Concluding Updated: July 31, 2020

So, what'southward a farm number and why should you consider getting one? Start, a little background. The subcontract number is 1 of the 3 ways you identify yourself every bit a farmer for authorities purposes. Information technology is too how the U.Due south. Section of Agronomics's (USDA) offices identify your farm for all of their programs. The USDA farm programs are administered on the local level through canton-based Subcontract Service Agency (FSA) and Natural Resource Conservation Service (NRCS) offices. The FSA role is where you register to go a farm number. You lot must have a farm number in gild to apply for FSA farm loans, disaster assistance, and crop insurance as well every bit for NRCS programs like Environmental Quality Incentive Program.

A farm number identifies yourself as a farmer for government purposes. Nevertheless, the farm number remains associated with the land, non the farmer. Similarly, the history of production remains connected to the farm number. So if you decide to sell the state, the farm number and production history remain role of the value of the state.

Benefits of Obtaining a Farm Number

  • Registering your farm means that when programs become available that could exist useful to you, you will already be in the FSA system and ready to apply. If you join FSA's mailing listing, yous can also be i of the kickoff to know when a new plan is announced.
  • With a farm number you can apply for FSA farm loans, disaster assistance, and crop insurance every bit well as for NRCS programs like Environmental Quality Incentive Program
  • With a subcontract number, your farm will exist counted in the Agricultural Census. Accurate information on the number of farms in your county could translate into more resource to support farms in your area.
  • A subcontract number makes you eligible to elect FSA Canton Committee members. FSA Canton Committees assist prioritize programs for your county.

How to Get a Farm Number

  • Make an engagement with your local FSA part. The office is usually in the same building as the Cooperative Extension. Look here for county function info.
  • Update on scheduling appointments during COVID-xix: USDA is doing phased re-openings of FSA offices on a county level. Visit their website here to determine whether your county role is open for phone-only or in-person appointments. Both require an appointment – call the main office number to schedule. USDA Service Centre staff tin can meet with producers virtually through Microsoft Teams – click here to learn how to use Microsoft Teams on your laptop, mobile device, or desktop.
  • Prepare to spend 30 minutes to an hour with the office or on a virtual call.
  • Bring forth documentation of your identity and, if applicable, your farm business identity, similar your driver'southward license, social security card and EIN#. If this is a virtual date, the USDA Service Center staff will inform you how you can view, share, and sign documents near.
  • Bring along proof of control of the land, which tin exist a deed, a lease or rental agreement, or other land tenure documents.
  • The FSA staff volition locate your farm parcel through the county GIS arrangement, cheque to see if it already has a number, and if not – result you a number. Farm numbers are issued for costless.

3 Ways to Identify Yourself equally a Farmer

A Farm Number is the first style that farmers tin identify themselves to the government in guild to access diverse USDA programs, elect FSA Canton Committee members, and be counted in the Agricultural Census.

The 2d mode is Filing your IRS Schedule F on your Federal taxes. On your federal income taxes, filing a Schedule F establishes your farm income. This is of import if you ever want to take out a farm loan or participate in revenue-based crop insurance. Different the farm number, the business entity EIN goes with the farmer or farm business concern entity and is set upwards through the IRS.

The third is Agricultural State Valuation. Agricultural land valuation has to practise with your property taxes which are administered through your county-level tax office and is different from revenue enhancement exemption.

Revenue enhancement Exemption

Registering for a farm number, filing your Schedule F and getting an agricultural land valuation all establish y'all and your farm. Doing them will assist you establish that you are a farmer to be able to get an agricultural sales tax exemption. Nevertheless, getting a farm number is Non the same as getting agricultural tax exemption. To practice this, y'all need to register with the NC Department of Acquirement.

Are You a Hobby Farmer or is This a Business?

I important factor in establishing yourself and your farm with the appropriate agencies is the distinction between being a subcontract concern or a hobby farmer. "Hobby farmer" is an official IRS stardom with significant financial implications. If it's a hobby farm rather than a business, none of your farm expenses are tax deductible. For example, if you are a horse breeder or trainer who sells or trains horses as a business organisation then any feed expenses are tax deductible. However, if you lot continue horses for not-income deriving reasons, and so expenses are not tax deductible.

Frequently Asked Questions

Is there a minimum acreage? There is no minimum acreage to register as a farm.

What if information technology is a recent land purchase? If y'all purchased your land in the past few months, you lot must bring your registered holding act to the FSA part, as the organization may not be updated to recognize your proper noun associated with the property.

Do they bank check? If y'all sign up for a program, exist prepared: FSA volition perform random spot checks to verify that you are doing what you claim to be doing on your farm.

Is there a price? Getting a subcontract number is free!

Thanks to Kate Brun of Lucky Leaf Gardens , whose question inspired us to write this post, and Claudia Austin, County Executive Director for the Chatham Canton, NC part of the USDA Farm Service Bureau for her groovy help and information.

Goats at Lindale Farms benefit from a 2013 TCRF grant.

Set to get started?
Taking over the family unit farm?
Trying to transition your farm to higher value markets?

Hither are more resources to help yous get started:

  • Grants and other resources for farmers
  • Goal Setting for your Subcontract and How Goals Connect to Records – webinar recording and related resources from Grow N Texas
  • Disaster preparedness and recovery resource
  • USDA New Farmers Website
  • NCAT ATTRA Sustainable Agriculture Plan
  • The Farmer's Guide to Evolution of New Subcontract Enterprises – This guide includes information on developing value-added products, identifying new farm opportunities, on-farm processing, selling your products, and more.
  • Farmer and Lender Projection : Strategies to Sustain Agronomics and Heighten Rural Development in North Carolina – This report examines barriers to agricultural finance in North Carolina, and looks toward a system of debt finance that allows lenders to work with innovative farmers.
  • Farmer's Guide to Agricultural Credit & Factsheets
  • Disaster Programs and the Changing Face of Agriculture in North Carolina
  • Managing Specialty Ingather Run a risk in North Carolina (2013)