USDA’s Value-Added Producer Grants: Cheat Sheet for Farmers
TLDR*: The USDA’s Value-Added Producer Grant (VAPG) is giving farmers and ranchers up to $250,000 to turn raw products into something more profitable. We’re giving an overview to prepare you to write the grant. The USDA’s Value-Added Producer Grant (VAPG) helps farmers and ranchers turn their raw products into something more profitable—think fruit into jam, wheat into flour, or agritourism ventures. Grants go up to $250,000 and require a 1:1 match. If you’re a small farm, beginning farmer, or socially disadvantaged producer, you might get priority. Deadline: April 17. Need help? We recommend working with a grant writer or at least a consultant because this is a very hard grant to get—more on that below. What’s the VAPG Grant About? The VAPG helps farmers increase profits by adding value to their raw products. Whether it’s processing, marketing, or expanding your sales channels, this grant gives you funds to develop a business plan or cover working capital expenses for a value-added product. Think: A dairy farm starting a cheese-making operation A wheat farmer launching a small-batch flour brand A fruit grower selling jams and preserves A ranch offering agritourism experiences Who’s Eligible? Farmers, ranchers, cooperatives, and producer-based business ventures can apply. This is important to understand because makes it harder to get this funding. You are competing against a lot of agribusinesses around the nation. You may get priority if you are: A beginning farmer A veteran farmer A socially disadvantaged farmer A small or medium-sized family farm A farmer cooperative Proposing a mid-tier value chain Not sure if you qualify? Take the VAPG Self-Assessment Survey. Things to Consider Before Applying This all sounds good, right? Keep this in mind as well: Grants require a 1:1 match, meaning if you apply for $100,000, you need to bring $100,000 in cash, in-kind contributions, or loans. It’s highly competitive—plan ahead and work with a grant writer. Applications require detailed business and marketing plans. Need help with that? Contact us for business and marketing plan assistance! Funds can cover planning (business plans, feasibility studies) or working capital (marketing, processing, inventory). What This Grant Will NOT Cover VAPG does NOT fund: ❌ Regular farming activities like planting, harvesting, or transporting raw commodities.❌ Research and development for new products (your value-added product should already be viable).❌ Purchasing or repairing land, buildings, or equipment (beyond office and computer needs).❌ Paying salaries to owners or family members.❌ Grant application costs or lobbying efforts. Grant Writer Recommendations Talk with the Team How to Get Started Register with SAM.gov – This can take WEEKS, so start early. (This is needed for ALL grants). Take the VAPG Self-Assessment Survey – See if you qualify. Work with a Grant Writer – We recommend connecting with an expert to increase your chances of success. Prepare Your Application – Gather your business plan, marketing strategy, and matching funds details. This is a TOUGH application with lots of pieces, so make sure you set aside lots of time for it! Submit via the USDA Grant Application Portal before the deadline. Need help? We recommend working with a grant writer to navigate the process. We can give you recommendations for grant writers. Click on the “Grant Writer Recommendations” button above. Want More Funding Opportunities? Sign up for our weekly funding email alerts to stay updated on farm grants, loans, cost shares and other opportunities in two steps: Take our FREE Funding Eligibility Survey Sign Up for Weekly Email Alerts *TLDR means too long didn’t read; it’s the summary of this article. We know you’re busy, so we want to let you know what’s going on in 30 seconds or less. Let’s Talk! The VAPG requires for you to develop business and marketing plans for your proposed value-added product. We can help with that, find 15 minutes below to see how we can help you.
Why Every Farmer Needs a Bookkeeper Who Actually Gets Farming
Learn About Farm Bookkeeping Support TLDR*: You need a bookkeeper who understands your farm’s needs. We offer affordable monthly bookkeeping and financial services for farmers, so they can focus on their farm business. Running a farm is more than just planting, harvesting, and taking care of livestock. It’s a full-fledged business, and like any business, financial management can make or break you. The problem? Farming comes with its own set of financial challenges—seasonal income, fluctuating market prices, unpredictable expenses, and the constant changes in tax laws. Farmers need someone who need someone who understands all the wonderful but weird aspects of a farm business, and a regular bookkeeper may not get it. That’s why having a bookkeeper who actually understands agriculture isn’t just a nice-to-have, it’s a game-changer. Here’s why: 1. Farmers Fill Out Different Tax Forms Than Other Small Businesses If we had a nickel for every time we heard of a farmer facing an IRS headache because their accountant submitted Schedule C (Profit or Loss from Business) instead of Schedule F (Profit or Loss from Farming), we’d be retired on a big Montana ranch by now. Not only do you want to make sure your bookkeeper knows what these tax forms are, you want them to set up your books to make it super easy to fill them out. A good agriculture bookkeeper will set this up right from day one (and we even draft Schedule F for our Essentials & Premium customers!) 2. We Understand that Not Everything is Straightforward We understand that multiple revenue streams exist – whether you’re selling at farmers’ markets, through CSAs, online, co-op payments, government payments from crop insurance or NRCS programs, other agribusinesses (processing, value-added products, agritourism) or directly to stores, your income may come from multiple places. A good bookkeeper helps organize all those sources. We also know that your finances may not all be in one place. Some of our farmers use Square for market sales, QuickBooks for general accounting, and another system for tracking grants or farm subsidies. We’ve seen it all, from FarmBooks, FarmRaise, Xero, or another platform, a good bookkeeper understands how to consolidate and make sense of multiple platforms can save you hours of frustration. Learn about Financial Services Talk with the Team 2. Special Deductions and Write-Offs apply Tax season is here, and you might be missing out on deductions. We keep good records to make it easier for you to find legal deductions, create a budget, and have a good foundation for cash flow management. Farm tax laws allow for unique deductions, such as equipment depreciation and conservation expenses. We help farmers navigate the complexity that comes from living on the farm where their mortgage and utility bills might be split between farm and personal books. Better records = better decisions. 3. Income is Seasonal (So are Expenses) You have to consider harvest season, selling at markets, and other factors that changes your farm revenue. A knowledgeable bookkeeper helps manage cash flow so you can cover expenses year-round. We also understand that expenses are seasonal since farmers often purchase inputs at the beginning of the year. We account for that, too. 4. Unexpected Expenses Happen Equipment breaks down, weather impacts crops, or feed costs spike. Having someone who knows how to adjust budgets and plan ahead makes these surprises easier to handle. Plus, having a knowledgable bookkeeper can help you prepare for a loan when needed. We’re Not CPAs, We’re Just Really Good at Numbers While we specialize in farm bookkeeping and financial services, we are not Certified Public Accountants (CPAs). We work alongside farmers to manage daily finances, organize records, and provide insights, but we recommend consulting a CPA for tax filing and legal financial matters. Affordability Matters—And We Get It We know that every dollar counts on the farm, so our bookkeeping services are designed to be affordable while still giving you the financial clarity you need. We believe in transparency in our prices, we can tell you what your one-time and monthly cost is upfront. Whether you’re a small family farm or a larger operation, we offer flexible pricing to fit your budget—so you get expert financial support without breaking the bank. *TLDR means too long didn’t read; it’s the summary of this article. We know you’re busy, so we want to let you know what’s going on in 30 seconds or less.
