SeeFactSheet#12in

thisGuide).Hereareafewloanoptions:

FarmServiceAgencyBeginningFarmerandRancherProgram

Abeginningfarmerorrancherisanindividualorentitywho:

¨ Hasnotoperatedafarmorranchformorethan10

years

¨ Meetstheloaneligibilityrequirementsofthe

programtowhichhe/sheisapplying

¨ Substantiallyparticipatesintheoperation

¨ Forfarmownershiploanpurposes,doesnotowna

farmgreaterthan30percentoftheaveragesize

farminthecounty

¨ Allapplicantsfordirectfarmownershiploansmust

haveparticipatedinbusinessoperationofafarm

foratleast3years

¨ Iftheapplicantisanentity,allmembersmustberelatedbybloodormarriage,andall

stockholdersinacorporationmustbeeligiblebeginningfarmers

InJan.2013theFSAannouncedanewmicroloanprogramwithlow-interestloansofupto$35,000,

moreflexibleeligibilityrequirements,andshortenedapplicationandprocessingtime.Youcanviewa

webinarandQ&AdocumentaboutthisprogramontheNEBeginningFarmerProjectwebsite:

MicroloansfromFSA:What’stheDeal?

http://nebeginningfarmers.org/microloans-from-farm-service-agency-fsa-whats-the-deal/

FarmServiceAgencyBeginning

FarmerandRancherProgramTheFarmServiceAgency(FSA)provides

directandguaranteedloanstobeginning

farmersandrancherswhoareunableto

obtainfinancingfromcommercialcredit

sources.

www.fsa.usda.gov

315-477-6300


CommercialBanks

Mostbankshaveacommerciallendingdepartmenttohandlebusinessloans,butfewbankshavean

agriculturallendingdepartmentpreparedtoworkwithagriculturalbusiness.Checkwithyourbankto

seeiftheywriteagriculturalloans(mostwillifyouhaveaFarmServiceAgencyorSmallBusiness

Administrationguarantee).

FollowingisapartiallistofNYbankswithknownagriculturallendingdepartments:


FarmCredit(withbranchesinNH,NY,NJ,RI,

MA,andCT)www.farmcrediteast.com

M&T https://www.mtb.com/personal/Pages/Index.aspx

800-724-2440

NBTBank http://nbtbank.com

800-NBT-BANK

CommunityBank,NA www.communitybankna.com

800-724-2262

BankoftheFingerLakes www.bankofthefingerlakes.com

315-789-1500

FarmCredit(withbranchesinNH,NY,NJ,RI,

MA,andCT)

www.farmcrediteast.com

M&T https://www.mtb.com/personal/Pages/Index.aspx

800-724-2440

NBTBank http://nbtbank.com

800-NBT-BANK

USDAFarmServiceAgencyMicroloanProgram

Revisedin2013,thenewprogramoffersasimplifiedapplication

process.Toqualify,itishelpfulifbeginningfarmershave:

¨ Abusinessplanthatshowsincomeandexpensesand

abilitytorepaytheloan

¨ Forestablishedfarms,athreeyearfinancialand

productionhistoryispartoftheapplication,alongwitha

listofassetsanddebt

Microloanscanbeusedforstart-upexpenses,annualsupplycosts,marketingcosts,purchaseof

equipmentandlivestock,farmimprovements,hoophouses,irrigation,deliveryvehicles,etc.Microloans

mustbesecuredbyalienonpropertyorproducts.Repaymenttermwillnotexceed7years.

Micro-EnterpriseLoanFundsorRevolvingLoansFundsforSmallBusiness

Somecountygovernmentshavemicro-enterpriseloanfundswithattractiveinterestratesand

repaymenttermsthatcanbeusedtofinancefarmoperations.CheckwithyourcountyPlanningand

EconomicDevelopmentAgency/Dept.tofindoutiftheyhavemicro-enterpriseloansfundsthatyou

mightqualifyfor.

USDAFarmService

AgencyDesignedtohelpsmallfarm

operationsincludingbeginning

farmerssecureloansunder

$35,000.

http://offices.sc.egov.usda.gov/lo

cator/app?state=ny&agency=fsa



KivaZip Kivahasalongandsolidreputationasaglobal

microlender.Nowthey’vesettheirsightsonhelpingUS

entrepreneursaswell,withaparticularinterestin

https://borrow.kiva.

org/borrow


Investors

Withtheconceptof“SlowMoney”(www.slowmoney.org)gainingpopularity,investorcircles

nationwideareformingtofundlocalfoodsystems.Dependingonyourlocationandfarmplans,youmay

farmers.ThroughKivaZipyoucangeta0%interestloan

ofupto$5,000yourfirsttime.Youmayhavea6-month

graceperiodanda2-yearrepaymentterm,andonce

you’vesuccessfullyrepaidthatloan,youarequalifiedfor

higheramounts,upto$50,000.Loansarecrowd-

sourcedonKiva’sonlineplatform,andaremade

primarilybasedoncharacterreferences.

FarmCredit’s

FarmStartProgram

FarmStartisarelativelynewventurewithamissionto

provideinvestmentsofworkingcapitalinfarm

businessesandfarmercooperativesthatshowsound

promiseforbusinesssuccess.Theprogramcanmake

loanstobeginningfarmerswhowouldn’tmeetFarm

Credit’sinternalcreditstandards.Itrequiresnodown

paymentorequityforfive-yearloansupto$50,000,as

longasthebusinesscashflowsandseemstohavea

goodchanceofsucceeding.

https://www.farmcr

editeast.com/produ

cts-and-

services/new-

farmer-

programs/FarmStart

NYSConsolidated

Funding

Application–

fundingfromNYS

EmpireState

Development

Fundsforlargeragricultureprojectscanperhapsbe

securedbyworkingthroughlocalcountyeconomic

developmentandplanningorganizationsandthe

regionaleconomicdevelopmentcouncilthatcoversyour

county.Theseentitiessettheirownprioritiesfor

fundingallocation.Eachregionalcouncilisawardedaset

amountofNYSfundsbasedontheirplans.Projectsare

submittedviaregionalcouncilsandapprovedbythe

state.Someofthefundingmaybeintheformofagrant,

butmostlythisisaloanprogram.Applicationsarelong

andcomplicated.Seekassistanceastowhetherthisis

anappropriatefundingsourcetopursue.

http://regionalcoun

cils.ny.gov/

TheCarrotProject TheHudsonValley,WesternConnecticut&Berkshire

CountyLoanProgram(alsoknownastheGreater

BerkshireAgricultureFund)servesthefourcounty

regionofDutchess,NY,Columbia,NY,Litchfield,CT,and

Berkshire,MA,andisadministeredinpartnershipwith

SalsiburyBankandTrustCompany.Theprogramoffers

loansupto$75,000;avolunteerloanreviewcommittee,

whichincludesfarmersandagriculturelenders,supports

theworkofthefund.

http://www.thecarr

otproject.org/progr

ams/loan_programs


beabletoattractinvestorstofundstart-uporexpansionofyourfarm.ManyCommunitySupported

Agriculturefarmershaveusedthestrategyoffundraisingfromtheirmembershiptosecuretheirlandor

buildnewfacilities,usuallyofferingrepaymentplusinterestintheformoffarmproducts.Youwillneed

tocheckinwithlegalandtaxadvisorsabouttheimplicationsforyourfarm,andyouwillalsoneedto

crunchthenumbersandwriteabusinessplantodeterminewhetherthisisastrategythatcanworkfor

you.Searchonlinefor“slowmoney,”“localinvestingopportunitynetworks”and“smallfarmangel

investors”tolearnmoreaboutthepossibilitiesforyourfarm.

ResidentialFinanceorUsingYourOwnEquity

Whilemanybanksareunwillingtolendmoneytoanindividualtopurchaseaherdofgoats,forexample,

almostallbanksofferhomeequityloansand/orotherpersonalloansthatyoucoulduseforyour

agriculturalbusiness.Homeequityandpersonalloansmaycarryhigherinterestratesthanbusinessor

farmloansavailablethroughtheabovesources.Besuretocheckratesandterms.Neverfinancea

businessusingcreditcardsasinterestratesareenormousand,ifpaymentsarenotmade,canquickly

spiraloutofcontrol.

Ifpurchasingequipmentorsupplies(machinerydealers,afarmersellinganimals,etc.)askthevendor

abouttheircreditoptionsandterms,astheymaybemoreliberalthanacommercialbankbecausethey

caneasilyseizeandmakeuseoftheassetifpaymentisnotmade.Again,besureyouknowtheinterest

ratesandterm.


5–FarmRiskManagementGuidetoFarminginNewYorkStateTheprimarygoalofriskmanagementandinsuranceistoprotectyourassetsfromclaimsandlawsuits

thatmayresultfrominjurytopersonsordamagetopropertyfromaccidentsthatareassociatedwith

yourbusiness.Effectiveriskmanagementdependsoncombinedeffortsandclosecommunication

betweenyourselfandyourinsurancecompany.Lookforanagentwithwhomyouarecomfortable,who

iswellknownandrespected,whounderstandsagricultureandbusinesses,andwhowillworkwithyou

toreduceyourpotentialforrisk.

Whenconsideringyourrisks,besuretoreviewthelistbelowanddescribeyourriskscompletelytoyour

agent.Youwillnotneedallofthetypesofprotectionlistedbelow,butitisimportanttoknowyour

optionswhenshoppingforinsurance.Matchyourcoveragetoyourneedsforriskmanagement.

Organization Description

GeneralLiability

InsuranceCoversinjuriestopeopleandpropertyforwhichyourfarmisjudgedliable

andmitigatesyourlossesfromlawsuits

AutomobileInsurance Coversvehicledamagewhileinyourvehicleortoanothervehiclewhile

traveling

HomeOwnersInsurance Typicallycoversfire,theft,personalproperty,lightning,riot,aircraft,

explosion,vandalism,smoke,theft,windstormorhail,fallingobjects,

volcaniceruption,snow,sleet,andweightofice.Usuallyfloodand

earthquakeneedtobepurchasedseparately

FarmInsurance Coversbarns,rentalhousing,equipment,animals,andotherfarmassets

Workers’Compensation

Insurance

Requiredifyouhaveemployeesorinterns

ProductLiability

Insurance

Fordamagesthatmayarisefromtheconsumption,handling,useofor

conditionofproductsmanufactured,sold,handled,ordistributedbyyour

business

ContractLiability

Insurance

Coverstheassumptionoftheliabilityofanotherpartythroughacontract

orfacilityuseagreement.Forexample,youmayberequiredtoprovidea

certificateofinsurancetobuyersthatincludes$1millioninproduct

liabilityandadditionalinsurance

EnvironmentalPollution

Insurance

Coversclean-upofmanure,orpesticidespills

CropInsurance Canprotectagainstannualproductionlossesduetoweather,pestsand

otherinsurablecausesofloss.Federallysubsidizedcoveragecanbe

purchasedfromacertifiedcropinsuranceagent.Disasterprograms

provideupto65%coverageforcropswherecropinsuranceisunavailable

andisprovidedbycountyUSDAFarmServiceAgencies

LifeInsurance Tohelpyourfamilyincasesomethinghappenstothebreadwinner

HealthInsurance Foryourselfandfamilyincaseyouneedmedicalcare

BusinessInterruption

Insurance

Willprovidelivingexpensesifyouarehurtandcannotwork


Vendor’sInsurance Willcoveryourliabilitiesifyouaresellingatafarmers’marketortrade

show

UmbrellaLiability

Coverage

Aliabilityinsurancepolicy.Itprovidesextrainsuranceprotectionoverand

aboveyourexistingpoliciesandtypicallycarriesahighdeductible

SeealsothelistanddescriptionoftypesofinsuranceinFactSheet#6inthisGuide.

WaystoReduceYourLiability

¨ Ifyouhavepeoplecomingtoyourfarm,keepyourpropertyingoodrepair.

¨ Minimizeoreliminatedangeroussituations.Thismightinclude:aggressiveanimals,manurepits,

movingvehiclesorequipmentparts,etc.Fenceoffhazardswhereverpossible.

¨ Bio-securityisrecommended.Providebootiesandhandwipesforvisitorswhoenterbarnareas.

¨ Whensellingorservingfoods,makesureallregulationsaremetandcarryproductliability

insurance.

¨ Allworkersonyourfarmarerequiredtobecoveredbyworkerscompensation,evenifthey

workforfree!Soifyouhaveinterns,apprentices,oremployees,youarerequiredtocarry

insuranceforthem(Theonlyexceptionisifyourfarmissetupasa501(c)3non-profit).Seefact

sheets6and18formoredetailsoninsuranceandlaborlaws.

¨ Testyourwatersupplyannuallyforbacteriaifyourwaterisbeingusedforwashingproduceor

processing.

¨ Negligenceiswhenyoufailtotakenormalstepstoeliminatehazardsoryoucreateahazardous

situationandfailtoaddressit.

¨ Avoidmakingfalsestatementsorpublishingincorrectinformationthatmaydamageaperson’s

reputationasthiscanresultinlibelsuits.Becarefulofadvertisingclaimsorcomparingyour

operationtoothersinanegativeway.

¨ Manageyourproductiontechniquesaccordingtorecommendedbestmanagementpractices.


6–FarmInsurance

GuidetoFarminginNewYorkStateFarmOwner’sInsurance

Likeahomeowner’spolicy,mostgeneralfarminsuranceplanscoverpropertydamagesand

comprehensivepersonalliabilitycoverageforclaimsagainstthefarm.Thisinsuranceisonlyavailable

throughprivateinsurancebrokersanditissuggestedthatyoushoparoundaspricesvarywidelyfrom

vendortovendor.

SupplementalComprehensiveCoverageand/orProductLiabilityInsurance

Ifyouhavethepubliccomingtoyourfarm,youmaywanttoconsiderincreasingyourfarm’s

comprehensivepersonalliabilityinsuranceincasesomeonegetshurtonyourproperty.

Ifyousellproductsforhumanconsumption,youruntheriskofpeoplegettingsickfromyour

products.Makesureyourgeneralcomprehensivepolicycoversproductrisksorpurchaseproduct

liabilityinsurance.

WorkersCompensationInsurance

Statelawalsorequiresthatemployeesbecoveredbyadisabilitybenefitiftheyaredisabledoffthe

job.Mostworkerscompensationinsurancewillalsoincludethis.

Familymembers(spouseorchildren)andfarmlaborersareexemptfromthisrequirementifthefarmis

notincorporated.IfthefarmisheldasacorporationorLLCthenthefamilymemberexemptiondoesnot

applybecausenooneisrelatedtoabusinessentity.

HealthInsurance

Farmemployersarenotrequiredtocarryhealthinsurancefortheiremployeesiftheyhave50orfewer

employees.However,healthinsuranceforfarmersandfarmfamilieswhodonothaveoff-farmjobscan

beverycostly.Farmingisahigh-riskoccupationandfamiliesputthemselvesatriskwhentheydonot

carryorcannotaffordhealthinsurancecoverage.

Employers are required to carry workers compensation insurance for employees if cash wages

exceeded $1,200 in the preceding calendar year. Coverage must be obtained effective April 1st of the

year immediately following the year where the farm had $1,200 of payroll. If a farm has one or more

unpaid interns or apprentices for the growing season, workers compensation insurance must be

provided for these workers too. Insurance can be purchased from the New York State Insurance

Fund (http://ww3.nysif.com/), private insurers, or an employer can form/join a self-insurance

group if they meet various requirements and post bond.


InsurancePlanOptions


Gladle&

Associates

Providehealthinsuranceforfarmfamilies

throughtheDairymen’sHealthInsurance

AllianceGroupPlan.Youdonothavetobea

dairyfarmertojoin

Tollfree:800-479-8153

Healthy-NY

Program

Offersaffordablehealthinsurancetosmall

businesses,soleproprietorsandworking

individuals

www.HealthyNY.com

866-HealthyNY(866-432-

5849)

Obamacare AllU.S.citizensareeligibleforhealthcare

coveragethroughtheHealthInsurance

Marketplace

https://www.healthcare.gov/

CropInsuranceandRiskManagement

Cropinsuranceisavailableforspecificcropstoprotectagainstweather-relatedandothercommon

causesofloss.FederallysubsidizedpoliciesarecreatedbytheUSDARiskManagementAgency,but

purchasedfromacropinsurancecompany.Currentpolicyinformationisavailableat:

www.rma.usda.gov

Federaldisasterprogramscanalsoprotectagainstsignificantcroplosses,ifbeginningfarmerssignup

annuallybytheapplicabledeadline.DisasterprogramsareadministeredbycountyUSDAFarmService

Agencies,listedoneachState’sFSAwebsite:www.fsa.usda.gov

InsuranceCompaniesthatServeFarms


ErieInsurance http://www.erieinsurance.com/

DrydenMutual

InsuranceCompany

http://www.drydenmutual.com/

FarmFamily http://www.farmfamily.com/

NYFarmBureau/

Nationwide

https://www.nationwide.com/cp/ag-farm-bureau-ny.htm


7–FarmVehicles

GuidetoFarminginNewYorkStateFarmVehicleRegistration

GototheDMVandcompletetheforms:

¨ MV-82MotorVehicleRegistration,checkthe

FarmVehiclebox¨ MV260-F,part1CertificationofFarmVehicle

Use

MovingFarmEquipmentonPublicRoads

The“slowmovingvehicle”emblem,afluorescentorreflectiveorangetriangle,mustbedisplayedonthe

rearofvehiclesdrawnbyanimals,andmostfarmvehiclesandconstructionequipment.Itmustbe

displayedonallequipmentdesignedtooperateat25mphorless,whetherself-propelledorusedin

combination.Thesesignsfadewithtime,soitisrecommendedtoreplacethemevery2-3years.The

emblemmustbedisplayedseparatelyoneachpieceofequipment,whetherself-propelledorusedin

combinationasperVTL375-36(b).

Itisunlawfultooperateagriculturalequipmentonanypublichighwaybetween30minutesaftersunset

and30minutesbeforesunriseoratanytimewhenvisibilityaheadorbehindislessthan1000feet,

unlesstheequipmentisequippedwithapprovedworkinglamps.Ifonapublichighwayafterdark,

requirementsinclude:

¨ Twowhiteheadlightsonfrontoftractoratthesameheightandasfarapartaspracticable

¨ Oneredtaillampatthefarthestend(tractororimplement)andasfarapartaspracticable

¨ Twoambercombinedhazardwarningandturnsignallampsatleast42incheshighatthesame

level,visiblefromfrontandrear.Ifjustatractor,theselightscanbeonthecab.Iftravelingwith

animplement,theselightsneedtobemountedatrearofimplement

¨ Tworedreflectorsattherearoftheimplement,atthesamelevelandasfarapartaspracticable

ImportantException

Ifthewidthoftractor/implementcombinationisbetween12and17feet,youcannottravelonpublic

roadsafterdark.Whentravelingduringdaylight,redororangefluorescentflagsnotsmallerthan18

squareinchesandreflectorsneedtobeplacedatextremecornersoftheload.Inaddition,2amber

lightsorhazardlightsvisiblefromtherearoftheloadmustbeflashing.Ifthevehicleorimplement

extendsbeyondthecenterlineoristravelingduringinclementweather,theimplementshouldbe

precededbyanescortvehiclewithawarningsignandflashinglights.

TransportationofHazardousMaterialsonPublicRoads


Afarmerwhoisoperatingasaprivatebusiness(notforhire)isexemptfromvehicleplacardingand

markingregulationswhentransportinganagriculturalproduct(hazardousmaterialincludingfertilizers,

pesticides,fuel,etc.)overlocalroadsbetweenfieldsutilizedbythefarm.

ForadditionalinformationonSMVemblems,pleasereferto:

StateVehicleandTrafficRegulations

Title15,Part68–Slow-MovingVehicleEmblem(15NYCRR68)

Foradditionalinformationonrequiredlightingequipment,referto:

StateVehicleandTrafficRegulations

Title15,Part43–MotorVehicleLighting(15NYCRR43.9)

Section43.9–LightingRequirementsonAgriculturalEquipment

Theseregulationscanbefoundbyvisiting:

http://government.westlaw.com/linkedslice/default.asp?SP=nycrr-1000andselectingtheDepartment

ofMotorVehicles


8–ZoningRegulationsandFarming


MunicipalZoningLaws

Ifyouplantobuildanewfarmfacility,establish

aretailfarmoutlet,addworkerhousing,add

horseboarding/ridingfacilities,etc.,checkwith

yourlocalmunicipalitytofindoutwhichlaws

apply.Somecommon

restrictions/requirementsmightinclude:road

setbacks,lotsize,dimensions,signagesizeand

placement,siteplanrequirements,screening,

etc.

Farmslocatedincertifiedagriculturaldistricts

aregenerallyexemptfrommanylocalandsome

stateregulationsincludingSEQR(State

EnvironmentalQualityReview),somebuilding

codes,andfromtheneedtoprovide

professionallystampedplansforfarmbuildings,

etc.Contactyourcountyplanningor

assessmentdepartmentstoseeiftheproperty

youownisinanagriculturaldistrict.

Ifyouarelocatedinanagriculturaldistrictand

findlocalzoningtobeexcessivelyrestrictiveto

yourfarmdevelopmentplans,checktheNYS

Dept.ofAgriculture&Marketswebsitefor

informationonlocallawsandtheagricultural

districtlawandhowtheyrelate.Inmanycases,

theAgriculturalDistrictlawprotectsfarm

operationsfromrestrictivelocallaws.Formore

information,accessthefollowingdocument

fromtheAg&Marketswebsite:

LocalLawsandAgriculturalDistricts:Guidance

forFarmersandLocalGovernments

http://www.agriculture.ny.gov/AP/agservices/n

ew305/guidance.pdf

Aprocessexistsbywhichyoucanrequestan

opinionfromNYSDept.ofAgriculture&

MarketsAgriculturalProtectionProgramstaff

tomakeadeterminationifalocallawis

restrictivetofarming.Itissuggestedthatyou

callthestaffanddiscussthematterwiththem

priortofilinganofficialrequestforassistance

(seetelephonenumberlistedbelow).Formal

requestsforassistancemustbemadeinwriting

andincludedetailsonlocalrestrictionsand

requirementsasevidencedinzoningcodeor

someotherruling.

