Guide to Farming in

New York State

What Every Ag Entreprenuer Needs to Know
 How to Use This
Guide
Guide to Farming in New York State

This guide is comprised of a series of individual fact sheets addressing topics relevant
to planning and operating a farm business in New York State specifically, though
many of the concepts apply to farmers in other states too. The fact sheets are meant
to be brief and to the point. Additional details can be found via the links provided or
by calling the offices listed.

The Guide is meant to be a resource for both beginning and established farmers. For
beginning farmers, there are certain topics that are not relevant. To help guide you to
those that are relevant to your stage of business, refer to the list below.

What’s Important For New Agricultural Entrepreneurs to

Recommended
Reading: Know?
Matching the farmland to the chosen enterprise: Be sure to research soil, climate,
Fact Sheets #1, 2, forest and infrastructure resources. Buying or leasing the right land, at the appropriate
3, 8, 9, 11 size and with the right soil, is critical to the success of your operation.

Legal forms of business: Don’t sweat this at the outset. A sole proprietorship is
Fact Sheets #12, 13 usually a fine place to start and does not require a lawyer; however, it is a good idea
to register your business (DBA) at your County Clerk’s office. If there are unrelated
business partners, options are to develop a legal partnership or incorporate, but will
require legal assistance.

Where can I get money to start my farm? There are two basic options: use personal
Fact Sheets #4, 12, resources or borrow money from a lender or investor. There are no grant funds
31 available to start a farm.

Am I a farmer yet? There is no single answer to this question. Some tests are: you
Fact Sheets #35, have purchased equipment and are involved in production; you are keeping records
also 15, 16, 17 on your farm purchases; you are filing the Federal Farm Tax return (Schedule F); you
are selling agricultural products.

What can I raise profitably? This is an important question that can be answered
Fact Sheets #12, through good research and business planning. Identify what you want to raise,
14, 23, 24, 25, 26, investigate the costs and potential returns, and then decide if it meets your goals on
28, 29 paper, before you invest real money.

3
 Recommended
Reading:

What are the tax benefits? Farmers are exempt from paying sales tax on purchases
of supplies used in farming. Some farm buildings are wholly or partially exempt
from property taxes and once a farm generates over $10,000 in sales, the land can
also receive a property tax exemption. Additional tax exemptions apply once farm Fact Sheets #17,
income becomes 2/3 of total income. 20, 21, 22

Where can I sell my products? This is the first question you should consider. What
is your product and who wants it, and where are those people located? Market
planning should not be overlooked. Most beginning farmers think about direct Fact Sheets #22,
marketing as the place to start but this takes time, so consider what amount of time 23, 24, 25, 26, 27,
you have to invest in marketing and project potential returns by market channel. 28, 29, 30

What are sustainable farming practices? There are benefits to organic farming, but
conventional farmers who follow integrated pest management and recommended
agricultural environmental management practices can also farm sustainably. Become
knowledgeable about farming practices and decide which of them best meets your Fact Sheets #10, 29
goals.

Where can I get help? Start with your county Cornell Cooperative Extension office
and the county Soil and Water District office, and begin networking with other
farmers. Read up on farm topics of interest, but experience is the best teacher. Once
you do your homework, business planning is a critical step. Fact Sheets #33, 34

What’s Helpful for the Established Farm Enterprise?

Do you have $10,000 in gross sales per year? If so, have you filed for agricultural
assessment of your property as a way to lower your property tax bill? If 2/3 of your
income is derived from farming, you also qualify for the Farmers’ School Tax Credit. Fact Sheets #15,
Lower overhead costs by claiming these benefits. 16, 21, 22

Are you ready to hire employees? If so, be aware of all of the paperwork Fact Sheets #15,
requirements. Plan ahead before hiring. 18, 19

Are you making money? Recordkeeping is essential to see if you are making money.
Keep an eye on the business and adjust as necessary. If you have not developed a Fact Sheets #12,
business plan, it can be a tool for monitoring progress towards your goals. 13, 14, 15, 16

Are you managing risk? An established business has invested over time and should
be adequately insured to protect that investment. Product liability is critical. For
farms that host visitors, make sure you have sufficient general liability coverage. Fact Sheets #5, 6, 7

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1
PART ONE:
Contents
Considerations for Getting Started Guide to Farming in New York State

1: Finding a Farm to Buy or Lease. . . . . . . . . . 1

2: Climate and Soil Considerations. . . . . . . . . 7

3: Infrastructure Considerations. . . . . . . . . . . 11

4: Financing a Farm Operation. . . . . . . . . . . .15

5: Farm Risk Management. . . . . . . . . . . . . . . 19

6: Farm Insurance. . . . . . . . . . . . . . . . . . . . 23

7: Farm Vehicles. . . . . . . . . . . . . . . . . . . . . 27

8: Zoning Regulations & Farming. . . . . . . . . . 31

PART THREE:
9: Legal Aspects of Rural Living. . . . . . . . . . . 33
Selling What You Produce
10: Environmental Regulations. . . . . . . .. . . . 35
23: Assessing your Market Potential. . . . . . . . 62
11: Forest Land Resources. . . . . . . . . . . . . . . 39
24: Pricing Farm Products. . . . . . . . . . . . . . 65

25: Finding Price Information. . . . . . . . . . . . 67

26: Direct Marketing Options. . . . . . . . . . . . 68

PART TWO: 27: Marketing Regulations. . . . . . . . . . . . . . 71
Running a Successful Business 28: Becoming a Small Scale Food Processor. . 77
12: Business Plans. . . . . . . . . . . . . . . . . . . 43 29: Collecting Sales Tax on Farm Products. . . 82
13: Business Structures. . . . . . . . . . . . . . . . 47 30: Organic Certification. . . . . . . . . . . . . . . 84
14: Making Money. . . . . . . . . . .. . . . . . . . 49

15: Record Keeping. . . . . . . . . . . . . . . . . . 41

16: Income Taxes. . . . . . . . . . . . . .. . . . . . 43

PART FOUR:
17: Sales Tax Exemptions/Refunds. . . . . . . . . 46
Helpful Resources
18: Labor Laws. . . . . . . . . . . . . . . . . . . . . 48
31: Grant Opportunities for Farmers. . . . . . . 86
19: Payroll and Worker Documentation. . . . . 51
32: Opportunities for Veterans in Farming . . . 91
20: Agricultural District Law Provisions . . . . . 54
33: Agricultural Agencies and Organizations . 93
21: Ag Value Assessment for Farmland . . . . . 56
34: Information Sources for Getting Started . . 96
22: Property Tax Exclusions for Buildings. . . . 59
35: When Am I a Farm?........................

2
 practices to be used, specify that fields be planted to a cover crop after use, list
prohibited practices
5. Condition of land at end of lease – common practice calls for land to be left

1
in the same condition as when first rented. However, land that was not been

Finding a Farm to farmed for some years prior to the lease may actually be left in better condition.
In this case consideration should be given to the cost of those improvements.

Buy or Lease 6. Payment terms under normal growing conditions and in the event of a crop
failure. Payments should be based on the value of the property for farming
purposes only (not for development).
Guide to Farming in New York State 7. Lease payment: leases can be paid in cash, in crop or livestock shares,
or in some cases, landowners are willing to forgo fees if the tenant makes
improvements.
8. Bringing land back into production – if land has not been actively farmed
Factsheet Leasing Land and Buildings for Farming in many years, the cost of bringing land back into farming is considerable.
Overview Buying land and paying a mortgage adds to the cost of starting a farming operation.
Consideration needs to be given as to who should pay for these costs. The
owner benefits in the long run from improvements that are made.
Leasing may be an option for enterprises that require less infrastructure or where the
9. Length of the agreement and terms of renewal. A one-year renewable lease
Leasing Land and investment in infrastructure — such as irrigation pipes, a greenhouse, or fencing —
Buildings for Farming might be a good starting point for annual crops, or if planting perennial crops, a
is portable. If infrastructure involves improvements that are not easily removed, like
3-5-year lease is preferable.
Written Leases digging a pond or constructing buildings, then it may not be wise to invest on land
you do not own, unless the owner pays for these improvements. If the property that 10. Early termination if initiated either by the owner or tenant and the
Determining Cash you want to lease has buildings suitable to your enterprise, then a rental agreement consequences. To get a sense of
Rent might also include use of buildings. 11. Insurance paid by owner (for land, buildings, equipment) and paid by tenant (for cash rental rates for
crops/livestock and production related improvements made by tenant). farmland in your
Determining Share
Rent Finding good farmland to lease may be as challenging as finding good farmland to 12. Taxes are the responsibility of the owner. area, check out
purchase. You may find that people will respond to ads placed in small community 13. Provisions for arbitration in the case of disagreements. the result of the
Renting Farm papers, farm papers or in county Extension or Soil and Water Conservation District biennial Cash Rent
Buildings (SWCD) newsletters. Contacting owners of a desirable property by personal letter Survey conducted
and/or phone call can be effective too. Also, check with area realtors and farmers. Determining Cash Rent
Sample Lease by USDA:
Agreement Once you find some possible properties to lease, consider the soil type, drainage, if
There are several approaches that can be taken when establishing a fair rental rate.
there is a water supply, and what it will take to bring the land into production. It is Biennial Cash
Farm Real Estate These include:
Brokers important to find a site that matches the production requirements of the enterprise Rent Survey
you want to develop. 1. the demand for land and going rate in a particular area Results:
2. the cost and return associated with a crop allowing for an acceptable profit and https://www.nass.
rental payment usda.gov/Surveys/
Written Leases
3. what the landowner needs to cover with regard to fixed costs or taxes. Guide_to_NASS_
For more in-depth A written lease or agreement is a good idea whether you are paying rent, working Surveys/Cash_
on shares or permitted to use the land free of charge. A lease will specify the terms Generally, a combination of these approaches may be needed to arrive at a fair rate. Rents_by_County/
help than this fact
sheet can provide, under which the renter and the owner will operate. The main goal of a lease is to
Land For Good develop a fair agreement understood by both parties. Landowner and tenant needs Determining Share Rent
offers a very helpful and goals should be identified.
lease development A shared rental agreement assumes that the landowner and tenant account for
tool: In general, a well-written lease should include: what each contributes to the production of a crop or livestock including fixed
http://landforgood. and variable costs; then calculate the percentage contributed by each party. This
org/lease-tool-login/ 1. Description of the land and buildings to be rented, and equipment if applicable. percentage can be used in setting return (crop or harvest returns) received by owner
An accurate assessment of the conditions at time of rental is a good idea, and tenant. Flexibility is needed in case of low harvest or prices. Owners may have
including photos to document such. to relinquish some shares if the tenant is dependent on sales for their livelihood.
2. Rights of each party: owner and tenant access and use. Spell out any
restrictions. Renting Farm Buildings
3. Improvements that will be made and who pays for these. If buildings are
involved, specify who pays for improvements like roofing, painting, etc. that are A key factor influencing building rental is whether the owner needs to obtain a
normal infrastructure, versus improvements made that are specific to the farm minimum rent to cover fixed costs or not. Variable costs such as utilities can be
enterprise. assigned proportionate to use by the tenant. A key consideration for tenants is
4. Agricultural practices to follow – outline organic or agronomically sound whether additional insurance is needed to cover losses of stored crops, livestock or

6 7
 equipment. In witness whereof the parties have signed this lease on this date of __________. Long Term Lease
on Public Land:
Landlord _______________________________ http://landforgood.
Sample Lease Agreement Tenant _________________________________ org/wp-content/
uploads/Sample-
A simple lease follows as a starting point. Consult an attorney if a more detailed Witness ________________________________ Long-Term-Lease.
lease is desired. Witness ________________________________ pdf
Note: Requires
Materials adapted email address.
This lease is entered in this ____ day of ______ between ____________, Additional lease and land tenure resources on the “Land for Good” website:
from:
landlord, and ______________________________, tenant. The landlord http://landforgood.org/resources/toolbox/leasing/
Pennsylvania Farm
leases to the tenant to use for agricultural purposes ________ acres of pasture
Link worksheet (out
and _______ acres of cropland, and the following building: (list or attach a Helpful Contacts for Finding a Farm
of print) and from
list) located in the Town of ____________ and County of____________ at
Richard Eschler,
________(street address) and commonly known as __________ Farm.
former Cornell Farmland for a New Generation New York helps farmers
Farm Business (518) 581-0078
The tenant will pay the landlord $________ per year (or other specified time seeking land and landowners wanting to keep their land
Management [email protected]
period) with payment to be made as follows: _______________________. Farmland for a New in farming. On this website, you can register to post
Educator. Generation New York farmer and property profiles, search for farmers or search
The tenant will also pay all the costs of planting, growing and harvesting crops https://
grown on the land. The tenant will be required to maintain and repair fences, for farmland, learn about upcoming events, and browse
Simple Farm nyfarmlandfinder.org/
tile drains, and diversion ditches, and make ordinary repairs to maintain buildings resources and organizations throughout New York State.
Lease:
and equipment used, and pay for utilities such as electricity and water (if relevant) The Northeast Organic Farming Association of New York
http://www.
during the period of the lease. NOFA-NY maintains a database of classified advertisements for land http://bit.ly/2Wlxhvu
uslegalforms.com/
us/US-801LT.htm offered for rent and sale, and another for “land sought.”
The landlord will pay the taxes, fire insurance on buildings, major repairs or
Note: You must pay A project of Cornell Cooperative Extension Tompkins
improvements, such as new fence, ponds, drain tiles, diversion ditches, etc. http://www.
a fee to get a copy. Finger Lakes LandLink County and Groundswell Center for Local Food and
fingerlakeslandlink.org
The tenant will follow recommended conservation and agronomic practices Farming.
Short Term
Lease: in working the land. No green or growing timber may be harvested from the
http://www.
http://landforgood. property by the tenant. The landlord has the right to inspect or enter the property Catskills FarmLink A project of the Watershed Agricultural Council.
catskillsfarmlink.org
org/wp-content/ at any time.
uploads/Sample- The Columbia Land Conservancy established this
Short-Term-Lease. This lease shall be for ___ years beginning (date)____________ with automatic Farmer Landowner http://bit.
program in 2009. It serves Columbia and Dutchess
pdf renewal for (how long): _______(years) unless either party gives written notice to Match Program ly/2WMzG1N
Counties in NY.
the contrary at least 3 months (90 days) before the expiration of the current rental
Multi Year Lease: period. The rental rate may be adjusted annually to account for increases in taxes,
http://landforgood. insurance or other costs of ownership. John@
Westchester Land Trust’s Farmland Match program
org/get- westchesterlandtrust.
Farmland Match connects Westchester farmers who need land with
resource/?fid=http:// Any meadow land plowed for annual crops will be re-seeded to a perennial org
property owners who have land to lease.
landforgood. forage crop at the end of the lease period (unless the lease has been automatically http://bit.ly/2Z6Nj9u
org/wp-content/ renewed).
uploads/Multi-year- A service for farmers, landowners, and farm-seekers
lease-template.doc Any differences between the landlord and tenants as to their rights and obligations in “New England and beyond,” this group provides
Land for Good www.landforgood.org
Note: Requires under this lease that are not settled by mutual agreement shall be submitted to an trainings, tools and counseling to keep land in
email address. arbitrator or other such person who has authority to make a final decision. agricultural production.