Preparing for Tax Season Webinar Recording
https://youtu.be/HrNnLMA86hI This is the third webinar in our Winter Webinar . This was designed for farmers, ranchers, and agribusinesses ready to take their financial management to the next level! In this session, Missed our “Preparing for Tax Season” webinar? No worries—we’ve got the full recording for you! In this session, Darrell K. Tennie, CEO of The Tennie Group, and Allen Osorio, Good Agriculture’s Financial Lead, break down key tax strategies for farmers to keep more money in their pockets and stay compliant. Topics Covered: We offer affordable bookkeeping and financial services designed just for farmers.Topics included: Choosing the right business entity (Sole Prop, LLC, S-Corp & more) Record-keeping tips to maximize deductions & avoid IRS headaches How depreciation can lower your taxable income Why separating personal & business finances is a game-changer Filing requirements & must-know tax deadlines If you missed previous webinars, or want to relive the fun again, visit our Webinar Series page. Prepare for Tax SeasonWe’re here to make tax season easier for farmers. Whether you need your books cleaned up or Schedule F Form 1040 Schedule F and Form 4562 drafting with Good Agriculture, or you want to get your taxes files with The Tennie Group, we can help you get your business on track. Contact Good Agriculture Contact the Tennie Group Special Offer: 40% Off 2 Months Need to get your bookkeeping in order? Want to know how much cash you have on hand throughout the year? We’re offering 40% off the first two months of our Financial Services. If you want to learn more, find 15 minutes to talk.
From Field Notes to Farm Data: Speaking Your Way to Better Records
Let’s Make Data Collection Easier on Your Farm Ever had that moment where you’re staring at a struggling crop, knowing you did something different last year when it thrived, but can’t quite put your finger on what? We’ve all been there. Between hastily snapped photos, scribbled notes, and those “I’ll definitely remember this” moments that fade faster than morning dew, keeping track of farm data can feel impossible. Modern farming generates an overwhelming amount of valuable information – from soil tests to harvest weights, pest observations to fertility applications. But too often, these crucial details end up scattered across notebooks, phone apps, or worse, lost in our memory. That’s why at Good Agriculture, we asked ourselves: What if capturing farm data was as simple as talking? For the past six months, we’ve been exploring this question with a group of innovative farmers near Atlanta. The concept is straightforward: farmers record voice notes throughout their day, and we transform those spoken observations into organized, searchable data that reveals patterns and connections across their operation. Let’s look at what this looks like in practice. One of our North Georgia farmers has been documenting their lettuce production through voice notes. Here’s how their casual observations transformed into useful data: Another farmer in our trial has been tracking their protected growing space: The power of this system lies in its simplicity. No typing, no data entry – just speak your observations as you work. Want to know when you applied that soil drench? Curious about your succession planting intervals? It’s all there, organized and searchable. The potential applications are exciting: Track crop rotations and field histories effortlessly Streamline organic certification documentation Receive smart reminders based on your farm’s patterns Identify successful (and not-so-successful) practices across seasons But this is just the beginning. To build something truly valuable for farmers, we need your input. We’re particularly interested in connecting with annual vegetable growers who want to help shape this tool’s development. We want to know: What farm information currently slips through the cracks? Which data relationships would most benefit your operation? How would voice-to-data fit into your daily farming routine? Help us build a better tool for farmers. Share your thoughts and experiences here. We’re eager to learn how we can make this system work for your farm.
Federal Funding Freeze – What Does This Mean for Farmers?
Get 30 Days Free Weekly Alerts TDLR*: We’re as confused as you are, but this is what we know so far about the federal funding freeze. Because all of of this uncertainty, we want to help farmers and ranchers by giving you 30 days free of weekly funding email alerts. The Federal Funding Freeze: What Happened and Where Things Stand There’s many moving parts, making this confusing, so here’s what we know so far about the federal funding freeze: The Timeline January 28: The White House budget office ordered a pause on all federal grants, loans, and financial assistance programs, according to a memo released Monday. Later that day: A federal judge temporarily blocked the funding freeze, issuing a stay that lasts until Monday, Feb. 3. The ruling applies only to existing programs. January 29: The Office of Management and Budget rescinded the memo that called for the freeze but left the broader spending review in place. The administration says federal agencies should consult legal counsel about how to implement the executive orders on funding. January 31: A second federal judge issued another temporary pause, siding with nearly two dozen states challenging the freeze. The ruling prevents most federal agencies from halting funding while the case moves forward. The administration opposed the ruling, calling it “sweeping relief.” February 3: The first federal judge extended the block on the federal funding freeze. This was due to several non-profit organizations claiming they were struggling to receive promised funds. February 11: Some farmers have reported issues with USDA funding being frozen, including funds related to conservation programs established under the Inflation Reduction Act of 2022. The USDA has also informed some farmers that their contracts with the NRCS’s Environmental Quality Incentives Program (EQIP) have been frozen, with no clear timeline for when they will be released. The situation is still evolving. While the freeze has technically been lifted, legal challenges continue, and the broader review of federal spending is still in place. Stay Updated We’re tracking this through these non-partisan sources: AP News NPR PBS News Our Offer: 30 Days Free of Weekly Funding Alerts To ease the whiplash of the funding freeze saga, we want to make sure that farmers and ranchers are aware of the funding opportunities available for the farm. So, while the powers that be figure things out, we’re flipping the script: we’re giving you 30 days free of weekly funding email alerts (or longer if until the situation is fully resolved). Take Funding-Matching Survey Get 30 Days Free Weekly Alerts During this time, we’ll keep you updated on the status of federal programs along with state/local programs, nonprofit programs, and private programs in our weekly email funding alerts. We know that these programs are a lifeline for the farming industry, and uncertainty is the last thing anyone needs right now. What is this service and why do you need it? We keep you updated on the latest funding opportunities for your farm, saving hours of time searching. How this works: we send farmers and ranchers weekly email funding alerts that includes local, state, regional, and federal grants, loans, and cost-shares. Since we’re in a limbo, we’ll keep you updated on the status of federal programs (and state/local programs, nonprofit programs, and private programs). Once the freeze is officially over, we will continue to send funding email alerts your way. To get weekly email alerts, you must take our free funding-matching survey, so we know what funding opportunities fit your farm. *TLDR means too long didn’t read; it’s the summary of this article. We know you’re busy, so we want to let you know what’s going on in 30 seconds or less.