MailARequestforReviewNYSDept.ofAgriculture&MarketsDiv.of

AgriculturalProtection&Development

Services

10BAirlineDrive

Albany,NY

Phone:518-457-2713

http://www.agriculture.ny.gov/AP/agservices

/agdistricts.html

IfyouarenotlocatedinanAgriculturalDistrict

thenyoumustcomplywithlocalregulations.

NYSBuildingCodes

Farmbuildingsareexemptfromthebuilding

codeforbuildingconstruction.Tolearnabout

whetherornotyourfarmisexemptfromthe

propertymaintenanceandsomefiresafety

coderequirements,contact:

NewYorkStateDepartmentofStateCode

EnforcementandAdministration

OneCommercePlaza,99WashingtonAve,

Suite1160,Albany,NY12231Tel:518-474-4


9–LegalAspectsofRuralLiving


Lawsareconstantlychangingandvarybymunicipality.Thefollowingaresomegeneralguidelinesto

knowwhenlivinginthecountry:

BoundaryFencesandTrees

InNYSitisthedutyofbothadjoininglandownerstomaintainafencelineandonepartymaynot

removeafencewithoutthepermissionoftheother.Thesameappliestotrees;however,aproperty

ownermaytrimthebranchesofatreehangingonhissideofthepropertysolongasthetrimmingdoes

notresultindamagetothetree.

FencingforLivestock

Fencesintendedtocontainlivestockmustbeconstructedofmaterialsthatwillrestrainthem.Ifyou

haveanimals,letyourneighborsknowandprovidethemwithcontactinfoincasetheanimalsgetoutor

iftheyseesomethingamiss.

RiparianRights

Ifyourpropertyincludesawaterway,youhavetherighttouseareasonableamountofwaterbutyou

areliableforwaterpollution.Youmaynotimpedetheflowofastreamordivertitfromitsoriginal

channelwhereitflowsintothenextowner’sproperty.Ifabodyofwaterisnavigable,thepublichasthe

righttousewaterregardlessoftheowner.Ifabodyofwaterisnotnavigable,theriparianownermay

excludepublicuse.Ifastreamisclassifiedasatroutstream,itmaynotbealteredunderNYSDEClaw

withoutapermit,andaccordingtofishandgamelawthelandmaynotbeposted.

PostingandTrespassLaw

Ownersorotherswithexclusiverightstopropertymayposttheboundarieswarningthatifaperson

entersthepropertytheyaretrespassing.Trespassersmustleavethepropertyiftheownersoorders

andtheymaybechargedwithacriminalviolation.Ifnotposted,thetrespassercanarguethatthey

thoughtthelandwaspublic.Ifatrespasserrefusestoleave,asheriffshouldbecalledtomakeanarrest.

Postingrequirementsinclude:

¨ Atminimum11inchsquaresignwithletteringtooccupy80squareinchesexclusiveofthename

andaddress

¨ ThewordPOSTEDincapsandthenameandaddressoftheowner

¨ Signsmustbelocatedatpropertyboundariesandcornersandbeconspicuouslyplacednot

morethan660feetapart

¨ Illegibleormissingsignsmustbereplacedatleastonceayear.


LandownerLiability

Thisisaverycomplicatedissueandthebestprotectionisriskmanagement,insuranceandposting.

Whiletrespassingisillegal,itisalsoillegalforthepropertyownertoharmthetrespasser.Ifyougive

permissiontosomeonetouseyourlandforanypurpose,itisadvisabletowarnthemofhazardsonthe

property.Additionallyifyouallowotherstoswimonyourproperty,youareresponsiblefortheirsafety

andhygiene(e.g.toilets).

RighttoFarmLaws

TheNYSAgriculturalDistrictLawhasaprovisionthatprotectsfarmersagainstnuisancelawsuitsand

protectstherighttofarm,providedthatsoundagriculturalpracticesarefollowed.Manymunicipalities

alsohaveright-to-farmlawswithadditionalprovisionsmeanttoprotectfarmers.Checkwithyourtown

officialstoseeifsuchalawexistsinyourmunicipality.

FarmNeighborRelations

Awaytoavoidproblemsthatmayarisefromtheabovesituationsistoletyourneighborsknowwhat

youaredoingonyourfarmandwhattoexpect.Ifyouhavetooperateforlonghoursduringplanting

andharvestseasonorwillbespreadingmanure,letyourneighborsknow.Communicationgoesalong

waytowardsavoidingcomplaintsaboutnoise,dust,odor,livestockhazards,orfarmingpractices.

Increasinglyyourfarmingneighborswillhavehadnoexposuretolivinginthecountryandyoucanhelp

educatethemaboutagricultureandwherefoodcomesfrombylettingthemknowwhatyoudo.

FloodPlainConsiderations

Ifyourlandisinafloodplain,youareallowedtofarmitbutmayneedapermitfromyourtown,village

orcityifyouplanto1)significantlychangethetopography,2)installfencingwhichcancatchdebrisand

thereforeimpedefloodwaters,or3)buildabarnorotherstructure.


10–EnvironmentalRegulations


EnvironmentalRegulations


NYSWaterQuality

Regulations

FarmersmustcomplywithNewYorkStatewater

regulationstoprotectsurfaceandgroundwater

fromcontaminationfromerodedsoil,pH,fecal

coliforms,excessivenitrateandphosphorus

levels.IftheDept.ofEnvironmentalConservation

(DEC)determinesthatyouarethecauseofa

waterqualityviolation,yourfarmwillbesubject

toafineandfarmingpracticesmayberestricted

orprohibited.Thislawappliestoalllandowners

andfarmoperators.

www.dec.ny.gov/regs

/4590.html

ConcentratedAnimal

FeedingOperations

(CAFO)

Farmswithlargenumbersofanimals(e.g.300+

maturedairycows)musthaveaConcentrated

AnimalFeedingOperationpermit.

Detailsofapermit:

¨ Requiresacomprehensivenutrient

managementplantobecompletedand

updatedannuallybyacertified

AgriculturalEnvironmentalManagement

Planner.Plancoversanimalmanure,

wastewater,silageleachaterun-offand

more.

¨ Requiresexpansiontobeplannedand

limitedbythefarmsabilitytohandle

nutrients/wastesproduced.

¨ Doesnotprotectthefarmintheeventof

amanurespillordischarge.Ifaspill

takesplacethefarmerhas24hoursto

reportittothestateand5daystofilea

writtenstatementonwhathappened.

CAFOfilingsaregenerallynotpublicrecordbut

theycouldbeifthefarmerwantedtheir

informationpublic.

www.dec.ny.gov/per

mits/6285.html

Agriculture

Environmental

Management(AEM)

Inordertobesuccessfulinthelong-term,every

farmmustsustainorimproveitssoil,water,and

plantresources.Beyondregulatorycompliance,it

istoafarmer’sadvantagetoincorporategood

environmentalmanagementpracticesduring

theirinitialplanning,ratherthanconfronting

costlymitigationmeasureslater.AEMoperatesat

acountylevelthroughSoilandWater

www.nys-

soilandwater.org/aem

/index.html

Locateyourlocal

countySWCDoffice

at:www.nys-

soilandwater.org/cont

acts/county_offices.ht


ConservationDistrictoffices.One-on-one

assistanceisgenerallyavailabletohelpyou

incorporategoodenvironmentalmanagement

practicesintoyourbusinessplanfromthestart,

andtowalkyourlandwithyoutoevaluateareas

ofconcern.Theseofficeswillalsohave

informationonfundingsources(grants,loans,

cost-shares)forimplementingconservation

practicesonyourfarm.

ml

PesticideRegulations

Whenusingpesticides,theLabelisLaw–makesureyoureadit!

Formoreinformationonbecomingcertified,visittheDEC’swebsite:

PesticideApplicatorCertification

http://www.dec.ny.gov/permits/45618.html

BecomingCertified

Afarmerusingrestrictedusepesticidestoprotectcropsandanimalsfrompestsonpropertyownedor

rentedfortheproductionofanagriculturalcommodityisconsidereda“private”applicator,andmust

becomecertifiedbytheDECandshowhis/herpesticidelicensewhenpurchasingthese

products.Generalusepesticides,consideredtobesaferandingeneraluse,donotrequireapplicator

certificationforpurchaseanduse.

Tobeeligibleforcertification:

¨ Musthaveatleastoneseason’sexperienceworkingwiththecrops,livestockorstoredproducts

onwhichyouwillusepesticidesandbeatleast17yearsofage

Tobecomecertified:

¨ MusttakeanexambasedoninformationinthePesticideTrainingManual(CoreManual)

¨ Additionallytherearequestionspertainingtothesituationinwhichyouusepesticides

(CategoryManual)

YoucanobtainmanualsthroughcountyCooperativeExtensionoffices.CooperativeExtensionalsooffers

pesticideapplicatortrainingprogramsoryoumaystudyonyourownandmakeanappointmentwith

theDECtotaketheexam.

ForQuestionsaboutthe CertificationProcessandExams:


CalltheDepartmentofEnvironmental

Conservationofficeinyourregion.

ForNYS,regionalDECofficecontact

informationcanbefoundat:

http://www.dec.ny.gov/about/259.html

Uponpassingtheexam,yourcertificationis

validfor5years.Thereisafeefortheexam

andforthecertificationlicense.

Recertification

Duringthe5yearsthatyouarecertified,youmustobtaincontinuingeducationcreditstoward

recertification.Creditscanbeobtainedbyattendingmeetingswherepestmanagementtopicsare

discussedandcreditsoffered.

A“CourseCalendar”canbefoundat:

http://coursecalendar.psur.cornell.edu/

SearchthedatabaseofNYSDECapprovedcoursesinyourarea

CreditsforPrivateRecertification:

¨ 8forAgriculturalAnimal(Livestock&Poultry)andAquatics

¨ 10forAgriculturalPlant(Field&Forage,Fruit,Vegetable,Greenhouse&FloristandNursery&

Ornamentals)

¨ Creditsmustbeearnedinmorethanonecalendaryearandconsistofatleast25%category-

specifictrainingineachcategoryofcertification

YouareobligatedtokeeprecordsofthecreditsyoureceiveandturninrecordsheetstoDECwhen

theynotifyyouthatyourlicenseisabouttoexpire.Ifyoudonothavetherequiredcredits,youwillhave

totaketheexamagain.

11–ForestLandResources


ForInformationonManualsand

TrainingContactyourcountyCooperativeExtension

office,

OrthePesticideManagementEducation

Program

Phone:607-255-1866,

Email:[email protected]

http://psep.cce.cornell.edu/certification/Certif

ication.aspx


AssistanceforForestOwners

Woodlandsareavaluableassetthatifproperlymanagedcanprovideharvestabletimber,firewood,and

agroforestryproducts.Ifthelandyouownincludeswoodlands,itpaystobecomeinformedaboutthis

asset.Followingareagenciesandorganizationsthatareavailabletoassistyou:


MasterForestOwner

(MFO)Volunteers

VolunteersaretrainedbyCornellDept.of

NaturalResourcesandareavailablein

nearlyeverycountytoprovideanswers

aboutforestmanagement

questions.Theyareagreatresourcefor

thenewforestownerandcanoffer

practicaladviceonquestionspertaining

towoodlotmanagement,timber

harvestingandothertopics.

FindMFOat:

http://www2.dnr.cornell.edu/ex

t/mfo/

NYForestOwners

Association(NYFOA)

TheNYForestOwnersAssociation

promotessustainablewoodlandpractices

andimprovedstewardshiponprivately

ownedwoodlands.

Tobecomeamember,contact

NYFOAat800-836-3566or

website:www.nyfoa.org

NYSDept.of

Environmental

ConservationDivision

ofLandsandForests

DECForesterswillprepareForest

ManagementPlansthatidentifyyour

woodlandresourcesandprovide

managementoptions.

Contacttheregionalofficethat

coversyourcountyandrequest

theassistanceofaDECForester:

www.dec.ny.gov/lands/4972.ht

ml

DECSaratogaTree

Nursery

Treeseedlingsareavailableforsmall

plantingandreforestationprojects.

Generallyordersneedtobeplacedby

mid-MarchandwillbeshippedinApril.

Speciesavailablefromtheabovesources

include:conifers,hardwoods,andmixed

packetsforwildlifeorotherconservation

purposes.

Call518-581-1439orvisit:

www.dec.ny.gov/animals/7127.

html

ManycountySoilandWater

ConservationDistrict(SWCD)

officesalsoselltreeseedlings

CornellForest

Connect

ForestConnect is an education and applied research program of Cornell University and Cornell Cooperative Extension. The goal of ForestConnect is to support the sustainable production of private woodlands in New York (and beyond) through the provision of educational assistance.

http://cornellforestconnect.ning

.com/

AgroforestryandMapleSyrupProduction

Interestedinknowingthepotentialofyourwoodlandsforproductsotherthantimberandfirewood?At

thefollowingsitesyoucanexplorethepossibilitiesforproducingmaplesyrup,cultivatingginseng,

goldenseal,mushrooms,nativeplantsorotherforestcropsaspartofyourfarmoperation:



CornellMapleProgram http://www.cornellmaple.com

Forumformapleproducerstoshareideas

andequipment

http://www.mapletrader.com

Cornell’sForestFarmingResourceCenter http://www.hort.cornell.edu/forestfarming/

AgroforestryResourceCenter,Greene

County

http://www.ccecolumbiagreene.org/

AgroforestryOverview,ATTRA http://www.agmrc.org/media/cms/agrofor_A18CE08

578D41.pdf

ForestlandTaxExemption–480-a

Privatelyownedforestlandcanbepartiallyexemptedfromtaxationbutisliableforspecial

levies/assessmentsunderastatelawcalled480a.Theexemptionislimitedtothelesserofeither:

1. 80%oftheassessedvalueofeligibleacreageor;

2. Theamountbywhichtheassessedvalueexceeds$40xthestateequalizationratexnumberof

acres

Toqualifyfortheexemption:

¨ Requiresanannualcommitmenttocontinuedforestcropproductionforthenext10years

¨ ForestsmustbeunderaforestmanagementplanapprovedbyDEC

¨ Mustincludeatleast50contiguousacresofforestland(roads,rights-of-ways,energy

transmissioncorridors,etc.areincluded)

¨ Musthavevehicularaccessforforestmanagementpurposes

¨ Anytimberharvestwithin3yearspriortoapplicationforcertificationunderthisprogrammust

havebeenconductedinaccordancewithsoundforestmanagementpractices

¨ PrescribedcuttingmayberequiredbyDECplan

ToReceivetheExemption:

FirstYear CompleteFormRP-480,mustbeaccompaniedbya10-yearcommitmentform

fromDECandacertificateofapprovalfromthecountyclerk’soffice–take

theseformstoyourcounty/townassessorbythetaxablestatusdate(March1).

SubsequentYears Fileanewcopyofthe10-yearcommitmentformwiththeassessor.Ifyoufailto

filethecommitmentform,thepropertyisnoteligiblefortheexemption.

Formoreinformationonthisprogram,contactaDECForesterinyourregion:

www.dec.ny.gov/lands/5236.html

AgriculturalAssessmentforMapleProduction

Ifyoutapthemapletreesonyourforestlandorleaseyourforestlandtoanothermapleproducer,you

maybeabletoqualifyforanagriculturalassessment.Thisprogramdoesnotrequirethatalandowner

developorfollowawrittenforestmanagementplanandislessrestrictivethan480-A.Pleasereferto

theAgriculturalAssessmentsectioninPropertyTaxExemptionforFarmland(FactSheet#21)fordetails


onthisprogram.Ifalandownerqualifiesforagriculturalassessmentontheiropenland,theycanalso

includeupto50acresofattachedwoodland.However,maplesyrupproductionistheonlyuseof

forestlandthatwillqualifyalandownertoreceiveagriculturalassessmentonitsown.

Leasingforestlandtoamapleproducerisanattractiveoptionforlandownerswhowouldliketohave

theirtreestappedbutdonothavetheabilityordesiretodotheworkthemselves.Oftentimesthetax

savingsofqualifyingforagassessmentismorelucrativethantheleasefeesprovidedbythe

producer.Thisrequiresa5-yearwrittencontractwithamapleproducerwhomeetstheminimumsales

requirementsforagassessment.


12–BusinessPlans


WhatisaBusinessPlan?

Abusinessplanisadocumentthathelpsyoutoorganizeandsuccinctlysummarizethevisionyouhave

foryourbusiness.Theplancontainstheoperationalandfinancialobjectivesofabusiness,thedetailed

plansandbudgetsshowinghowtheobjectivesaretoberealized.

Agoodbusinessplanwillcontainthefollowing:

¨ Yourbusinessvision,missionstatement,keyvalues,andgoals

¨ Descriptionoftheproduct(s)youintendtoproduce

¨ Strengths,Weaknesses,OpportunitiesandThreatsthebusinessmayexperiencearedescribed

¨ Productionplans

¨ Marketingplans

¨ Estimatedstart-upcosts

¨ Informationonyourlegalstructureandmanagementteam

¨ Currentfinancialstatementsorprojectedfinancialstatements.

¨ Resumeorbriefexplanationofyourbackgroundandrelevantexperience

¨ Lessthan10totalpagessothatpeopleactuallyreadit

HelpfulPublicationsforWritingaBusinessPlan

GeneralBusinessResourcePublications

TypeofLease DownloadOnline

StartinganAg-Business?APre-Planning

Guide

http://publications.dyson.cornell.edu/outreach/extensio

npdf/2004/Cornell_AEM_eb0408.pdf

BusinessTransferGuide:Junior

Generation


npdf/2016/Cornell-Dyson-eb1605.pdf

ProducingaBusinessPlanforValue-Added

Agriculture



BusinessPlanningfortheAgriculture

Sector:AGuidetoBusinessPlan

DevelopmentforStart-uptoMid-size

Operations



CornellCooperativeExtensionPublicationsforSpecificCommodities

LandscapeBusinessPlanningGuide http://dyson.cornell.edu/outreach/extensionpdf/2003/C

ornell_AEM_eb0313.pdf

WritingaBusinessPlan:AGuideforSmall

PremiumWineries

http://aem.cornell.edu/outreach/extensionpdf/2002/Co

rnell_AEM_eb0206.pdf

WritingaBusinessPlan:AnExamplefora

SmallPremiumWinery

http://aem.cornell.edu/outreach/extensionpdf/2002/Co

rnell_AEM_eb0207.pdf


GettingHelpWritingaBusinessPlan


CornellCooperative

Extension

Thetypeofprogrammingofferedineach

countyisuniquesocontactyourcounty

extensionofficetoseeiftheyhaveafarm

managementorsmallbusinessdevelopment

educator.Oftentheseeducatorsoffer

businessplanworkshopsandarewillingto

advise,review,orassistinwritingyourplan.

Additionaleconomicdataandmarketingtools

canbefoundatthefollowingwebsite:

https://dyson.cornell.edu/outreach/extension

-bulletins

www.cce.cornell.edu/editor

/show/In_Your_Community

NYFarmNet NewYorkFarmNethasbusinessplanwriting

publicationsinadditiontoseveralfarm

counselorsthroughoutthestatewhooffer

freeandconfidentialhelponanytopicof

concern,including:finances,farmchanges,

farmtransfer,naturaldisaster,personalstress,

familycommunication,andmaritalconflict.

www.nyfarmnet.org

NewYorkStateSmall

Business

DevelopmentCenter

Anetworkof23regionalcentersdelivering

businesscounselingandtrainingfreeof

chargetoNewYorkerswhowanttostarta

businessorimprovetheperformanceofan

existingbusiness.

www.nyssbdc.org

NewYorkState

OnlinePermit

Assistance

ThissitewillhelpyoufindtheNewYorkState

businesspermitsyoumayneed.

http://www.nys-

permits.org/

EmpireState

Development’s

Entrepreneurial

AssistanceProgram

PartofNewYorkState’seconomic

developmentagency,theyhave9centers

acrossthestatetoprovidespecializedhelpto

women,minoritygroupmembersandpersons

withdisabilitieswhoarestartingoroperating

anearlystagebusinesses.

http://www.empire.state.ny

.us/BusinessPrograms/EAP.h

tmlor1-800-STATENY

EmpireState

Development’s

Entrepreneurial

AssistanceProgram

PartofNewYorkState’seconomic

developmentagency,theyhave9centers

acrossthestatetoprovidespecializedhelpto

women,minoritygroupmembersandpersons

withdisabilitieswhoarestartingoroperating

anearlystagebusinesses.

http://www.empire.state.ny

.us/BusinessPrograms/EAP.h

tmlor1-800-STATENY

FederalSmall

Business

Administration

Federalagencywithofficesthroughoutthe

stateprovidingcounselingservicesandloan

guarantees.Theyhaveaspecialemphasisarea

toworkwithwomen,minorities,veterans,and

businessesinvolvedininternationaltrade.

www.sba.gov/ny

SCORE“Counselors

toAmerica’sSmall

SCOREisanonprofitorganizationofferingfree

adviceandtrainingusingexperienced

www.score.org


Business” volunteers.Checkthewebsiteforchaptersin

yourarea.