It is agreed that the stipulations of this lease are to apply to and bind the heirs, NELL is a program to help farmers and landholders
executors, administrators, and assigns of the respective parties and is made and New England LandLink locate and transfer farms in New England. NELL will also http://bit.ly/2wD9pEu
executed in duplicate. advise on land lease and transfer options.

LandLink Programs
A compiled list by the Center for Rural Affairs http://bit.ly/2IjbY3U
Across the Country

8 9
Cornell Cooperative The Beginning Farmer contact in your county extension http://smallfarms.
Extension Agricultural office may also be able to direct you to farms for sale or cornell.edu/contact/
Educators farm realtors. local-contacts

Grassroots: The Voice of http://bit.ly/2Mr7EoF

Farm Newspaper with Listings of Farm Properties for Sale
New York Farm Bureau

800-218-5586
Country Folks: Lee
Farm Newspaper with Listings of Farm Properties for Sale www.countryfolks.
Publications
com

Farm Real Estate Brokers*

While conventional real estate brokers list farms for sale, most active farms are
considered commercial property and are listed by real estate agents specializing in
farm transactions. The list below does not imply endorsement of any of the following
businesses:

The largest multiple listing service for residential real

MLS Residential Search http://realtor.com/
estate. Often contains small and medium farms.

Agricultural lender with an appraisal services; they would www.farmcrediteast.

Farm Credit
know of farms for sale com

Farm Service Agency Listing of homes and farms for sale by the Farm Service www.resales.usda.
Real Estate for Sale Agency, many available with low interest financing gov/

http://landandfarm.
LandAndFarm Rural property listing service
com

United County Real www.unitedcountry.

Rural real estate brokerage
Estate com

www.
Come Farm with Us Farm real estate listings in Jefferson County, NY
comefarmwithus.com

http://www.
Farm & Country Realty Rural New York State property listings and brokerage farmandcountryrealty.
com

*This listing of realtors is not intended to be complete, and listing does not imply
endorsement by Cornell Cooperative Extension. Check with folks located in the area
near where you hope to farm to find realtors who specialize in farm property.

10 11
 2
Climate and Soil Considerations
Guide to Farming in New York State

Climate Considerations
Factsheet New York State’s climate is very diverse. It is not uncommon that in traveling
Climate
Overview <10 miles, you could move from one microclimate to a completely different one.
Considerations
For example, precipitation is double the state average in the Tug Hill Plateau
Climatic factors region, and the recommended winter hardiness level changes from –5oF to –40
that impact crop oF in a 100-mile distance as you travel from Wayne County to the Adirondacks.
growth

Soil Considerations

What is Soil?

Soil Texture

Soil pH

Soil Organic
Fraction

Soil Compaction
and Depth

Soil Testing
Services

S il M

Climatic factors that impact crop growth include:

• Minimum temperatures
• Hardiness zones
• Frost-free dates
• Growing degree-days
• Precipitation
• Air drainage

1
Featured Resource For information
about the climate
Cornell’s Climate Smart Farming program is an initiative that helps farmers in the in a particular
Northeastern US reduce greenhouse gas emissions and increase farm resiliency to area of NYS,
contact:
extreme weather through adoption of best management practices
Northeast
http://climateinstitute.cals.cornell.edu/climate-smart-farming/ Regional Climate
Center
Soil Considerations www.nrcc.cornell.
edu/index.html or
Soils vary in their properties and influence what crops will grow. call 607-255-1751
Important soil characteristics include:

• Texture – the percent of sand, silt or clay particles that

make up the soil, as depicted in the chart
• pH – acidity or alkalinity of the soil
• Fertility – nutrients available for crop growth
• Drainage

Select the best soil possible for high value specialty and
agronomic crops; for hay or pasture, soil quality is slightly less
critical.

Developing an understanding of the basics of soil physiology

and the factors that affect plant fertility is essential for
successful agricultural production.

What is Soil?

In addition to air, water, and nutrients, soils provide mechanical support to growing
plants. There are four major components to soil: minerals, organic matter, water, and
air. The approximate composition of a soil for optimum plant growth would have the
solid space made up of 45% mineral and 5% organic matter, and the remainder would
have roughly 25% water and 25% air. The water and air would be contained within the
pore spaces of the soil.

Soil Texture

Soil texture refers to the size of mineral particles, specifically the relative proportion of
various size groups in a given soil. This property helps determine the nutrient-
supplying ability of soil solids and the supply of water and air that support plant life.

Soil texture is divided into three parts—sand, silt and clay—based on particle size. Silt
and clay soils impart a fine texture and slow water and air movement. They also have
high water holding capacity due to the higher percentage of pore spaces. These are
referred to as heavy soils, with clay being the heavier of the two. Clay is also the
primary plant nutrient-holding mechanism in the soil.

2
 Soil textural names are how we refer to and identify our soils. Sandy to gravelly soils
are referred to as lighter soils, as water moves through more rapidly than the
heavier soils, and they have lower water holding capacities. Sandy soils contain 70%
or more sand by weight. Clay soils have at least 40% clay and may have names like
sandy clay or silty clay. Loamy soils possess the desirable qualities of sand and clay
without exhibiting the undesirable characteristics of extreme looseness, low water
holding capacity and slow water and air movement. Some examples would be clay
loam, sandy loam, silt loam, and silty clay loam.

Soil pH

Soil pH is used as a measure of its relative alkalinity or acidity. Soil test results for pH
are based on a pH scale where 7.0 is neutral, above 7.0 is alkaline and below 7.0 is
acidic.
Soil pH is critical to health plant growth. It directly affects the availability of the
essential nutrients to plants. It is important to know the optimum pH for the plants
to be grown. Soil pH also affects the adaptability of plants in a given soil. Most
agricultural plants prefer a slightly acidic pH of 6.4. However, there are exceptions
so be familiar with the pH and nutritional needs of all the crops to be grown.
The addition of any liming (alkalinizing) or acidifying materials should always be
based on the results of a reliable soil test. Over-application of either can lead to crop
injury.

Soil Organic Fraction

A good, loamy soil contains about one-half pore space (air and water) and one-half
solid material. Of this one-half solid material, 90% is composed of minerals (bits of
rock). The remaining 10% is the organic fraction. The influence of this small part of
the soil on the soil’s ability to support plant growth is significant.
The soil’s organic fraction is dynamic and is always undergoing a process of change.
The organic fraction consists of living organisms, plant and animal residues, and
plant roots. Adequate levels benefit soil in many ways including; improved physical
condition, increased water infiltration, improved soil tilth, decreased erosion losses,
enhanced nutrient availability, and retention for plants.

Soil Compaction and Depth

Fine textured soils are more easily compacted than lighter soils, especially when
they are wet. Compaction reduces pore spaces that hold air and water. Plant
growth in compacted soils will be significantly reduced. Operating equipment on
To Find a Soil wet soils can create problems in a field for an entire season or longer.
Survey: Sometimes a soil is referred to as being deep or shallow. Soil depth can be defined
as that depth of soil material favorable for plant root penetration. Deep, well-
Contact your local drained soils of desirable texture and structure are favorable for plant growth.
USDA Service Shallow, poorly drained soils are very restrictive to plant growth.
Center, your NRCS
State Soil Scientist, Soil Maps
or your county
Cornell Cooperative
To learn about the soil types on your property, a useful tool available across most of
Extension office.
the US is the USDA-NRCS Soil Survey that consists of soil maps and descriptions of

3
soil characteristics and capabilities, available online at:
http://websoilsurvey.nrcs.usda.gov

Soil Testing Services

Agro-One Services will test soil for nutrients and pH and
indicate amounts of lime and fertilizer needed. Soil samples http://dairyone.com/
Agro-One Agronomic can be mailed, shipped via UPS, or taken to Dairy One’s 800-496-3344
Laboratory Services sample pick-up points (see website), where you will fill out
forms and pay for the testing. For more information,
contact the lab:

The Cornell Comprehensive Assessment of Soil Health offers

soil testing services. They measure soil texture, available
water capacity, field penetrometer resistance, wet
aggregate stability, organic matter content, soil proteins,
Cornell University http://soilhealth.cals.
respiration, active carbon, and macro- and micro-nutrient
Comprehensive cornell.edu/soilhealth
content assessment. Additional indicators are available as
Assessment of Soil Health @cornell.edu
add-ons, including root pathogen pressure, salinity and
sodicity, heavy metals, boron and potentially mineralizable
nitrogen. For more information and how to send a sample,
contact the department:

4
 3 Infrastructure
Considerations
Guide to Farming in New York State

Factsheet
Overview

Evaluating Your Farm’s Evaluating Your Farm’s Infrastructure

Infrastructure
Different farm enterprises will require different types of infrastructure, equipment,
Buildings and resources. It is important to have a good idea of what infrastructure your
Power Source operation will require and to assess what exists. A good inventory will help in
determining whether the enterprise you are considering is feasible at this point,
Fencing or whether you have some work to do. As you evaluate what you will need
Pasture for Horses for your farming enterprise, also begin to track the potential costs of necessary
or Livestock improvements.
Deer Fencing • What do I have?
Equipment • What do I need? (And, what do I really need?)
• How will I get what I need?
Water Supply • How much will it cost?

Buildings

What types of buildings will be needed for the agricultural enterprise you are
considering?

• Will I have livestock that need housing? Remember, livestock facilities need to
be correctly sized.
• Will I need storage facilities for livestock feed, equipment, or product that I
will produce?
• Will I need a barn, greenhouse, washing/grading/packing shed for vegetable
and fruit production? Is refrigeration needed, or will I need specialized
facilities for processing?

Inventory existing buildings such as barns, outbuildings, sheds and houses.

• Are these buildings in good repair?

• Are they adequately sized for your enterprise?

You may be able to rent facilities, so keep an open mind when inventorying.

16
Power Source

You need to ensure that you have an adequate power source for your enterprise.
Some operations may require different power levels (i.e. 220V rather than standard
110V household service), so make sure that there is adequate power capacity
on your farm. Over-loading older or limited circuits can be hazardous and even
disastrous. You may wish to consult with a licensed electrician to determine if your
electrical source and wiring is adequate to supply your needs. If you rely on power
for critical elements of your operation, consider having a back-up generator on hand
in case of power outages.

Fencing

If you plan to have livestock, you will need fencing– and effective fencing, as you
are responsible for animals that get loose. There are many types of fencing from
portable to permanent, and livestock species vary in their fencing needs. Most
animals can do well with high tensile electric fence, while others (like goats) can
be better-contained a mesh style of fencing. Research what type of fencing you
will need for your operation. Check with your local Natural Resource Conservation
Service (USDA-NRCS) as well as your county’s Soil and Water Conservation District
(SWCD) for more information about livestock fencing alternatives and specifications
– links to both organizations are in the table on the last page of this fact sheet.
They should be able to refer you to contractors who install fencing and sell fencing
supplies, and may even be able to offer you a cost-share grant for fencing. Consider
putting up a perimeter fence and using portable, temporary fencing to form smaller
paddocks within the perimeter to rotationally graze livestock.

Pasture for Horses or Livestock

Putting too many animals on too little land causes reduced productivity to both and
can damage the health of the land in the long-term. As a general rule, allow for
about one acre of pasture for each 1000 lb. (or one “animal unit”) of cows, sheep,
or goats for the growing season. If you would like to harvest hay from your land for
your livestock’s winter feed needs also, make sure you have a total of 2 acres of
pasture per 1000 lbs. of animals. Because horses graze over a longer period each
day (up to 20 hours), and because they trample a lot of forage in the process, it’s a
very good idea to provide 2.5 acres per horse of grazing land during the growing Cornell
season. To get help establishing a successful grazing system, contact your local Soil Cooperative
and Water Conservation District (SWCD). Extension:
Reducing Deer
Damage to
Deer Fencing Ornamental and
Garden Plots
Deer are a major limitation to the production of horticultural crops including fruits, http://putnam.
vegetables and ornamentals. Increasingly farmers have to invest in deer fencing in cce.cornell.edu/
order to successfully grow these crops and minimize losses. Deer fencing is a major resources/reducing-
investment but a necessity in the long run. Fencing options include: 3 strand wire deer-damage-to-
fence that is electrified or 8-foot-high plastic fencing that provides a more secure ornamental-and-
barrier. For information on deer fencing, check the website: garden-plots

17
 Unfortunately, there are no federal or state programs to help offset the cost of deer
Department of fence installation. Therefore, it is a production expense that must be calculated into
Environmental startup costs.
Conservation:
New York’s Deer Landowners may be eligible for a deer nuisance permit from the DEC; eligibility is
Management based on “property damage and the lack of, or failure, of other practical alternatives
Program to alleviate the problem.” The DEC issues tags for a limited number of antlerless
www.dec.ny.gov/ deer on the lands specified on the permit. Find more information in the following
animals/7211.html guide:

Equipment

There is a wide array of equipment available for all enterprises. “Equipment”

could mean a tractor and mower or it could mean a hoe and a rake or specialized
equipment for processing. So, where do you start? One key is to start small, and
build up your farm operation gradually to help you get to know what you need and
when you need it. For example, before you purchase equipment talk with other
farmers to learn what is essential and investigate options for equipment rental or
options to buy used equipment. Don’t succumb to Shiny Equipment Disorder (SED),
buying more brand new shiny toys than you can possibly pay for with farm revenue.
It’s better to invest as little as possible in such overhead expenses, until your
operation can support purchase of better or more specialized equipment.

There are a few basic questions to consider when thinking about equipment:

• Assess what you have and what you need. Ensure that equipment is sized
correctly for the job you intend to do with it. For example, ensure that your
tractor has adequate horsepower to pull the baler you intend to use.
• Do you really need it? It may be more economical to rely on a custom
operator to assist you or to lease equipment.
• New or used? There are obvious advantages to each. Consider your needs
and financial resources carefully to make the best purchase.