Prepare for Tax Season with Us and a Tax Professional
Ah, tax season—the most wonderful time of the year, right? Okay, maybe not, but we’re here to make it a whole lot easier for you. Whether you’re staring at a stack of receipts/bank statements or wondering how to tackle those tax forms, we’ve got your back. Join us for our Preparing for Tax Season Webinar happening on February 18, at 6:30 p.m. EST. We’re bringing together a team to help farmers like you get through tax season with less stress and more confidence. We’re not CPAs, so we’re excited to have Darrell Tennie, MBA, MA, from The Tennie Group out of Raleigh, North Carolina join us to share professional advice for farmers and agribusinesses. Topics Include Preparing your books for tax season – learn how to stay on top of monthly bookkeeping to make tax prep smoother (and never miss a deduction). Complying with (and minimizing) all kinds of taxes farmers have to pay – we’ll cover federal and state income taxes, sales taxes, use taxes, and property taxes Filing your taxes efficiently – We’ll dive into smart strategies to help you save time and avoid headaches when it’s time to file. No matter where and how you farm, you have to file taxes, so this webinar is for you. Tax prep isn’t one-size-fits-all, but we’ll help you understand the essentials and connect you with resources that make sense for your operation. Register for Webinar Talk with the Team And check out our blog Preparing Your Farm for Tax Season too. We cover farm income Schedule F, not Schedule C, Form 4562, W-2s for your employees, 1099s for your contractors, and all the other tax-related acronyms you need to know. Learn More About Darrell Tennie Darrell Tennie, MBA, MA, is the Chief Executive Officer of The Tennie Group. They’re experts in agriculture taxation, agriculture payroll and crop insurance and finding opportunities to help farmers succeed through agribusiness development. They’ve been helping farmers since 2014. Learn More Got a Question? Let’s Talk! If you have a question for us, let’s find 15 minutes to answer your questions. Find a time below that works for you.
Advanced Farm Financial Management Webinar Recording
https://youtu.be/_OpwwsFwUvY?si=3QkCi3rCfefrZ-tO This webinar was designed for farmers, ranchers, and agribusinesses ready to take their financial management to the next level! In this session, Alex, CEO of Good Agriculture, and Allen, Farmer Financial Lead, covered advanced strategies to strengthen your farm’s financial foundation. Topics covered strategies to help farmers manage their money and make smart financial decisions. Topics included: Breaking down your farm’s profitability by enterprise (because knowing where your money comes from matters). Cash flow management and budgeting tools to keep your operation running smoothly. Tips for accurate cost allocation—because every dollar should have a purpose. We also walked through a real-life case study to show how better bookkeeping and scenario planning can help avoid cash flow problems. Plus, we shared some handy Excel templates you can use right now to stay on top of your finances. Download the templates below. Preparing for Tax SeasonSign up for the Preparing for Tax Season Webinar on Feb. 18 at 6:30 PM EST. We’ll dive deeper into understanding financial statements like income and cash flow statements and more. The team will be back to give you tools and suggestions that will help you tackle your taxes with confidence. If you missed previous webinars, or want to relive the fun again, visit our Webinar Series page. Register for Webinar Get Financial Management Template Special Offer: $200 Off – Ends Jan. 31! We’re all about making farm finances simpler, and right now, check out our $200 off offer on either onboarding for our monthly services or a one-time financial cleanup until Jan. 31.
Master Your Farm Finances: Bookkeeping, Budgeting, and Tax Tips Webinar
Sign up for Webinar Running a farm is no small feat. Your days are packed with tasks that demand your attention. But one area that can’t afford to be overlooked is your farm’s finances. That’s why we’re hosting an upcoming Advanced Farm Financial Management Webinar on January 21st from 6:00-7:00 PM—a dedicated session to help you take your farm to the next level. Keeping your finances in order is not just a best practice; it’s a necessity for every farmer aiming to grow their business. Our friends at the American Farm Bureau Federation found that over 140,000 U.S. farms were shut down between 2017 and 2022, and another 5,000 stopped operations from 2022 to 2023. Whether you’re preparing for tax season, applying for grants, or simply trying to understand if your farm is truly profitable, financial clarity is key. In this webinar, we’ll help you take your farm’s financial management to the next level with strategies for tracking cash flow, assessing profitability, and closing your books monthly to stay organized and ahead. Why Keeping Your Finances in Order is Crucial For many farmers, managing finances is intimidating. You didn’t get into farming to crunch numbers—you’re here to grow food, raise animals, and cultivate the land. But if your finances aren’t in order, it’s like building a house on a shaky foundation. Financial disorganization can lead to costly mistakes, missed opportunities, and unnecessary stress, which you can’t afford with tax season around the corner. According to the USDA, only 39% of small farms and 46% of medium-sized experienced positive income in 2023. How’s your farm looking? Keeping track of income and expenses is one of the most important aspects of running a successful farm. It’s not just about knowing how much money is coming in or going out. It’s about understanding where your resources are being spent and finding areas where you can save or reinvest. For instance, categorizing expenses properly—like knowing which purchases fall under farm equipment versus operational supplies—can make a big difference when it’s time to file taxes or apply for loans. Our marketing team wants us to put a disclaimer in here to say we are NOT CPAs, we’re just really good at the numbers. Our webinar series will cover the basics of organizing transactions, keeping personal and business expenses separate, and building financial statements like Profit & Loss reports, Balance Sheets, and Cash Flow Statements. These are the tools that let you see the bigger picture and help you make smarter decisions for your farm. Relieve Tax Season Stress Before It Starts Tax season has a way of sneaking up on all of us, and for farmers and ranchers, it comes with its own unique challenges. With filing the Schedule F (Form 1040), deductions to claim, and depreciation to calculate, it’s no wonder taxes can feel overwhelming. But the good news is that with a little preparation, tax season doesn’t have to be a source of anxiety. Form 4562 (Depreciation and Amortization) helps you deduct the depreciation of your farm assets, like equipment, over time. We’ll guide you through filling it out to ensure you get the most savings and stay on track with your taxes. One of the key takeaways from our webinar series will be how we help our farmers and ranchers get ahead of tax season. This includes understanding forms like Schedule F (Profit or Loss from Farming), which is also part of Form 1040, organizing your receipts and invoices, and tracking depreciation on your equipment. We’ll touch on the importance of working with professionals who understand farm-specific tax rules. While we’re NOT CPAs and can’t file your taxes for you, our team at Good Agriculture specializes in helping farmers manage their books, making it easy to file with a CPA or a tax filing software like TurboTax. Yes, we prepare the paperwork for our Essentials and Premium Financial Services customers, and they take it to file with a CPA. We make it that easy because we understand how daunting it can be. Whether it’s ensuring your records are accurate or providing insights into cash flow, we’re here to lighten the load. IRS Schedule F Form Sign Up Here! Take the First Step Toward Financial Clarity The Advanced Financial Management Webinar is more than just an informational session; it’s a chance to take control of your farm’s financial future. We’ll break down complex topics into easy-to-understand steps, leaving you equipped to tackle your finances with confidence. Whether you’re just starting out or looking to improve your current systems, this webinar will provide the foundation you need to succeed. Don’t let financial stress hold you back from building the farm of your dreams. Join us for this valuable session and see how Good Agriculture can support you every step of the way. Don’t know where to start? Sign up to get tips on getting your farm finances in order before the end of the year. How We Help Agribusinesses Managing a farm’s finances might seem like an uphill battle, but you don’t have to do it alone. At Good Agriculture, we’re dedicated to helping farmers like you focus on what you do best—farming—while we handle the back-office work. Our services are designed to do the bookkeeping and financial management for your farm so you can spend less time stressing over spreadsheets and more time growing your operation. Here’s how we help our farmers, ranchers and agribusinesses: Basic Bookkeeping: We’ll keep your books organized, categorize your expenses, and ensure your records are accurate and up to date. Financial Insights (Essentials and Premium): Our team can help you analyze your data to uncover trends, identify cost-saving opportunities, and plan for the future. Tax Preparation Assistance (Essentials and Premium): While we’re not accountants, we’ll ensure you have everything in place for a smooth tax filing process. From organizing your documents to tracking deductions, we’re here to help you stay ahead. I Want a Free Financial Services Consultation If you know your farm needs help, but you’re
Farm Bookkeeping Basics Webinar Recording
https://youtu.be/xlLZT-hakbY?si=99Do6lydVe79_z11 This webinar was for farmers, ranchers and agribusinesses to get their books and finances ready for tax season! In this session, Alex, CEO of Good Agriculture, and Allen, Farmer Financial Lead, cover basic tips and strategies to clean up your books before the end of the year. Topics included: The importance of bookkeeping for tax preparation, funding applications, and business success. Tracking sales, categorizing expenses, and use Schedule F effectively. An overview of accounting tools like QuickBooks and Xero to streamline your finances. Advanced Farm Financial Management WebinarSign up for the Advanced Farm Financial Management Webinar on Jan. 21 at 6 PM EST. We’ll dive deeper into understanding financial statements like income and cash flow statements and more. Register for Webinar Get Financial Management Template 40% off of Two Months of Financial Services Want to get your books in order for tax season? We can help you with bookkeeping and financial services to keep your farm compliant and increase profits, which saves you time and money! As a gift to you, we’re offering 40% off your first two months of financial services. This doesn’t include your one-time onboarding fee (the fee includes setting up accounts/reports and cleaning up your books). Our farmers save 5-10 hours each week and enjoy an average profit increase of 16%. We’re ready to help you too!