Sustainable

AgriculturalResearch

Education

(SARE)Publications

BuildingaSustainableBusiness

Greatresourceforabeginningfarmer

interestedinalternative,sustainable,and/or

generalagriculture.Itis280pagesof

educationandpracticalexercisestoguidethe

beginningfarmerthroughthefinancial,

management,andinterpersonalskillsneeded

tostartasuccessfulfarmbusiness.Orderhard

copyfor$17ordownloadPDFonlineforfree.

www.sare.org/publications/

business.htm

AgPlan AgPlanispowerfulwebsitedevelopedbythe

CenterforFarmFinancialManagementatthe

UniversityofMinnesotatohelprural

businessesdevelopabusinessplan.

https://agplan.umn.edu/

USDANewFarmers

Website

USDA’sNewFarmersWebsiteprovidesa

portaltovarioussitesprovidingtechnical

assistanceforplanningabusiness.

https://newfarmers.usda.go

v/technical-assistance-

planning-your-business


13–BusinessStructures


RegisteringYourBusinessName

Itisrecommended,butnotrequired,thatyou

protectyourbusinessnamebyregisteringit

withyourcountyclerk.Thistypicallyinvolvesa

feeof$25-$50andhelpsprovetheexistenceof

yourbusinessinadditiontopreventingother

businessinthecountyfromusingyourbusiness

name.Thismayalsoberequiredtoopena

businesscheckingaccount.

BusinessStructures–Legal

Organization

Whilemostbusinessesstartoutassole

proprietorshipsorgeneralpartnerships,they

mayeventuallyfindthatthelegalliabilityand

taxconsequencesaremorebeneficialif

operatingunderadifferentstructure.

NewYorkStaterecognizessevendifferent

businessstructures(excludingorganizations

suchaschurchesandnon-profits):

1. SoleProprietorship–Thesimplestformof

organizationwhereinanindividualsimply

declareshimselforherselfabusiness

operator.Nopaperworkisneededtofile

withgovernmentagenciestoestablishthe

existenceofthebusiness.Theproprietor

hasunlimitedliabilityfortheactionsand

debtsofthebusiness.

2. GeneralPartnership–Apartnership

agreementbetweensoleproprietors.No

paperworkisneedtoformthisbusinessand

partnershaveunlimitedliability.

3. LimitedPartnership–Alsoknownasa

silentpartnershipwhereinanindividual

joinsapartnershipbutstaysoutofthe

managementaspectsofthebusiness.For

remainingsilentintheoperation,that

partnergenerallyobtainstheprofitsofan

owneranddoesnothavethelegalliability

ofafullpartner.

4. LimitedLiabilityCompany(LLC)–A

partnershipofferingthelimitedliabilityofa

corporation.Paperworkmustbefiledwith

thestatetoestablishthisformof

ownershipandmanagementmeetingsmust

beheld.

5. BusinessCCorporation–Structureusedby

mostcompanies.Thebusinessisoperated

byamanagementteamthatreportstoa

boardofdirectors.Ownershipofthe

businessisintheformofstockand

shareholdersofthatstockhavedifferent

levelsofcontrolovermanagementandthe

boardofdirectorsbythequantityheldand

classoftheirstock(ex.ClassA,B,C,

preferred,etc.).Shareholdershavelimited

liabilityinthecompany.

6. BusinessSCorporation–Acorporationthat

isoperatedlikeapartnershipandoffers

limitedliabilitytoshareholders.Paperwork

mustbefiledwiththestatetoestablishthis

formofownershipandmanagement

meetingsmustbeheld.

7. Cooperative–Anorganizationownedby

memberswhocontributeequitytowardthe

businessandshareinprofitsgenerated,

formedbyfilingwiththestateandhas

similargovernanceasaCcorporation.

Votingiseitheronevotepermemberorin

proportiontopatronageofthe

cooperative.Membershavelimitedliability.


ForMoreInformationThisbrochurebytheNYDept.ofStatehasinformationonsixtypesofbusinessstructuresincludingwhat

formsneedtobefiled,thebusiness’slifespanunderthatstructure,personalliabilityandtaxinformation.

FormingaBusinessinNY:AnOverview

http://www.dos.ny.gov/corps/pdfs/formingbus.pdf

AccessthefollowingpublicationfromtheDept.ofAppliedEconomicsandManagementatCornellfor

helponnavigatingthelegalmazeofbusinessstructures.

DoingBusinessinNewYorkState:StructuresandStrategies

http://cooperatives.dyson.cornell.edu/pdf/DoingBusiness.pdf


Start-up money + Cash from operations + Borrowed money =

Cash paid on expenses + Debt payments + End of year money

Net Worth = everything the business OWNS minus everything it OWES

Assets You Manage – What you Owe = Your Ownership

Assets – Liability = Equity

Value of Production – Cost of Production = Profit

14–MakingMoney


HowWillYouKnowifYourOperationisMakingMoney?

CashFlow,NetWorthandProfitThesearethethreepillarsthatsustainabusiness,andallyouneedforabusinesstothrivelongterm.

1.CashFlowtracksthecashdollarsintoandoutofthefarmbusiness.Youshouldbeabletobalanceall

ofthemoneythatcameinandwentout:

Inhorticulturaloperations,cashflowexpenseswillbehighinthespringascropsareplantedandincome

willbehighinthefallwhencropsaresold.Therefore,cashflowrequiresplanningandsavingstobesure

incomecoversfuturecosts.Cashflowrecordsareawaytokeeptrackofyourmoney,ensurethatyou

cancovermonthlyexpenses,andarecrucialtolongtermprofitability

2.NetWorthtracksyourinvestmentsinthefarmintheformoftheBalanceSheet.

Someassetstendtogoupinvalueovertimesuchasland.Thisiscalledappreciation.

Someassetsgodowninvalueovertime,suchasequipment.Thisiscalleddepreciation.Depreciationis

ameasureofthewear,tear,andobsolescenceofaninvestment.

Theprimaryfunctionofnetworthcalculationsistomeasuretherisk-bearingabilityorfinancialsolvency

ofyourbusinessor,insimpleterms,howmuchyoureallyownversushowmuchthebankowns.

3.ProfitabilityismeasuredwiththeIncomeStatement.Itistheresultofyouroperation’swork,

decisions,andreturnoninvestment.

Profitabilityishardertotrackasitblendscashflowandinvestmentdecisions.Italsomakesadjustments

forfamilywithdrawals,“freeorfamily”labor,andreturnoninvestment.

SomeexamplesofGoodCashFlow,butLowProfitability:

§ Livingoffofinventoriesordepreciation,andnotreinvestingintheoperation

§ Outsideincomeorofffarmjobsthathelpreduceneedforfamilylivingwithdrawals

§ Borrowingmoney

§ Notpayingbills

SomeexamplesofBadCashFlow,butGoodProfitability:

§ Anexpandingbusinesswithincreasingassets,butfewcashsales


§ Highwithdrawalsforfamilyliving,forexample,collegeexpenses

§ Payingdowndebtrapidly

§ Buyingnextyear’sassetsfromthisyear’scash(prepayforfertilizer,etc.)

§ Increaseinaccountsreceivable(amountofmoneyyouareowedforassetsthatweresold)

Foryourtaxreturnyoumaywanttousecashaccounting,butforprofitabilityyouwanttouseaccrual

accounting.Accrualaccountinglooksatchangesininventoryandprice;changesinaccountspayableand

receivable,appreciationanddepreciation,unpaidlabor,opportunitycoststoworkelsewhere,interest

onequity,andyourlaborandmanagementinputs.

InterestonEquity

¨ Canyouborrowmoneywithoutpayinginterest?

¨ Doyouhavean“opportunity”toputyourmoneysomewhereelse?

¨ Doyouwanttoearninterest/dividendsonyourmoneyinthestockmarket?

¨ Shouldn’tyouearninterestonthemoneyinvestedinyourfarm?

¨ Plantopayyourself3%minimumonyourequityinvestedinthefarm!!

ValueofLaborandManagement

¨ Whatisthevalueofyoureffortsonthefarm?

¨ Whatisthe“opportunity”foryoutoworkelsewhere?

¨ Asimplechargeforyoureffortswillhelpyoufindavaluetoevaluateyourbusiness

¨ Whatcouldyouearnifyouworkedelsewhereinasimilarjob?

WhatDoesaManagerDo?

Managersmakethedecisionsaboutinvestments,andtasks.Theydefinethemissionandphilosophyfor

theoperation.Theydeveloptheplan,hireandmotivatethepeopletoimplementtheplan(ortellthe

kidswhattodo),investintheassetstoimplementtheplan,setpriorities,andevaluatetheresultsso

theycanadjusttheplanifneeded.

PartialBudgeting

Partialbudgetinghelpsmakedecisionsforsmallerinvestmentsthatdonotaffectwholefarmoperation.

Lookattheexpectedincreasestoincomeanddecreasestoexpensesforaprojectcomparedto

decreasesinincomeandincreasesinexpenses.Thiswillhelpyoudecidehowmuchyoucaninvest,and

theimpactsonotherpartsofthebusiness.

FeaturedResourceTheOrganicFarmer’sBusinessHandbook

Thehandbook,writtenbyRichardWiswallinhiseasy-to-readstyle,takesfarmersthroughthe

businessconceptsandtoolsneededtobecomefinanciallysustainable.The$32bookisavailable

athttp://richardwiswall.com/the-organic-farmer-s-business-handbook/.


15–RecordKeeping


RecordKeepingisGoodBusiness

Ataminimumyourfarmwillneedarecordkeepingsystemfortaxandlegalcomplianceanditishighly

recommendedthatyoualsokeepyieldandotherfarmproductionrecordsthatmightbeusefulto

makingdecisionsonthefarm.Forexamplemanygrowerskeepweatherlogssothattheycanevaluate

theirpracticesandyieldsandthenmakebettergrowingpracticeandcropvarietydecisionsforthe

comingyear.Youalsomightconsidercreatingcolumnsorbreakoutsforyourmostexpensiveor

profitableenterprisestokeeptrackofprofits,anddoinganhourlybreakdownperiodicallytoseehow

muchtimeyouoryouremployeesareusingonparticularenterprises.Manytoolsareavailableatthe

NortheastBeginningFarmerwebsite:

ImprovingProfitabilityTutorial

http://nebeginningfarmers.org/farmers/achieving-profitability/profitability-tutorial/

PaperRecords

Smallfarmsandmanybusinessesjuststartingoutusetheshoeboxmethodofaccounting.Keepallsales

receiptsinonefolder,expensereceiptsinanother,maintainacapitalassetdepreciationlog,andyou

mayhaveadditionalfoldersforfarmyieldorotherdataimportanttotheyear.Theadvantageofthis

systemisthatitissimpleandeasytodo.Thedisadvantageisthatthedataisnotwellorganizedsowhen

youneedfarminformationyouoftenhavetosortthroughpilesofpaperanddoallcomputationsby

hand.

CornellFarmAccountBook

Cornellandmanyaccountingserviceshavepre-formattedaccountbookswithcategoriescommonto

agricultureandadditionalareasforyieldandcapitalassetdata.Thesearetypicallyofnominalcost

($10-$20).Theadvantageofthefarmaccountbookisthatitiseasytounderstandandtheinformation

iswelllaidoutincaseyouneedtoaccessitlater.Thedisadvantageisthattheinformationmaynotbe

laidouthowyouasamanagerwouldlikeit,anditisstillahand-entryaccountingsystemsoentering

farminformationmaytakeseveralhoursperweek.

FeaturedResourceToordertheCornellDairyFarmAccountBook($20)ortheCornellClassicFarmAccountBook($15),

contact:

TheCornellStore

https://store.cornell.edu/c-1292-farm-books.aspx


ExcelSpreadsheets

IfyoucanuseabasicspreadsheetinExcelorasimilarprogram,thisisagoodcompromisebetween

papersystemsandmoresophisticatedrecordkeepingprograms.Manynewfarmersstartoutwitha

simplespreadsheetlikethisonefromCornell(.XLS),whichisintendedforhightunnelcropproducers

butcanbeadaptedforanyoperation.Ifyoudon’tneedtogenerateinvoicesandhavearelatively

simple,smalloperation,aspreadsheetlikethismayserveyourneedswellformanyyears.

QuickBooks

ThemostcommonsoftwareprogramforfinancialmanagementisQuickBooks;however,thereare

moreexpensiveindustry-specificprogramsspecificallydesignedfordairyfarmsorwineries,for

example.(Trysearchingonlinefor“wineryfinancialmanagementsoftware.”)Ifyouareintimidatedby

QuickBooks,trytheirSimpleStartprogramfromIntuit(searchforthisonline).It’sfreeandisagoodway

toeaseintousingQuickBooks.Ifyouarereadytoupgradeatanypoint,you’llbeabletotransferyour

recordsseamlesslyintothefullQuickBooksprogram.Checkoutyourlocalcreditunions,banks,and

CooperativeExtensiontofindoutiftheyofferanyQuickBookstrainings.

FarmRecordsService

Somefarmerschoosetomailallinvoicestoanaccountingservicewheretheaccountantwillenterthe

informationintoacomputerrecordssystem,provideyouwithdetailedmonthlybusinessstatements,

andperformalltaxfunctions.FarmCreditEastatwww.farmcrediteast.com/isonecompanythat

providestheseservices.

Theadvantageofthissystemisthatitprovidesapersonwhodoesnothavethetime,understandingof

accounting,orcomputerskillsthehighestlevelofrecordsinformation.Thedisadvantageisthatthis

systemhasthehighestcostandthemonthlybusinessstatementstakeafewweekstoprocessandget

backwhereasthepersonutilizinganon-farmcomputerrecordssystemwillhavethosestatementsin

realtime.


16–IncomeTaxes


FederalIncomeTax

ScheduleCorF

Whenyouselllivestock,produce,grains,orotherproducts,theentireamountyoureceiveandthecosts

associatedwithitspurchaseandproductionshouldbereportedonaScheduleFincometaxform.

Ifyourbusinessactivitieswerenon-agricultural,theymustbereportedonaScheduleC.Anexampleof

non-agriculturalbusinesswouldbeaproduceretailerwhopurchasedwholesaleandsoldretailanddid

notgrowanything.Ifyourfarmhasasub-enterpriselikeagiftshop,restaurant,orbed&breakfastthen

theincomeandcostsassociatedwiththatactivitywouldhavetobereportedonaScheduleC.

ItisgenerallyadvantageoustoreportfarmincomeandexpensesonaScheduleFbecausefarmsare

allowedtousecashaccountingandmostotherbusinessesarerequiredtouseaccrualaccounting.In

cashaccountingyoureporttheincomeandexpensesastheyareactuallyreceivedorpaidandinaccrual

accountingyoureporttheincomeandexpensesatthetimetheyoccur.

Example:youspend$5,000in2016tofillthefueltanksatyourfarmandattheendoftheyearthetanks

stillhave$3,000offuelinthem.Incashaccounting,youreporta$5,000expenseonyour2016income

taxreturnandinaccrualaccountingyoucanonlyreporta$2,000expense.Ifyoudidnothavethecash

topaythe$5,000bill,youwillnotbeabletoreportanyexpenseonyourtaxreturnusingthecash

methodbutyouwouldstillbeabletoreporta$2,000expenseonyourincometaxesusingtheaccrual

methodifyoudidnotpaythebill.

Depreciation

Depreciationisthedepletedvalueofanassetwithanexpectedusefullifeofmorethanoneyear.

Example:youpurchaseatractorfor$50,000.Youcannotreporta$50,000tractorexpenseonyourtax

return;youmustspreadthat$50,000costover3-4years.

Thenumberofyearsthatyoumusttaketodepreciateanassetandhowyoucanclaiminthoseyears

(e.g.straightline,accelerated,section179,etc.)dependsontheassetclassofthepropertyinquestion

andthecharacteristicsofthefarm.

Iftheassetisnotheldformorethanoneyear,itcannotbedepreciated.Buildingscanbedepreciated

butlandcannot.Theonlyinstancewhenlandcanbedepreciatedisifitisloggedorminedanditcanbe

proventhattheassetvaluehasbeendepleted.IRSPublication225FarmersTaxGuide(above)goesinto

detailonhowtodepreciatecommonfarmproperty.


CapitalGains

Whenabusinessassetissold,itshouldgenerallynotbelistedasfarmincomeandshouldbelistedasa

capitalgain.Mostcapitalgainstaxratesarelowerthanincometaxrates.

Example:youpurchaseatractorfor$50,000,depreciateittoavalueof$0over4years,andsellitfor

$20,000inyear5.The$20,000receivedisconsideredacapitalgain.

NewYorkStateIncomeTax

FarmersfilingscheduleForCfederalformsshouldtransfertheinformationtoNYSFormIT201iffiling

anindividualreturn.Informationfromfederalcorporatetaxreturnsshouldbetransferredtothe

appropriateNYform.OneNYIncomeTaxprovisionavailabletoqualifyingNYfarmbusinessesisthe

Farmers’SchoolTaxCreditthatisexplainedbelow.

Farmers’SchoolTaxCredit

TheFarmers’SchoolTaxCreditallowsaneligiblefarmertoreceiveataxcreditontheirStateIncomeTax

equalto100%oftheschooltaxespaidonthefirst350acresofpropertyand50%oftheschooltaxes

paidontheamountofacresbeyond350.

Example:Aqualified350-acrefarmowes$2,000inStateincometaxesandpaid$3,500inschooltaxes

forthefarm.Theywouldbeabletotakeacreditof$3,500,whichisgreaterthanthe$2,000owed,so

theywouldnotoweanyStateincometaxesthisyear.

Eligibility

¨ Toqualify,two-thirdsofyoureligiblegrossincomemustbeprofitfromfarmingforthepast

threeyears

¨ Youcantakea100%schooltaxcreditonthefirst350acresofagriculturallandsownedanda

creditequalto50%ofschooltaxespaidontheremainingland

¨ Woodlandsusedforpasture,erosioncontrol,orwindbreaksmayqualifyforthecredit

¨ Youcanapplyfor100%ofthecreditifyourtaxableincomeisunder$200,000andyoucanapply

forapercentageofthecreditifyourtaxableincomeisbetween$200,000-$300,000

¨ FarmsheldasacorporationorLLCcanapplyforthecredit

¨ Unusedcreditscannotberedeemedforcashandcannotbeappliedtonextyear’staxes

FormtousetoClaimthisCredit:IT217-Iforindividualfilers;CT47forcorporations

WebResources

Publication Contact

IRSPublication225FarmersTaxGuide www.irs.gov/pub/irs-pdf/p225.pdf

NewYorkFarmBureauFarmers’School

TaxCreditFactSheet

http://209.23.127.116/www-nyfb-

org/img/document_files/Farmers’schooltax.pdf


NewYorkStateDepartmentofTaxation

andFinancePublication51:Questions

andAnswersonNewYorkState’s

Farmers’SchoolTaxCredit

http://www.tax.ny.gov/pdf/publications/multi/pub51.pdf

Orcall1-800-462-8100withquestionsandfor

publicationsandforms.


Assistance is available at 800-972-1233 Website: http://www.tax.ny.gov/

17–SalesTaxExemptions/Refunds


Farmoperationsareexemptfrompayingsalestaxonitemsusedinthefarmingoperation.Noneofthe

exemptionsareautomatic.Youmusteitherpresentanexemptioncertificatetothevendorwhen

purchasingproductsoryoucanclaimarefundifyouhaveevidencetoshowyoupaidthesales

tax.FormsareavailableontheStateDept.ofTaxationandFinancewebsitelistedbelow.Someofthe

morecommonformsapplicabletofarmsinclude:

ST-125Farmer’sandCommercialHorseBoardingOperator’sExemptionCertificate

www.tax.ny.gov/pdf/current_forms/st/st125.pdf

Thisformexemptsyoufrompayingsalestaxonthepurchaseoftangiblepersonalpropertyused

predominantly(morethan50%)infarmproductionorhorseboarding;includes:

§ Buildingmaterials

§ Productionequipmentandsupplies

§ Animals

§ Feed

§ Hardware

§ Motorvehicles

§ Fuel(notmotorfuel)

§ Gas/propane

§ Electricity

§ Refrigeration

§ Alsoappliestolaborandserviceshiredforrepairing,maintainingorservicingpropertyusedin

farming

TherearemanysubtleexemptionssoitpaystocheckwiththeStateifyouareuncertainaboutwhether

anitemorserviceyouarepurchasingisexemptfromsalestax(andifthesellerisunsure)

Copiesofthisformareavailableonthewebsiteaboveorbycallingyourcountyextensionoffice.Make

sureyouhavecopiesoftheform(ST-125)withyouwhenmakingpurchases.Ifyoumakenumerous

purchaseswithaparticularsupplier,checkthebox“blanketcertificate”andthevendorcankeepthe

formonfileforfuturepurchases.Page2oftheformgivesthetaxdepartmentdefinitionsofFarm

Production,Farming,Predominantly,andCommercialHorseBoardingOperation.