Water Supply

Water resources include streams, rivers, lakes, ponds, wetlands, springs, wells, and
aquifers as well as any means of conveying the water to your facility. You should
be familiar with the location of the water resources on your farm. Consider what the
water needs will be for your enterprise. For example, horticultural enterprises need
a source of water for irrigation. Livestock owners will need to have a reliable and
potable source of water for their livestock to drink. Whatever the water is used for,
you need to determine:

• Is there enough water for your operation?

• Is there a way to bring water from its source to where you need it?

• Or, will you need to install water lines, irrigation structures or animal
watering facilities?

Keep in mind that all water lines and structures will need to be appropriately sized
to fit their purpose. For example, if water lines are too small, you may not be able to
deliver enough water to your livestock-watering trough to meet their needs.
18
Resources

This is an excellent resource for identifying conservation Each state’s NRCS

practices that may be needed for your farm operation. Field Office Technical
NRCS Technical Guide Landowners should seek assistance from their local Guide may be found
USDA-NRCS Service Center office, RC&D office, or at www.nrcs.usda.
technical service provider for additional information. gov/technical/efotg/

Your County Soil and Water Conservation District

Soil and Water http://www.nys-
is available as a technical resource for infrastructure
Conservation District soilandwater.org/
development.

Your County Cornell Cooperative Extension can assist http://smallfarms.

Cornell Cooperative
you with finding suppliers and dealers for the type of cornell.edu/contact/
Extension
equipment you need. local-contacts/

19
 4 Financing a Farm
Operation
Guide to Farming in New York State

Factsheet
Overview

Getting Money for Getting Money for Your New Farm Enterprise
Your New Farm
Enterprise By far, the most appropriate source of money for your new farm is your own cash –
no loans, no home equity, no family loans, and no credit cards. Relying too much
Farm Service
Agency Beginning on loans—at least in the very beginning--puts your farm dreams at too great a risk.
Farmer and It is worth the patience to build up your own farm start-up account. Most farms
Rancher Program can easily begin operating with <$5,000 cash, whether on leased land or land you
already own.
USDA Farm
Service Agency Obviously avoiding the expense of purchasing land greatly reduces the need for
Microloan Program
start-up capital. If you do have money saved up to buy land, don’t make the mistake
Commercial Banks of spending it all on the property! A good guideline is to spend no more than 50%
of what you have available on the land itself; save the rest for infrastructure and
Micro-Enterprise
Loan Funds or start-up needs.
Revolving Loans
Funds for Small Set aside the personal cash you have available for your farm in a separate bank
Business account called your “farm account.” Use this money judiciously for your start-up
expenses. When you earn income from the sale of farm goods, replenish this farm
Investors
account and continue buying what you can afford for your farm. Chances are,
Residential you will be more inspired and creative with your purchasing knowing you have to
Finance or Using stretch those dollars. Once your products have a clear demand and are not able to
Your Own Equity keep up with sales, assuming you want to continue growing the farm, it is time to
consider a loan or financing to allow more rapid expansion of the profitable aspects
of your farm.

If you reach the stage where you’re ready for a loan, you will need to present
potential investors or lenders with a solid business plan that exhibits a realistic
The Farm Service strategy for paying it off (See Fact Sheet #12 in this Guide). Here are a few loan
Agency (FSA) options:
provides direct and
guaranteed loans to
beginning farmers Farm Service Agency Beginning Farmer and Rancher Program
and ranchers who
are unable to obtain A beginning farmer or rancher is an individual or entity who:
financing from
• Has not operated a farm or ranch for more than 10 years
commercial credit
• Meets the loan eligibility requirements of the program to which he/she is
sources.
applying
www.fsa.usda.gov
• Substantially participates in the operation
315-477-6300

20
 • For farm ownership loan purposes, does not own a farm greater than 30
percent of the average size farm in the county
• All applicants for direct farm ownership loans must have participated in
business operation of a farm for at least 3 years
• If the applicant is an entity, all members must be related by blood or marriage,
and all stockholders in a corporation must be eligible beginning farmers

USDA Farm Service Agency Microloan Program

In addition to larger loans for land purchase or facility construction, FSA offers a Microloan
microloan program with low-interest loans of up to $50,000, more flexible eligibility Program:
requirements, and shortened application and processing time Designed to
help small farm
To qualify, it is helpful if beginning farmers have: operations
including beginning
• A business plan that shows income and expenses and ability to repay the loan farmers secure
• For established farms, a three-year financial and production history is part of loans under
the application, along with a list of assets and debt $50,000.
https://www.
Microloans can be used for start-up expenses, annual supply costs, marketing fsa.usda.gov/
costs, purchase of equipment and livestock, farm improvements, hoop houses, microloans
irrigation, delivery vehicles, etc. Microloans must be secured by a lien on property
or products. Repayment term will not exceed 7 years.

Commercial Banks

Most banks have a commercial lending department to handle business loans,

but few banks have an agricultural lending department prepared to work with
agricultural business. Check with your bank to see if they write agricultural loans
(most will if you have a Farm Service Agency or Small Business Administration
guarantee).

Following is a partial list of NY banks with known agricultural lending departments:

• Farm Credit (with branches in NH, NY, NJ, RI, MA, and CT)
www.farmcrediteast.com
• M&T
https://www.mtb.com/personal/Pages/Index.aspx
800-724-2440
• Community Bank, NA
www.communitybankna.com
800-724-2262
• Bank of the Finger Lakes
www.bankofthefingerlakes.com
315-789-1500

21
 Micro-Enterprise Loan Funds or Revolving Loans Funds for Small
Business

Some county governments have micro-enterprise loan funds with attractive interest
rates and repayment terms that can be used to finance farm operations. Check with
your county Planning and Economic Development Agency/Dept. to find out if they
have micro-enterprise loans funds that you might qualify for.

Kiva has a long and solid reputation as a global

microlender. Now they’ve set their sights on helping
US entrepreneurs as well, with a particular interest in https://borrow.kiva.
farmers. Through Kiva you can get a 0% interest loan of org/borrow
Kiva US
up to $10,000. You may have a 6-month grace period
and a 2-3-year repayment term. Loans are crowd-sourced
on Kiva’s online platform, and are made primarily based
on character references.

FarmStart has a mission to provide investments

of working capital in farm businesses and farmer
https://www.
cooperatives that show promise for business success.
farmcrediteast.com/
Farm Credit’s FarmStart The program can make loans to beginning farmers who
products-and-services/
Program wouldn’t meet Farm Credit’s internal credit standards. It
new-farmer-programs/
requires no down payment or equity for five-year loans
FarmStart
up to $50,000, as long as the business cash flows and
seems to have a good chance of succeeding.

Funds for larger agriculture projects may be secured by

working through local county economic development
and planning organizations and the regional economic
development council that covers your county. These
NYS Consolidated
entities set their own priorities for funding allocation. http://regionalcouncils.
Funding Application
Each regional council is awarded a set amount of NYS ny.gov/
– funding from
funds based on their plans. Projects are submitted via
NYS Empire State
regional councils and approved by the state. Some of the
Development
funding may be in the form of a grant, but mostly this is
a loan program. Applications are long and complicated.
Seek assistance as to whether this is an appropriate
funding source to pursue.

The Hudson Valley, Western Connecticut & Berkshire

County Loan Program (also known as the Greater http://www.
Berkshire Agriculture Fund) serves the four-county region thecarrotproject.org/
The Carrot Project of Dutchess, NY, Columbia, NY, Litchfield, CT, and loan_programs
Berkshire, MA, and is administered in partnership with
Salsibury Bank and Trust Company. The program offers
loans up to $75,000.

22
Investors

The concept of “Slow Money” (www.slowmoney.org) remains popular, and investor

circles nationwide are helping to fund local food systems. Depending on your
location and farm plans, you may be able to attract investors to fund start-up or
expansion of your farm. Many Community Supported Agriculture farmers have used
the strategy of fundraising from their membership to secure their land or build new
facilities, usually offering repayment plus interest in the form of farm products. You
will need to check in with legal and tax advisors about the implications for your
farm, and you will also need to crunch the numbers and write a business plan to
determine whether this is a strategy that can work for you. Search online for “slow
money,” “local investing opportunity networks” and “small farm angel investors” to
learn more about the possibilities for your farm.

Residential Finance or Using Your Own Equity

While many banks are unwilling to lend money to an individual to purchase a herd Never finance a
of goats, for example, almost all banks offer home equity loans and/or other personal business using
loans that you could use for your agricultural business. Home equity and personal credit cards as
loans may carry higher interest rates than business or farm loans available through interest rates are
the above sources. Be sure to check rates and terms. enormous and,
if payments are
If purchasing equipment or supplies (machinery dealers, a farmer selling animals, not made, can
etc.) ask the vendor about their credit options and terms, as they may be more quickly spiral out of
liberal than a commercial bank because they can easily seize and make use of the control.
asset if payment is not made. Again, be sure you know the interest rates and term.

23
 5 Farm Risk
Management
Guide to Farming in New York State

Factsheet
Overview
Insurance Insurance
General Liability
The primary goal of risk management and insurance is to protect your assets from
Automobile claims and lawsuits that may result from injury to persons or damage to property
from accidents that are associated with your business. Effective risk management
Home Owners depends on combined efforts and close communication between yourself and your
Farm insurance company. Look for an agent with whom you are comfortable, who is well
known and respected, who understands agriculture and businesses, and who will
Worker’s work with you to reduce your potential for risk.
Compensation
Product Liability When considering your risks, be sure to review the list below and describe your
risks completely to your agent. You will not need all of the types of protection listed
Contract Liability below, but it is important to know your options when shopping for insurance. Match
Environmental your coverage to your needs for risk management.
Pollution
Crop General Liability Insurance
Life Covers injuries to people and property for which your farm is judged liable and
Health mitigates your losses from lawsuits
Business Automobile Insurance
Interruption
Covers vehicle damage while in your vehicle or to another vehicle while traveling
Vendor’s
Umbrella Liability Home Owners Insurance

Ways to Reduce Your Typically covers fire, theft, personal property, lightning, riot, aircraft, explosion,
Liability vandalism, smoke, theft, windstorm or hail, falling objects, volcanic eruption,
snow, sleet, and weight of ice. Usually flood and earthquake need to be purchased
Safety in
Agritourism Act separately

Farm Insurance

Covers barns, rental housing, equipment, animals, and other farm assets

Workers’ Compensation Insurance

Required if you have employees or interns

24
Product Liability Insurance

For damages that may arise from the consumption, handling, use of or condition of
products manufactured, sold, handled, or distributed by your business

Contract Liability Insurance

Covers the assumption of the liability of another party through a contract or

facility use agreement. For example, you may be required to provide a certificate
of insurance to buyers that includes $1 million in product liability and additional
insurance

Environmental Pollution Insurance

Covers clean-up of manure, or pesticide spills

Crop Insurance

Can protect against annual production losses due to weather, pests and other
insurable causes of loss. Federally subsidized coverage can be purchased from a
certified crop insurance agent. Disaster programs provide up to 65% coverage for
crops where crop insurance is unavailable and is provided by county USDA Farm
Service Agencies

Life Insurance

To help your family in case something happens to the main earners

Health Insurance

For yourself and family in case you need medical care

Business Interruption Insurance

Will provide living expenses if you are hurt and cannot work

Vendor’s Insurance

Will cover your liabilities if you are selling at a farmers’ market or trade show

Umbrella Liability Coverage

A liability insurance policy. It provides extra insurance protection over and above
your existing policies and typically carries a high deductible

See also the list and description of types of insurance in Fact Sheet #6 in this Guide.

Ways to Reduce Your Liability

If you have people coming to your farm, keep your property in good repair.

• Minimize or eliminate dangerous situations. This might include: aggressive

animals, manure pits, moving vehicles or equipment parts, etc. Fence off

25
 hazards wherever possible.
• Bio-security is recommended. Provide booties and hand wipes for visitors who
enter barn areas.
• When selling or serving foods, make sure all regulations are met and carry
product liability insurance.
• All workers on your farm are required to be covered by workers compensation,
even if they work for free! So, if you have interns, apprentices, or employees,
you are required to carry insurance for them. See fact sheets 6 and 18 for more
details on insurance and labor laws.
• Test your water supply annually for bacteria if your water is being used for
washing produce or processing.
• Negligence is when you fail to take normal steps to eliminate hazards or you
create a hazardous situation and fail to address it.
• Avoid making false statements or publishing incorrect information that may
damage a person’s reputation as this can result in libel suits. Be careful of
advertising claims or comparing your operation to others in a negative way.
• Manage your production techniques according to recommended best
management practices.

Safety in Agritourism Act

In 2018 NYS passed the Safety in Agritourism Act, which protects owners and
operators of agricultural tourism businesses from liability for visitor injury or death.
But the law only applies if owners or operators adhere strictly to the requirements
laid out in the legislation, including posting clear “Warning to Visitors” signage,
clearly signing areas that are off limits, and proper training of employees. The
requirements go well beyond generic signage. It’s worth reading the guidance
document provided by the NYS Dept of Ag to be sure you understand what you
need to do to be protected by this Act:

https://blogs.cornell.edu/smallfarmsprogram/files/2019/02/Inherent_Risk_Guidance-
zg2992.pdf

26
27
 6 Farm Insurance
Guide to Farming in New York State

Factsheet
Overview

Farm Owner’s Farm Owner’s Insurance

Insurance
Like a homeowner’s policy, most general farm insurance plans cover property
Supplemental damages and comprehensive personal liability coverage for claims against the farm.
Comprehensive
Coverage and/or This insurance is only available through private insurance brokers and it is suggested
Product Liability that you shop around as prices vary widely from vendor to vendor.
Insurance
Supplemental Comprehensive Coverage and/or Product Liability
Worker’s Insurance
Compensation
Insurance If you have the public coming to your farm, you may want to consider increasing
your farm’s comprehensive personal liability insurance in case someone gets hurt
Health Insurance
on your property. In 2019 NYS passed the Safety in Agritourism Act that limits a
Crop Insurance and farm owner’s liability for visitor injuries, but only if the owner follows very strict
Risk Management guidelines outlined here: https://blogs.cornell.edu/smallfarmsprogram/files/2019/02/
Inherent_Risk_Guidance-zg2992.pdf
Insurance
Companies that If you sell products for human consumption, you run the risk of people getting sick
Serve Farms
from your products. Make sure your general comprehensive policy covers product
risks or purchase product liability insurance.