A Great New Opportunity for Farmers: FSA Provides Grants for Specialty Crop Growers
FSA just released an exciting opportunity for vegetable and fruit growers and farmers, the Marketing Assistance for Specialty Crops (MASC) program. The deadline for application is January 8th so you’ll need to get started soon!
Farm Accounting Basics Webinar
Our hearts go out to everyone impacted by the devastation of Hurricane Helene. While the webinar was recorded before the storm, we are deeply committed to supporting our farming communities, and we’ve included links to relief efforts in the article to help those who need it most during this challenging time. Included Links to Our Relief Efforts https://youtu.be/6dmTHCozFxI?si=5gdZTvHmp3JMA-OT Let’s be honest—bookkeeping isn’t exactly the part of farming that gets your boots muddy or your hands in the soil. But managing your farm’s finances is just as crucial as planting and harvesting. If you’re tired of receipts piling up, using pen and paper for bookkeeping, or cringing at tax time, we’ve got something to make your life easier. We recently hosted a Farm Accounting Basics Webinar where we broke down the fundamentals of farm bookkeeping in a way that makes sense and won’t put you to sleep. We aren’t CPAs, so we don’t speak in numbers, we just translate them. This is about making sure your farm thrives. Whether you’re preparing for tax season, applying for a loan, or just want to know if you’re actually making money from all your hard work—understanding the basics of farm bookkeeping is key. If you’re still not sure where to start, or have a question, shoot us an email and we can help. We have a 40% off first three months of bookkeeping special until October 12. If you’re not sure if you want to start, but you want to see if we can help your farm’s finances, book a 15-minute call where you talk with the team to see how we can help. Send us an Email Book a Free Consultation What You’ll Learn We covered everything you need to organize your finances and set your farm up for success. We talked about how to categorize income and expenses (because not everything at Tractor Supply fits neatly into one box), and why keeping track of personal vs. business expenses matters more than you’d think. Plus, we walked through Profit & Loss Statements (yep, that’s your trusty Schedule F), Cash Flow Statements (because running out of cash in February is never fun), and Balance Sheets (the tool that lets you peek into the long-term health of your farm). It’s all about understanding where your money goes and how to make it work better for you.. Bonus Content We also touched on depreciation and loan management—two topics that often confuse even the most seasoned farmers. We broke it down so you can confidently manage your assets and debts, and make the best decisions for your farm’s future. National Farmer’s Day Special We aren’t tax professionals, but we do help you get your bookkeeping in order to ease into a smooth tax season. We’ve got a special offer just for farmers—sign up for our Financial Management service and get 40% off your first three months, offer ends October 12. Here’s why our farmers stick with us: we save them time (5-10 hours a week) and boost their bottom line (on average, our farmers are 5% more profitable). Fill out the form below, and let’s make this tax season the smoothest one yet! Get Started Today
Recovering Together: Supporting Farmers Affected by Hurricane Helene
We know these past few weeks have been incredibly challenging for those affected by Hurricane Helene. To help ease the recovery process, we’ve tagged links to essential resources within this post, offering support and relief options for farmers and communities impacted by the storm. As Helene swept through Georgia, Florida, South Carolina, North Carolina, Tennessee, Virginia, and beyond, it left a devastating path in its wake. Farms, homes, and livelihoods have been turned upside down, and we want to extend our deepest sympathies to everyone affected. You are not alone in this. At a time when rebuilding seems overwhelming, community support is more important than ever. That’s why we have a resource list, thanks to the Regenerative Farmers of America and American Farmland Trust for compiling the list of information. Whether you need help replacing lost equipment, restoring damaged land, or just need support navigating the complexities of recovery, these resources offer a solid starting point. Florida Disaster Unemployment Assistance Florida Disaster Nutrition Assistance Florida Disaster Recovery Loan Program Mental Health Resources Georgia Georgia Farmers Fund Georgia Hurricane Response Resources Reporting Crop Damage North Carolina Emergency Programs – Disaster Information Emergency Unemployment Assistance Food and Nutrition Services North Carolina Individual Assistance South Carolina Clemson University Hurricane Relief Resources South Carolina Emergency Management Services SCBAR: South Carolina Legal Help Tennessee University of Tennessee Resources Volunteer Tennessee Hurricane Relief Resources Nashville Disaster Relief Resources East Tennessee Resources Virginia Virginia Disaster Relief Fund Virginia Emergency Support Team Virginia Tech Relief Resources Virginia Voluntary Organizations Active in Disaster Resources This isn’t just about rebuilding structures—it’s about restoring the land you’ve worked so hard to cultivate, and finding ways to keep moving forward. The farming community is one of resilience and strength, and together, we can rise from this disaster stronger than ever. In addition to the resources we’ve already listed in this article, several additional relief programs and extensions have been put in place to help those affected by Hurricane Helene, especially in the hardest-hit farming communities. Here are a few key updates: IRS Filing Deadline Extension: For those in areas impacted by the hurricane, the IRS has extended the tax filing deadline to May 1, 2024. This extension provides much-needed extra time for farmers and business owners to gather important documents and recover without the pressure of the usual tax deadlines. These are just a few additional efforts available to help you get back on your feet. Be sure to explore the other relief resources we’ve tagged throughout this post for more information and support specific to your area. Check out the full list of relief resources below, and don’t hesitate to reach out if there’s anything more we can do to support you during this difficult time. Stay safe, stay strong, and know that we’re here with you every step of the way. USDA Disaster Assistance Programs
Lost in Bureaucracy: Uncovering EQIP Deadlines for Farmers
Before we dive into the EQIP opportunities, we want to take a moment to acknowledge the devastation caused by Hurricane Helene. Our hearts go out to all those affected across the impacted states, and we are so sorry for the challenges you’re facing. We’ve included links to relief efforts to help support your recovery during this difficult time. Links to Our Relief Efforts What is EQIP? Each state gets federal money for EQIP – Environmental Quality Incentives Program. This is how farmers can get cost shares for things like installing water infrastructure, cover cropping, or fencing for rotational grazing. Since EQIP is one of the biggest sources of funding for small farmers, we always try to point folks towards it. Which leads to the logical question – what’s the deadline? It changes for each state. Makes sense, each state has different priorities and time frames. Finding EQIP Deadlines Should still be an easy question to answer, right? Surely there’s a list somewhere on the internet… search “state EQIP deadlines”…. no… “EQIP ranking dates”… no… “EQIP timeframe Maine”… still no… Ok, let’s have an intern call each state NRCS office. Surely the folks in the agency that administers EQIP would know the state’s deadlines. That got us dates for 25 states and 75 unreturned calls. NRCS conference in late 2023, I stood up and asked why there wasn’t a list of EQIP deadlines. “Oh, that exists!” came the response, “just go to each state’s NRCS page… wait, no, it’s not there… Isn’t there a page with all the dates listed? I guess not, someone should do that!” So we did. We subscribed to every state and county USDA newsletter. We set the emails up to forward into a database where an AI scans them to see whether EQIP is mentioned and extract the state and deadline if it is. The system took about 80 hours to set up, and it does pretty decently, we had 44 out of 50 deadlines when we ran it last week. So I hopped onto Google to see if I could fill in the last six. “North Carolina EQIP Deadline”… 10/31… “Montana EQIP Deadline”… oh, right, they do theirs differently with targeted initiatives… “Illinois EQIP Deadline”… View each state’s EQIP deadlines You have GOT to be @%^($<! kidding me!!! According to the Internet Archive, that page has existed since Fall of 2022. So somehow, in two years of looking, with multiple people searching (including NRCS employees) no one found it. Too Long; Didn’t Read (TL;DR) EQIP can provide funding for work on your farm you were going to do already. NRCS is, like every government agency, so bureaucratic that even the most basic tasks are a challenge. After spending hours trying to create a list of EQIP deadlines, we created a tool to parse emails for each state’s deadline. Only to find that the list we needed existed all along and nobody knew about it. View each state’s EQIP deadlines Weekly Funding Email Alerts Our email parsing system also checks for funding programs other than EQIP, fortunately, so all our effort was not lost. We’re checking 700+ emails a week for programs you can use to get funds for your farm. Would you like a weekly email with all the open programs you’re eligible for? Check out our Funding Notification Service email subscription. It’s $3/month, and you’ll never miss a deadline again. Get 30 Days Free of Weekly Email Alerts