WebResources:SalesTax


NeedTaxHelp?BusinessTaxInformation:518-457-5735

Forms:518-457-5431

Website:http://www.tax.ny.gov/

TelephoneassistancefromNYSDept.TaxationandFinanceisavailableMonday-Friday,

8:30AM-4:25PM

Form Information Contact

PR-955ClaimforRefundby

FarmersandCommercialHorse

BoardingOperators–SalesTaxon

Utilities,FuelOilandMotorFuel

(notformotorfueltax)

Thisformmaybeusedtoclaima

refundifyouhavepaidsalestaxonany

oftheaboveitems.Youdonothaveto

filloutthisformifyouhavean

exemptioncertificateonfilewiththe

vendor.Youmusthavereceiptsto

justifythisclaim.Fileannuallyorsemi-

annually.

www.tax.ny.gov/pdf

/memos/sales/m00

_8s.pdf

FT-1004CertificateforPurchases

ofDieselMotorFuelorResidual

PetroleumProductforFarmers

andCommercialHorseBoarding

Operations

Thisformexemptsyoufrompaying

salestaxondieselmotorfuelusedfor

farmingpurposes.Dealerscankeepthis

formonfile(checkblanketcertificate)

soyoudonothavetofilloutanew

formforeachnewpurchase.

http://www.tax.ny.g

ov/pdf/current_for

ms/motor/ft1004.p

df

FT-500ApplicationforRefundof

SalesTaxPaidonAutomotive

Fuels

Needtosubmitinvoiceswiththe

refundapplication.

http://www.tax.ny.g

ov/pdf/current_for

ms/st/ft500.pdf

DTF-803ClaimforSalesandUse

TaxExemption-Title/Registration

MotorVehicle,Trailer,ATV,Boat,

Snowmobile

Thisformisnotusedtomake

purchases.Restrictedtotransactions

processedbyDMV.Motorvehicles

mustbepredominantlyusedin

farming.

http://www.dmv.ny.

gov/forms/dtf803.p

df

ST-126ExemptionCertificatefor

PurchaseofRacehorses

Needacertificateforeachhorse.

www.tax.ny.gov/pdf

/current_forms/st/s

t126.pdf


18–LaborLaws


Workers’CompensationInsurance

Employersarerequiredtohaveworkers’compensationinsuranceontheirworkersifcashwages

exceeded$1,200intheprecedingyear.CoveragemustbeobtainedeffectiveApril1stoftheyear

immediatelyfollowingtheyearwherethefarmhad$1,200ofpayroll.Ifyouhostunpaidinternsand

apprenticesonyourfarm,theymustalsobecoveredbyworkers’comp(thetrainingand/orroomand

boardyouprovidethemisvaluedinlieuofwages).Theonlyexceptiontothisisifyourfarmisa501(c)3

non-profitorganization.Tolearnmore,download:

TheEmployers’Handbook

http://www.goer.ny.gov/Employee_Resources/employee_handbook/2011Employee_Handbook.pdf

InsurancecanbepurchasedfromtheNewYorkStateInsuranceFund(http://ww3.nysif.com/),private

insurers,oranemployercanform/joinaself-insurancegroupiftheymeetvariousrequirementsand

postbond.

DisabilityBenefits

Statelawrequiresthatemployeesbecoveredbyadisabilitybenefitiftheyaredisabledoffthe

job.Mostworkerscompensationinsurancewillalsoincludethis.Familymembers(spouseorchild)and

farmlaborersareexemptfromthisrequirement.Farmcorporateofficersandofficeworkersneed

disabilitybenefitscoverage.IfthefarmisheldasacorporationorLLCthenthefamilymember

exemptiondoesnotapplybecausenooneisrelatedtoabusinessentity.

MinimumWage

Asoftherevisiondatenotedonthisfactsheet,theFederalMinimumWageis$7.25/hr.TheNewYork

StateMinimumWageis$9.00/hrwithyearlyscheduledincreasesuntiltheyreach$15.00/hr.Thiswage

minimumappliestoregularwagejobsandpiece-ratejobsonfarmswithannualpayrollover$3,000.It

excludesimmediatefamilyandminorsunder17yearsofageemployedonthesamefarmastheir

parentsorguardianswhoarepaidonapiece-ratebasisatthesamerateasemployeesover17.

Thewageorderpermitsdeductionsformealsandlodgingsuppliedbyanemployer,exceptforlodging

forseasonalmigrantworkers.Paymentsinkindmaybepermittedatnotmorethanthefarmmarket

value.

Employersmustpostasummaryofthewageorderinaconspicuousplaceintheirestablishment,along

withacopyofthegeneralworkagreement.

Notethatfarmershavealotofliabilityinthisarea:ifanunderpaidapprenticecomplainstotheLabor

Department,thefarmermayhavetopaythebackpayplusinterestandfinestothestate.


YouthRateCertificateforFarmWorkInagricultureyoucanlegallypaychildrenundertheageof16(withapermitandothercriteriasatisfied)

aminimumof$3.20/hrfortheirfirstseasonofharvest;severalotherminimumsapplydependingonthe

work.YoumustfileaYouthRateCertificatetohireyouthforlessthanminimumwage:

http://www.labor.state.ny.us/workerprotection/laborstandards/PDFs/LS415_1.PDF

Ifyouemployyourownminoragechildrenonthefarm,theyareexemptfromallminimumwage

regulation,meaningthattheycanbepaidanywage.Thisonlyappliestoyourownchildren;

nieces/nephewsorotherminoragefamilymembersaresubjecttostatewagelaws.

YouthLabor(excludingyourownchildren)

Youmaynothireanyone11yearsoryoungerinNewYorkState.12-and13-year-oldsmayworkin

harvestoperationsiftheyhavePermitAT-25andareaccompaniedbyaparentduringcertaintimesof

thedayandyear.14-and15-year-oldsmayworkonfarmswithPermitAT-24duringnon-schoolhours.

Permitsandworkingpapersmaybeobtainedfromschooloffices.Farmworkersunder16are

prohibitedfromperformingfarmtasksinvolvingpowermachinery.16-and17-year-oldsmayworkon

farmswithoutpermitsorworkingpapers.

UnderNYSChildLaborlaw,14&15year-oldsareallowedtowork18hrs/weekwhenschoolisinsession

and40hrs/weekwhenschoolisnotinsession.16&17year-oldsareallowedtowork28hrs/weekwhen

schoolisinsessionand48hrs/weekwhenschoolisnotinsession.ContactyourlocalNYSDepartment

ofLaborOfficeformoredetails:www.labor.state.ny.us/.

MigrantWorkers(WorkerswhodonothaveapermanentresidenceinNew

YorkState)Afarmerorprocessorwhousestheservicesofafarmlaborcontractororcrewleadermustverifythat

thatpersonhasaFarmLaborContractorCertificateofRegistrationissuedbytheNewYorkState

DepartmentofLabor.

Information Contact

Growersandprocessorswhobringinfiveormoreworkers

fromoutofstatemustobtainaMigrantLaborRegistration

Certificateandreportwages,housing,andworkingcondition

tothestate.

www.labor.state.ny.us/formsdocs

/wp/ls113.pdf

Ifyouplantohousefiveormoreworkersyoumustobtaina

farmlaborcamppermitfromtheStateDepartmentofLabor.

www.labor.state.ny.us/formsdocs

/wp/ls113.1.pdf

Workersmustbegivenwrittennoticeofwages,natureof SeveralSpanish/Englishwork

FeaturedResourceFormoreinformationupcomingMinimumWageincreasesinNewYorkState,accessthefollowing

website:

NewYorkStateDepartmentofLabor

http://www.labor.ny.gov/workerprotection/laborstandards/workprot/minwage.shtm


work,periodofemployment,transportation,housing,

benefits,andmore.

formsareavailableat

http://www.labor.ny.gov/formsdo

cs/wp/ellsformsandpublications.s

htm#Farm_Labor

ForMoreInformationContact:NYSDept.ofLabor

518-457-9000,www.labor.state.ny.us

ExtensionAgentThomasMaloney

607-255-1628,[email protected]

YoucanalsopurchasetheNYFarmBureau’sGuidetoLaborandEmploymentLawsfor$75,or$40

formembers,athttp://www.nyfb.org/img/uploads/file/Legal_Guides_Flyer_3_.pdf.


19–PayrollandWorkerDocumentation


EmployeeorIndependentContractor

HiringlaborintheStateofNewYorkimposeshighliabilitiesandpaperworkburdensonthe

employer.Becauseofthis,employersmaybetemptedtoclassifytheirworkersasindependent

contractors,butapersonisonlyanindependentcontractorwhenheorsheislegitimatelyanindividual

inbusinessforhimselfandforhiretothegeneralpublic.Ifthereisanyambiguityonthestatusofthe

individual,courtsgenerallyinterprettheindividualasbeingaworker.Ifyouwouldlikeadecisiononif

theindividualisaworkeroranindependentcontractor,filethefollowingformwiththeIRS:

IRSFormSS-8

DeterminationofWorkerStatusforPurposesofFederalEmploymentTaxesandIncomeTax

Withholding

www.irs.gov/pub/irs-pdf/fss8.pdf

HiringForms:I-9(http://www.uscis.gov/i-9)

EmployersmustkeepanI-9formfromtheUSCitizenshipandImmigrationServiceonfileforall

employees.TheI-9requirescopiesofdocumentation(adriverslicenseandsocialsecuritycardfor

most),however,theemployerisnotrequiredtoverifythatthesedocumentsarevalid.

PayrollServiceGiventhecomplexitiesandliabilitiesofproperlyadministeringpayroll,itisrecommendedthatsmall

employershireapayrollservicefromalocalaccountingfirm.Thoughexpensive,thisfreestheemployer

fromtheliabilitiesofmissingaformdeadline,improperlyhandlingapayrollwithholdingaccount,and

avoidstheneedtostaycurrentwiththevariouslaborformsandregulationsatboththestateand

federallevel.

ReferencePublications

Publication Description Contact

IRSPublication51,Agricultural

EmployersTaxGuide

Referencepublicationexplaining

federalregulationsandcontainsa

calendarofwhenformsneedtobe

filedthroughouttheyear.

www.irs.gov/pub/irs-

pdf/p51.pdf

NYSPublication50,EmployersGuide

toUnemploymentInsurance,Wage

Reporting,andWithholdingTax

StateReferencePublication http://www.tax.ny.gov/

pdf/publications/withh

olding/nys50.pdf)

AgriculturalEmployer’sChecklist

2014

PublicationbyAnitaDemingwhich

goesthroughtheemployeehiring

processstepbystep.

http://blogs.cornell.edu

/smallfarms/files/2014/

08/2014-Employer-


Checklist-2dazazm.pdf)

WhichFormstoFileWhichspecificformsyourfarmisrequiredtofiledependsuponthefarmsizeandthespecificsofyour

operation.Itisrecommendedthatyouseektheadviceofapayrollspecialistandreadthetworeference

publicationslistedabovetodeterminewhichformsarerequiredforyouroperation.

Ifyoudecidetodopayrollonyourown,alistofformsyoushouldbecomefamiliarwithfollows.Thisis

bynomeansacomprehensivelistoftheformsyouroperationneedstobecompliant.

PayrollFormsFormSS-4Application

forEmployer

IdentificationNumber

(EIN)

YourbusinessmustobtainanEINifyouhave

employeesorwillfileforothertaxessuchas

excisetaxes


pdf/fss4.pdf

FormNYS-100New

YorkStateEmployer

Registrationfor

Unemployment

Insurance,Withholding,

andWageReporting

Tobefiledwhenyoubecomeanemployer.You

willbeassignedanEmployerRegistration

Number,whichisseparatefromyourfederal

EIN

http://www.labor.ny.gov/f

ormsdocs/ui/nys100.pdf

W-2

Formstatingwagesandwithholdingsmadefor

anemployeethroughouttheyear.Acopyis

senttotheemployee,theSocialSecurity

Administration,theIRS,theNYSDepartmentof

Taxation,andtocounty/localgovernmentsthat

haveanincometaxsuchasNewYorkCity


pdf/fw2.pdf

W-3 SimilartotheW-2,filedwiththeSocialSecurity

Administration


pdf/fw3.pdf

W-4 Formfilledoutwhenanemployeestartssothat

theiremployerknowstowithholdthecorrect

amountoftaxes


pdf/fw4.pdf

FormNYS-45Quarterly

CombinedWithholding,

WageReporting,and

Unemployment

InsuranceReturn

Stateformtobefiledquarterly http://www.tax.ny.gov/pdf

/current_forms/wt/nys45_

fill_in.pdf

Form940Employer’s

AnnualFederal

Unemployment(FUTA)

TaxReturn

Requiredifyouhadcashwagesgreaterthan

$20,000oremployed10ormoreworkers

throughoutthedayfor20ormoreweeksinthe

year


pdf/f940.pdf

Form941Employers Requiredtoreportwagespaid,tipsreceived, www.irs.gov/pub/irs-


QuarterlyFederalTax

Return

federaltaxeswithheld,SocialSecurityand

Medicarewithholding,andadvanceEIC

paymentsfornon-farmworkers

pdf/f941.pdf

Form943Employers

AnnualFederalTax

ReturnforAgricultural

Employees

Form941forfarms http://www.irs.gov/pub/ir

s-pdf/f943x.pdf

Form1099 Mustbefurnishedtopeoplewhoreceived$600

ormoreinnon-employeecompensation

throughouttheyear

Instructions


pdf/i1099msc.pdf

Form945Annual

ReturnofWithheld

FederalIncomeTax

Usedtoreportincometaxwithheldfornon-

payrollwages

http://www.irs.gov/pub/ir

s-pdf/f945x.pdf

Form4029Application

forExemptionFrom

SocialSecurityand

MedicareTaxesand

WaiverofBenefit

Certainmembersofreligiousorganizations

(generallyAmishorMennoniteinagriculture)

mayfilethisformtoexemptthemselves(and

theiremployer)fromSocialSecurityand

Medicaretaxes


pdf/f4029.pdf


20–AgriculturalDistrictLawProvisions


AgriculturalDistrictsArticle25-AAofAgricultureandMarketsLawauthorizesthecreationoflocalagriculturaldistricts

pursuanttolandownerinitiative,preliminarycountyreview,statecertification,andcounty

adoption.Mostcountieshaveplacedagriculturallandinstatecertifiedagriculturaldistricts.Whilethey

arecounty-createdandstate-certified,townshavenoauthorityoveragriculturaldistricts.Agricultural

districtsarenottobeconfusedwithagriculturalzoningthatmayexistinsometowns.

Thepurposeofagriculturaldistrictsistoencouragethecontinueduseoffarmlandforagricultural

production.Theprogramisbasedonacombinationoflandownerincentivesandprotections,allof

whicharedesignedtoforestalltheconversionoffarmlandtonon-agriculturaluses.Includedinthese

benefitsarepreferentialrealpropertytaxtreatment(agriculturalassessmentandspecialbenefit

assessment),protectionagainstoverlyrestrictivelocallaws,government-fundedacquisitionor

constructionprojects,andprivatenuisancesuitsinvolvingagriculturalpractices.

Term Description

AgriculturalAssessment Providestheopportunityforfarmlandownerstoreceiverealproperty

assessmentsbasedonthevalueoftheirlandforagriculturalproduction

ratherthanitsdevelopmentvalue.(SeetheAgriculturalAssessment

FactSheet#21forinformation).

NoticeofIntent Mandatesstateagencies,localgovernments,andpublicbenefit

corporationstoavoidorminimizeadverseimpactstofarmoperations

inpursuingprojectswithinanagriculturaldistrictwhichinvolvethe

acquisitionoffarmlandortheadvanceofpublicfundsforcertain

constructionactivities.Divisionstaffconductsdetailedreviewsof

projectsandrecommendsactionstomitigate.Projectscannotproceed

untilthenoticeprocessiscompleted.

RighttoFarm AuthorizestheCommissionertoissueopinions,uponrequest,

concerningthesoundnessofspecificagriculturalpractices.Ifthe

Commissionerdeterminesthatapracticeissound,itshallnot

constituteaprivatenuisance.Thisprotectsfarmersincaseswhere

neighborsorotherscomplainaboutfarmingactivities.

AgriculturalEnterprise

Determinations

TheCommissionerisauthorizedtoissueanopiniononwhether

particularlandusesareagriculturalinnature.Thisprovisionhelps

determineiftheagriculturaldistrictlawisapplicabletoaparticular

farmingenterprisethatmaybequestionedbylocalauthoritiesor

others.

RealEstateDisclosure Requiresthatadisclosurestatementbeprovidedatthetimeofreal

estateclosingthatstatesifthepropertyisinanagricultural

district.Thisnotifiesthenewlandownerthatagriculturalactivitiesare

tobeexpected.

RestrictiveLocalLaws Protectsfarmersinagdistrictsagainstlocallawsthatunreasonably


restrictfarmoperations.Divisionstaffreviewsbothexistingand

proposedlawstodetermineiftheyarecompatiblewithfarm

operations.Ifalocallawisdeterminedtobeunreasonable,staffworks

withlocalgovernmenttodevelopmutuallyacceptedmodifications.Ifa

localgovernmentisunwillingtomodifyarestrictivelaw,the

DepartmentisauthorizedtotakeactiontocompelcompliancewithAg

DistrictLaw.Requestsforreviewmustbeprovidedinwriting.

AcopyofthefulltextoftheNYSAgriculturalDistrictLawcanbefoundat

http://www.agriculture.ny.gov/ap/agservices/25-AA.pdforcall518-457-7076


21–AgValueAssessmentforFarmland


AgriculturalAssessment

Agriculturalassessmentallowseligiblefarmland

locatedinoroutsideagriculturaldistrictstobe

taxedatitsagriculturalvalueratherthanmarket

value.

Whyapplyforagriculturalassessments?

Itcanmakeadifferenceintheamountyoupay

inpropertytaxes.Youwillbepayingtaxesbased

ontheagriculturalvalueoflanddetermined

eachyearbythestate,notbylocalmarket

conditions.Inmostcasesthestate’svaluesperacrearelowerthanyourproperty'sassessedvalue

unlessyouhappentobeinacountywhereassessedvaluesarelow.

Howdoestheexemptionwork?

Theexemptionyoureceiveisthedifferencebetweenthelocalassessedvalueandthestate’s

agriculturalvalues.Thestatepublishesagriculturalvaluesannuallyfor10soilgroupsandfor

woodlands.

Toqualifyforagriculturalassessment:

¨ Musthave7acresormoreoflandinproductionforsaleofcrops,livestockorlivestockproducts

¨ Thesamefarmermustfarmthelandforatleast2years

¨ Farmingenterprisesmustgenerate$10,000insales(averageforthepreceding2years)

¨ Note:acombinationofenterprisesgenerating$10,000insaleswillqualify.Upto$2,000in

woodproductsales(timber,logs,posts,firewood)canqualifytowardsthe$10,000minimum.

¨ Start-upfarmsareeligibleiftheygenerate$10,000insalesinthefirstyearofoperation

¨ Farmslessthan7acresqualifyiftheygenerate$50,000insales

¨ Ifatleast7acresoflandownedbyarurallandownerisrentedtoafarmer(whomeetsthe

incomerequirements),itiseligibleforagriculturalassessmentprovidedthelandownerhasa5

yearwrittenleasewiththefarmer

ProofofAverageGrossSalesValue:

Assessorsmayrequestproof(taxreturnsorlegitimatebookkeepingrecords)thatyoumetthe$10,000

grosssalesrequirement.


Typesoffarmingenterprisesthatcanqualifyforagriculturalassessment:

Fieldcrops,fruits,vegetables,horticulturalspecialties(nursery,greenhouse),livestockandlivestock

products(includesdairy,meat,poultryspecies,horses,andexoticslikeratites,farmeddeerandbuffalo,

furbearinganimals),maple,honey,Christmastrees,aquaculture,woodybiomass(shorttermcrops

harvestedforenergy),commercialhorseboardingoperationswith10ormorehorsesboardedatatime

andthatmeettheotherrequirements.

Agriculturalassessmentisavailableforthefollowinglanduses:

§ Landusedinagriculturalproductionthatmeetscriteria–7acres,$10,000sales

§ Upto50acresoffarmwoodlandusedforthesaleofwoodlandproducts(logs,lumber,posts,

firewood);mustbepartofthefarmedparcel(s)toqualify,itcannotbeaseparatetaxparcel

§ Supportlandincludingfarmponds,drainageditches,landusedforerosioncontrol,hedgerows,

accessroads,landunderfarmbuildingsandtenanthouses,landusedforfarmwaste

management(manurepits,etc.)

§ Landsetasidethroughparticipationinfederalconservationprograms

§ Landunderfarmbuildings

§ Landassociatedwithoil,gas,andwinddevelopmentorextractionactivities

ApplicationProcess

¨ GotothecountySoilandWaterDistrictConservationoffice(SWCD)-completeasoilsgroup

worksheet.Alllandqualifyingforagriculturalassessmentisgroupedbysoiltype.SWCDwilldo

thisforyou–theremaybeafeeandyouwillneedyourtaxparcelnumbers.

¨ Takethecompletedsoilsworksheettoyourtown/countyassessorandobtaincopiesofthe

AgriculturalAssessmentApplication(formRP-305).Completeoneformforeachparcel.The

assessorwillkeepthesoilsworksheetonfile.Makecopiesofthesoilsworksheetand

applicationforyourrecords.

¨ Agriculturalassessmentapplicationsmustbefiledeveryyearpriortothetaxablestatusdate

(March1).Agriculturalassessmentisnotautomatic–youmustapplyeveryyearbythetaxable

statusdate.Ifyoufailtoapply,youwillnotreceivetheexemption.Ifnochangeshavebeen

madeinlandusedforfarming,thenaftertheinitialapplication,youwillfileashortformRP-

305-r.

¨ Ifyoubuyorsellland,makesureyoucompleteanewsoilsworksheetandfileanewAgricultural

Assessmentformtoreflectthechanges.

RentedLand

Landrentedtoafarmerforagriculturalproductioniseligibleforagriculturalassessmentifthereareat

least7acresusedinthetwoprecedingyearsandthelandissubjecttoarentalagreement(written

lease)foratermofatleast5years.AcopyoftheleaseorformRF-305-cmustbefiledwiththe

assessor.Onlythelandactuallyusedbythefarmerwillbeeligibleforagriculturalassessment.

Woodlandisnoteligibleunlessitinvolvessugarbushrental.Landownersmustcompletetheapplication


processdescribedabovetoqualify–completethesoilsworksheet,gotheassessmentofficeand

completeformRP-305,andfileeveryyearbeforethetaxablestatusdatetoreceivetheexemption.

Rentinglandtoaqualifyingfarmerisawayforrurallandowners,whodonotfarm,orsmallfarmerswho

donotusealltheirland,toreceiveanagriculturalexemptiononlandthatisrented.

Penaltiesassociatedwithconversionofagriculturallandthathasreceivedanagricultural

exemption:

§ Aconversiontakesplacewhenthelandisactuallyconvertedfrompotentialagriculturalusetoa

builtstructure.Landthatissold,isnolongeractivelyfarmedandliesidleisnotconverteduntil

somethingisbuiltontheproperty.