Some fruit and vegetable producers find their existing insurers are now requiring that
the farm hold a certificate of FMSA training. Should that happen, here is a source for
training: https://producesafetyalliance.cornell.edu/training/

Workers Compensation Insurance

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
Note: Worker’s apprentices for the growing season, workers compensation insurance must be
compensation provided for these workers too. Insurance can be purchased from the New York
insurance also State Insurance Fund (http://ww3.nysif.com/), private insurers, or an employer
applies to unpaid can form/join a self-insurance group if they meet various requirements and post
interns bond.

State law also requires that employees be covered by a disability benefit if they are
disabled off the job. Most workers compensation insurance will also include this.
28
Family members (spouse or children) and farm laborers are exempt from this
requirement if the farm is not incorporated. If the farm is held as a corporation or
LLC then the family member exemption does not apply because no one is related to
a business entity.

Health Insurance
Farm employers are not required to carry health insurance for their employees if
they have 50 or fewer employees. However, health insurance for farmers and farm
families who do not have off-farm jobs can be very costly. Farming is a high-risk
occupation and families put themselves at risk when they do not carry or cannot
afford health insurance coverage.

Insurance Plan Options

Provide health insurance for farm families through the

Toll free:
Gladle & Associates Dairymen’s Health Insurance Alliance Group Plan. You
800-479-8153
do not have to be a dairy farmer to join

The New York State of Health Marketplace can help

https://info.
individuals and sole proprietors shop for and enroll
nystateofhealth.
NY State of Health in health insurance. You may also qualify to receive
ny.gov/
assistance to help pay for insurance offered through the
Marketplace.

All U.S. citizens are eligible for healthcare coverage https://www.

Affordable Care Act
through the Health Insurance Marketplace healthcare.gov/

Crop Insurance and Risk Management

Crop insurance is available for specific crops to protect against weather-related and
other common causes of loss. Federally subsidized policies are created by the USDA
Risk Management Agency, but purchased from a crop insurance company. Current
policy information is available at: www.rma.usda.gov

And through the New York Crop Insurance Education Program

https://agriskmanagement.cornell.edu/

Federal disaster programs can also protect against significant crop losses, if
beginning farmers sign up annually by the applicable deadline. Disaster programs
are administered by county USDA Farm Service Agencies, listed on each State’s FSA
website: www.fsa.usda.gov

29
 Insurance Companies that Serve Farms

• Erie Insurance
http://www.erieinsurance.com/
• Dryden Mutual Insurance Company
http://www.drydenmutual.com/
• Farm Family
http://www.farmfamily.com/
• Fingerlakes Fire and Casualty
https://www.flfcc.com/
• NY Farm Bureau/ Nationwide
https://www.nationwide.com/cp/ag-farm-bureau-ny.htm
• Safety Group 486 Workers’ Compensation Insurance (Associated with NY
Farm Bureau)
https://www.nyfb.org/programs/workers-compensation
• Washington County Cooperative Insurance Company
http://www.wccic.com/

*This listing of insurance companies is not intended to be complete, and listing does
not imply endorsement by Cornell Cooperative Extension. Check with folks located
in the area near where you farm to find insurance agents and underwriters who
specialize in farm policies.

30
31
 7 Farm Vehicles
Guide to Farming in New York State

Factsheet
Overview

Dept of Motor Dept of Motor Vehicles and Dept of Transportation

Vehicles and Dept
of Transportation Requirements
Requirements
Registration
Pulling a trailer Registration
with a combined
weight greater than Trucks and trailers used for farm purposes can usually be registered with the DMV
10,000 lbs, or a under the “Agricultural” class (Note that this is different than the “Farm” class).
heavy farm vehicle Details about requirements, fees, insurance, and inspection are here: https://dmv.
over 10,000lbs for ny.gov/registration/about-agricultural-and-farm-vehicles
commercial farm
business
A Covered Farm Vehicle is defined as a vehicle or combination of vehicles
Operating a truck registered in this state which must:
and/or trailer with
a Gross Combined • Be operated by the owner or operator of a farm or ranch, or an employee or
Vehicle Weight family member of an owner or operator of a farm or ranch
(GCVW) greater • Be used to transport agricultural commodities, livestock, machinery or supplies
than 26,000 lbs
to or from a farm or ranch
Moving Tractors and • Not be used for for-hire motor carrier operations, exclusive of operation by a
Other Farm Equipment tenant pursuant to a crop share agreement to transport the landlord’s crop
on Public Roads • Not be used to transport hazardous materials.
Important
Exception The CFV- 1 form designates the vehicle as a covered farm vehicle (Note that this
form does not need to be submitted; you can just fill it out and carry it in the glove
Transportation box). Download copies of the CFV-1 from the DMV website at Designation as a
of Hazardous
Materials on Public New York State Covered Farm Vehicle (pdf ) (CFV-1), or obtain them at your local
Roads DMV Office.

Tractor and The Covered Farm Vehicle designation means that you are exempt from needing
Machinery a commercial driver license (CDL) to operate a covered farm vehicle, unless the
Certification for Gross Combined Vehicle Weight (GCVW) exceeds 26,000lbs. It also means that
Youth
you are exempt from some federal regulations related to hours of service, medical
certification, drug testing, and maintenance requirements (State requirements still
apply).

32
When pulling a trailer with a combined weight greater than 10,000 lbs,
or a heavy farm vehicle over 10,000lbs for commercial farm business,
you should:

• Complete a CFV-1 (Covered Farm Vehicle) form and keep it in your glove box
https://dmv.ny.gov/registration/about-agricultural-and-farm-vehicles
• Get a USDOT number and display it on the side of your truck with Farm name Note: When you
(Font must be at least 2” tall, visible from 50’ distance). This information register to get a
can be on magnetic signs because it is only required to be displayed when USDOT number,
operating a vehicle or combination of vehicle and trailer with a Gross you may be
Combined Vehicle Weight (GCVW) greater than 10,000 lbs. There are contacted by 3rd
additional vehicle marking requirements if operating in NYC. party services
https://www.dot.ny.gov/divisions/operating/osss/truck/registration-licensing pressuring you
• Pull into Weigh stations when they are open - Although the CFV is not subject to enroll in Drug
to normal roadside inspection, Covered Farm Vehicles should pull into safety and Alcohol
checkpoints if the points are active. Supervisor training,
• If you are a CFV with less than 26,000 lbs GCVW, you don’t need to have a General regulatory
log book for driving hours anywhere in the US (exempt from Hours of Service and compliance
requirement). support, Unified
Carrier Registration
Compliance, or
When operating a truck and/or trailer with a Gross Combined Vehicle other services.
Weight (GCVW) greater than 26,000 lbs: Please be aware
that legitimate
• All of the above applies, AND government agency
• If vehicle or combo of vehicle that would normally require a CDL license (i.e. representatives will
GCVW >26K) is only operated 150 mi radius from the farm, you do NOT have not robo-call you,
to have a CDL. solicit credit card
• If you are operating a class B configuration (truck over 26,000 lbs) or a class numbers via phone,
A (trailer over 10,000 lbs and combination is over 26,000), you are exempt or charge a fee for
from needing a CDL if you have a Farm A or Farm B license and only operate required forms.
within 150 miles of the farm.
• If you go beyond the 150 mile radius, you must have a CDL and you will be
subject to the federal Hours of Service requirement.

Moving Tractors and Other Farm Equipment on Public

Roads
The “slow moving vehicle” emblem, a fluorescent or reflective orange triangle, must
be displayed on the rear of vehicles drawn by animals, and most farm vehicles and
construction equipment. It must be displayed on all equipment designed to operate
at 25 mph or less, whether self-propelled or used in combination. These signs fade
with time, so it is recommended to replace them every 2-3 years. The emblem must
be displayed separately on each piece of equipment, whether self-propelled or used
in combination as per VTL 375-36(b).

It is unlawful to operate agricultural equipment on any public highway between 30

minutes after sunset and 30 minutes before sunrise or at any time when visibility
ahead or behind is less than 1000 feet, unless the equipment is equipped with
approved working lamps. If on a public highway after dark, requirements include:
33
 • Two white headlights on front of tractor at the same height and as far apart as
practicable
• One red tail lamp at the farthest end (tractor or implement) and as far apart as
practicable
• Two amber combined hazard warning and turn signal lamps at least 42 inches
high at the same level, visible from front and rear. If just a tractor, these lights
can be on the cab. If traveling with an implement, these lights need to be
For additional mounted at rear of implement
information on • Two red reflectors at the rear of the implement, at the same level and as far
SMV emblems, apart as practicable
please refer to:
State Vehicle and
Traffic Regulations Important Exception

Title 15, Part 68 If the width of tractor/implement combination is between 12 and 17 feet, you cannot
– Slow-Moving travel on public roads after dark. When traveling during daylight, red or orange
Vehicle Emblem (15 fluorescent flags not smaller than 18 square inches and reflectors need to be placed
NYCRR 68) at extreme corners of the load. In addition, 2 amber lights or hazard lights visible
from the rear of the load must be flashing. If the vehicle or implement extends
For additional beyond the center line or is traveling during inclement weather, the implement
information on should be preceded by an escort vehicle with a warning sign and flashing lights.
required lighting
equipment, refer
to: Transportation of Hazardous Materials on Public Roads
State Vehicle and
Traffic Regulations A farmer who is operating as a private business (not for hire) is exempt from vehicle
placarding and marking regulations when transporting an agricultural product
Title 15, Part 43 (hazardous material including fertilizers, pesticides, fuel, etc.) over local roads
– Motor Vehicle between fields utilized by the farm.
Lighting (15 NYCRR
43.9)
Tractor and Machinery Certification for Youth
Section 43.9
– Lighting New York State 4-H Youth Development provides Tractor and Machinery
Requirements Certification for youth 14 years and older. This certification allows 14 and 15-year-
on Agricultural olds to legally operate tractors and machinery while off the family farm. Farm safety
Equipment awareness is a major focus. https://nys4-h.org/risk-management

These
regulations can
be found by
visiting:
http://government.
westlaw.com/
linkedslice/default.
asp?SP=nycrr-1000
and selecting the
Department of
Motor Vehicles

34
35
 8 Zoning Regulations
and Farming
Guide to Farming in New York State

Factsheet
Overview

Municipal Zoning Municipal Zoning Laws

Laws
If you plan to build a new farm facility, establish a retail farm outlet, add
NYS Building Codes worker housing, add horse boarding/riding facilities, etc., check with your local
municipality to find out which laws apply. Some common restrictions and
requirements might include: road setbacks, lot size, dimensions, signage size and
placement, site plan requirements, screening, etc.
Local Laws and
Agricultural Farms located in certified agricultural districts are generally exempt from many local
Districts: and some state regulations including SEQR (State Environmental Quality Review),
Guidance for some building codes, and from the need to provide professionally stamped plans for
Farmers and Local farm buildings, etc. Contact your county planning or assessment departments to see
Governments if the property of interest is in an agricultural district.
http://www.
If you are located in an agricultural district and find local zoning to be excessively
agriculture.ny.gov/
restrictive to your farm development plans, check the NYS Dept. of Agriculture
AP/agservices/
& Markets website for information on local laws and the agricultural district law
new305/guidance.
and how they relate. In many cases, the Agricultural District law protects farm
pdf
operations from restrictive local laws. For more information, access the following
document from the Ag & Markets website:

A process exists by which you can request an opinion from NYS Dept. of Agriculture
Mail a Request & Markets Agricultural Protection Program staff to make a determination if a local
for Review: law is restrictive to farming. It is suggested that you call the staff and discuss the
NYS Dept. of matter with them prior to filing an official request for assistance (see telephone
Agriculture & number listed below). Formal requests for assistance must be made in writing and
Markets Div. include details on local restrictions and requirements as evidenced in zoning code
of Agricultural or some other ruling.
Protection & If you are not located in an Agricultural District then you must comply with local
Development regulations.
Services

10 B Airline Drive
Albany, NY
http://www.
agriculture.ny.gov/
AP/agservices/
agdistricts.html
518-457-2713
36
NYS Building Codes
Farm buildings are exempt from the building code for construction. To learn about
whether or not your farm is exempt from the property maintenance and some fire
safety code requirements, contact:

New York State Department of State Code Enforcement and Administration

One Commerce Plaza

99 Washington Ave, Suite 1160
Albany, NY 12231

Phone: 518-474-4

37
 9
Legal Aspects of
Rural Living
Guide to Farming in New York State

Factsheet Laws are constantly changing and vary by municipality. For state-wide legislation
Overview relating to fences, see New York State Agriculture and Markets circular 937, which
gathers Article 18 of the Town Law, Section 95 of the Agriculture and Markets Law,
and Section 52 of the Railroad Law. https://on.ny.gov/2D6Zqem
Boundary Fences
and Trees The following are some general guidelines to know when living in the country:
Fencing for
Livestock
Boundary Fences and Trees
Riparian Rights

Posting and In NYS it is the duty of both adjoining landowners to maintain a fence line and one
Trespass Law party may not remove a fence without the permission of the other. The same applies
to trees; however, a property owner may trim the branches of a tree hanging on
Landowner
Liability their own side of the property so long as the trimming does not result in damage to
the tree.
Right to Farm
Laws

Farm Neighbor Fencing for Livestock

Relations
Fences intended to contain livestock must be constructed of materials that will
Flood Plain
restrain them. If you have animals, let your neighbors know and provide them with
contact info in case the animals get out or if they see something amiss.

Riparian Rights

If your property includes a waterway, you have the right to use a reasonable amount
of water but you are liable for water pollution. You may not impede the flow of a
stream or divert it from its original channel where it flows into the next owner’s
property. If a body of water is navigable, the public has the right to use water
regardless of the owner. If a body of water is not navigable, the riparian owner may
exclude public use. If a stream is classified as a trout stream, it may not be altered
under NYS DEC law without a permit, and according to fish and game law the land
may not be posted.

1
Posting and Trespass Law

Owners or others with exclusive rights to property may post the boundaries warning
that if a person enters the property they are trespassing. Trespassers must leave the
property if the owner so orders and they may be charged with a criminal violation. If
not posted, the trespasser can argue that they thought the land was public. If a
trespasser refuses to leave, a sheriff should be called to make an arrest.

Posting requirements include:

At minimum 11-inch square sign with lettering to occupy 80 square inches exclusive
of the name and address
The word POSTED in caps and the name and address of the owner
Signs must be located at property boundaries and corners and be conspicuously
placed not more than 660 feet apart
Illegible or missing signs must be replaced at least once a year.