Preparing Your Farm for Tax Season
For those of you who filed an extension on your taxes, Tax Extension Day (October 15) is right around the corner! For the rest of you, tax season might seem like a far-off concern, but it’s never too early to start getting your farm’s finances in order. While we’re not CPAs and this isn’t official tax advice, we’re here to share some best practices we’ve seen help farmers navigate this time of year. Think of this as a helpful guide rather than a strict rulebook—and consider consulting a professional for specific guidance tailored to your situation. Understanding Tax Forms First up, understanding the key tax forms for farmers is crucial. The Schedule F—Profit & Loss From Farming—is specifically for farmers. If you’re working with a non-agriculture CPA, make sure they’re using this form instead of Schedule C for your farm income. Schedule C is meant for other types of businesses; make sure you fill out the correct one. You’ll also need Form 4562 for depreciation, which covers the gradual expense of capital assets. Depreciation can get complicated, so a simple “half-year straight line depreciation” method might be a good start if you’re handling it yourself. For personal tax returns, Form 1040 will be essential, especially since farm income often shows up here if your farm is an LLC. If you have any side businesses—like value-added products or agritourism—don’t forget Schedule C for those ventures. And for anyone employing staff or contractors, W-2s and 1099s need to be filed by January 31. Most payroll software can handle these automatically, but be sure to keep an eye on deadlines. Quarterly Tax Payments Profitable businesses (those that owe some income tax) are required to make estimated quarterly tax payments. Farms are only required to make one estimated payment by January 15 (per the IRS, you’re a farm if at least two-thirds of your gross income is from farming). No need to worry about payments in April, July, and October. When you file your official, final tax return on April 15 (or October 15, if you’re reading this blog post), your payment from your estimated payment will be taken out of what you owe. How to Maximize Your Deductions Maximizing your deductions is all about meticulous record-keeping. Don’t overlook joint personal and farm expenses if you live on the farm—items like mortgage interest and utilities could be partly deductible. Vehicle mileage is also worth tracking, especially if you have older vehicles. And keep in mind, while loan principal isn’t deductible, loan interest is. Cash expenses should be noted too. Keeping your receipts is vital—aim for the last seven years. Whether you use physical folders or an online receipt management tool like Hubdoc, having organized records will make tax season smoother. When it comes to depreciation, understand that capital assets—like breeding stock or equipment—need to be depreciated over their useful life. Agriculture depreciation can be tricky, with different methods available. If you have significant capital to depreciate, consulting a CPA might be worth the investment. Don’t forget about state and local taxes. Most states offer agriculture property tax exemptions, but you need to apply for them. Also, check your local regulations on sales taxes for agricultural products and any exemptions that might apply to your farm purchases. We hope this guide gives you a solid starting point. Remember, we’re not tax professionals, but we want to help make this season a little less daunting. For tailored advice, always consult with a certified professional. Get Started Today
The Numbers Make Cents
Our Financial Management Service is turning the financial tides for our farmers. If you’re not a numbers person (and let’s face it, who really is?), we’re breaking it down, so that we’re not just ranting and raving about our stats. So, what’s going on? As part of our anniversary celebration last month, we took a deep dive into the monthly finances of our customers with at least six months of work with us. We wanted to see how our financial wizardry has been working for them. Before Working with Us Our farmers were feeling a bit like their wallets had holes in them. On average, they were operating at a loss. But then we stepped in with our Financial Management Service, and things started looking up. After Working with Us Drumroll, please! Our farmers are now seeing a 5% increase in revenue. That’s right—what used to be an average monthly revenue of $97,100 has jumped to $101,600. That’s an extra $4,500 in their pockets each month! If we take a closer look at just our smaller farmers, they’re seeing a remarkable 27% increase in revenue, with average monthly revenue jumping from $8,100 to $10,300. This means an additional $2,200 each month for these dedicated farmers! We know every farm is as unique, so we looked at the numbers for our “median” farmer—the one right in the middle of the pack. Guess what? Their profit margins have improved by 2 percentage points since they started working with us. But wait, there’s more! Our long-term customers—those who’ve been with us for over a year—are seeing their farms become more profitable. These dedicated farmers have seen their profits go up by 16% on average. And we wanted to see if we were providing a good value for our farmers. We calculated that our customers had seen a 1500% ROI on their investment with us — for every $1 they spent on our financial management, they have gotten $15 more profitable on average! Saving Money AND Time And here’s a little secret: it’s not just about the dollars and cents. Our Financial Management Service is also saving our farmers a whopping 5 to 10 hours of work every single week. That’s time they can spend time doing what they love—whether it’s planting, harvesting, or just taking a well-deserved break. It’s not just about numbers—it’s about giving you the time and peace of mind to focus on what really matters. Happy farming, and here’s to a future full of financial growth! Here’s the obligatory form that marketing makes us put in:
Celebrating Two Years of Helping Farmers and Ranchers
Reflecting on the past two years and looking ahead towards the future. Every decision we make at Good Agriculture is centered around our farmers. Our mission is plain and simple: we’re here to make sure you succeed. Get FREE 30 Day Trial for our Funding Notification Service Happy Birthday to Us! The past two years have been a wild ride… The median farmer who used our financial management service had a 2 percentage point increase in profit margins. Our grants team has won nearly $1 million in funding for our farmers. Every farmer who’s worked with us is still in business and we’re still helping them manage their companies so they can manage their farms. When you win, we win. That’s why everything we do is aimed at helping you thrive in what you do best—farming. Why We Do It Our recent milestones really hit home for us. First, we finally figured out how to measure across our farmers and realized that our customers are 6% more profitable than they were before they started working with us. And second, we won two major grants that brought our total won to date to just shy of $1 million ($980,000, to be exact). We can do that because we are farmers – and those of us who aren’t farmers, we make sure they get some dirt based hazing every so often. You can’t serve farmers without knowing what it’s like to have dirt embedded into your fingerprints. Partnering for Success with Harvest Returns Just a few months back in March, we teamed up with Harvest Returns, a leader in agricultural