§ Apenaltyisassessedbasedontheamountoflandthatisconvertedandfortheamountofthe

exemptionthatwasreceivedontheconvertedportionduringthepast5years.

§ Thepenaltyisassessedtotheownermakingtheconversion,whomaynotbethefarmerwho

soldthelandbutthenewownerwhochangedthelanduse.Theissueofwhopaysthepenaltyis

sometimesnegotiatedwhenthepropertyisbeingsold.

§ Thistopiciscomplicatedsoitpaystospeakwithyourassessorifyouhaveconcernsaboutthe

penaltiesassociatedwithaconversion.Mostoftenthepenaltyisnotadeterrenttowhatever

changeisbeingproposed.

TaxableStatusDate:March1–checkwithyourCounty/TownAssessortobesure.

ForMoreInformation1. StartwithyourCountyAssessmentDepartment

2. VisitwithyourTownAssessor

3. NYSDepartmentofTaxationandFinancewebsite:

http://www.tax.ny.gov/pit/property/default.htm


22–PropertyTaxExclusionsforFarmBuildings


NYSRealPropertyTaxLawSection483–ProductionandStorageFacilities

Structuresandbuildingsessentialtotheoperationofagriculturalandhorticulturalenterprisesandused

forsuchpurposeareexemptfrompropertytaxesforaperiodof10years(constructedorreconstructed

between1969-2019).

Tobeeligible:

Atleast5acresoflandmustbeusedinabonafideagriculturalandhorticulturaloperationwithsalesto

qualifyforthestructureandbuildingexemption.Ifthereisnoactiveuseoffarmlandsassociatedwith

thestructure,thennoexemptioncanbeclaimedevenifotherqualificationsaremet.

Thefollowingtypesofstructuresandbuildingsorportionsthereofareeligibletoreceivethisexemption:

¨ Thestructuremustbeusedforactivefarmingpurposes

¨ Usedintheproductionandstorageofagriculturalandhorticulturalcommoditiesthatareraised

forsale;facilitiesusedforraisingandbreedinghorsesqualifyunderthisdefinition

¨ Usedmainlyforag/hortuseandonlyincidentallyforprocessing

¨ Usedtohouseessentialemployeesassociatedwiththeenterprise;familymemberscould

qualifyasessentialemployeesiftheydonothaveownershipinthebusiness

Thefollowingtypesofstructuresandbuildingsarenoteligibleforthisexemption:

¨ Processingandretailingfacilities

¨ Theresidenceofthefarmerandhis/herimmediatefamily(spouse&dependents)

¨ Structuresusedforbreedingpets,furbearinganimals,oranimalsforexperimentaluse

¨ Usedinconnectionwithraisingtimber(sawmill)

Note:ifyouhaveaproductionandstoragefacilitywithprocessingandretailingunderthesameroof,

theexemptionappliesonlytotheproductionandstorageportionsofthefacilityandnottheentire

facility–pro-ratedpersquarefoot.

Toreceivetheexemption:

Ownersofthefacilitymustapplywiththecounty/townassessorbeforetheannualtaxablestatusdate

andwithinoneyearfromthedateofcompletionoftheconstructionorreconstruction.Theexemption

continuesfor10yearsaslongasthefacilitiesareusedforag/horticultureproductionandstorage

purposes.Iftheirusechanges,thestructuresandbuildingsaresubjecttorollbacktaxes.


NYSRealPropertyTaxLawSection483-a–AgriculturalStructureswithLimited

Uses

Farmsilos,farmfeedgrainstoragebinsandcommodityshedsusedforfeedstorage,bulkmilktanksand

coolers,andmanurestorageandhandlingfacilitiesareexemptfromtaxationandspecial

levies/assessments.Thesestructuresmustbepermanentlyaffixedtoagriculturallandtoqualifyforthis

exemption.Becausethesestructuresqualifyforpermanentexemption,theydonotqualifyforthe10-

yearexemption.


Ownersmustapplybeforetheannualtaxablestatusdatewiththecounty/townassessor.Oncethe

exemptionisgranted,itrequiresnorenewal.

NYSRealPropertyTaxLawSection483-b–HistoricBarns

Municipalitiesmustpassaresolutionpermittingthisexemption.Checkwithyourlocalassessortoseeif

alocallaw/resolutionhasbeenfiledtoallowthisexemption.Ifnot,contactyourcountyFarmBureauor

AgricultureandFarmlandProtectionBoard(AFPB)toinitiatesucharesolutionforyourcounty/town.No

exemptionisgrantedforconstructionorreconstructionpriortothepassingofalocallaw/resolution.

Historicbarnsarestructuresatleastpartiallyconstructedbefore1936thatwereoriginallydesignedand

usedforstoringfarmequipmentoragriculturalproducts,orforhousinglivestock.Historicbarnsused

forresidentialpurposesarenoteligibleforthisexemption.Ifthehistoricappearanceofthebarnis

altered,itisnoteligiblefortheexemption.

Exemptionfrom100%oftheincreaseintheassessedvalueattributabletoreconstructionor

rehabilitationofahistoricbarnisgrantedforoneyear.Thentheexemptiondecreaseseachyearby10%

fromtheincreaseinassessedvalue.Ifthereisachangeintheassessmentrole,therewillbeanadjusted

exemptionbase.Ifthebarniseligiblefor483exemption(10year),itisnoteligibleforthisexemption.


Applicationismadewiththecounty/townassessorbeforetheannualtaxablestatusdate.

NYSRealPropertyTaxLawSection483-c–TemporaryGreenhouses

Temporarygreenhousesconsistofaframecoveredwithremovablepoly-filmandmaybeheated,

includewaterandelectricalutilities,andsupportingpoles.Temporarygreenhousesareexemptfrom

taxationandspeciallevies/assessments.

Toreceivetheexemption:Applicationismadewiththecounty/townassessororbeforetheannualtaxablestatusdate.Oncethe

exemptionisgrantednorenewalisnecessary.


NYSRealPropertyTaxLawSection483-d–FarmorFoodProcessingLabor

CampsorCommissaries

Farmorfoodprocessinglaborcampsorcommissariesincompliancewithstandardssetbythe

DepartmentsofHealthandLaborandtheStatebuildingcommissionshallbeexemptfromtaxationand

speciallevies/assessments.


Applicationismadewiththecounty/townassessororbeforetheannualtaxablestatusdate.Oncethe

exemptionisgrantednorenewalisnecessary.

Howdofarmbuildingexemptionswork?

Thecostofabuildingdoesnotdeterminetheamountoftheexemption;theexemptionisfromthe

increaseinassessedpropertyvaluethatresultsfromaddingthestructure.

TaxableStatusDate:March1–checkwithyourCounty/TownAssessortobesure.

ForMoreInformation

1. StartwithyourCounty/TownAssessmentDepartment

2. NYSDepartmentofTaxationandFinancewebsite:

http://www.tax.ny.gov/pit/property/default.htm


23–AssessingYourMarketPotentialGuidetoFarminginNewYorkState

MarketAnalysis:WhatismyTargetMarket?

Atargetmarketisawell-definedgroupofcustomers.Marketscanbefoundwithinanybroadcategory:

consumers,businesses,industries,institutions,etc.Consumergroups,forinstance,canbecharacterized

bydemographics,geography,lifestyle,values,leisure,oroccupation.Businesscustomerscanbedefined

intermsofmarkets,products,managementstyles,distributionschannelsorsize.Value-addedproduct

marketingincludestheendconsumersofyourproduct/servicesandthebusinessesthatmaydistribute

andsellyourproducttotheenduser.

Beginmarketplanningbyclearlyidentifyingthemarketyouwanttotarget.Notethatthismayormay

notbethemarketyouareworkingwithnow.Theideahereistothinkcreativelyaboutyourproductto

determinewhatsetofcustomersaregoingtogiveyourbusinessthecashflow,profitandgrowthit

needs.

Startwithabigpieceofpaper.Acrossthetopwriteabriefdescriptionofyourproductascurrently

conceived.

Nextwriteyouranswerstothefollowingfourkeyquestions:

1. Whowillbuymyproduct?

2. Whywilltheybuymyproduct?

3. Whatwilltheypayformyproduct?

4. Wheredotheyexpecttofindthisproduct?

Whenyouarefinished,stepbackandconsiderwhatyouhavelearned.Write:

¨ Abrief,focuseddescriptionofyourtargetmarket

¨ Anassessmentofwhichaspectsofyourbusinessneedtochangeinordertoattractthismarket

¨ Alistofwhatisinvolvedwithmakingneededchanges

ProductDevelopment:WhatamIgoingtomarket?

NowthatyouhaveaclearerideaofWHOyourmarketisandwhattheywant,howdoesyourproduct

meettheirneeds?Rememberthatproductsarecontinuallyfine-tunedasyoubetterunderstandthe

needsofyourcustomersandthemechanicsofyourbusiness.Thechallengeistothinkaboutyour

productfromtheperspectiveofyourtargetmarket,bothendconsumerandchannelcustomer.Next,

answerthefollowingsetofresearchquestions.

Researchquestions:¨ Whatismyproduct?

¨ Whatisthebestmethodtopackageandpresentmyproduct?

¨ Whatneeddoesmyproductfill?

Whenyouhavefinishedansweringtheresearchquestions,takeasecondpieceofpaperandsummarize

youranswersinto:

¨ Acreative,market-informeddescriptionofyourproduct


¨ Aconceptofhowyouwillmakeyourproductmeettheneedsofyourendconsumersand

channelcustomerswhilebeingcompetitivelypricedandprofitable.

MarketPositioning:Howdoesmyproductsatisfytheneedsofmymarketbetter

thanmycompetition?

Marketpositioningisthewayyoucommunicatepreciselytheplaceyourproductholdsinthe

marketplace.Howyoupositionyourproductinthemindofyourcustomersdetermineshowtheproduct

isperceived.Positioningisastrategiccomponentofmarketing.Ittiestogetherinformationaboutyour

product,yourmarket,yourcompetitionandyourindustry.Itistheanswertotheverybasicquestion:

WhatbusinessamIin?“Thewhat’sfordinnerbusiness?”“Thefamilyvacationbusiness?”Oryoucan

distinguishyourselfonthebasisoftheneedsyoufill,theservicesyouprovide,thedistributionchannel

youuse,thepricingstrategyyouemploy.Thinkaboutyourproductfromtheperspectiveofyour

customerandthatofyourcompetition.Notethatbuyingusuallycomesdowntoadecisionofchoice:

yourtaskistofigureouthowtomakethecustomerchooseYOURproduct.

Whenyourresearchiscomplete,takeathirdpieceofpaperandsummarizeyourfindingsintoaposition

statementof50wordsorlessthatanswerstwoquestions:

1. WhatbusinessamIin?

2. Whywillmycustomerswantmyproductratherthanthatofmycompetition?

MarketConnection:HowwillthemarketknowIhavewhattheyneed?

Makingconnectionswithyourtargetmarketletsthecustomerknowyouhavetheproducttheyneed.

Unlessyouareaconsumerdirectmarketer,theseconnectionsaremadewiththeassistanceof

intermediaries:businessesthatwarehouse,transportandsellyourproducttothosedirectconsumer

contactsandthebusinessesthatrepresentyourproducttothatsystem.Thesebusinessesarethe

marketingchannelsthatmoveproductsfromthepointofproductiontothefinalbuyer.Some,suchas

wholesalersandretailers,buyandreselltheproduct,others,suchasindependentwarehousesand

transportationcompaniesprovidedistributionservicesforafee.Others,suchasbrokers,presentthe

productinthemarketplaceforacommission.

Channelbusinessesareakeycomponentofyourmarketingstrategy.Howachannelbusiness

warehousesanddistributesproducts,howittargetsconsumersandhowitfeaturesandmerchandises

goodsalldefineitsparticularsetofneedsandresultinginbuyingcriteria.Tobeaneffectivemarketer,

producersneedtoidentifyandunderstandthedifferencesamongchannelmarketsandmarkettheir

productsaccordingly.Nosinglemarketingprogramworksforallmarkets.

Researchquestions:¨ Whatdistributionchannelsarebestsuitedtomyproduct,mycustomers&mybusiness?

¨ Whatarechannelcost/benefits?

¨ Whatwillittaketosustainmarket/channelconnections?

Whenyourresearchiscompleteprepareastrategicresponsetothesequestions:

¨ Whatwillitcosttoreacheachpotentialmarketsegment?

¨ Wherecanmybusinessreachthebestmarketattheleastcost?

¨ WhichmarketandchanneloptionsshouldIdevelopnow?


ThisfactsheetwasdevelopedaspartofMarketPlanningforValueAddedProductsbyUNHCooperative

ExtensionincooperationwithNYCoalitionforSustainingAgriculture.

FeaturedResourceTheSmallFarmsProgramwebsitehasmanualsandguidesondirectmarketing,CSAs,FoodHubsas

wellasmarketingspecificproductssuchasorganic,value-added,andwholesale.

SmallFarmsProgram

http://smallfarms.cornell.edu/resources/marketing/


24–PricingFarmProducts


KnowyourCostsandPriceforProfit

Priceisthedollaramountthatyouaskforsalesofaproductoraservice.ItisoneofthefourP’sof

Marketing:Price,Product,Placement,andPromotion.Priceiscriticallyimportanttotheprofitonthe

farm,buttheotherP’sofmarketingcontributesubstantiallytothepricethatyoucanget.Profitisthe

5thPthatkeepsyouinbusiness.Therearevariouscoststhatgointodecidingwhatpriceyouwillcharge

foryourproduct.

1. Startwiththeinputcosts=VariableCosts(VC)i.e.fertilizer,seed,gas,labor.Ifyoudon’tcover

theseyouwillhavetoshutdowninashortamountoftime

2. Addinownershipcosts=FixedCosts(FC)i.e.depreciation,interest,repairs,taxes,insurance.If

youcovertheseyouwillmeetyourbreakevencosttothebusiness,buthavenothingleftfor

yourself.Everyitemshouldcontributetoownershipcosts.Ifyoudon’tcoverownershipcosts,

youwillhavetoshutdowninalongeramountoftime.

3. Addinareturntoyou=ProfitablePrice-thisisthepriceyouneedtosurviveinthelongrun.

AllocateExpensesbyEnterprise

Totracklaborandequipmentcostsbyproductrequiresexcellentrecords.Youcankeeptrackoftasks

andexpensessuchasplowingtimeandfertilizerforthewholefarmandallocatebysquarefeetusedby

aparticularproduct.Keeptrackofdailytimespentforspecialeffortsorexpensesrequiredbyspecific

productssuchastransplantingseparately.Addallofthesetogethertodeterminecostsperproduct.Be

suretokeeptrackofharvestableyieldsortheamountofproductthatwasactuallysold,asthisimpacts

thepriceperunitsignificantly.

Valuevs.Price

Manydirectmarketfarmersareafraidtochargewhattheyneedtoinordertohavesomeprofitfor

themselves.Youareprovidingmorevaluetothebuyerasyouareclosertothecustomer.Askyourself

whoareyourcompetitors?Doyouwanttobea‘setter’ora‘taker’?

Value=Quality+Service+Price§ Yourbuyerswantaqualityproductthatyoucanprovidebecauseyoucangrowvarietiesfor

flavorinsteadoftravelcharacteristics

§ Yourbuyerswanttoknowhowtheirfoodwasgrown.Theylikethefactthattheyhavea

relationshipwithyou.Thistakestimeonyourpart,buttheyarewillingtopayforit

§ Youcanintroducethemtonewproductsandwaystocookspecialtyitems.Thisiseducation

thattheyarewillingtopayfor

§ Freshun-waxedproducts,lessfuelused,andcommunitysupportarealsocitedasreasonsmany

consumersarewillingtopaymoreforlocalproducts


§ Youcanchargemoreforearlyseasonproductswhencustomersareeagertotastethefirstfresh

localstrawberriesorsweetcorn,sostriveforearlysales

CalculationsforDeterminingPrice

CostandProfitMethodAddyourvariablecost+yourfixedcosts+profitneededfortheparticularproduct=Income

Dividebynumberofunitsproduced=price/unit

Forexample:Ifitcostsyou$3,000totalvariablecostsand$2,000totalfixedcostsandyouwant$2,000

ofprofitforaspecificproductthenyourtotalincomefromthatproductneedstobe$7,000.

Dividethisbythenumberofunitsproduced,andyouwillhavethepriceperunit:$7,000/950units=

$7.38/unit

GrossMarginMethodThismethodderivesfromthewholebusinesssales,costs,andplannedprofit.Thismethodisusually

usedbyretailbusinessesthatresellproducts.

Forexample:Grossmarginmethodinavegetablebusinessmightbecalculated:

Knowyourtotalexpectedvegetablesales=$10,000

Knowyourtotalfixedcosts+desiredprofit=$3,000–thisisthegrossmarginneeded.

Divideyourgrossmarginbytotalsales:$3,000/$10,000=30%

Knowyourunitvariablecost=$5.00

Dividetheunitpriceby1-30%oftheunitvariablecosttodeterminetheprice

$5.00/(1-30%)=$5.00/.7=$7.14perunit

PlanforProfit–Don’tDropPrices

Whatifyouhavecornat$3.50/dozenaccordingtoyourcalculationsandyourneighborhas

$3.00/dozen?Canyoustillmakeaprofitbyloweringyourprice?Sometimesitisbettertosellfewerat

thehigherpricethansellmoreatthelowerprice.Forexample,ifyourmarginonthe$3.50is$0.50

towardprofit.Ifyousell300dozenthatwillgiveyou$150inprofit.Youwouldhavetosell600dozenif

yousoldat$3.25togetthesameprofit.Fora7%decreaseinpriceyouhavetoselltwiceasmuch

product.

Donotpriceyourfarmproductbelowthemarketjustbecausethefarmincomeisinconsequentialfor

you.

Forexample,youmaybeabletoaffordtoselladozenfreshbrowneggsfor$1.00,butotherlocal

farmerswhorelyonfarmincomefortheirfamiliescannot–theymightneedthefullpriceof$3.00a

dozentocovertheirexpensesanddonothavetheoff-farmincomeyoudo.Theycouldlosesales

unfairlyduetoyourindiscretion.Intheinterestofcooperatingfullywithyourlocalfarmcommunity,

keepyourpricesinlinewithmarketratesforanyfarmproduct,evenifyoucanaffordnotto.

GoingRateforMarketAreaManybeginningfarmersstartoutwithapricingstrategythatreflectswhateveryoneelseischarging.

Whilethisisagoodplacetobegin,itisnotwhereyouwanttobeforever.Itisimportanttoknowyour

costsandpriceforprofit.


25–FindingPriceInformation


WholesalePriceInformation

Somewholesalepricesarereportedandcanbeaccessedtoprovideaguideforpricingfarm

products.Wholesalepricesareextremelylowcomparedtoretailpricesyoumightgetlocallyand

shouldbeconsideredafloororminimumprice.Todeterminepricesforyourproductsconsideryour

costsandtheretailpriceofothercompetitors.

ProductType WheretoFindPriceInformation

Produce § PricemonitoringprogramsareconductedthroughtheUSDA’s

AgriculturalMarketingService(www.ams.usda.gov)

§ Linkstoreportscontainingwholesalemarketpriceinformationare

availableathttp://www.farmersmarketonline.com/marketwa.htm.

Thesereportsareupdateddailyduringthegrowingseason

§ Additionalreportscoveringmanyotheraspectsofagriculturalpricing

areavailablethroughtheUSDA’smarketnewsportalforfruitsand

vegetablesathttp://www.marketnews.usda.gov/portal/fv

Organic § OrganicProducePricingReportfromtheRodaleInstitute:

www.rodaleinstitute.org/Organic-Price-Report

§ OrganicProducePricingDatafromUnitedStatesDepartmentof

Agriculture:http://www.ers.usda.gov/data-products/organic-

prices.aspx#.U-FPufldUuc

LivestockandField

Crops

§ TheWeeklyLivestockReporter:www.livestockweekly.com

§ USDAAMSLivestock&GrainMarketNews:

http://www.ams.usda.gov/AMSv1.0/LPSMarketNewsPage

§ Dairylea/EmpireLivestockMarketAuctions.Findalistingoflivestock

auctionsinNYShere:http://www.empirelivestock.com/

LocalMarkets

Itisimportanttochecklocaloutletsforpriceinformation.Askotherfarmersaboutwhattheycharge,

askbuyersinyourareawhattheywouldpay,visitretailoutletsandnoteprices,shopatfarmers’

marketsandseewhatproductsaresellingfor.Youcanfindlistsoffarmersmarketsaroundthestate

through:

FarmersMarketFederationofNewYork

http://www.nyfarmersmarket.com/

NewYorkAgandMarkets

http://www.agriculture.ny.gov/ap/communityf

armersmarkets.asp

Yourpricingshouldbebasedonyourcosts,beingcompetitive,andonwhattheparticularmarketarea

customerwillpayforhighqualitylocalproducts.Offerhighqualityanddifferentiateyourproductsto

captureahigherprice.


26–DirectMarketingOptions


Directmarketingisacommonstrategyforbeginningandsmallfarmers.Themainattractioncompared

withsellingthroughtraditionalwholesalemarketsisthatyoureceivethefullshareoftheconsumer

dollarandhavemorecontroloverthepriceyoureceiveforyourproducts.Butwithdirectmarketing,

you’llalsoincurextracosts–nottheleastofwhichisyourtime.Besuretoevaluateeachoption

carefullyaspartofafarmbusinessplan.

FarmersMarkets

Farmersmarketsareagoodplacetodevelopyourmarketingskills.Startbyvisitingmarketsinyourarea.

Inventorywhat’savailableandnotewhatdoesnotselloutbytheendoftheday.Don’tgrowwhat

doesn’tsellunlessyoucandifferentiateyourproduct–forexamplesellingheirloomtomatoesinstead

of‘gardenvariety’fruit.