Landowner Liability

This is a very complicated issue and the best protection is risk management, insurance
and posting. While trespassing is illegal, it is also illegal for the property owner to harm
the trespasser. If you give permission to someone to use your land for any purpose, it
is advisable to warn them of hazards on the property. Additionally, if you allow others
to swim on your property, you are responsible for their safety and hygiene (e.g.
toilets).

Right to Farm Laws

The NYS Agricultural District Law has a provision that protects farmers against
nuisance lawsuits and protects the right to farm, provided that sound agricultural
practices are followed. Many municipalities also have right-to-farm laws with
additional provisions meant to protect farmers. Check with your town officials to see if
such a law exists in your municipality.

Farm Neighbor Relations

A way to avoid problems that may arise from the above situations is to let your
neighbors know what you are doing on your farm and what to expect. If you have to
operate for long hours during planting and harvest season or will be spreading
manure, let your neighbors know. Communication goes a long way towards avoiding
complaints about noise, dust, odor, livestock hazards, or farming practices.
Increasingly your farming neighbors will have had no exposure to living in the country

2
 and you can help educate them about agriculture and where food comes from by
letting them know what you do.

Flood Plain Considerations

If your land is in a flood plain, you are allowed to farm it but may need a permit from
your town, village or city if you plan to

1. significantly change the topography

2. install fencing which can catch debris and therefore impede flood waters, or
3. build a barn or other structure.

3
4
 10
Farms with large numbers of animals (e.g. 300+ mature
Environmental dairy cows) must have a Concentrated Animal Feeding
Operation (CAFO) permit.
Regulations Details of a permit:
Guide to Farming in New York State • Requires a comprehensive nutrient management
plan to be completed and updated annually by a
certified Agricultural Environmental Management
Concentrated Animal
Planner. Plan covers animal manure, wastewater, http://bit.ly/2Mr7EoF
Feeding Operation
silage leachate run-off and more.
Factsheet (CAFO) Regulations
• Requires expansion to be planned and limited
Overview by the farms ability to handle nutrients/wastes
produced.
Agriculture Agriculture Environmental Management (AEM) • Does not protect the farm in the event of a manure
Environmental
Management (AEM) www.nys-soilandwater.org/aem/index.html spill or discharge. If a spill takes place the farmer
has 24 hours to report it to the state and 5 days to
Laws and In order to be successful in the long-term, every farm must sustain or improve its file a written statement on what happened.
Regulations soil, water, and plant resources. Beyond regulatory compliance, it is to a farmer’s
Pesticide Application advantage to incorporate good environmental management practices during their
initial planning, rather than confronting costly mitigation measures later. Whether at Highly Erodible Land Conservation (HELC) and Wetland
Becoming Certified the early planning stages or when seeking improvements to current environmental Conservation (WC) provisions of the Food Security Act
To be eligible for management, AEM operates through a purely voluntary and confidential approach of 1985 aim to reduce soil loss on erosion-prone lands
certification: at the county level through Soil and Water Conservation District (SWCD) offices. and to protect wetlands for the multiple benefits they
One-on-one assistance is generally available to walk your land with you to assess provide. HELC and WC provisions apply to all land that
To become existing stewardship as well as areas of concern and to help you further advance is considered highly erodible or a wetland, and that is
certified:
environmental management on your farm. These offices will also have information owned or farmed by persons voluntarily participating in
Worker Protection on funding sources (grants, loans, cost-shares) for implementing conservation USDA programs.
Standard (WPS) practices on your farm.
For more information,
Activities not allowed under HELC and WC:
Recertification Locate your local county SWCD office at: www.nys-soilandwater.org/contacts/ Conservation of contact your local
• planting an agricultural commodity on highly
county_offices.html Wetlands and Highly Farm Service Agency
Credits for Private erodible land or a converted wetland
Recertification: Erodible Lands (FSA) office or visit:
• converting a wetland to make agricultural
Farm Service Agency https://www.nrcs.
production possible
Laws and Regulations (FSA) and Natural usda.gov/wps/portal/
• creating new drainage or modifying, improving, or
Resources Conservation nrcs/main/national/
There are several laws that may impact your ecological management, mostly when it maintaining existing drainage
Service (NRCS) programs/alphabetical/
comes to how your management decisions impact others downstream of your farm: • conducting land leveling, filling, dredging, land
camr/
clearing, or stump removal of trees

Producers who are enrolled in USDA programs and

Farmers must comply with New York State water planning to conduct activities that may affect their
regulations to protect surface and ground water from HEL or WC compliance must notify the FSA by filing
contamination from eroded soil, pH, fecal coliforms, form AD-1026. FSA will notify the NRCS, which will
excessive nitrate and phosphorus levels. If the Dept. of http://www. then provide highly erodible land or wetland technical
NYS Water Quality
Environmental Conservation (DEC) determines that you dec.ny.gov/ evaluations and issue determinations if needed.
Regulations
are the cause of a water quality violation, your farm chemical/23853.html
will be subject to a fine and farming practices may be
restricted or prohibited. This law applies to all land
owners and farm operators.

40 41
 To become certified: For Questions
Under Section 10 of the Rivers and Harbors Act of 1899, about the
the U.S. Army Corps of Engineers (Corps) has regulatory • Must take an exam based on information in the Pesticide Training Manual Certification
authority over any temporary or permanent structures (Core Manual) Process and
constructed in, over, or under navigable waters of https://www.lrb. • Additionally, there are questions pertaining to the situation in which you use Exams:
the United States. Under Section 404 of the Clean usace.army.mil/ pesticides (Category Manual)
Water Act, the U.S. Army Corps of Engineers regulates Missions/Regulatory. Call the Department
the discharge of dredged or fill material into waters aspx You can obtain manuals through county Cooperative Extension offices. Cooperative of Environmental
of the United States, including freshwater wetlands. Extension also offers pesticide applicator training programs or you may study on Conservation office
Certain types of activities, such as land-clearing your own and make an appointment with the DEC to take the exam. in your region.
using mechanized equipment and/or sidecasting, in a
jurisdictional water would likely be regulated under For NYS, regional
Worker Protection Standard (WPS) DEC office contact
Section 404 of the Clean Water Act.
Navigable Waters Law information can be
If you have employees who will be applying pesticides for your operation, you
Many normal farming activities, such as such as are required to provide proper training on safe handling and application of these found at:
plowing, seeding, cultivating, minor drainage, and chemicals. See all requirements here: http://www.
harvesting for the production of food, fiber, and forest https://www.epa.gov/pesticide-worker-safety/agricultural-worker-protection-standard- dec.ny.gov/
products, or upland soil and water conservation practices https://www.nan. wps#requires permits/45618.html
on established, on-going farming or ranching operations usace.army.mil/
Upon passing
are exempt from Corps permitting requirements under Missions/Regulatory/
Recertification the exam, your
the Clean Water Act. However, discharges that bring
certification is valid
an area into agriculture or back into agriculture if it has
During the 5 years that you are certified, you must obtain continuing education for 5 years. There
been abandoned or fallow may require a permit from the
credits toward recertification. Credits can be obtained by attending meetings where is a fee for the
Corps of Engineers.
pest management topics are discussed and credits offered. exam and for the
certification license.
A “Course Calendar” can be found at:
http://psep.cce.cornell.edu/certification/Recertification.aspx
Pesticide Application For Information
Pesticide Search the database of NYSDEC approved courses in your area. on Manuals and
When using pesticides, the Label is Law – make sure you read it!
Applicator Training:
Certification:
Credits for Private Recertification: Contact your
For more Becoming Certified
information on • 8 for Agricultural Animal (Livestock & Poultry) and Aquatics county Cooperative
becoming certified, Any farmer using restricted use pesticides to protect crops and animals from pests • 10 for Agricultural Plant (Field & Forage, Fruit, Vegetable, Greenhouse & Extension office,or
visit the DEC’s on property owned or rented for the production of an agricultural commodity is Florist and Nursery & Ornamentals) the Pesticide
website: considered a “private” applicator, and must become certified by the DEC and show • Credits must be earned in more than one calendar year and consist of at least Management
http://www. their pesticide license when purchasing these products. General use pesticides, 25% category-specific training in each category of certification Education Program
dec.ny.gov/ considered to be safer and in general use, do not require applicator certification for
permits/45618.html purchase and use. 607-255-1866,
You are obligated to keep records of the credits you receive and turn in record
sheets to DEC when they notify you that your license is about to expire. If you do http://psep.cce.
Pesticide application laws apply to organic production too!
not have the required credits, you will have to take the exam again. cornell.edu/
http://pesticideresources.org/wps/jfy/agemp/organic.html
certification/
Certification.aspx
To be eligible for certification:
PMEP_Webmaster@
• Must have at least one season’s experience working with the crops, livestock cornell.edu
or stored products on which you will use pesticides and be at least 17 years of
age

42 43
 11 Forest Land
Resources
Guide to Farming in New York State

Factsheet
Overview

Assistance for Forest Assistance for Forest Owners

Owners
Woodlands are a valuable asset that if properly managed can provide harvestable
Agroforestry and timber, firewood, and agroforestry products. If the land you own includes
Maple Syrup woodlands, it pays to become informed about this asset. Following are agencies and
Production
organizations that are available to assist you:
Forestland Tax
Exemption – 480-a

Agricultural
Assessment for Maple
Production

Volunteers are trained by Cornell Dept. of Natural

Resources and are available in nearly every county to Find MFO at:
provide answers about forest management questions. http://blogs.cornell.
Master Forest Owner
They are a great resource for the new forest owner edu/ccemfo/
(MFO) Volunteers
and can offer practical advice on questions pertaining
to woodlot management, timber harvesting and other
topics.

To become a member,
The NY Forest Owners Association promotes contact NYFOA at
NY Forest Owners
sustainable woodland practices and improved 800-836-3566 or
Association (NYFOA)
stewardship on privately owned woodlands. www.nyfoa.org

Contact the regional

office that covers your
NYS Dept. of county and request the
DEC Foresters will prepare Forest Management Plans
Environmental assistance of a DEC
that identify your woodland resources and provide
Conservation Division of Forester:
management options.
Lands and Forests www.dec.ny.gov/
lands/4972.html

44
 Call 518- 581-1439 or
visit:
www.dec.ny.gov/
Tree seedlings are available for small planting and
animals/7127.html
reforestation projects. Generally, orders need to be
DEC Saratoga Tree placed by mid-March and will be shipped in April.
Many county Soil and
Nursery Species available from the above sources include:
Water Conservation
conifers, hardwoods, and mixed packets for wildlife or
District (SWCD)
other conservation purposes.
offices also sell tree
seedlings

ForestConnect is an education and applied research

program of Cornell University and Cornell Cooperative
http://
Extension. The goal of ForestConnect is to support the
Cornell Forest Connect cornellforestconnect.
sustainable production of private woodlands in New
ning.com/
York (and beyond) through the provision of educational
assistance.

Agroforestry and Maple Syrup Production

Interested in knowing the potential of your woodlands for products other than timber
and firewood? At the following sites you can explore the possibilities for producing
maple syrup, cultivating ginseng, goldenseal, mushrooms, native plants or other
forest crops as part of your farm operation:

• Cornell Maple Program

http://www.cornellmaple.com
• Forum for maple producers to share ideas and equipment
http://www.mapletrader.com
• Cornell’s Forest Farming Resource Center
http://www.hort.cornell.edu/forestfarming/
• Agroforestry Resource Center, Greene County
http://www.ccecolumbiagreene.org/
• Agroforestry Overview, ATTRA
http://www.agmrc.org/media/cms/agrofor_A18CE08578D41.pdf

Forestland Tax Exemption – 480-a

Privately owned forestland can be partially exempted from taxation but is liable for
special levies/assessments under a state law called 480a. The exemption is limited to
the lesser of either:

1. 80% of the assessed value of eligible acreage or;

2. The amount by which the assessed value exceeds $40 x the state equalization
rate x number of acres

45
 To qualify for the exemption:

To Receive the • Requires an annual commitment to continued forest crop production for the
Exemption: next 10 years
• Forests must be under a forest management plan approved by DEC
First Year: • Must include at least 50 contiguous acres of forest land (roads, rights-of-ways,
Complete Form energy transmission corridors, etc. are included)
RP-480, must • Must have vehicular access for forest management purposes
be accompanied • Any timber harvest within 3 years prior to application for certification under
by a 10-year this program must have been conducted in accordance with sound forest
commitment management practices
form from DEC • Prescribed cutting may be required by DEC plan
and a certificate
of approval from
the county clerk’s
office– take these Agricultural Assessment for Maple Production
forms to your If you tap the maple trees on your forestland or lease your forestland to another
county/town maple producer, you may be able to qualify for an agricultural assessment. This
assessor by the program does not require that a landowner develop or follow a written forest
taxable status date management plan and is less restrictive than 480-A. Please refer to the Agricultural
(March 1). Assessment section in Property Tax Exemption for Farmland (Fact Sheet #21) for
Subsequent details on this program. If a landowner qualifies for agricultural assessment on their
Years: open land, they can also include up to 50 acres of attached woodland. However,
File a new copy maple syrup production is the only use of forestland that will qualify a landowner to
of the 10-year receive agricultural assessment on its own.
commitment form Leasing forestland to a maple producer is an attractive option for landowners who
with the assessor. If would like to have their trees tapped but do not have the ability or desire to do the
you fail to file the work themselves. Oftentimes the tax savings of qualifying for ag assessment is more
commitment form, lucrative than the lease fees provided by the producer. This requires a 5-year written
the property is not contract with a maple producer who meets the minimum sales requirements for ag
eligible for the assessment.
exemption.

For more
information on this
program, contact
a DEC Forester
in your region:
www.dec.ny.gov/
lands/5236.html

46
47
 12 Business Plans
Guide to Farming in New York State

Factsheet
Overview

What is a Business What is a Business Plan?

Plan?
A business plan is a document that helps you to organize and succinctly summarize
Helpful Publications the vision you have for your business. The plan contains the operational and
for Writing a Business financial objectives of a business, the detailed plans and budgets showing how the
Plan
objectives are to be realized.