investing. Partnering with Harvest Returns was a natural step forward in our mission to empower farmers and ranchers across the country. Harvest Returns brought a wealth of expertise and resources in agricultural investing, specializing in connecting investors with sustainable farm operations. Their platform facilitates access to crucial capital that many farmers need to expand and thrive. UGA Partnership and Beyond Then in April we joined forces with the University of Georgia’s (UGA) Value-Addition Institute for Business Expansion (VIBE). UGA was granted a $1.5 million grant from the USDA, to grow Georgia’s rural food businesses. We’ll be working to help them on personalized support to hands-on workshops, and we’re paving the way for new opportunities for those farmers to get support. Launched the Funding Notification Service In May we launched our new Funding Notification Service (FNS). We tailor emails so you will only receive local, regional and national funding opportunities that are relevant your farm. We want to offer it to you FREE for 30 days, you can sign up here, or fill out the form below. (Yes, our marketing team made us add this in here.) Our FNS is designed with one goal in mind: to simplify the process of finding funding opportunities for farmers. We handle the legwork of researching and compiling information, allowing you to make informed decisions without the stress of constant research. When you have a grant and project in mind, reach out to us. We need you to know what you want to do, but once you have a project and grant in mind we’re happy to help you turn it into a winning application. Coming Up – What if Data Collection Were Easy? Imagine telling your phone “We just harvested 495 lbs of radishes from Row 19, Field B” and being able to see that these are French Breakfast Radishes planted 42 days ago with seed from Johnny’s; the field was amended with 7% potash prior to planting; it rained twice totaling 1 inch and irrigation ran another three times; this field was cultivated twice while the radishes were in the ground; this is a 17% reduction in yield from what was projected. Your farm data, easily collected and curated so all you have to do is narrate your actions and observations. We’re going to be building out version one of this tool over the next 8 months. ATTN Georgia Farmers: If you’re growing lettuce within a 2-hour drive of Atlanta this fall, reach out – we’re recruiting 10 farmers to help us shape version one, and it’ll hopefully roll out to a wider audience in 2025! Looking Ahead We’re not just another service provider—we’re your neighbor with over 15 years of experience in marketing, grant writing, and financial management. We’re here to help you thrive in a tough industry. So, let’s keep this momentum going together. Reach out to us today and let’s chat about how we can support your farm’s unique needs. Your farm’s success is our success Get First 30 Days FREE: Funding Email Alerts FREE TRIAL FOR 30 DAYS. Who’s missed a deadline to apply for funding? It’s one thing to get a list of programs you’re eligible for – they may not be open, and you have to track each one to know when they’re open and apply. And when things get busy and you forget to check, whoops, you just missed your window. There’s over $11 billion in funding for farmers in the US, and we want to help you get what you’re eligible for. That’s why we created the Funding Notification Service. We want you to try it 30 days free. For just a $3/month, we’ll let you know when the programs you’re eligible for are open. How does this work? 1) Fill out the form below. 2) You take the farm funding eligibility survey, and the results with your general eligibility are on their way to your inbox. You need to do this in order to receive our weekly email. 3) Decide whether to apply! You’re free to do the application yourself, check in with us for some quick guidance, hire someone else to write for you or have us handle the entire application!
From Grass to Green: The Power of Rotational Grazing
Have you ever wondered how cows could become environmental allies? It’s not just a fantasy; it’s a practical strategy that’s reshaping farms and landscapes. Enter rotational grazing – an open secret that’s been hiding in plain sight, which benefits for ranchers, cattle, and the environment. Rotational grazing challenges the traditional continuous grazing approach of letting cows stay in one big field all the time. Instead, it means moving them around to different smaller areas. It’s like giving each patch of grass a break while the cows munch on fresh grass elsewhere. This strategy allows forage plants to rest and regrow, which leads to impactful benefits on the Earth and farm. But why listen to us? We handle the business side of farming, so we reached out to farmers we work with to hear about their practices. Jake Puckett from Crow Fly Farms who’s embraced a holistic management style and uses rotational grazing, shares his experience, “By mimicking natural systems, you can greatly reduce inputs by placing animals in an environment where they thrive. Our animals are getting a more diverse diet because they are constantly on the move and less selective with their grazing.” “Extended recovery periods and animal impact allows us to produce more forage in our pastures than other more conventional operations. Root systems are able to reestablish and benefit from the concentration of fertilizer provided by our cattle and sheep. We move our animals to new paddocks every day and shoot for 45-60 days of recovery before returning to the same area. We’ve seen dramatic changes in forage quantity and quality since implementing this practice,” he added. What exactly makes rotational grazing so beneficial? The answer lies in its many advantages: Improved Forage Quality and Yield: By allowing forage time to regenerate, rotational grazing enhances the nutritional quality and volume of available feed, benefiting both the cattle and the overall ecosystem. Enhanced Forage Utilization: Cattle graze more evenly across different forage types, reducing overgrazing in certain areas while promoting healthier growth in others. Soil Health Boost: Rotational grazing stimulates soil microbial activity, improves water retention, and aids in carbon sequestration, leading to healthier pastures and enhanced environmental resilience. Cost Reduction: Healthier pastures mean reduced dependency on herbicides, fertilizers, and winter feed, translating to significant cost savings for ranchers. The Challenges While the benefits are clear, transitioning to rotational grazing isn’t without its challenges. Initial infrastructure investments and the need for increased management time are common hurdles. However, with support from programs like the Environmental Quality Incentives Program (EQIP) offered by the Natural Resource Conservation Service (NRCS), ranchers can receive financial assistance and technical guidance to ease the transition. Carbon Credits We understand that for your farm to flourish financially, you need a balance of earning and saving. Carbon credits and certifications like the Regenerative Organic Certified® mark are more than just badges of honor. They bring tangible benefits to your farm, including enhanced credibility in the farmer’s market, access to premium markets and buyers, and a clear demonstration of your commitment to environmental stewardship. These credentials not only validate your efforts but also open doors to new opportunities, partnerships, and increased value for your products. Now, let’s meet Fernando Mendez from Marview Farms, a self-taught livestock farmer embracing regenerative practices. He reflects on his journey toward getting those carbon credits for his farm, “We’ve been practicing rotational grazing for a long time, and with Good Agriculture’s help, we’ve been able to earn carbon credits for our eco-friendly practices. They helped me navigate the complexities of the application process, securing credits that not only saved us paperwork headaches but also helped us save money.” At Good Agriculture, we understand the importance of sustainable farming practices like rotational grazing. Our services go beyond traditional consulting; we’re your partners in making your farm thrive. Whether it’s optimizing grazing strategies, navigating conservation programs, or streamlining operations, we’re here to support you every step of the way. In conclusion, embracing rotational grazing isn’t just about sustainable agriculture; it’s about securing a prosperous future for our farms, communities, and the planet. Together, let’s pave the way for a greener, more resilient agricultural landscape. Ready to take your farm to the next level? Reach out to us to see if we can help your farm become more profitable.