Alsostudythecustomers.Howmanyarethere?Whatistheirethnicity?Aretheyyoungorold?Families

orsinglebuyers?Affluentorbargainshoppers?Askshoppersandvendorswhattheylikeanddon’tlike

aboutthemarket,andgetacopyofthemarketrules.

Tobesuccessful,youneedtoenjoyinteractingwith

peopleandbewillingtoinvestthetimeittakestopick,

pack,transport,setupandsell.Tomaximizepotential

returnsyouneedtosellforaslongaseasonaspossible.

Forproducevendors,thismeansgrowingawidevariety

ofcrops.Farmers’marketssalesalonemaynotgenerate

enoughmoneytomakealiving,requiringyoutolookat

additionalmarketingstrategies,buttheyareagood

placetostartabusiness.

On-farmSales

Methodsrangefromsimple,self-servestandstomulti-department,year-roundfarmstoresthatmay

includepick-your-ownoragritourismenterprises.Thehighertheoverhead,theslimmerthemarginswill

be.Butifdoneright,asuccessfulfarmmarketwillattractmanyregularcustomersandoffergood

returns.

Self-servestandsareagoodwaytoassessthepotentialdrawfromdrive-bytraffic.Strawberries,sweet

corn,tomatoes,peaches,andpumpkinsarecropsthatstoptraffic.Consumerslearnaboutlocalfarms

primarilythroughword-of-mouth.Buildaproductlinebasedonwhatcustomerswant,andpay

attentiontoquality.Sufficienttrafficmaygenerateenoughsalestowarrantinvestmentinfacilitiesand

staffing.

HowtoFindNYFarmersMarkets

NearYou

1. ContacttheFederationofNY

FarmersMarketsat315-637-4690

orwww.nyfarmersmarket.com

2. VisittheNYSDept.orAgriculture

andMarketswebsite,

http://www.agriculture.ny.gov/,

andclickonFarmandMarket

Search


Pick-your-own(PYO)requiresadvertisingandstaffing.Itcanbeveryprofitable,butriskyifitrainsevery

weekendduringnarrowharvestseasons.PYOcancomplementagritourismactivitieswhereitisoneof

severalactivitiesfamiliescanenjoy.

Tobesuccessful,youneedtoenjoyhavinglotsofpeopleatyourfarm–andinyourfieldsinthecaseof

PYO.Riskmanagementandliabilityinsuranceisamust.Buildingloyalclienteleiskey,andmaytake

manyyears.Yourbusinessplanmustbebasedonrealisticcustomernumbersandsalesprojections.

InternetandMailOrder

Ifyoudevelopunique,high-valueproductsthatare

easytoship,thisstrategycancomplementyour

otherdirectmarketingefforts.Currentcustomers

wholoveyourproductcanordermoreandhelpyou

marketyourproductsthroughwordofmouth.

Packagingandshippingcostsneedtobeconsidered

butforproductsthatarenotbulkyorheavy,this

canbeaprofitablestrategy.

CommunitySupportedAgriculture

CommunitySupportedAgriculture(CSA)operationstypicallyprovideaweekly‘share’(box)ofproduce

tocustomerswhopayfortheirsharesatthebeginningoftheseason–usually$300to$600per

household.Theup-frontmoneyreducesfinancialandmarketingrisksforfarmers,andcustomersshare

inproductionrisks.Sometimescustomershelpharvestandpacksharesinreturnfora

discount.Dependingontheoperation,customerspickupsharesatthefarm,acentraldistributionpoint,

orpayextraforhomedelivery.

Onechallengeistohaveenoughdifferentcropseachweeksocustomersfeelliketheyaregettingtheir

money’sworth.CSAfarmersoftengrowmorethanwhattheircustomersneedandhaveadditional

outletsforsurplusproduce.Sometimesseveralfarmscollaboratetoofferawiderrangeofproducts

includingfruit,eggs,meatandmore.Startingsmallandkeepingcustomerturnoverlowisagoodwayto

growthebusinesswhileminimizingrisks.

AkeyadvantagetoaCSAisthatyouknowhowmanycustomersyouhaveearlyintheseason,havetheir

moneyinhandandcanproduceaccordingly.Thismakesfinancialplanningeasier.

RestaurantSales

Manychefs(especiallyfromhigher-endrestaurants)arelookingforfresh,localproductstofeaturein

theirmenus.Youwillfindthatchefsareasbusyasfarmers.Developapersonalrelationshipwithchefs,

findoutwhattheywantandgrowawiderangeofproductsforthemforaslongaseasonas

possible.Youneedtoofferexceptionalqualitycleanproductsthataredeliveredontime(avoid

mealtimes).Restaurantsalesneedtobeanintentionalstrategy,notawaytodumpsurplus

product.Mostchefswillpayabout75percentofretailforproduce.

An Easy Way to Get Started with Internet

Marketing

List your farm on the follow free sites:

www.localharvest.org

www.nyfarmersmarket.com/


Drawbacksincludetheneedforsmallquantitiesofsomeitems.Watchthatdeliverycostsandtimedon’t

eatupprofits,andbeclearonpaymentterms.Oncearelationshipissolid,lessfacetimeisneeded.

SalestoFoodRetailers

Increasinglysmallfoodretailersareinterestedinsourcesoflocallygrownfood.Oneoptionistocontact

retailfarmmarketsinyourarea.Manydonotgrowalltheysell.Also,checkoutfoodcooperatives,

naturalfoodsstores,andindependentgroceries.Mostwillonlypaywholesalepricesfoundatregional

markets.

Everythingelse,fromconveniencestorestosuper-centers,isachainandeachhasuniquepurchasing

requirements.Somepurchasingdecisionsaremadeatthelocalstorelevel,butmostrequireapproval

fromhigher-ups.Startwithlocalstoremanagers.Forproduce,aheadbuyerisusuallyinvolved.Itis

mostcommonforretailerstobuyseasonalproduce.Veryfewhandlelocalmeats,cheese,eggsorother

products.

Foodretailersexpectlocalpricestobeinlinewithwholesaleprices.Understandbuyerexpectationsand

pricesbeforeagreeingtodelivery.Somemayrejectproductonqualityorsimplybecausetheyhavea

bettersupplyandpriceelsewhere.Theadvantageofsellingtofoodretailersisthatyoucanmovemore

volumetofewerbuyers,reducingyourmarketingcosts.Butthedisadvantageisthatitcanbeafickle,

price-drivenmarket.Besuretospreadyourrisks.

InstitutionalFoodServiceSales

Someschools,nursinghomes,hospitals,prisons,etc.canpurchaselocalproducts.Butmanyarepartof

abuyingconsortiumandhaveasinglegoal:keepingcostslow.Mealsareoftenpre-preparedorreadyto

serve,usingfewfreshitems.Institutionalfoodsalesalsocomewithinstitutionalbarriers,including

regulationsandrequirementsthatdictatetheirpurchasingpractices.Onewaytotapinstitutional

marketsistogothroughthedistributorswhoselltothem.Thisaddsamiddlemanandreduces

returns.Highquality,volumesales,standardpackaging,andreliabledeliverywillberequired.

ForMoreInformation

Program Description Contact

Northeast

BeginningFarmer

Project

The NE Beginning Farmer Project offers several online courses covering different aspects of marketing.

http://nebeginningfarmers.org/online-courses

GuidetoMarketing

ChannelSelection

Thispublicationisadecision-makingaidfornew

farmersandforthoseconsideringmarketingthrougha

newchannel,whetherwholesaleordirect.Theguide

focusesondescribingthemarketingoffresh-market

produce,however,manyoftheprinciplesapplytothe

marketingofotheragriculturalproductsincludingcut

flowers,meats,honey,maplesyrup,and

dairyproducts.

http://smallfarms.c

ornell.edu/files/201

4/07/Guide-to-

Marketing-Channel-

1ib5phn.pdf.


27–MarketingRegulations


WeightsandMeasures

Howdoesacustomerknowthatwhattheyjustpaidforisactuallywhattheyreceived?Thesystemthat

providesthispublictrustisacarefullyregulatedprocess.Article16oftheAgricultureandMarketsLaw

regulateshow“commodities”arepackagedandsoldinNewYorkState.ThecompleteArticlecanbe

foundathttp://www.agriculture.ny.gov/WM/LawArticle16.pdf.

BasicRules

¨ Foodproductsthatarenotincontainersmustbesoldbynetweight,standardmeasureor

numericalcount

¨ Ifsellingfooditemspre-packaged,theseneedtobeaccuratelymarked,with(a)thenetweight,

standardmeasureornumericalcount,(b)thesellingpriceperpoundorunitofstandard

measureand(c)thetotalsellingprice.

¨ Ifsellingbulkitemsbyweightanapprovedscalemustbeused.Thevendorisresponsiblefor

purchasinganapproveddeviceANDhavingitcertifiedbyalocalWeightsandMeasures

official.Manyscalesavailableatcommonretailoutletsarenotappropriateforuse;visit

http://www.agriculture.ny.gov/WM/725.pdfforalistofapprovedcommercialdevices.Atthis

timethereisnofeeinmanycountiestohaveequipmentcertified,butthereisafinefornot

usingapprovedscalesandforeverymis-weighedunitavailableforsale.

¨ Whenusingopencontainers,theyshouldbestandardsizes,i.e.pints,quarts;andremainopen

toallowconsumerinspection.Ifclosed,theyneedtobelabeled

WeightsandmeasuresofficialsthroughouttheStateroutinelyinspectawiderangeofcommercial

devicesandpackagedcommoditiestoassureaccuratemeasureinthemarketplace.Theseinspections

servetoeliminatefromthemarketplacethosedevicesandpackagesthatdonotprovideanaccurate

measureofthecommoditiesorservicesthatareexchanged.Theinspectionsinvolvemorethanjust

accuracytests,astheofficialmustverifythatthedeviceorpackagemeetsotheroperationaland/or

markingandlabelingrequirements.

LookfortheWeightsandMeasuresSealonDevices

Thesealindicatesthatthatdevicehasbeeninspectedandwasperforming

correctlyandwithinthe

ForMoreInformation

NYSDepartmentofAgricultureandMarketsBureauofWeightsand

Measures

10BAirlineDrive,Albany,NY12235-0001Tel:518-457-3146

[email protected]

http://www.agriculture.ny.gov/WM/WMHome.html


applicabletolerances.

MarketingRegulations

SellingPlantsIfyousellplantsforlandscapeuseincludingbeddingplants,perennials,shrubsandtreesgrownina

nurseryorgreenhouse,youwillneedtobelicensedasaRetailorWholesaleNursery,orPlantGrowerby

theNYSDept.ofAgriculture&Markets.Ifyousellcutflowersorhouseplantsthelicenseisnot

required.Asaplantselleryourgreenhouse/nurserycropsaresubjecttoinspectiontoprotectthe

customerfrompotentiallydiseasedorinsectinfestedplantmaterials.

SellingProduceNolicensesarerequired.Producemustbesoldfreeofdebrisandincleancontainers.Bulkdisplaysare

notsubjecttograding,labelingorpackaging.


Gradeand

Standards

SomeproduceissubjecttoUSDAgradeand

qualitystandardsifpackaged;thisincludes:

potatoes,apples,lettuce,andgrapes.Grade,

quantityofcontents,nameandaddressof

producerarerequiredonallclosed

packages.NYSAgriculture&Marketsenforces

qualityandgradestandards.

Forgradinginformation

consultthefollowingwebsite

forfactsheetspertainingto

eachofthementionedcrops:

http://www.agriculture.ny.gov

/FS/general/farmprods.html

FollowGood

Agricultural

Practices

Inordertoprotectfoodfrommicrobial

contamination,producersshouldfollowgood

agriculturalpractices.Topreventcontamination

ofproduceandwatersupplies,followgood

sanitationpractices,avoidintroducingraw

manureintofields,testirrigationandwash

waterforbacteria,changewashwater

regularly.Testwaterforbacteriaannuallyand

maintaingoodrecords.

Forinformationconsult:

www.gaps.cornell.edu

Orcall315-787-2625

SlaughterandSaleofFarm-raisedMeatsThebestsourceofinformationonmarketingyourmeatis:

ContactforLicensingInformation

TheNYSAg&MarketsDivisionofPlantIndustryhttp://www.agriculture.ny.gov/PI/PIHome.html

Albanyoffice:1-800-342-3464or518-457-2087

RegionalInspectorswillvisityourproductionfacilitytoinspectplantsbeforeyoubeginsalesand

thereafterannually.Thereisafeeforthelicense.


“AResourceGuidetoDirectMarketingLivestockandPoultry”

AvailableinPDFat

http://counties.cce.cornell.edu/orange/Direct_Marketing_Livestock_and_poultry.pdf

Hereisabriefsummaryofsomeregulations.

Regulations

Type Description

Poultryexemption Farm-raisedpoultryisexemptfromNYSandUSDAinspectionifthefarmer

raisesandslaughtersnotmorethan250turkeysORnotmorethan1000ofall

otherpoultry(chickens,ducks,geese,etc.)peryear.Fourbirdsofotherspecies

areequivalenttooneturkey.Ifyouraisemorethanthisperyearthebirdsmust

beprocessedinalicensedfacilityandstampedifforcommercial/retailsale.

OtherMeats(beef,

lamb,goat,pork)

Thesefarm-raisedmeatsmustbeprocessedinaUSDAlicensedfacilityif

intendedforcommercial/retailsale.ThesemeatscanbeprocessedinNYS

customexemptslaughterplantsonlyiftheywillbeconsumedbytheanimal’s

owner,hisorherfamily,employees,ornon-payingguests.Suchmeatmustbe

stamped“Notforresale.”Furtherprocessingofmeatsuchasmakingsausage,

etc.mustbedoneinaUSDAcertifiedfacilityorNYScertifiedprocessing

facility/kitchenholdinganArticle20-Clicense.SeeFactSheet#28formoreinfo

on20-Clicensing.

ExoticAnimals Bison,deer,rabbits,andratitesmustbeslaughteredinaNYSCustomExempt

Plantifthemeatwillbesold.Inspectionisnotnecessaryforretailsales(toend

user).

Forquestionsaboutmeatslaughterandsales,contactNYSAg&Marketsat518-457-4492.

SellingFish

Regulations

Type Description

Wholefish Withoutanyspecialpermits,youmaysellafreshwholefishatyourfarmtoa

privatecustomer.Youmaybringcompletelychilledfreshwholefishtoa

farmer’smarketandselltoaprivatecustomer.Keepfreshwholefishat32°F

withcrushediceorinarefrigeratedunit.

Evisceratedfish Entiregutcontentsareremovedandthefishisthoroughlyrinsedwithfresh

waterthatis38°Forlower(waterisofpublicsourceorfromatestedwell.)

Chillthefishto32°Fimmediately.Atthispoint,thefishcanbefrozenandkept

inafrozenstateforsale.Frozenevisceratedfishmaybesoldatthefarmorat

afarmer’smarket;freshandproperlychilledevisceratedfishmaybesoldata

farmer’smarketoratthefarm.

Fillets FilletingfishoranysimilarprocessingrequiresanArticle20CFoodProcessing

Licenseatyourfarmorafacilityoff-farmthatcarriesacurrent20CFood

ProcessingLicense.Youmaytransportyourfishtoa20Cfacilityanduseit

temporarily(usuallyforarentalfee).Suchfishmaybesoldtoindividuals,

stores,orrestaurantsifinafrozenstate.FreshfilletsalesrequiresanArticle


28RetailFoodStorelicense(wherefoodandfoodproductsareofferedtothe

consumerandintendedforoff-premisesconsumptionandconductsnofood

processing).AsofJuneOctober2016,anArticle20Clicensefeeis$400.00and

anArticle28licensefeeis$250.00.

Rulesandregulationssurroundingaquaculture-raisedfisharesubjecttochange.Contacttheofficein

yourregion:

NYSDepartmentofAgricultureandMarketsFoodSafetyandInspectionDivision

518-457-4492orhttp://www.agriculture.ny.gov/FS/FSHome.html

SellingEggsEggcartonsmustbemarkedwithgradeandsize(thoughproducerssellingeggsoftheirownproduction

directlytoconsumersareexemptfromthisrequirement).Eggsmaybesoldinbulkdisplaysbutgrade

andsizemustbeindicated.Additionallyeggsshouldbewashedandcandled,cartonsmustincludethe

nameandaddressofproducerandthedatepacked,andeggsmustbeheldat45degreesForlower.For

afactsheetoneggsalesconsult:http://www.agriculture.ny.gov/FS/general/farmprods.html.

SellingHoneyandMapleSyrupTheseproductsareexemptfromlicensingifyoudonotaddingredientsorrepack.Productionfacilities

mustbecleanandsanitary.Ifyoumakespecialtyflavoredhoneyormapleproducts,youmusthavean

Article20-Clicense.Maplesyrupissubjecttogradeidentification.Formoreinformationonthesaleof

MapleSyruprequestCircular947fromtheNYSDept.ofAgriculture&Marketsorcheckthiswebsite

foracopy:http://www.agriculture.ny.gov/FS/general/farmprods.html.

Making/SellingWineRegulationscanbefoundatthefollowingwebsite:

NYSLiquorAuthority

DivisionofAlcoholBeverageControl(ABC),Albany

http://www.sla.ny.gov/

Thereare4typesofwinerylicensesthatapplytothefollowingsituations:

§ Individualswhomakewineswithouthavingavineyard

§ Aretailfacilitythatretailswinesbutisneitheraproducerorprocessorofgrapes

§ Afarmwinerywhichmusthaveitsownvineyardandprocessingfacilitiesandanypurchased

grapesmustbe100%NYgrown

§ Aspecialfarmwinerythatdoesnothaveitsownprocessingfacilitybutworkswithanother

establishedwineprocessingfacility.Farmwineriesmayselltheirownwineattheirwineries,at

NYSFarmersMarketsandtorestaurantsandretailstoresinNYS

Forassistanceindevelopingafarmwineryconsultthefollowingsources:

Program Contact

NewYorkWine&GrapeFoundation www.newyorkwines.org

585-394-3620

CornellViticulture&EnologyProgram-Geneva http://www.grapesandwine.cals.cornell.edu


315-787-2277

NYSLiquorAuthority(ABC)Licensing [email protected]

CornellGrapeProgram www.fruit.cornell.edu/grape/EVAGeneral.html

BrewingBeerRegulationscanbefoundatthefollowingwebsite:

NYSLiquorAuthority

DivisionofAlcoholBeverageControl(ABC),Albany

http://www.sla.ny.gov/

InordertoreceiveaFarmBrewerylicenseinNewYorkState,thebeermustbemadeprimarilyfrom

locallygrownfarmproducts.Thescheduleforthelicenseisasfollows:

• Untiltheendof2018,atleast20%ofthehopsand20%ofallotheringredientsmustbegrown

inNewYorkState.

• FromJanuary1,2019toDecember31,2023,nolessthan60%ofthehopsand60%ofallother

ingredientsmustbegrowninNewYorkState.

• FromJanuary1,2024,nolessthan90%ofthehopsand90%ofallotheringredientsmustbe

growninNewYorkState.

Forassistanceindevelopingafarmbreweryconsultthefollowingsources:

Program Contact

NewYorkStateBrewersAssociation http://newyorkcraftbeer.com/farm-brewery/

Article20-CLicensingRequirements http://newyorkcraftbeer.com/wp-

content/uploads/2014/05/20-C-FARM-Ag-and-Markets-

Doc.pdf

CornellUniversityBrewingProgram http://blogs.cornell.edu/brewing/

CiderRequiresanArticle20-Clicenseforprocessing.Goodmanufacturingpracticesmustbefollowed.Apples

mustbefirmandwashed.PasteurizationorUltraViolettreatmentisrequired.HACCP(HazardAnalysis

CriticalControlPoint)plansarerequiredforciderandjuiceprocessingfacilitiesifsellingwholesale.

MilkProcessingfacilitiesareregulatedby:

NYSDepartmentofAgriculture&MarketsDivisionofMilkControlandDairyServices

http://www.agriculture.ny.gov/DI/DIHome.html|518-457-1772(MattMorgan)

DivisionofFoodSafety&Inspection

518-457-4492

http://www.agriculture.ny.gov/FS/FSHome.html


TheprimaryresourcetofamiliarizeyourselfwithinthedevelopmentofyourplantisNewYorkState

DepartmentofAgricultureandMarketsCircular958(Part2),whichcoverstherulesandregulationsfor

operatingamilkprocessingfacilityinNY:

http://www.agriculture.ny.gov/DI/Laws%20in%20PDF/PART2_milk_control_law.pdf

Milkcannotbetransportedfromafarmtoaprocessingfacilitywithoutalicenseanddairyproducts

processedinyourhomekitchenoracommercialkitchencannotbesoldtothegeneralpublic.Youmust

haveandmaintainacertifiedmilkprocessingplantonyourfarmifyouplantoselldairyproductstothe

public.

Onceaplanhasbeendeveloped,youmayalsowanttocontacttheCornellDepartmentofFoodScience

CooperativeExtension(http://foodscience.cornell.edu/cals/foodsci/extension/index.cfm)ortheDairy

PlantatSUNYMorrisvilleat315-684-6106.Theyofferinstructionalprogrammingschools/workshopsfor

dairyprocessorsandhavestaffthatmaybeabletohelpreviewyourplansandofferadvice.

SellingRawMilkDuetothepotentialliabilitiesofsellingunpasteurizedmilktothepublic,itishighlydiscouragedbythe

StateandtheCornellUniversityDepartmentofFoodScience.Howeveritcanbelegal.Yourfarmmay

sellrawfluidmilkifyouapplyforpermitsandmeetseveraladditionaltestsandrequirementsthatother

milkprocessingfacilitiesdonothavetomeet.