A good business plan will contain the following:

• Your business vision, mission statement, key values, and goals

• Description of the product(s) you intend to produce
• Strengths, Weaknesses, Opportunities and Threats the business may experience
are described
• Production plans
• Marketing plans
• Estimated start-up costs
• Information on your legal structure and management team
• Current financial statements or projected financial statements.
• Resume or brief explanation of your background and relevant experience
• Less than 10 total pages so that people actually read it

Helpful Publications for Writing a Business Plan

General Business Resource Publications

• Starting an Ag-Business? A Pre-Planning Guide

http://publications.dyson.cornell.edu/outreach/extensionpdf/2004/Cornell_
AEM_eb0408.pdf
• Business Transfer Guide: Junior Generation
http://publications.dyson.cornell.edu/outreach/extensionpdf/2016/Cornell-
Dyson-eb1605.pdf
• Producing a Business Plan for Value-Added Agriculture
http://publications.dyson.cornell.edu/outreach/extensionpdf/2007/Cornell_
AEM_eb0708.pdf
• Business Planning for the Agriculture Sector: A Guide to Business Plan
Development for Start-up to Mid-size Operations
http://publications.dyson.cornell.edu/outreach/extensionpdf/2010/Cornell_
AEM_eb1002.pdf

48
 • Building a Sustainable Business (Sustainable Agricultural Research Education
(SARE)Publications)
www.sare.org/publications/business.htm
280 pages of education and practical exercises to guide you through the
financial, management, and interpersonal skills needed to start a successful
farm business. Order hard copy for $17 or download PDF online for free.

Cornell Cooperative Extension Publications for Specific Commodities

• Landscape Business Planning Guide

http://publications.dyson.cornell.edu/outreach/extensionpdf/2003/Cornell_
AEM_eb0313.pdf
• Writing a Business Plan: A Guide for Small Premium Wineries
http://publications.dyson.cornell.edu/outreach/extensionpdf/2002/Cornell_
AEM_eb0206.pdf
• Writing a Business Plan: An Example for a Small Premium Winery
https://ageconsearch.umn.edu/bitstream/122203/2/Cornell_AEM_eb0207.pdf

Getting Help Writing a Business Plan

The type of programming offered in each county is

unique so contact your county extension office to see
if they have a farm management or small business
development educator. Often these educators offer
www.cce.cornell.edu/
business plan workshops and are willing to advise,
Cornell Cooperative editor/show/In_Your_
review, or assist in writing your plan.
Extension Community
Additional economic data and marketing tools can be
found at the following website: https://dyson.cornell.edu/
outreach/extension-bulletins

The Cornell Small Farms Program offers 20+ online

courses every year on many topics related to the
https://cornell-small-
Cornell Small Farms production and business sides of farming. Most are
farms-program.
Program Online Course taught by Cornell Cooperative Extension educators.
teachable.com/p/
BF 202: Business BF 202 is a 6-week course that will guide you through
bf-202-writing-a-
Planning the process of writing your business plan, with weekly
business-plan/
live webinars and feedback on your plan from an
experienced farmer.

A network of 23 regional centers delivering business

New York State
counseling and training free of charge to New Yorkers
Small Business www.nyssbdc.org
who want to start a business or improve the performance
Development Center
of an existing business.

49
 New York FarmNet has business plan writing
publications (listed earlier in this fact sheet) in addition to
www.nyfarmnet.org
farm counselors throughout the state who offer free and
NY FarmNet confidential help on any topic of concern, including:
finances, farm changes, farm transfer, natural disaster,
personal stress, family communication, and marital
conflict.

Part of New York State’s economic development 1-800-STATE NY

Empire State
agency, they have 9 centers across the state to provide http://www.
Development’s
specialized help to women, minority group members and empire.state.ny.us/
Entrepreneurial
persons with disabilities who are starting or operating an BusinessPrograms/
Assistance Program
early stage business. EAP.html

SCORE “Counselors SCORE is a nonprofit organization offering free business

to America’s Small advice and training by experienced volunteers. Check www.score.org
Business” the website for chapters in your area.

Federal agency with offices throughout the state

providing counseling services and loan guarantees.
Federal Small Business
They have a special emphasis area to work with www.sba.gov/ny
Administration
women, minorities, veterans, and businesses involved in
international trade.

AgPlan is powerful website developed by the Center

for Farm Financial Management at the University of https://agplan.umn.
AgPlan
Minnesota to help rural businesses develop a business edu/
plan.

https://newfarmers.
USDA’s New Farmers Website provides a portal to
USDA New Farmers usda.gov/technical-
various sites providing technical assistance for planning a
Website assistance-planning-
business.
your-business

50
51
 13 Business Structures
Guide to Farming in New York State

Factsheet
Overview
Registering Your Registering Your Business Name
Business Name
If a farm is operating as a sole proprietorship and is using a farm name that does
Business Structures –
Legal Organization not include the business owner’s real name, then registration of the business name
is required. This is intended to help the public identify who owns a particular
Sole Proprietorship business. “Assumed Name” certificates—more often called “Doing Business As”
General (DBA) Certificates are filed with the county in which the business is located. If a farm
Partnership (sole proprietorship, LLC, or any other structure) also does business under a name
other than the official name, then a separate name filing is required. For example,
Limited Partnership if Perfectly Picked Produce, LLC launches a brand named Perfectly Picked Popcorn,
Limited Liability the latter name must be registered so the public knows that Perfectly Picked Produce,
Company (LLC) LLC is responsible for Perfectly Picked Popcorn.
Business C
Corporation Business Structures – Legal Organization
Business S
Corporation While most businesses start out as sole proprietorships or general partnerships, they
may eventually find that the legal liability and tax consequences are more beneficial
Cooperative if operating under a different structure. New York State recognizes seven different
business structures (excluding organizations such as churches and non-profits):
For More
Information:
Sole Proprietorship
Forming a Business in
The simplest form of organization wherein an individual simply declares himself
NY: An Overview
or herself a business operator. No paperwork is needed to file with government
This brochure by the agencies to establish the existence of the business. The proprietor has personal
NY Dept. of State has liability for the actions and debts of the business.
information on six types
of business structures
General Partnership
including what forms
need to be filed, the When two or more people work together to generate a profit from their collective
business’s lifespan efforts, they have formed a general partnership. No paperwork is need to form this
under that structure, business and partners have personal liability for the acts of each partner.
personal liability and
tax information.
http://www.dos.ny.gov/ Limited Partnership
corps/pdfs/formingbus.
pdf Also known as a silent partnership wherein individuals combine resources with the

52
 For More
Information:
intent of generating a profit together, but where one or more partners give up any
Doing Business in New
management of the business. For remaining silent in the operation, that partner
York State: Structures
generally avoids personal liability for the acts of the business. Active partners are
and Strategies
personally liable for the acts of the partnership as a whole.
Access this publication
from the Dept. of
Limited Liability Company (LLC)
Applied Economics and
One or more people can form a Limited Liability Company, which protects the Management at Cornell
owners’ (or members’, as they are called) personal property from business liabilities, for help on navigating
in many circumstances. An LLC is formed by filing paperwork with the state. This the legal maze of
business structure must be maintained by filing annual tax statements and fulfilling business structures.
reporting obligations. The liability protection offered by an LLC is the most secure http://cooperatives.
when the business owner takes steps to separate his or her personal activities from dyson.cornell.edu/pdf/
the business activities by, for example, maintaining a separate bank account for the DoingBusiness.pdf
business.
Farmers Guide to
Business C Corporation Business Structures:

One or more people can form a Corporation, which protects the owners’ (or Farm Commons has an
shareholders’, as they are called) personal property from business liabilities, in many exhaustive resource on
circumstances. A Corporation is formed by filing paperwork with the state. This choosing a business
business structure must be maintained by filing annual tax statements and fulfilling structure for farmers.
reporting obligations. The liability protection offered by a Corporation is the most The guide contains
secure when the business owner takes steps to separate his or her personal activities a flowchart to assist
from the business activities by, for example, maintaining a separate bank account for farmers in quickly
the business. Corporations must adopt bylaws, appoint officers, and hold an annual identifying the most
meeting. One person may hold all officer positions. suitable options. It
also contains detailed
operating agreements,
Business S Corporation bylaws, meeting
minutes and more. The
An S Corporation is simply a business that files under the S subsection of the guide is available as
corporate tax code, which is named the “S” subsection for “small business.” An a free pdf download
S Corporation is not a separate business structure at the state level, and both at Farm Commons or
corporations and LLCs can choose this tax status. To be eligible to file under the S for purchase in print
section, the entity must fulfill specific IRS qualifications. The main advantage of this from the Sustainable
tax classification is the ability to avoid “double” taxation and to re-classify income Agriculture Resource
as dividends, if the owner is making more than the average owner in his or her field. and Education.
https://farmcommons.
org/resources/farmers-
Cooperative
guide-business-
An organization owned by members who contribute equity toward the business and structures
share in profits generated, formed by filing with the state and has similar governance
as a C corporation. Voting is either one vote per member or in proportion to https://www.sare.org/
patronage of the cooperative. Members have limited liability. Learning-Center/Books/
Farmers-Guide-to-
Business-Structures

53
 14 Making Money
Guide to Farming in New York State

Factsheet
Overview
How Will You Know How Will You Know if Your Operation is Making Money?
if Your Operation is
Making Money? Cash Flow, Net Worth and Profit: These are the three pillars that sustain a business,
Cash Flow and all you need for a business to thrive long term.

Net Worth
Cash Flow
Profitability
Interest on Equity Cash Flow tracks the cash dollars into and out of the farm business. You should be
able to balance all of the money that came in and went out:
Value of Labor and
Management Start-up money + Cash from operations + Borrowed money =
What Does a Manager Cash paid on expenses + Debt payments + End of year money
Do?
Partial Budgeting In horticultural operations, cash flow expenses will be high in the spring as crops
are planted and income will be high in the fall when crops are sold. Therefore, cash
flow requires planning and savings to be sure income covers future costs. Cash flow
records are a way to keep track of your money, ensure that you can cover monthly
expenses, and are crucial to long term profitability.

Net Worth

Net Worth tracks your investments in the farm in the form of the Balance Sheet.

Net Worth = everything the business OWNS minus everything it OWES

Assets You Manage – What you Owe = Your Ownership

Assets – Liability = Equity

Some assets tend to go up in value over time such as land. This is called
appreciation.

Some assets go down in value over time, such as equipment. This is called
depreciation. Depreciation is a measure of the wear, tear, and obsolescence of an
investment.

The primary function of net worth calculations is to measure the risk-bearing ability
or financial solvency of your business or, in simple terms, how much you really own

54
versus how much the bank owns.

Profitability

Profitability is measured with the Income Statement. It is the result of your

operation’s work, decisions, and return on investment.

Value of Production – Cost of Production = Profit

Profitability is harder to track as it blends cash flow and investment decisions. It

also makes adjustments for family withdrawals, “free or family” labor, and return on
investment.

Some examples of Good Cash Flow, but Low Profitability:

• Living off of inventories or depreciation, and not reinvesting in the operation

• Outside income or off-farm jobs that help reduce need for family living
withdrawals
• Borrowing money
• Not paying bills

Some examples of Bad Cash Flow, but Good Profitability:

• An expanding business with increasing assets, but few cash sales

• High withdrawals for family living, for example, college expenses
• Paying down debt rapidly
• Buying next year’s assets from this year’s cash (prepay for fertilizer, etc.)
• Increase in accounts receivable (amount of money you are owed for assets that
were sold)

For your tax return you may want to use cash accounting, but for profitability
you want to use accrual accounting. Accrual accounting looks at changes in
inventory and price; changes in accounts payable and receivable, appreciation and
depreciation, unpaid labor, opportunity costs to work elsewhere, interest on equity,
and your labor and management inputs.

Interest on Equity

• Can you borrow money without paying interest?

• Do you have an “opportunity” to put your money somewhere else?
• Do you want to earn interest/dividends on your money in the stock market?
• Shouldn’t you earn interest on the money invested in your farm?
• Plan to pay yourself 3% minimum on your equity invested in the farm!!

Value of Labor and Management

What is the value of your efforts on the farm?

• What is the “opportunity” for you to work elsewhere?

• A simple charge for your efforts will help you find a value to evaluate your
business
55
 • What could you earn if you worked elsewhere in a similar job?

What Does a Manager Do?

Managers make the decisions about investments, and tasks. They define the mission
and philosophy for the operation. They develop the plan, hire and motivate the
people to implement the plan (or tell the kids what to do), invest in the assets to
implement the plan, set priorities, and evaluate the results so they can adjust the
plan if needed.

Partial Budgeting

The Organic Partial budgeting helps make decisions for smaller investments that do not affect
Farmer’s whole farm operation. Look at the expected increases to income and decreases to
Business expenses for a project compared to decreases in income and increases in expenses.
Handbook: This will help you decide how much you can invest, and the impacts on other parts
of the business.
The handbook,
written by Richard
Wiswall in an easy-
to-read style, takes
farmers through the
business concepts
and tools needed to
become financially
sustainable.
The $32 book is
available at:
https://www.
richardwiswall.
com/the-organic-
farmer-s-business-
handb

56
57
 15 Record Keeping
Guide to Farming in New York State

Factsheet
Overview
Record Keeping is Record Keeping is Good Business
Good Business
Paper Records At a minimum your farm will need a record keeping system for tax and legal
compliance and it is highly recommended that you also keep yield and other
Farm Account farm production records that might be useful to making decisions on the farm. For
Books example, many growers keep weather logs so that they can evaluate their practices
Excel Spreadsheets and yields and then make better growing practice and crop variety decisions for
the coming year. You also might consider creating columns or breakouts for your
Quick Books most expensive or profitable enterprises to keep track of profits, and doing an hourly
Farm Records break down periodically to see how much time you or your employees are using on
Service particular enterprises. Many tools are available at the Cornell Small Farms Program
website:

Improving Profitability Tutorial

https://smallfarms.cornell.edu/plan-your-farm/achieving-or-improving-
profitability/

Paper Records
To order the Cornell Small farms and many businesses just starting out use the shoebox, or folder, method
Dairy Farm Account of accounting. Keep all sales receipts in one folder, expense receipts in another,
Book, contact The maintain a capital asset depreciation log, and you may have additional folders for
Cornell Store: farm yield or other data important to the year. The advantage of this system is that it
is simple and easy to do. The disadvantage is that the data is not well organized so
($24) https://www. when you need farm information you often have to sort through piles of paper and
cornellstore.com/ do all computations by hand.
Cornell-Dairy-Farm-
Account-Cream-
Cover Farm Account Books

($15) https://www. Cornell and many accounting services have pre-formatted account books with
cornellstore.com/ categories common to agriculture and additional areas for yield and capital asset
Cornell-Classic- data. These are typically of nominal cost ($10-$20). The advantage of the farm
Farm-Account- account book is that it is easy to understand and the information is well laid out in
Green-Cover case you need to access it later. The disadvantage is that the information may not
be laid out how you as a manager would like it, may be hard to find, and it is still a
hand-entry accounting system so entering farm information may take several hours
(continued) per week.