Celebrating Earth Day with 20% Off One-Time Services
Happy Earth Day from the Good Agriculture team! Every day is Earth Day for farmers and everyone working in agriculture, but it’s a great reminder for everyone else how much work goes into taking care of our planet while feeding the world. This Earth day, we’re celebrating our farmers. We’re giving our farmers 20% off our affordable one-time services. This is for farmers who simply need a hand on a business project during this busy growing season. We understand the challenges our farmers face, and our goal is to provide flexible solutions to support you all year (but especially for Earth Day). Get started with 20% off one-time service Earth Day is a great marketing opportunity Your farm is thriving, but your customers may have forgotten about you over the winter. Earth Day is a great opportunity to reconnect with customers, especially for sharing “good for the earth” messages. Are you selling local? Are you organic? Have you adopted conservation practices or have wildflowers growing on your farm? Your current and potential future customers would love to know about it! Here are some ideas for Earth Day marketing: Update your website with an “About Us” that shares your farming practices and any certifications you have Share photos on social media of blooming plants, newborn animals, and other signs of spring Send an email newsletter campaign to your customers letting them know when produce will be ready and where they can buy Write an article about your sustainable practices and reach out to local media to see if they can re-publish it or feature your farm Host an event on your farm to educate your community on taking care of the earth Promote an “Earth Day Special” (like we’re doing!) through free and paid channels Share a simple “Happy Earth Day” message on socials and encourage customers to make more eco-friendly choices Need help implementing any of these? We offer one-time marketing services like website updates, social media campaigns, and article-writing to help you take advantage of the holiday without losing any time on the farm! Sustainability initiatives require crunching the numbers, too Let’s say you’re considering going organic or trying pasture-raised poultry. You might be excited about the environmental impact, but you’re unsure about the financial impacts it’ll have on the farm—and your wallet. Here are some aspects to consider: Organic/sustainability products can usually get a price premium – but who’s going to buy this product? How hard is it going to be to enter that market? What price do you need to get to make a healthy profit margin? What price do you need to get to break even? Do those reflect the market prices today? Are you going to need a certification? There’s costs to those (certification costs, costs to make infrastructure updates) including the cost of your time! Are they worth it? What start-up costs will you have and how long will it take to pay back those start-up costs? If you need a loan to get started, how much will the loan cost in interest? What scale do you need to reach for the initiative to breakeven? Can you reach that scale with your current resources, or do you need additional infrastructure, labor, or equipment to reach it? What are the costs of those investments? What are the expected yield impacts on making a transition or getting through a learning curve? If the first few years don’t go as expected, can you financially survive it? How excited am I to do this? Is this where I want to spend my energy? Our financial management service includes a business case study tailored to your farm. We run scenarios, analyze financial data, and provide insights to help you make informed decisions about your farm business. And the projections will help you get a loan or grant if needed! There’s lots of grant funding for conservation Most of the $11B+ in grant, cost-share, and ecosystem credit funding available to farmers in the United States is tied somehow to conservation. Here are some of the biggest programs available for farmers: EQIP and CSP: these NRCS programs are cost shares for farmers to implement (EQIP) and maintain (CSP) conservation practices like rotational grazing, precision irrigation, and cover cropping. Each state has its own deadlines and priority practices, so contact your local agent or sign up for our Grant Notification Service to learn what’s happening in your state SARE and CIG: these programs fund on-farm research projects and prioritize conservation research. Got an idea to reduce chemical use, increase biodiversity, or improve soil health? Definitely apply to these! State and local initiatives: many big grant programs like the Climate Smart Commodities to get administered at the state and local level. Check out local experts like your conservation district to learn about these opportunities (our Grant Notification Service also has these) Ecosystem Service credits: these reward farmers with payments for conservation practices. The most common type is a carbon credit, which pays farmers for increasing their soil carbon levels. There are lots of different brokers and projects that offer these. This is still a new market; there’s not a lot of regulation yet, and a lot of uncertainty around future prices, but can be a great way to bring in more farm revenue. And if you need help, we help you both find and apply to this funding. Our grants service helps farmers find all these funding opportunities. Whether it’s grants for a research idea, cost-share programs for conservation initiatives, specialty crop block grant program, value-added producer grants, or marketing initiatives, we guide you through the process of accessing available funding sources. If you haven’t already, take our FREE grants survey to see what you’re eligible for. And if you’re looking to get tailored notifications for any an eligible grant is open, sign up for our Grant Notification Service. We are offering it for $1/mo. (for life!) if you sign up before April 30. To celebrate Earth Day and support farmers like you,
Mastering Your Farm Finances: A Step-by-Step Guide
This month, we’re diving into a fun topic that all farmers like to talk about: bookkeeping! …Wait, don’t everyone head for the exits at once! We get it. You didn’t go into farming to spend your days in front of a spreadsheet. Kirsten’s farm desk has a pile of receipts from 2022 tucked behind the monitor that she’ll get to… someday. But if you’re not in a position to hire someone to handle the books (or you don’t have a spouse willing to step up to the task) there are a few things you can do at the end of each year to make your life about ten thousand times easier when tax time comes. Organize Transactions Sometimes it’s easy to categorize a transaction. If it’s from the feed mill, it’s animal feed. A bill from the John Deere dealership probably involves equipment. But will you remember everything you pick up at Tractor Supply a few months from now? Try to take the time to sort through your transactions and income on a regular basis. The longer you put it off, the worse it gets, so bribe yourself with a drink if you have to and knock the task out quickly. Distinguish Between Business and Personal Expenses Do you have a separate bank account for your farm? You ought to. Even with separate accounts, it’s far too easy for an expense to end up on the wrong card. Sometimes money doesn’t get moved around fast enough, other times you’re moving fast and things get confused. When that happens, make sure you flag those transactions when you’re sorting through them. And take some steps to keep personal and business separate. It’s not silly if it works. At the moment, Kirsten has a monthly reminder to “Pay the damn dental insurance bill that can’t accept autopay” and a personal debit card colored with blue sharpie because both her personal and business debit cards were white. And don’t forget to add in your “personal” expenses that are really farm expenses! If you use live on the farm, make sure you count part of your mortgage/lease, utilities, and insurance toward the farm. If you ever drive a personal vehicle for farm duties, count (or estimate) your mileage. Categorize Expenses Appropriately When it comes to tax time, you’ll be filling out a Schedule F form. What that means is that you can save yourself some time by using the same categories for transactions that the Schedule F form uses (and they’re actually pretty useful). Those categories are … (warning, dry government language incoming): Sales of livestock, crops and other farm-related goods or services Equipment expenses and depreciation Conservation expenses Insurance and tax expenses Rent or lease for vehicles, land, etc. Labor and employment expenses Input, seed, fuel, crop insurance