SellingCheeseHardcheesemadefromrawmilkmaybesoldtothepubliciflabeledrawmilkcheeseandagedatleast

60days.Apermitisstillrequired.

ForAllOtherFoodInspectionQuestions,Contact:

NYSDept.ofAgriculture&Markets:DivisionofFoodSafety&Inspection

518-457-4492

http://www.agriculture.ny.gov/FS/FSHome.html


28–BecomingaFoodProcessorGuidetoFarminginNewYorkState

InformationpreparedbyDr.OlgaPadilla-ZakourandDr.BrunoXavierfromtheNYSFoodVentureCenter

atCornellUniversity(http://necfe.foodscience.cornell.edu/)–foreducationalpurposesonly–please

contactpertinentregulatoryagenciesforfurtherdetail.

TheFederalgovernment,individualstates,citiesandmunicipalitiesgoverntheoperationoffood

processingfacilitieswhetherhomekitchensorcommercialfacilities.Regulationsdifferfromstateto

stateandaredeterminedbythetypeoffoodproductbeingpreparedandtheprocessingmethodsused.

Whenconsideringstartingupahomeorcommercialkitchen,itisimportanttoresearchwhichagencies

regulatelicensingoftheproduct,inspectionofthefacility,foodsallowedandnotallowedtobe

producedineachfacility,localzoninglawsgoverningtheuseofthebuilding,andbuildingcodes.All

foodfacilitiesarerequiredtoregisterwithFDA(basedonheBioterrorismActof2002)andtorenew

registrationeveryotheryear(tocomplywithFoodSafetyModernizationActof2011,website:

http://www.fda.gov/Food/GuidanceRegulation/FoodFacilityRegistration/default.htm).

FoodsthatareregulatedandrequireaProcessingLicenseinNY–Article20-CLicensefromtheNYS

DepartmentofAgricultureandMarkets

Thisregulationappliestoanythingthatisalteredbybaking,canning,preserving,freezing,dehydrating,

juicing,cidermaking,pickling,brining,bottling,packaging,repackaging,pressing,waxing,heatingor

cooking,smoking,roasting,ormanufacturing.Requirementsvarydependingonproduct.Ascheduled

processmustbedevelopedwhichoutlinesrecipetesting/formulation,criticalcontrolpoints(toavoid

contaminationandcontrolhazards),processingsteps,storagerequirements,distributionandselling

conditions/restrictions.

FeaturedResourceAssistancefordevelopingascheduledprocessisavailable:

NYSFoodVentureCenter

https://necfe.foodscience.cals.cornell.edu/

ForacompletelistofproductsthatrequireanArticle20-Clicensevisitthefollowingwebsite:

http://www.agriculture.ny.gov/FS/general/license.html

518-457-4492

FoodSafety

HACCP(HazardAnalysis&CriticalControlPoints)PlansaremandatedbyFDAregulationsforcertain

productsandprocesses,specifyingprocedurestobefollowedtominimizecontaminationandto

minimize/eliminatechemical,physicalandbiologicalhazardswhenprocessingfoods.HACCPplansare

requiredforwholesalesale(notforretail)ofseafood,dairy,meatandpoultryproducts,juiceandcider

processingfacilities.Othersectorsofthefoodindustryarecomingintovoluntarycompliance.Formore

informationcheck:

www.fda.gov/Food/FoodSafety/HazardAnalysisCriticalControlPointsHACCP/default.htm


TheFoodSafetyModernizationAct(FSMA)enactedin2011,requiresthatmostofthefood

manufacturersenhancefoodsafetyandqualitybyimplementationofFoodSafetyPlans,whichinclude

PreventiveControlsforallaspectsoffoodprocessing,fromincomingingredientsthroughprocessing

itselftostorage,distributionandsaleofthefinalproduct.Specificrequirementsforcontinuoustraining

programsarealsopartofFSMArequirements,includingthatfoodsafetypersonnelreceivespecific

trainingonPreventiveControls.Somemanufacturersareexempt,inpartsorcompletely,fromhaving

FoodSafetyPlans,dependingonsizeandtypesofproductsmanufactured.Moreinformationonthe

FSMAandonhowtogetPreventiveControlstrainingcanbeobtainedontheFDAwebsite:

http://www.fda.gov/Food/GuidanceRegulation/FSMA/ucm461513.htm

HomeProcessingExemption

NewYorkStateallowsnon-hazardousfoodssuchascandy,cakesnotrequiringrefrigeration,cookies,

brownies,two-crustedfruitpies,breadsandrolls,standardfruitjamsandjellies,driedspicesandherbs,

andsnackitemstobeproducedinhomekitchens.Areviewofprocessingproceduresmayberequired

forcertainproductsbeforeexemptionisgranted.

AnyoneseekingaHomeProcessingExemptionmust:

• ContacttheNYSDepartmentofAgriculture&Marketstoobtainthiscertificate

(http://www.agriculture.ny.gov/FS/consumer/processor.html)

• Completeanannualwatertestforbacteriaifusingprivatewater

• Note:Internetsalesarenotallowedunderthisexemption

Sometypesoffoodsmaynotbeproducedinahomekitchen,asmandatedbyFederal

regulations.Thesefoodsareconsideredpotentiallyhazardous:

• Lowacidandacidified(pickled)foodspackedinhermeticallysealedcontainersmustbe

registeredwiththeUSFoodandDrugAdministration(FDA)

• Meatproductswithmorethan3%rawor2%cookedmeatingredientsinacompletedproduct

areregulatedbytheUSDepartmentofAgriculture(USDA)

• Vacuumpackagedandanyotherreducedoxygenpackagedproducts

ZoningRegulations

Localmunicipalzoningandplanningboardsdeterminethescaleofoperationspermittedinan

establishment.Theyregulatethenumberofemployeesallowedonpremisesandwhetherasecond

separatekitchenfacilityisallowedtooperateonsite.Checkwithlocalbuildinginspectorstodetermine

whatoperationscantakeplaceinthekitchenchosenforfoodproduction.Therearelocalbuildingcodes

thatgovernthevolumeofbusinessinabuildingandegressfromabuilding,drainageissuessuchasback

flowprotection,andgreasetraps.Commercialequipmentmustcomplywithfirecodes,FDAandUSDA

requirementsasappropriate.


MinimumFoodProcessingFacilityRequirementsforNewYorkState

Procedure HomeKitchen HomeAnnex Commercial

Inspection Yes,Potablewaterrequired

(documented)–municipalor

treatedwellwater

Yes,Potablewaterrequired

(documented)–municipal

ortreatedwellwater

Yes,Potablewater

required(documented)

–municipalortreated

wellwater

Licensing Non-potentiallyhazardous

foodsforwholesalemarket

exemptfromlicensingbyNYS

DeptofAgriculture&Markets

(NYSDAM)

20-Clicense(obtainedfrom

NYSDAM)

Separatecleaning,sanitizing,

andhandwashfacilities

Fee:$400.00/2years

20-Clicense

Fee–$400.00/2years

Inspection

Agency

NYSDAM

Mayrequestreviewof

processingproceduresby

recognizedprocessing

authority.Onlynormalkitchen

facilitiescanbeused.

NYSDAM

Dept.ofHealth-fresh-serve

foodsonly.Kitchenheldto

restaurantstandards(see

below).

NYSDAM

Dept.ofHealth-fresh-

servefoodsonly.

Kitchenheldto

restaurantstandards

(seebelow).

Foods

Allowed

§ Candy(non-chocolate)

§ Fudge

§ Cakesnotrequiring

refrigeration

§ Cookies

§ Brownies

§ Two-crustfruitpies

§ Bread

§ Rolls

§ Fruitjams

§ Jellies

§ Spices,herbs

§ Snackitems

§ Bakedgoods(i.e.bread,

rolls)forwholesale

distribution

Anyprocessedfood

Lowacidandacidifiedfoods

packedinhermetically

sealedcontainers.Must

registerandfilewithFDA

Anyprocessedfood

Lowacidandacidified

foodspackedin

hermeticallysealed

containers.Must

registerandfilewith

FDA

FoodsNot

Allowed

§ Cakeswhichrequire

refrigeration

§ Piescontainingmilk,

eggsormeatproducts

§ Chocolates

§ Lowacid/acidifiedfoods

Meatproducts-ifmore

than3%rawor2%cooked

meatingredients–USDA

regulated

Meatproducts-if

morethan3%

rawor2%cooked

meatingredients–

USDAregulated

Zoning Checkwithcity/town

Zoning/PlanningBoard

Issues:Scaleofoperation,

numberofemployees

Checkwithmunicipality


Issues:scaleofoperation;

numberofemployees

2ndkitchenmaynotbe

allowedonpremise

Checkwith

municipality


Issues:scaleof

operation,numberof

employees


BasicRequirementsforaSmall-ScaleFoodProcessingEstablishment

StateofNYDepartmentofHealth(DOH)–Restaurants

¨ Submitkitchendrawingsbeforeconstruction

¨ Three-baysinkwithstainlesssteeldrainboardsortwo-baysinkwithacommercialdishwasher

¨ Separatehandwashing/mopsink

¨ Washablematerialsonwallsandworksurfaces

¨ Restaurantgrade,commercialtilefloors-paintedconcretenotallowed

¨ Commercialcoolers/refrigeration

¨ Waterfromnon-municipalwatersupplymustbetestedquarterly.

¨ ReviewDOH“ChecklistforNeworRemodeledEstablishments”

¨ Somelocalesrequirefoodworkercertification.

NYSDepartmentofAgricultureandMarkets–Foodpreparationandprocessing

¨ Kitchenrequirementsbasedonfooditem(s)beingproduced-Determineduponinspection

¨ Easilycleanable,smoothworksurfaces

¨ Non-absorbent,smoothandeasilycleanablefloors,wallsandceilings

¨ Reviewofprocessingproceduresincludinghandwashing,sanitizing,equipmentsinks,water

potabilityandfoodpreparation

¨ ReviewNYSDAMCircular951-PursuanttotheLicensingofFoodProcessingEstablishments

¨ *Circular938–RulesandRegulationsRelatingtoFoodProcessingEstablishments

¨ *Circular933-GoodManufacturingPractices

HelpfulResourcesforSmallScaleFoodProcessors

Forassistanceindevelopingascheduledprocessforyourrecipeordevelopingaprocessedfood

product,contact:

NYFoodVentureCenter

NYSAgriculturalExperimentStationinGeneva

[email protected]

Torequestthepublication“SmallScaleFoodEntrepreneurship:ATechnicalGuideforFoodVentures”,

contact:

ElizabethKeller,[email protected]

Accesstheonlineversion:http://www4.gsb.columbia.edu/filemgr?file_id=738927

Productdevelopment,processinganddistributionassistanceisalsoavailablefrom:

NelsonFarmsatSUNYMorrisville

315-655-8831

*CircularsareavailablethroughlocalDept.ofAgricultureandMarkets

NYSDAM,10BAirlineDriveAlbany,NY12235

518-457-3880or1-800-554-4501


www.nelsonfarms.org

TolearnaboutsmallscalefoodprocessingactivitiesinNYS:

JointheNYSSmallScaleFoodProcessorsAssociation

www.nyssfpa.com

BecomeamemberofPrideofNY

800-554-4501

[email protected]

www.prideofny.com

RegionalOfficesoftheNYSDepartmentofAgricultureandMarkets,Division

ofFoodandInspectionServices

ContactInformation

10BAirlineDrive,Albany,NewYork12235

518-457-5380

[email protected]

55HansonPlace

Brooklyn,NY11217-1583

718-722-2876

ElectricTowerBuilding

535WashingtonStreet,2ndFloorSuite203

Buffalo,NY14203

716-847-3185

900JeffersonRoad

Rochester,NY14623

585-487-0200

NYSFairgrounds–ArtandHomeCenter

Syracuse,NY13209

315-487-0852

UnitedStatesFoodandDrugAdministration300PearlStreet,Suite100

Buffalo,NY14202

716-551-4478

NewYorkDistrictOffice

158-15LibertyAvenue

Jamaica,NY11433

718-662-5447

UnitedStatesDepartmentofAgriculture–FoodSafetyInspectionService(USDAFSIS)

5WashingtonSquare

Albany,NY12205

518-457-4492


29–CollectingSalesTax


ProductsExemptfromSalesTaxCollection

Farmersdonotneedtocollectsalestaxonfarmandfoodproductsintendedforhumanconsumption;

thisincludes:allfreshandprocessedfoods:fruits,vegetables,bakedgoods,jellies,jams,preserves,

meats,eggs,dairyproducts,syrup,honey,cider,etc.(unlesslistedbelow).

TaxableFarmandFoodSalesWhensellingdirecttoconsumer,youmustcollectsalestaxon:

§ Preparedfoodsintendedforimmediateon-siteconsumption

§ Candy

§ Softdrinksandfruitjuiceswithlessthan70%realjuice

§ Allnon-foodproductsthatarebeingsoldtotheenduser

§ Cutflowers,beddingplants,trees,shrubs,andothernurseryproducts

§ Forestproducts,firewood**,Christmastrees,lumber

§ Fiberproducts(rawfleeceorwoolproductswhensolddirecttoendusers)

§ Hay,grain,straw(taxableifnotbeingsoldtoanotherfarmer)

§ Horsessoldforpleasureriding

§ Ornamentalcropslikegourds,Indiancorn,driedflowers,evergreens,etc.

§ Crafts

§ Topsoil,turf,gravel

Note:iftheseitemsaresoldtosomeoneelsewhowillsellthemdirectlytothepublic,youdoNOThave

tocollectthesalestax,butyouwillneedtofilearesalecertificate.

**Firewoodsoldforhomeheatingisnottaxable;whilefirewoodsoldforrecreationalpurposes

(campfire,bonfire,cookout)istaxable.

BecomingaSalesTaxVendor–FormDTF-17-I–CertificateofAuthority

Thismeansyouareinvolvedinthedirectsaleofproductstoconsumers/endusersandmustcollect

salestaxifsellingtheabovetaxableitems.


Thereareseveraltypesofsalestaxvendors:

§ RegularVendors–withapermanentlocation

§ TemporaryVendor–withsalesinnomorethan2consecutivequartersinany12-monthperiod

§ ShowVendor–sellsproductsatafleamarket,craftfair,show,orfarmers’market,oneithera

regularortemporarybasisanddoesnothaveapermanentlocation

YoucannotlegallymaketaxablesalesuntilyouhavereceivedyourvalidCertificateofAuthority.

¨ ApplyforyourCertificateofAuthorityatleast20daysbeforeyoubeginoperatingyourbusiness

¨ YourCertificateofAuthoritymustbedisplayedprominentlyatyourplaceofbusinessorat

fairs/markets

¨ Itisveryimportanttokeepdetailedrecordsofyourtaxablesales

¨ Eachtransactionmustincludetheitempriceandsalestaxamount.Retainacopyofthereceipt.

Recordsshouldbekeptfor3years

FilingRequirements

¨ Youmustfileareturneachquarterevenifyouhadnosales.Initiallyyouwillbeclassifiedasa

quarterlyfiler.Monthlyandannualfilingoptionsareavailableifyouqualify.Donotforgettofile

aspenaltiesarestiff

¨ DownloadtheformasaPDFatwww.tax.ny.gov/pdf/current_forms/st/dtf17i.pdf

ForMoreInformationNYSDept.ofTaxationandFinancePublication750:AGuidetoSalesTaxinNewYorkState

Obtainbycontacting:800-462-8100

http://www.tax.ny.gov/pdf/publications/sales/pub750.pdf


30–OrganicCertification


BecomingCertified

Organicproductionoffersmanyadvantagesforsmallfarmersincludingecologicallyfriendlyproduction

methods,strongconsumerdemandfororganicproducts,andhigherprices.Regardlessofwhetheryou

useorganicpractices,ifyouhavefarmsalesofmorethan$5,000/yearyoucannotlegallysellyour

productsasorganicunlessyourfarmhasbeenofficiallycertified.

Ifyouselllessthan$5,000/yearofproductandwouldliketousetheword“organic”inyourmarketing,

youmustadheretoorganicpracticeseventhoughthereisnocertificationprocessrequired.Tolearn

moreaboutthis,downloadthePDF:

SmallScaleOrganics

www.kerrcenter.com/publications/small-scale-organics.pdf

YoucanfindthelistofallcertifyingagenciesbygoingtotheUSDA’sNationalOrganicProgramwebsite:

USDAOrganicProgram

http://www.ams.usda.gov/AMSv1.0/nop

Click“ListofCertifyingAgents.”Youcanuseanyagencylisted.

ThetwolocatedinNewYorkare:

NOFA—NewYork,LLC

840UpperFrontSt.

Binghamton,NY13905

607-724-9851

E-mail:[email protected]

Website:www.nofany.org

Scope:crop,livestock,handling

Accredited:4/29/02

NaturalFoodCertifiers

119aSMainStreet,

SpringValley,NY10977

888-422-4632

E-mail:[email protected]

Website:www.nfccertification.com

Scope:crop,livestock,wildcrop,handling

Accredited:10/08/02

GeneralOverviewofRegulations

Organicregulationsarecomplexandever-changing,whichiswhyitisimportanttoworkwithyour

certifyingagencyoneverythingthatyoudotoassurecompliance.

Ingeneral,youcannotusesyntheticpesticides,antibiotics,orpetroleum-basedfertilizers.Tocertifya

fieldasorganicitmustnothavehadpesticidesorpetroleumfertilizersappliedforthepastthree

years.Tocertifyanimalsasorganic,therearevarioustransitionrequirementsdependinguponthe

animalspecies:dairy,beef,pork,poultry,etc.

Greatattentionispaidtonurturingthesoilbytheuseofcomposts,covercrops,rockmineralsand

naturalfertilizers.Plantdiseaseandpestsarecontrolledthroughtheuseofcroprotations,resistant


varieties,cultivation,andbiologicalandbotanicalpestcontrol.Animalhealthismaintainedwith

wholesomefood,adequateshelter,accesstotheoutdoors,andpreventivehealthplans.

Documentationoffieldmaps,adjoiningfields,complaints,cropinputsused,yields,sales,feeds

purchased,medicationsused,andequipment-cleaninglogsmustbekepttomaintainyourcertification.


31–GrantOpportunitiesforFarmers


Anincreasingnumberofgrantprogramsareavailabletofarmersfromfederalorstatesourceseachwith

specificobjectives.Grantsfallintothethreegeneraltypes:

1. Grantsforbusinessplanning,addingvalueandincreasingfarmviability

2. Grantsforon-farmresearchanddemonstrationprojectsthataremostlyproductionoriented

thoughsomeincludemarketingdemonstrationprojects

3. Grantsforfarmenergyconservation,alternativeenergy,environmental

protection/conservationandwastemanagement

Grantsarenotavailabletostartafarmandarenotareliablestrategyforgrowingyourbusiness.Grants

mayenableyoutoexpandaparticularaspectofyourbusinesstomakeyouroperationmoreviableor

providefundingtotryanewpracticeonyourfarm.

Grantsarehighlycompetitivesoapplyonlyiftheprojectyouareproposingclearlymeetsthegrantor’s

objectives.Alwaysfindoutwhatkindsofprojectswerefundedinthepasttodetermineifyourproject

isinlinewithwhathasbeenfunded.

Ittakessignificanttimeandefforttowriteawininggrantproposal.Instructionsmustbefollowed

precisely.Grantsoftenrequireacashorin-kindmatchthatmustbedocumentedinthebudgetyou

propose.Grantswillnotbeconsiderediftheyarrivelateafterthedeadlineforapplication.Deadlinesfor

applicationsubmissionandinstructionsaregenerallyannouncedonceayear.Mostgrantsarenot

availableonanongoingbasis.

Onceyousubmitagrant,itmaytake3to6monthstofindoutifyourapplicationwasselectedfor

funding.Iffunded,italsotakestimetofinalizethecontract.Generallyyouwillnotbereimbursedfor

moneyspentpriortoreceivingthesignedcontract.Grantcontractsrequirethatyouwriteareportof

theresultsandprovideanaccountingofhowthemoneywasspent;therefore,youmustkeepaccurate

records.Grantsarealsoconsideredincomefortaxpurposes.

Followingisalistofsomegrantsourcesavailableforfarmprojects:


NEWYORKSTATESOURCES


NewYorkState FundingopportunitiesavailableforfarmersinNYS

Note:GrantsfromNYSnowrequireacumbersomepre-

qualificationprocess:grantsgateway.ny.gov

http://www.agricultur

e.ny.gov/

518-457-7076

NYSGood

Agriculture

Practices/Good

Handling

Assistance

Certification

Program

(GAP/GHP)

TheDepartmentwillpayupto$750foraprivatefirmor

NYSDept.ofAgricultureaudit,includingwatertests,to

verifyafarm’sfoodsafetyprogram.Thiscertification

appliestoproducefarmswhoselltoretailand

wholesalebuyersrequiringGAP

Certification.Applicationsmustbeapprovedpriorto

theaudit.Fundsareavailableonafirst-comefirst-serve

basisuntilthefundsaredepletedorDecember31.

Formoreinformation:


e.ny.gov/rfps/GAP/20

12/GAP-

Certification.pdf

Linktoapplication:


e.ny.gov/rfps/GAP/GA

P-Application.pdf

Organic

Certification

Funding

Assistance

Organicfarmersandprocessorsareeligiblefora

reimbursementof75%oftheirannualcertificationfee

costsnottoexceed$750.Thecertificationmustbe

conductedbyanorganizationaccreditedbytheU.S.

DepartmentofAgriculture.


e.ny.gov/AP/Organic/r

eimbursement.html

NYSSpecialtyCropsBlockGrantsProgram

Purpose Increasethecompetitivenessofspecialtycrops,encourageefficiency,

partnerships,innovation,andnewmarkets.TheRFPincludesmany

areasoffocusincluding:packaging/labeling,environmentalquality,

distribution,educationandoutreach,foodsafety,foodsecurity,

marketingandpromotion,productdevelopment,planthealthand

internationaltrade.