58
 (continued)

Excel Spreadsheets A Cornell Beef

Farm Account book
If you can use a basic spreadsheet in Excel or a similar program, this is a good is also available.
compromise between paper systems and more sophisticated recordkeeping To purchase a copy
programs. Many new farmers start out with a simple spreadsheet like this one from ($10 plus shipping)
Cornell: https://blogs.cornell.edu/smallfarms/files/2017/12/HT_Cornell_Account_ contact:
Book_monthly-1nyhir8-1-19aa59h-17fomj8.xls , which is intended for high tunnel
crop producers but can be adapted for any operation. If you don’t need to generate Cornell Cooperative
invoices and have a relatively simple, small operation, a spreadsheet like this may Extension
serve your needs well for many years. Albany County

518 765- 3518

Quick Books
24 Martin Road,
The most common software program for financial management is QuickBooks; Voorheesville, NY
however, there are more expensive industry-specific programs specifically designed 12186
for dairy farms or wineries, for example. (Try searching online for “winery financial
management software.”) If you are intimidated by QuickBooks, try their SimpleStart
program from Intuit (search for this online). It’s free and is a good way to ease
into using QuickBooks. If you are ready to upgrade at any point, you’ll be able to
transfer your records seamlessly into the full QuickBooks program. The Cornell
Small Farms Program offers an online course called BF 204: QuickBooks for
Farmers: https://cornell-small-farms-program.teachable.com/p/bf-204-quickbooks-
for-farmers

Check out your local credit unions, banks, and Cooperative Extension to find out if
they offer any in-person QuickBooks trainings.

Farm Records Service

Some farmers choose to mail all invoices to an accounting service where the
accountant will enter the information into a computer records system, provide you
with detailed monthly business statements, and perform all tax functions. Farm
Credit East at www.farmcrediteast.com/ is one company that provides these services.

The advantage of this system is that it provides a person who does not have the
time, understanding of accounting, or computer skills the highest level of records
information. The disadvantage is that this system has the highest cost and the
monthly business statements take a few weeks to process and get back whereas the
person utilizing an on-farm computer records system will have those statements in
real time.

59
 16 Income Taxes
Guide to Farming in New York State

Factsheet
Overview
Federal Income Tax Federal Income Tax
Schedule C or F
Schedule C or F
Depreciation
When you sell livestock, produce, grains, or other products, the entire amount you
Capital Gains receive and the costs associated with its purchase and production should be reported
on a Schedule F income tax form.
New York State
Income Tax If your business activities were non-agricultural, they must be reported on a Schedule
C. An example of non-agricultural business would be a produce retailer who
Farmers’ School Tax
Credit purchased wholesale and sold retail and did not grow anything. If your farm has a
sub-enterprise like a gift shop, restaurant, or bed & breakfast then the income and
Eligibility costs associated with that activity would have to be reported on a Schedule C.
Tax Preparation It is generally advantageous to report farm income and expenses on a Schedule F
because farms are allowed to use cash accounting and most other businesses are
required to use accrual accounting. In cash accounting you report the income and
expenses as they are actually received or paid, whereas in accrual accounting you
report the income and expenses at the time they occur.

Example: you spend $5,000 in 2016 to fill the fuel tanks at your farm and at the
end of the year the tanks still have $3,000 of fuel in them. In cash accounting, you
report a $5,000 expense on your 2016 income tax return and in accrual accounting
you can only report a $2,000 expense. If you did not have the cash to pay the
$5,000 bill, you will not be able to report any expense on your tax return using the
cash method but you would still be able to report a $2,000 expense on your income
taxes using the accrual method if you did not pay the bill.

Depreciation
Depreciation is the depleted value of an asset with an expected useful life of more
than one year.

Example: you purchase a tractor for $50,000. You cannot report a $50,000 tractor
expense on your tax return; you must spread that $50,000 cost over 5, 7, or 10
years.

The number of years that you must take to depreciate an asset and how you can
claim in those years (e.g. straight line, accelerated, section 179, etc.) depends on the

60
asset class of the property in question and the characteristics of the farm.

If the asset is not held for more than one year, it cannot be depreciated. Buildings
can be depreciated but land cannot. The only instance when land can be
depreciated is if it is logged or mined and it can be proven that the asset value has
been depleted. IRS Publication 225 Farmers Tax Guide (see below) goes into detail
on how to depreciate common farm property. Pub 225 specifies that “Livestock
purchased for draft, breeding, or dairy purposes can be depreciated only if they are
not kept in an inventory account. Livestock you raise usually has no depreciable
basis because the costs of raising them are deducted and not added to their basis.”

Capital Gains
When a business asset is sold, it should generally not be listed as farm income
and should be listed as a capital gain. Most capital gains tax rates are lower than
income tax rates.

Example: you purchase a tractor for $50,000, depreciate it to a value of $0 over

4 years, and sell it for $20,000 in year 5. The $20,000 received is considered a
capital gain.

New York State Income Tax

Farmers filing schedule F or C federal forms should transfer the information to NYS
Form IT 201 if filing an individual return. Information from federal corporate tax
returns should be transferred to the appropriate NY form. One NY Income Tax
provision available to qualifying NY farm businesses is the Farmers’ School Tax
Credit that is explained below.

Farmers’ School Tax Credit

The Farmers’ School Tax Credit allows you to receive a tax credit on your State
Income Tax equal to 100% of the school taxes paid on the first 350 acres of property
and 50% of the school taxes paid on the number of acres beyond 350.

Example: A qualified 350-acre farm owes $2,000 in State income taxes and paid
$3,500 in school taxes for the farm. They would be able to take a credit of $3,500,
which is greater than the $2,000 owed, so they would not owe any State income
taxes this year.

Eligibility

To qualify, two-thirds of your eligible gross income must be profit from farming for
the past three years

• You can take a 100% school tax credit on the first 350 acres of agricultural
lands owned and a credit equal to 50% of school taxes paid on the remaining
land
• Woodlands used for pasture, erosion control, or windbreaks may qualify for
the credit
61
 Form to use • You can apply for 100% of the credit if your taxable income is under
to Claim this $200,000 and you can apply for a percentage of the credit if your taxable
Credit: income is between $200,000-$300,000
• Farms held as a corporation or LLC can apply for the credit
IT 217-I for • Unused credits cannot be redeemed for cash and cannot be applied to next
individual filers year’s taxes
CT 47 for
Web Resources
corporations
• IRS Publication 225 Farmers Tax Guide
www.irs.gov/pub/irs-pdf/p225.pdf
• New York Farm Bureau Farmers’ School Tax Credit Fact Sheet
https://www.nys-soilandwater.org/crep/forms/factsheet.pdf
• New York State Department of Taxation and Finance Publication 51:
Questions and Answers on New York State’s Farmers’ School Tax Credit
http://www.tax.ny.gov/pdf/publications/multi/pub51.pdf
Or call 1-800-462-8100 with questions and for publications and forms.

Tax Preparation
It is well worth the trouble to find a tax accountant experienced with agriculture
to prepare your tax return. There are many tax benefits for farmers, and ways to
be strategic about how you invest in your farm, and a good farm accountant will
be able to give you priceless advice. Check with your local Cornell Cooperative
Extension office to find out who does farm taxes in your area.

62
63
 17 Sales Tax Exemptions/
Refunds
Guide to Farming in New York State

Farm operations are exempt from paying sales tax on items used in the farming
operation. None of the exemptions are automatic. You must either present an
exemption certificate to the vendor when purchasing products or you can claim a
refund if you have evidence to show you paid the sales tax. Forms are available on
the State Dept. of Taxation and Finance website listed below. Some of the more
common forms applicable to farms include:
www.tax.ny.gov/
pdf/current_forms/ ST-125 Farmer’s and Commercial Horse Boarding Operator’s Exemption Certificate
st/st125.pdf
This form exempts you from paying sales tax on the purchase of tangible personal
property used predominantly (more than 50%) in farm production or horse boarding.
This includes:

• Building materials
• Production equipment and supplies
• Animals
• Feed
• Hardware
• Motor vehicles
• Fuel (not motor fuel)
• Gas/propane
• Electricity
• Refrigeration
• Labor and services hired for repairing, maintaining or servicing property used
in farming

Assistance is There are many subtle exemptions so it pays to check with the State if you are
available at uncertain about whether an item or service you are purchasing is exempt from sales
800-972-1233 tax (and if the seller is unsure).

http://www.tax. Copies of this form are available on the website in the margin or by calling your
ny.gov/ county extension office. Make sure you have copies of the form (ST-125) with you
when making purchases. If you make numerous purchases with a particular supplier,
check the box “blanket certificate” and the vendor can keep the form on file for
future purchases. Page 2 of the form gives the tax department definitions of Farm
Production, Farming, Predominantly, and Commercial Horse Boarding Operation.

64
Forms

PR-955 Claim for

Refund by Farmers and
This form may be used to claim a refund if you have paid
Commercial Horse
sales tax on any of the above items. You do not have to www.tax.ny.gov/pdf/
Boarding Operators –
fill out this form if you have an exemption certificate on memos/sales/m00_8s.
Sales Tax on Utilities,
file with the vendor. You must have receipts to justify pdf
Fuel Oil and Motor Fuel
this claim. File annually or semi-annually.
(not for motor fuel tax)

FT-1004 Certificate
for Purchases of
This form exempts you from paying sales tax on diesel http://www.tax.
Diesel Motor Fuel or
motor fuel used for farming purposes. Dealers can keep ny.gov/pdf/current_
Residual Petroleum
this form on file (check blanket certificate) so you do not forms/motor/ft1004.
Product for Farmers
have to fill out a new form for each new purchase. pdf
and Commercial Horse
Boarding Operations

FT-500 Application for http://www.tax.

Refund of Sales Tax Paid Need to submit invoices with the refund application. ny.gov/pdf/current_
on Automotive Fuels forms/st/ft500.pdf

DTF-803 Claim for Sales

and Use Tax Exemption This form is not used to make purchases. Restricted to http://www.dmv.
-Title/Registration Motor transactions processed by DMV. Motor vehicles must be ny.gov/forms/dtf803.
Vehicle, Trailer, ATV, predominantly used in farming. pdf
Boat, Snowmobile

ST-126 Exemption www.tax.ny.gov/pdf/

Certificate for Purchase Need a certificate for each horse. current_forms/st/st126.
of Racehorses pdf

Need Tax Help?

Business Tax Information: 518-457-5735

Forms: 518-457-5431

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

Telephone assistance from NYS Dept. Taxation and Finance is available

Monday-Friday, 8:30 AM-4:25 PM

65
 18 Labor Laws
Guide to Farming in New York State

Factsheet
Overview
Interns Interns
Workers’ If you host interns or apprentices on your farm, they must also be covered by
Compensation
Insurance workers’ comp. Unpaid farm internships are mostly illegal. This is to say, interns and
students working for “for-profit” employers should generally be treated as employees
The Employers’ entitled to minimum wages and overtime pay under the Fair Labor Standards Act
Handbook unless the following criteria have been met:
Disability Benefits
1. The internship (even though it includes the actual operation of the employer’s
Minimum Wage business) is similar to training given in an educational environment.
2. The internship is tied to the intern’s formal education program by integrated
Youth Rate coursework or the receipt of academic credit. The internship accommodates the
Certificate for Farm
Work intern’s academic commitments by corresponding to the academic calendar.
3. The internship experience is for the benefit of the intern, not the employer.
Youth Labor 4. The intern should not displace regular employees but work under close
(excluding your supervision of existing staff.
own children) 5. The employer that provides the training derives no immediate advantage from the
Migrant Workers- activities of the intern and (on occasion) its operations may actually be impeded.
Selected Issues 6. The intern is not necessarily entitled to a job at the conclusion of the internship.
7. The employer and the intern understand that the intern is not entitled to wages
You can read more for the time spent in the internship.
about these criteria,
and the “primary
beneficiary test”
used in courts at Workers’ Compensation Insurance
this link:
https://www. Employers are required to have workers’ compensation insurance on their workers
dol.gov/whd/ if cash wages reached or exceeded $1,200 in the preceding year. Coverage must
regs/compliance/ be obtained effective April 1st of the year immediately following the year where the
whdfs71.pdf farm had $1,200 or more of wages.

The Employers’ Handbook

https://goer.ny.gov/system/files/documents/2018/12/equal-employment-opportunity-
rights-and-responsibilities-handbook_1.pdf

Insurance can be purchased from the New York State Insurance Fund (http://ww3.

65
nysif.com/), private insurers, or an employer can form/join a self-insurance group if
they meet various requirements and post bond. Farmers can also purchase Workers
Compensation Insurance through Safety Group 486, associated with the NY Farm
Bureau (https://www.nyfb.org/programs/workers-compensation).

Disability Benefits
State law requires that employees be covered by a disability benefit if they are
disabled off the job. Most workers compensation insurance will also include
this. Family members (spouse or child) and farm laborers are exempt from this
requirement. Farm corporate officers and office workers need disability benefits
coverage. If the farm is held as a corporation or LLC then the family member
exemption does not apply because no one is related to a business entity. Note that the
minimum wage
generally applies
to anyone who
Minimum Wage does work on a
for-profit farm,
As of the revision date noted on the cover of this Guide, the Federal Minimum including interns,
Wage is $7.25/hr. The New York State Minimum Wage is at least $11.10/hr with apprentices, and
yearly scheduled increases until they reach $15.00/hr. This wage minimum applies even volunteers.
to regular wage jobs and piece-rate jobs on farms that paid $3,000 in cash wages Non-compliance
during the prior calendar year. It excludes immediate family and minors under 17 with these rules
years of age employed on the same farm as their parents or guardians who are paid may result in back
on a piece-rate basis at the same rate as employees over 17. pay and fines.

https://www.labor.ny.gov/formsdocs/wp/LS110.pdf

The wage order permits deductions for meals and lodging supplied by an employer,
except for lodging for seasonal migrant workers. Payments in kind may be permitted
For more information
at not more than the farm market value.
on upcoming
https://www.labor.ny.gov/formsdocs/wp/Part190.pdf Minimum Wage
increases in New
Employers must post a summary of the wage order in a conspicuous place in their York State, access
establishment, along with a copy of the general work agreement. the following website:

New York State

Youth Rate Certificate for Farm Work Department of Labor
http://www.
In agriculture you can legally pay children under the age of 16 (with a permit and
labor.ny.gov/
other criteria satisfied) a minimum of $3.20/hr for their first season of harvest;
workerprotection/
several other minimums apply depending on the work. You must file a Youth Rate
laborstandards/
Certificate to hire youth for less than minimum wage:
workprot/minwage.
http://www.labor.state.ny.us/workerprotection/laborstandards/PDFs/LS415_1.PDF shtm

If you employ your own minor age children on the farm, they are exempt from all
minimum wage regulation, meaning that they can be paid any wage. This only
applies to your own children; nieces/nephews or other minor age family members
are subject to state wage laws.

