Since 1784 , generations of the Poindexter family have called our patch of Virginia corpse “ family . ” When my father leave to that big barn in the sky , he left behind a farm with sheep , rust fencing material , and a bumper vernonia crop in addition to a tradition of determination and category devotion . Most agriculture heirs face the same decision that confronted our family . The follow consideration unify what our family members wish we had known about our family farm before our Father of the Church ’s passing game and what we have learned in the years that followed .
1 . Develop a transition program . talk about your relatives ’ wishing for the family farm before a health or fiscal crisis arises . An attorney who specializes in acres planning can guide you in determining arrangements that are appropriate for your house ’s need , such as a deed with lifetime rights for the current farm owner , a revocable life trust or a traditional business structure ( i.e. sole proprietorship , partnership or modified liability bay window ) . Additionally , your local cooperative extension offers priceless farm - changeover workshop . Successful transition from the farm ’s past to its time to come relies upon communication and collaboration .
2 . Put your cards — and money — on the tabular array . further the current farm owner and the farm ’s accountant to discuss the fiscal status of the farm . Request elucidation of the following :
• Operational expenditure plus labour cost
• Marketing strategies and production practice
• Payment schedule , interest rates and rate caps on any loans ( Is refinance a possibility ? Do the loanword expect defrayment in full at the time of the borrower ’s end ? )
• taxation ( What are the inheritance and estate taxes ? Does the farm qualify for a lower prop - taxation rate through a Land Use Program ? Contact your county ’s taxation commissioner for a tilt of the necessity . )
3 . Protect the farm . Discuss how the farm property can be safeguarded from case , especially those involving failure or a divorce settlement . A premarital correspondence , family limited partnership correspondence or incorporation of the farm might be good calculate on your state of matter ’s laws .
Furthermore , confabulate your policy company to see if a farm or umbrella liability policy is warranted and to ensure that the farm ’s vehicles and equipment are adequately covered .
4 . Take stock-taking . Note the number and status of seedbeds , livestock , and tumid equipment . launch and uphold accurate records .
5 . Establish goals that are significant to you and your category . Realistically value your interest and capabilities in parliamentary law to attain your aspirations for the farm . determine what you need to reach : improve timber of life ; supplemental income ; tax deductions ; retirement property ; preservation of the family farm for subsequent generation ; personal satisfaction ; et cetera .
6 . Organize . employ a calendar , a notebook , a Microsoft Excel distribute sheet or agriculture software to record your farm ’s income and expenses . Keep receipts and record mileage for farm business . Confer with your taxation professional for advice , and review the Internal Revenue Servicewebsite . understand “ Publication 225 Farmer ’s Tax Guide ” and “ Ten Things You May Not Know About Farm Income and Deductions . ”
7 . discover by doing . Read , enquiry and take questions about the farm . bonk what aim well suit your farm ’s land and placement . Should your farm bring out lemons or lambs ? Experiment with traditional or innovative crop , farm animal and overhaul . look for advice from a wise man , such as a retired farmer . Attend workshops offered by your local conjunct extension , farm service bureau or college . Join agricultural cooperatives or association . Additional information in your surface area of pastime can be get from your land ’s agriculture section andcooperative annexe serviceas well as theUSDA .
8 . cent make dollars . Be wary of the old jest “ How do you make a small fortune by farm ? First , begin with a large fortune . ” determine the motivation versus the wants of the farm . Budget stock consequently , and always liken terms for supplies.9 . Know thy enemies and thy local law . Your county conjunct denotation agent will wreak with you to influence the best ways to resolve dilemma from coyote to cutworm as well as soil eroding or land impingement .
10 . Give back your prison term and talent . Support your local 4 - H Club and FFA . elevate factory farm by purchasing a husbandry licence plate for your car or motortruck . preach for farming insurance policy by contacting yoursenatorsorrepresentativesin Congress . Foster worldwide farming go-ahead by donating to charities such asHeifer International .