Eligibility Fundingavailabletonon-profits,forprofits,individuals,educational

institutions,andgovernment;however,individualsandbusinessesmust

partnerwithothers.Eligiblecropsaredefinedasfruitsandvegetables,tree

nuts,driedfruits,horticultureandnurserycrops(includingfloriculture),herbs

andspices.

Information Forquestions,contact:MarkMcMullen,518-457-4383

http://www.agriculture.ny.gov/AP/slide/SpecialtyCrop.html

NewFarmerGrantFund

Purpose Assistanceforbeginningfarmers

Eligibility Mustbeinthefirst10yearsofbusinesswithasignificantownershipinafarm

operationthatgeneratesatleast$10,000insales..Eligibleprojectsinclude,


butarenotlimitedto,thepurchaseofmachineryandequipment,supplies,or

constructionorimprovementofphysicalstructuresusedexclusivelyfor

agriculturalpurposes.

Funding Willfundupto$50,000andtheapplicantmustpayforhalfoftheproposed

projectcost(50%costsharematch).

Information Guidelines-

http://esd.ny.gov/BusinessPrograms/Data/NewFarmersGrantFund/2015_Guid

elines_NewFarmers.pdf

TheopportunitytoapplyisannouncedannuallyinOctober,applicationsare

dueinJanuaryandawardsareannouncedinJune.Contractsfollowand

thereforeitmaybefallbeforeaprojectcanstart.

NYSDept.ofAg&Markets–Agriculture&FarmlandProtectionProjects

Purpose Stateassistanceforthepurchaseofagriculturalconservationeasements

(developmentrights)topermanentlyrestrictdevelopmentofvaluable

agriculturallands

Eligibility CountiesormunicipalitieswithapprovedAg&FarmlandProtectionPlans–

Farmersshouldcontactcountyortowngovernmentifinterestedinthesaleof

developmentrights.Thisapplicationissubmittedbythemunicipalityandnot

thefarmer.

Funding Nocap;Stateprovides75%ofthecosttoacquiretheeasement;farmersor

localgovernmentprovides25%

Information http://www.agriculture.ny.gov/AP/agservices/farmprotect.html

NYSDECWaterQualityImprovementProjectsCHECKWITHCOUNTYSOILANDWATERDISTRICTREGARDINGPROGRAMSANDFEDERALFUNDSFOR

PROJECTIMPLEMENTATION

Purpose Implementpracticestoimprovewaterquality

Information ContactyourcountySWCDforinformationonlocalfunds;fundingisnot

competitivebutfundsarelimitedandmustmeetcriteriaforwaterquality

protection.Hereisalinktocountyoffices:

http://www.nys-soilandwater.org/contacts/county_offices.html

NYSERDA-NewYorkStateEnergyResearchandDevelopmentAuthorityLoans,grants,incentives

Purpose NYSERDAofferstechnicalassistancetoidentifyenergyefficiencymeasuresfor

eligiblefarmsandon-farmproducers.

Information FreeAgricultureEnergyAuditsareavailableaswellastechnicalassistance

identifyingotherthirdpartyfundingopportunities.Therearethreelevelsof

auditsavailableandseparatedbylevelofdetail.

https://www.nyserda.ny.gov/All-Programs/Programs/Agriculture-Energy-

Audit


FederalSources

USDA-SARE/SustainableAgriculture–Farmer/GrowerGrant

Purpose Supporton-farmresearchdemonstrations,marketinginnovations,value

addingactivitiesandotherprojects.

FundingLevel Cappedat$15,000;capitalimprovementslimitedto$500oftotalprojectcost;

nomatchrequired

AnnualdeadlineinlateNovember

Information 802-656-0471

Website:http://www.nesare.org/Grants/Get-a-Grant/Farmer-Grant

Email:[email protected]

USDARuralDevelopment–ValueAddedProducerGrant

Purpose Encourageproducersofcommoditiestoaddvaluetoproductstoincrease

theirvalue–forfeasibilitystudies,businessandmarketingplans,studiesto

establishanewventure;andworkingcapitalforestablishedventureswitha

businessplan.

FundingLevel Planninggrantsupto$100,000andworkingcapitalgrantsupto$300,000

Information 315-477-6400–ScottCollins

http://www.rd.usda.gov/programs-services/value-added-producer-grants/ny

USDARuralDevelopment–RuralEnergyforAmericaProgram(REAP)

Purpose Helpfarmersandruralbusinessesmakeenergyimprovementsandinstall

renewablesystems

Threeprogramsavailable:EnergyAuditandRenewableEnergyDevelopment

Assistance;EnergySystems/EnergyEfficiencyImprovement;andFeasibility

StudiesGrantProgram.

Eligibility Projectmustbelocatedinanareawithlessthan50,000inhabitants.

Fundingforsystemsthatgenerateenergyfromwind,solar,biomass,

geothermalsources;andforenergyefficiencyimprovements-upgrade

equipmentorprocesses.

FundingLevel Varieswithprogram(seeinfoonwebsite)

Information Website:http://www.rd.usda.gov/programs-services/rural-energy-america-

program-renewable-energy-systems-energy-efficiency

Contact:GaryPereira–[email protected]


USDANRCS–FarmBillInitiativesforConservationPractices

Purpose TheFarmBillauthorizesseveralnewinitiativesgearedatlandconservation

andwaterqualityprotection.Thereare3mainfundingareas:Ag

ManagementAssistanceforwatermanagementorirrigationsystems;

ConservationStewardshipProgramfocusedonprotectingsoilandwater

qualityandenergy;andEQIP–EnvironmentalQualityIncentivesprogramfor

practicesthataddressnaturalresourceconcernsonland.UnderEQIP,thereis

apopularHighTunnelfundingprogram-

http://www.nrcs.usda.gov/wps/portal/nrcs/detail/ny/programs/financial/eqip

/?cid=nrcs144p2_027074

Information FindoutwhatisavailablebycontactingyourcountyorregionalUSDAService

Center

http://www.nrcs.usda.gov/wps/portal/nrcs/detail/national/programs/?&cid=s

telprdb1048817

315-477-6504

USDAFSARuralYouthLoanFSAmakesloanstoindividualyouthstoestablishandoperateincome-producingprojectsofmodestsize

inconnectionwiththeirparticipationin4-Hclubs,FFAandsimilarorganizations.Eachprojectmustbe

partofanorganizedandsupervisedprogramofworkdesignedtoprovidepracticalbusinessand

educationalexperience.Theprojectmustbeplannedandoperatedwiththehelpoftheorganization

adviserandproducesufficientincometorepaytheloan.Ayouthloanisavailabletoyoungpersons

betweentheages10and20years.Themaximumloanamountis$5,000.Loanfundsmaybeusedtobuy

livestock,seed,equipmentandsupplies;buy,rentorrepairtoolsandequipment,orpayoperating

expenses.Foranapplication,contact:

USDAFSAofficethatservesyourcounty

http://offices.sc.egov.usda.gov/locator/app?state=ny&agency=fsa

OtherSourcesFundaFarmer(aprojectofFoodAnimalConcernsTrust)

Purpose Grantsforprojectsthathelpfamilyfarmerstransitiontopasture-based

systems,improvethemarketingoftheirhumaneproducts,ormoregenerally

toenrichtheconditionsinwhichthefarmanimalsareraised.

FundingLevels Upto$2,500

Information Fulleligibilityrequirements,application,andprogramdetailsavailableat

www.fundafarmer.org/apply-for-grant/grant-guidelines


32–OpportunitiesforVeteransinFarming


Anincreasingnumberofprogramsandresourcesareavailableforveteransenteringfarming.

Navigatingthroughfederal,stateandlocalchannelscanbetimeconsuming.Whilenot

intendedtobeallencompassingtheinformationbelowwillhelpyougetstarted.

SignupfortheNewYorkStateVeteransinAgricultureListserve:Fromtheemailaddressyou'd

liketouseforyourlistsubscription,[email protected]

typetheword"join"(withoutquotations)inthebodyofthemessage.TheSmallFarmsProgram

andourpartnerswillbeusingthisforumtopublicizeevents,resources,andopportunities

relatedtoveteransinterestedinfarminginNYS.

ArmedtoFarm(ATF)isaNationalCenterforAppropriateTechnologyprogramthatprovides

trainingonsustainableagriculturetoveterans.ATFisacombinationoffarmtoursand

classroominstructionthatfocusesonbusinessplanning,livestockproduction,andfruitand

vegetableproduction.https://www.ncat.org/armedtofarm/

TheFarmBureauResourceGuidetoAssistVeteransinAgriculture.AFarmBureauandFarmer

VeteranCoalitionPartnershiphttp://www.fb.org/newsroom/nr/nr2013/11-25-

13/FBVetGuide_LR_Final1-2014.pdf

TheFarmerVeteranCoalition.Nationalnon-profitorganization“mobilizingveteranstofeed

America”:http://www.farmvetco.org/.InNewYorkStatecontactJamieCritelli:

[email protected](530)756-1395.

DownloadafreecopyoftheVeteranCareersinAgriculture:AResourceGuide:

http://www.farmvetco.org/wp-content/uploads/2014/01/RG_FINAL_WEB_compressed.pdf

HeroicFood,isbasedinColumbiaCounty,NYandisbeingdevelopedincollaborationwiththe

FarmerVeteranCoalition.It’saresidential,tuition-freeprogram,andparticipantswillhavepaid

trainingpositionsonfarmsandotherincomestreamsthroughouttheprogram.

http://heroicfood.org/(917)806-5055.

NationalAgrAbilityProjectThevisionofAgrAbilityistoenhancequalityoflifeforfarmers,

ranchers,andotheragriculturalworkerswithdisabilities.Whiletheterm"disability"often

bringstomindconditionssuchasspinalcordinjuriesandamputations,AgrAbilityaddressesnot

onlythesebutalsomanyotherconditions,suchasarthritis,backimpairments,andbehavioral

healthissues.http://www.agrability.org/1-800-825-4264.

VeteransOutreachCenterInc.Foundedlocallyin1973byreturningVietnamveterans,the

centerisservingtheveteransandmilitaryfamiliesofGreaterRochester(585)546-1081and


Buffalo,NY(716)424-1892.Offeringacomprehensiveportfolioofsupportiveservicesdesigned

tomeettheneedsofveteransandtheirfamilies.http://veteransoutreachcenter.org

ClearPathforVeteransWehelpVeterans,militarymembersandtheirfamilies.Weprovide

myriadprogramsandservicestomakethishappen.Eachprogramandservicereliesononeof

threemethods:Self-empowerment,Peer-to-Peersupport,andCommunityinvolvement.

http://www.clearpath4vets.com/(315)687-3300.

USDAStartFarmingUSDAisan“EveryDay,EveryWay”departmentthattouchesthelivesof

everyAmerican,everydaybysupportingtheagriculturesector,strengtheningrural

communities,promotinghealthyeating,andhelpingtoprotectournaturalresources.Atthe

forefrontofourmissionisthesupportweprovidetofarmerstohelpthemstartandcontinue

farming.https://newfarmers.usda.gov/veterans(202)720-2791

USDAWantsYou!VeteransinAgriculturebrochure:

https://www.nal.usda.gov/sites/default/files/vetsagbrochure.pdf

ContactyourRegionalLearningNetworkLeader.Tellthemyouareaveteranintheirregion

whoisinterestedinacareerinagriculture(oralreadyfarming)andgetpluggedintoactivities

nearyou.

InWesternNY–LynnBliven:[email protected](585)268-7644ext.18

InNorthernNY–CathyMoore:[email protected](315)788-8450ext.236

InEasternNY–LeoraBarish:[email protected](917)806-5055

InSouthernNY–LauraBiasillo:[email protected](607)584-5007

InCentralNY–MattWeiss:[email protected](607)255-9911

GetLocalHelp:It’salwaysbesttofirstaskquestionstoyourlocalsmallfarmagentsincethey

arefamiliarwithlocalzoningissuesandregulationsforyourcounty.Youcanfindyourlocal

SmallFarmsCooperativeExtensionAgentbycheckingthecounty-by-countylistingat:

http://smallfarms.cornell.edu/contact/local-contacts/

Lookingforlocalevents/trainings?Wehighlyrecommendsubscribingtoourbi-monthly

newsletter.Itbringsyoustatewideevents,agfundingopportunities,newresources,andsmall

farmrelatedjoborcareeropportunitieseverytwoweeks.Subscribeat

http://smallfarms.cornell.edu/contact/e-news-sign-up/


33–AgriculturalAgencies/Organizations


FederalAgenciesServingAgriculture

Program Information Contact

USDAFarm

ServiceAgency

Federalagencywithcountyofficesacrossthestate

toadministerfarmloans,pricesupportprograms,

commodityprogramsandpayments,conservation

programs,anddisasterassistance.

www.fsa.usda.gov/ny

315-477-6300

USDANatural

Resource

Conservation

Service

Federalagencythathasamutualagreementwith

state-fundedSoilandWaterConservationDistricts.

NRCShas47fieldofficesandprovidesone-on-one

assistancetoprivatelandownersandlocal

governmentalunitsinallaspectsofnaturalresource

protection.Theyalsoadministerfederalcost-share

conservationprograms.

www.ny.nrcs.usda.gov/

315-477-6504

USDARC&D ThepurposeofResourceConservationand

Development(RC&D)istoacceleratethe

conservation,developmentandutilizationofnatural

resources,improvetheruraleconomies,enhance

theenvironmentandstandardoflivingin

designatedRC&Dareas.RC&Dprogramsexist

throughoutthestateandoperateonaregional

level.Checkthewebsiteforofficelocationsand

programs.

www.nyrcd.org/

NYSAgencies

Program Information DownloadOnline

SoilandWater

ConservationDistricts

Thereare62countysoilandwaterconservation

districtsinthestatethatprovideinformationon

conservationandwiseuseofthenatural

resources.Dependinguponthedistrictoffice,

theymayhavemoneyavailableforcost-shareon

landimprovementandconservationprojects.

www.nyacd.org/

518-857-0060

NYSDepartmentof

Agricultureand

Markets

Stateagencyregulatingagriculturalbusinesses

andcommerce.Theyadministermarketing

regulationsthatgovernproductsales,the

agriculturaldistrictsprogram,agricultural

conservationeasements,providemarket

assistanceandpromotion,andofferseveralgrants

programstoincreasefarmviability.

http://www.agricul

ture.ny.gov/

800-554-4501


NYSDepartmentof

Environmental

Conservation

Stateenvironmentalregulatoryagencywith

programsaddressing:waterquality,mineral

resources,landsandforests,fishandwildlife,and

pesticide/hazardousmaterialsregulation.They

offersometechnicalassistancebutgenerallyfocus

ontheregulationofactivitiestoassure

compliancewithstatepollutionregulations.

http://www.dec.ny

.gov/

CornellPrograms


Cornell

Cooperative

Extension

KeyoutreachsystemofCornellUniversitywithastrong

publicmissionandanextensivelocalpresencethatis

responsivetoneedsinNewYorkcommunities.Thereare

56associationsacrossthestatetooffereducational

programmingintheareasofcommunitydevelopment,

agriculture,environment,familyandyouth,financial

management,gardening,andnutritionandhealth.

www.cce.cornell.e

du

CornellSmall

FarmsProgram

Fosteringthesustainabilityofdiverse,thrivingsmallfarms

throughinformation,eventsandactivities,smallfarms

research,andafreequarterlynewsletterthatisamust

readforsmallfarmers.

www.smallfarms.c

ornell.eduwww.n

ebeginningfarmers

.org

607-255-9227

NYFarmNet Freeandconfidentialon-farmconsultantshelpfarm

familiesanswerbusinessandpersonalquestionsabout

finances,farmtransfer,naturaldisaster,personalstress,

familycommunication,andmaritalconflict.

www.nyfarmnet.or

g

800-547-3276

NYFarmLink Provideseducationalresources,consulting,and

opportunitiesthatenablemorefarmstobetransferred

andjointventurestobedevelopedbetweenpeoplewho

wanttofarmandpeoplewhoareseekingtoretirefrom

farming.

http://www.newy

orkfarmlink.org80

0-547-3276

OrganizationsServingAgriculture

Program Information Information

NewYorkStateFarm

Bureau

Thestate’slargestnon-governmental,volunteer

agriculturalorganizationfinancedandcontrolled

byfarmfamiliesforthepurposeofsolving

economicandpublicpolicyissueschallengingthe

agricultureindustry.Theyareagrassrootsbased

lobbyingorganizationandoffereducational

resourcestofarmersinthestateinadditionto

discountsoninsuranceandotherproducts.

www.nyfb.org

800-342-4143

NewYorkStateGrange Agriculturalandruralcommunityfraternal

organizationwithafocusoncommunity

http://www.nysg

range.org/


involvement.Theyareagrassrootsorganization

withalegislativeagendaandmanycommunity

involvementprograms.

607-756-7553

AmericanFarmlandTrust Farmersandconservationistsconcernedaboutthe

rapidlossofthenation’sfarmlandto

development,AmericanFarmlandTrust(AFT)isa

nonprofitmembershiporganizationdedicatedto

protectingournation’sagricultural

resources.Theyhavealegislativeagendaand

programstohelpdeterand/orstopthe

developmentoffarmland.

www.farmland.o

rg/default.asp

NOFA-NY–NewYork

OrganicFarmers’

Association

CertificationofficeNOFA-NYisanorganizationof

consumers,gardenersandfarmerscreatinga

sustainableregionalfoodsystemthatis

ecologicallysoundandeconomicallyviable.They

aretheleadingorganiccertificationorganization

inthestate.

http://www.nofa

ny.org/

607-724-9851

OtherNYSProducer

Organizations

Therearemanyorganizationsspecificto

productioninterests(forexample,NYSApple

Association,VegetableGrowers,ChristmasTree

Growers,etc.).TheNYSDept.ofAgriculture&

MarketspublishesaDirectoryofNewYorkState

AgriculturalOrganizations.

Toviewthis

directoryonline,

visit:

http://www.agric

ulture.ny.gov/Rel

atedLinks.html


34–InformationforGettingStarted


Therearenumerousresourcestohelpyoulearnhowtogrowormarketspecificproducts.Thesearea

fewthathavebeenverifiedforcontent.Readingandresearcharegreat,butifyouwanttostartafarm,

thebestwayistolearnfromfarmerswhoarealreadydoingit!

SignuptoreceivethemonthlySmallFarmsUpdate,whichcontainslinkstoseveraleventcalendars,as

wellasresourcesusefultofarmers:

CornellSmallFarmsProgramUpdateSign-Up

http://smallfarms.cornell.edu/contact/e-news-sign-up/

Websites


Northeast

BeginningFarmer

Project

AcollaborationofCornellSmallFarmsProgram

andseveralotherorganizations,thissiteis

designedtowalkexistingoraspiringfarmers

throughtheplanningprocessofstartinganew

farm.Italsocontainsvideoclips,linkstoonline

coursesfornewfarmers,worksheets,andamap

tohelpfarmersfindpeopletoprovideassistance.

www.nebeginningfarm

ers.org

CornellSmall

FarmsProgram

Containsawealthofinformationabout

production,marketing,andbusinessmanagement

www.smallfarms.corne

ll.edu

607-255-9227

ATTRA

(Appropriate

Technology

TransfertoRural

Areas)

Committedtoprovidinghighvalueinformation

andtechnicalassistancetofarmers,ranchers,

Extensionagents,educators,andothersinvolved

insustainableagricultureintheUnitedStates.

www.attra.org

Toll-freehelpline:

800-346-9140(English)

7a.m.to7p.m.

CentralTime

800-411-3222

(Español)8a.m.to5

p.m.PacificTime

eXtension Aninteractivelearningenvironmentthathas

informationonagricultureproductionand

businessmanagementissues.Theinformation

postedhererepresentsthebestinformation

baseduponresearchersandeducatorsacrossthe

country.Newcontentisaddedregularly.

www.extension.org

RodaleInstitute’s

NewFarm

website

Coverseverythingofinteresttoorganicfarmers

http://rodaleinstitute.

org/farm/newfarm/


Books

Title DownloadOnline

BuildingaSustainableBusiness:AGuideto

DevelopingaBusinessPlanforFarmsandRural

Businesses

AvailableonlineinPDFformatfrom:

http://www.sare.org/Learning-

Center/Books/Building-a-Sustainable-Business

StartinganAgBusiness?APre-PlanningGuide

bySteveRichards

AvailableonlineinPDFformatfrom:

http://dyson.cornell.edu/outreach/extensionpdf

/2004/Cornell_AEM_eb0408.pdf

YouCanFarm

byJoelSalatin

Plentyofadvicefornewfarmers,writtenbya

successfullivestockfarmer

TheOrganicFarmer’sBusinessHandbook

byRichardWiswall

Containsexcellentadviceandaclearprocessfor

managingyourfarmforprofit,alsocomeswitha

CDwithtemplateforms.

AvailablefromChelseaGreenPublishers

JournalsandMagazines

Title DownloadOnline

SmallFarmQuarterly AllarticlesavailableinPDFformatonline

at:http://smallfarms.cornell.edu/quarterly/

AcresUSA–VoiceforEco-Agriculture www.acresusa.com/magazines/magazine.htm

GrowingforMarket www.growingformarket.com

ConferencesandEvents

Name Contact

NOFA-NY–theNortheastOrganicFarming

Association’s(NOFA)ofNYAnnualConferenceis

inJanuaryeachyear

Checkwww.nofany.orgfordetailsinthefall

PASA–thePennsylvaniaAssociationof

SustainableAgriculture(PASA)holdsitsannual

conferenceinFebruaryinStateCollege,PA

Checkwww.pasafarming.orgfordetails

Documents

Acknowledgements - Cornell Small Farms€¦ · equipment and are involved in production; ... Farmers are exempt from paying sales tax on purchases of supplies used in farming. Some