and other common farm operating expenses What if you want to track more categories? Use the “other” categories to track things like software, advertising, and animal processing that don’t fit any of the existing Schedule F categories. Track Income Sources You made money this year, right? Add it up, baby! Did it come from multiple places? It’s worth breaking down what you made and where it came from, if for no other reason than to know what makes you the most money. If you want to get fancy, you can try to coordinate your expense sub-categories with your income categories and figure out if you actually make a profit on each category. Understanding Financial Statements Profit and Loss! Cash Flow! Balance Sheets! They aren’t bogeymen, though it does feel like they sometimes coordinate with each other to trip up the unwary. Profit and Loss – Often referred to by those in the know as a P&L or an income statement, this is a way of looking at the overall finances for your farm. What money did you make, what did you spend, are you operating in the black or the red? (And that Schedule F you had to fill out? That’s a Profit and Loss statement!) Cash Flow – Do you have money when you need it? Cause if you need money in February and your crop doesn’t come in until April, and you don’t have a plan to cover expenses between February and April, you’ve got yourself a problem. Cash flow statements help you predict and plan for the lean times. Balance Sheet – This one is all about assets, liabilities and equity. It’s less of a tool to use in the moment than something you track over time to ideally see how your business is thriving. These aren’t the easiest to create on your own, but once you sort out your transactions, any accounting software (like QuickBooks or Xero) or accounting service (like Good Agriculture!) will create these automatically for you. If you’re handling your own books it may or may not be worth it to you to maintain each individually. That said, if you ever want to get a loan or any outside investment in your farm, you’ll need all of them. Depreciation and Loan Management Now we’re getting to the advanced stuff! You might be thinking “my Profit and Loss Statement shows I’m making a profit, so why do I need a cash flow statement? Shouldn’t my cash be good to go?” but it’s actually quite common for farmers to be profitable AND struggle with cash. Why is that? Farming requires a lot of upfront investment — big mortgage payments for the land, lots of expensive equipment, big investments into breeding stock if you’re raising livestock. The last thing you need to do for your year-end finances is calculate your depreciation and loans. “Depreciation” is a five-dollar word that means your equipment, infrastructure, and breeding stock have useful lives longer than one year, so you take a little bit of the expense every year. For example, if you buy a $70,000 tractor you expect to last you 7 years, the depreciated expense would be $10,000 per year for the
Value-Added Producer Grants
What they are, who’s eligible and how to apply So, you want to apply for a Value-Add Producer Grant? I haven’t met a small farmer who isn’t interested in the Value-Add Producer Grant (VAPG). Who wouldn’t? Free money from the government to turn your raw products into something people will pay more money for? Sign me up! It’s not quite so simple, unfortunately. In this post we’ll dive into what you need to know about applying for this grant. To get approval for a VAPG project, you need to be doing one of the following things that enhance the value of the product: If you’re a hemp producer, you’ll have to proceed with caution – you’re not completely ineligible, but the feds don’t want to fund anything with CBD, hemp oil or products for human use. Building materials and textiles are good to go, but you won’t be able to relieve pain or alter perceptions on the government’s dime. Speaking of things you can’t do on the government’s dime, there are several categories of expenses that will get your application tossed out on arrival. You can’t use VAPG for infrastructure or most equipment, or to pay yourself (or anyone else) for the raw product you’re transforming. Types of VAPGs There are two types of VAPG applications – planning and working capital. A planning grant covers the money needed for a qualified third-party consultant to conduct a feasibility study and create plans for creating your value-added business and marketing your product. So basically, you can’t pay yourself to do the work and your brother probably isn’t qualified to do it either. (And if he were, you might run afoul of conflict-of-interest rules.) But other than that, planning grants are a fairly simple application, at least compared to the working capital grant. (And if you’re looking for a qualified third party to do your feasibility study and create business plans, look no further than Good Agriculture!) The working capital grant, on the other hand… way more complicated. There are two types of working capital applications. If you’ve been producing your product for less than two years, you’ll be in the Emerging Market category, and you’ll require a feasibility study and business plan specific to your product. If you’ve been producing more than two years and have sold successfully, you don’t need a feasibility study but you will need a business OR marketing plan. The exception to the above is if you want less than $50,000 – if that’s the case, you just need to demonstrate your expected increases in customer base and revenue. Matching Funds Now, here’s the hard part – matching funds. Unfortunately, the feds aren’t handing out free money – they want you to have some skin in the game. They’ll give you half the money you need for your value-add project, and you have to tell them how you’ll come up with the other half. This can be in the form of cash, a loan, or a line of credit. There are a few things you can do to reduce the amount you have to come up with, but at the end of the day you have to bring some cash to the table. And you have to spend that cash BEFORE you get any grant funding. Here’s how you can limit that amount: Ok, so you know what you want to do and where the match will come from. Next hurdle – are you eligible? Answer – probably. Applicants have to be individual agricultural producers or entities that are owned and controlled by agricultural producers. Applicants can also be nonprofits that represent agricultural producers, cooperatives of agricultural producers, or majority-controlled producer-based businesses. Once you’re sure your project is eligible and your entity is eligible, it’s time to consider how to structure your application. It goes without saying that you have to dot all your i’s and cross all your t’s, and any sort of federal application is going to be loaded with somewhat redundant and confusing forms and directions. Your state representatives should be useful here – go to the main VAPG page, select your state, and you’ll get the email address and phone number for your state representatives. Scoring Assuming you get everything correct, this is how your application will be scored. Technical Feasibility, Operational Efficiency, Profitability and Economic Sustainability (0-30 points) For this section, you need to demonstrate that this project will expand your customer base and increase your revenue as a producer-owner. If you’re not a producer-owner, you need to show that the money you make will flow to future owners. And this can’t just be your assurances – you need to reference third party data and information that specifically supports your project or similar projects. You should also discuss the jobs you’re creating or saving. Qualifications of Project Personnel (0-20 points) Here, you’ll need to identify the people who will be working on the project and show that they’ll be capable of completing the work. If you have consultants or third parties lined up, detail their capabilities. If you’re planning to hire for the project but haven’t identified an individual, you should include a job description with the required qualifications. Commitments and Support (0-10 points) This section evaluates the commitments of producers involved in the project, those of third parties, and those from end users. On the producer side, you’ll get more points when there are a larger number of producers involved, especially if they’re all significant contributors to the project. Third parties are evaluated on their ability to fulfill their contributions, and end users are evaluated based on the amount they’ve committed to purchase. Include copies of letters of intent or contracts related to the commitments and support you’ve received for the project. There are no minimum or maximum number of commitments, but they do need