66
 For more information
on minimum
wage, overtime,
and workers Youth Labor (excluding your own children)
compensation,
You may not hire anyone 11 years or younger in New York State. 12- and 13-year-
generally, see the
olds may work in harvest operations if they have Permit AT-25 and are accompanied
Farm Commons
by a parent during certain times of the day and year. 14- and 15-year-olds may work
resource:
on farms with Permit AT-24 during non-school hours. Permits and working papers
may be obtained from school offices. Farm workers under 16 are prohibited from
Farm Employment
performing farm tasks involving power machinery. 16- and 17-year-olds may work
Law: Know the rules
on farms without permits or working papers.
and make them work
for your farm. Under NYS Child Labor law, 14 & 15 year-olds are allowed to work 18 hrs/week
https://farmcommons. when school is in session and 40 hrs/week when school is not in session. 16 & 17
org/resources/farm- year-olds are allowed to work 28 hrs/week when school is in session and 48 hrs/
employment-law- week when school is not in session. Contact your local NYS Department of Labor
know-basics-and- Office for more details: https://www.labor.ny.gov/home/.
make-them-work-your-
farm

Migrant Workers – Selected Issues

For more information
on interns, • Growers and processors who bring in five or more workers from out of
apprentices, state must obtain a Migrant Labor Registration Certificate and report wages,
and volunteers, housing, and working condition to the state.
generally, see the https://www.dol.gov/whd/forms/fts_wh530.htm
Farm Commons • If you plan to house five or more workers you must obtain a farm labor camp
resource: permit from the State Department of Labor.
https://www.labor.ny.gov/formsdocs/wp/ls113.1.pdf
Managing Risks of • Workers must be given written notice of wages, nature of work, period of
Interns and Volunteers. employment, transportation, housing, benefits, and more. Several Spanish/
https://farmcommons. English work forms are available at:
org/resources/ http://www.labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm#Farm_
managing-risks- Labor
interns-and-
volunteers%C2%A0
For More Information Contact:
NYS Dept. of Labor
518-457-9000
https://www.labor.ny.gov/home/.

Extension Agent Thomas Maloney

607-255-1628
[email protected]

You can also purchase the NY Farm Bureau’s Guide to Labor and Employment
Laws for $75, or $40 for members, at https://www.nyfb.org/application/
files/2215/0238/6414/Legal_Guides_Flyer_REV_03_24_17.pdf

67
68
 Reference Publications:

19 Payroll and Worker

Documentation
Guide to Farming in New York State
IRS Publication 51,
Agricultural Employers
Tax Guide
Reference publication explaining federal regulations
and contains a calendar of when forms need to be filed
throughout the year.
www.irs.gov/pub/irs-
pdf/p51.pdf

NYS Publication 50,

Employers Guide http://www.
Factsheet
to Unemployment tax.ny.gov/pdf/
Overview Insurance, Wage
State Reference Publication
publications/
Employee or Reporting, and withholding/nys50.pdf
Employee or Independent Contractor Withholding Tax
Independent
Contractor Hiring labor in the State of New York imposes high liabilities and paperwork burdens
http://blogs.cornell.
Hiring Forms: I-9 on the employer. Because of this, employers may be tempted to classify their
edu/smallfarms/
workers as independent contractors, but a person is only an independent contractor Agricultural Employer’s Cornell Cooperative Extension publication that goes
files/2014/08/2014-
Payroll Service when he or she is legitimately an individual in business for himself and for hire to Checklist 2014 through the employee hiring process step by step.
Employer-Checklist-
the general public. If there is any ambiguity on the status of the individual, courts
Which Forms to File 2dazazm.pdf
generally interpret the individual as being an employee. If you would like a decision
Payroll Forms on if the individual is an employee or an independent contractor, file the following
Farm Commons has several publications that help
form with the IRS: Multiple available from www.farmcommons.
farmers with both the decision-making process and
Farm Commons org
IRS Form SS-8 logistics of hiring employees

Determination of Worker Status for Purposes of Federal

Employment Taxes and Income Tax Withholding
www.irs.gov/pub/irs-pdf/fss8.pdf
Which Forms to File
Which specific forms your farm is required to file depends upon the farm size and
the specifics of your operation. We recommend that you seek the advice of a payroll
Hiring Forms: I-9 specialist and read the reference publications listed above to determine which forms
are required for your operation.
(http://www.uscis.gov/i-9)
If you decide to do payroll on your own, a list of forms you should become familiar
Employers must keep an I-9 form from the US Citizenship and Immigration Service
with follows. This is by no means a comprehensive list of the forms your operation
on file for all employees. The I-9 requires copies of documentation (a driver’s license
needs to be compliant.
and social security card for most), and the employer should closely follow the exact
instructions on the form.
Payroll Forms

Payroll Service Form SS-4 Application

for Employer Your business must obtain an EIN if you have employees www.irs.gov/pub/irs-
Given the complexities and liabilities of properly administering payroll, it is Identification Number or will file for other taxes such as excise taxes. pdf/fss4.pdf
recommended that small employers hire a payroll service. This can assist the farmer (EIN)
with deadlines, proper handling of accounts, and avoid the need for the farmer to
stay current with changing procedures.

69 70
Form NYS-100 New
York State Employer
To be filed when you become an employer. You will http://www.labor.
Registration for
be assigned an Employer Registration Number, which is ny.gov/formsdocs/ui/
Unemployment
separate from your federal EIN. nys100.pdf
Insurance, Withholding,
and Wage Reporting
Form stating wages and withholdings made for an
employee throughout the year. A copy is sent to the
employee, the Social Security Administration, the IRS, www.irs.gov/pub/irs-
W-2
the NYS Department of Taxation, and to county/local pdf/fw2.pdf
governments that have an income tax such as New York
City.

Similar to the W-2, filed with the Social Security www.irs.gov/pub/irs-

W-3
Administration. pdf/fw3.pdf

Form filled out when an employee starts so that their www.irs.gov/pub/irs-

W-4
employer knows to withhold the correct amount of taxes. pdf/fw4.pdf

Form NYS-45 Quarterly

http://www.tax.
Combined Withholding,
ny.gov/pdf/current_
Wage Reporting, State form to be filed quarterly.
forms/wt/nys45_fill_
and Unemployment
in.pdf
Insurance Return
Form 940 Employer’s
Required if you had cash wages greater than $20,000 or
Annual Federal www.irs.gov/pub/irs-
employed 10 or more workers throughout the day for 20
Unemployment (FUTA) pdf/f940.pdf
or more weeks in the year.
Tax Return

Required to report wages paid, tips received, federal

Form 941 Employers
taxes withheld, Social Security and Medicare www.irs.gov/pub/irs-
Quarterly Federal Tax
withholding, and advance EIC payments for non-farm pdf/f941.pdf
Return
workers.

Form 943 Employers

Annual Federal Tax http://www.irs.gov/
Form 941 for farms.
Return for Agricultural pub/irs-pdf/f943x.pdf
Employees

Instructions:
Must be furnished to people who received $600 or more
Form 1099 www.irs.gov/pub/irs-
in non-employee compensation throughout the year.
pdf/i1099msc.pdf

Form 945 Annual Return

Used to report income tax withheld for non-payroll http://www.irs.gov/
of Withheld Federal
wages. pub/irs-pdf/f945x.pdf
Income Tax
Form 4029 Application
Certain members of religious organizations (generally www.irs.gov/pub/irs-
for Exemption From
Amish or Mennonite in agriculture) may file this form pdf/f4029.pdf
Social Security and
to exempt themselves (and their employer) from Social
Medicare Taxes and
Security and Medicare taxes.
Waiver of Benefit

71 72
 20 Agricultural District
Law Provisions
Guide to Farming in New York State

Factsheet
Overview
Agricultural Districts Agricultural Districts
Agricultural
Assessment Article 25-AA of Agriculture and Markets Law authorizes the creation of local
agricultural districts pursuant to landowner initiative, preliminary county review,
Notice of Intent state certification, and county adoption. Most counties have placed agricultural
Right to Farm land in state certified agricultural districts. While they are county-created and state-
certified, towns have no authority over agricultural districts. Agricultural districts
Agricultural should not be confused with agricultural zoning that may exist in some towns.
Enterprise
Determinations The purpose of agricultural districts is to encourage the continued use of farmland
Real Estate for agricultural production. The program is based on a combination of landowner
Disclosure incentives and protections, all of which are designed to forestall the conversion of
farmland to non-agricultural uses. Included in these benefits are preferential real
Restrictive Local property tax treatment (agricultural assessment and special benefit assessment); and
Laws
protection against overly restrictive local laws, government-funded acquisition or
construction projects, and private nuisance suits involving agricultural practices.

Agricultural Assessment

Provides the opportunity for farmland owners to receive real property assessments
based on the value of their land for agricultural production rather than its
development value. (See the Agricultural Assessment Fact Sheet #21 for
information).

Notice of Intent

Mandates state agencies, local governments, and public benefit corporations to

avoid or minimize adverse impacts to farm operations in pursuing projects within
an agricultural district which involve the acquisition of farmland or the advance
of public funds for certain construction activities. Division staff conducts detailed
reviews of projects and recommends actions to mitigate. Projects cannot proceed
until the notice process is completed.

Right to Farm

Authorizes the Commissioner to issue opinions, upon request, concerning the

73
soundness of specific agricultural practices. If the Commissioner determines that a
practice is sound, it shall not constitute a private nuisance. This protects farmers in
cases where neighbors or others complain about farming activities.

Agricultural Enterprise Determinations

The Commissioner is authorized to issue an opinion on whether particular land uses

are agricultural in nature. This provision helps determine if the agricultural district
law is applicable to a particular farming enterprise that may be questioned by local
authorities or others.

Real Estate Disclosure

Requires that a disclosure statement be provided at the time of real estate closing
that states if the property is in an agricultural district. This notifies the new
landowner that agricultural activities are to be expected.

Restrictive Local Laws

Protects farmers in ag districts against local laws that unreasonably restrict farm
operations. Division staff reviews both existing and proposed laws to determine
if they are compatible with farm operations. If a local law is determined to be
unreasonable, staff works with local government to develop mutually accepted
modifications. If a local government is unwilling to modify a restrictive law, the
Department is authorized to take action to compel compliance with Ag District Law.
Requests for review must be provided in writing.

A copy of the full

text of the NYS
Agricultural District
Law can be found at:
http://www.
agriculture.ny.gov/ap/
agservices/25-AA.pdf
or call 518-457-7076

74
 21 Ag Value Assessment
for Farmland
Guide to Farming in New York State

Factsheet
Overview
Agricultural Agricultural Assessment
Assessment
Why apply for Agricultural assessment allows eligible farmland located in or outside agricultural
agricultural districts to be taxed at its agricultural value rather than market value. New York
assessments? State allows municipalities to apply a different assessed value for land used for
agricultural production. This will reduce the total assessed value (for taxation
How does the
Assessment work? purposes only) on parcels owned by an individual. Agricultural Value Assessment
has to be applied for annually.
Qualification
for agricultural
assessment Why apply for agricultural assessments?
Proof of Average
Gross Sales Value It can make a difference in the amount you pay in property taxes. You will be
paying taxes based on the agricultural value of land determined each year by the
Types of farming state, not by local market conditions. In most cases the state’s values per acre are
enterprises that lower than your property’s assessed value unless you happen to be in a county
can qualify for
agricultural where assessed values are low.
assessment
Agricultural How does the Assessment work?
assessment is
available for the The assessment you receive is the difference between the local assessed value and
following land the state’s agricultural values. The state publishes agricultural values annually for 10
uses
soil groups and for woodlands.
Application
Process
To qualify for agricultural assessment:
Rented Land
• Must have a total of 7 acres of owned or rented land in production for sale of
Exception from
Minimum Average crops, livestock or livestock products.
Sales Value • The same farmer must farm the land for at least 2 years
Requirement • A combination of farming enterprises must generate $10,000 in total sales
(average for the preceding 2 years). Up to $2,000 in wood product sales
Penalties
associated with (timber, logs, posts, firewood) can qualify towards the $10,000 minimum.
conversion of • Start-up farms are eligible if they generate $10,000 in sales in the first year of
agricultural land operation
that has received • Farms on less than 7 acres qualify if they generate $50,000 in sales
an agricultural • If at least 7 acres of land owned by a rural landowner is rented to a farmer
exemption
(who meets the income requirements), it is eligible for agricultural assessment

75
 provided the landowner has a 5-year written lease with the farmer.

Proof of Average Gross Sales Value:

Assessors may request proof (tax returns or legitimate bookkeeping records) that you
met the $10,000 gross sales requirement.

Types of farming enterprises that can qualify for agricultural

assessment:

Field crops, fruits, vegetables, horticultural specialties (nursery, greenhouse),

livestock and livestock products (includes dairy, meat, poultry species, horses, and
exotics like ratites, farmed deer and buffalo, fur bearing animals), maple, honey,
Christmas trees, aquaculture, woody biomass (short term crops harvested for
energy), commercial horse boarding operations with 10 or more horses boarded at a
time. All of these enterprises must also meet the other requirements listed above.

Agricultural assessment is available for the following land uses:

• Land used in agricultural production that meets criteria – 7 acres, $10,000

sales
• Up to 50 acres of farm woodland used for the sale of woodland products (logs,
lumber, posts, firewood); must be part of the farmed parcel(s) to qualify, it
cannot be a separate tax parcel
• Support land including farm ponds, drainage ditches, land used for erosion
control, hedgerows, access roads, land under farm buildings and tenant
houses, land used for farm waste management (manure pits, etc.)
• Land set aside through participation in federal conservation programs
• Land under farm buildings
• Land associated with oil, gas, and wind development or extraction activities
• Silvopasturing is now a permitted land use to qualify for AVA:
Here are the details:
Land used in silvopasturing shall be limited to up to ten fenced acres per large
livestock, including cattle, horses and camelids, and up to five fenced acres per
small livestock, such as sheep, hogs, goats, and poultry. For the purposes of this
subdivision, “silvopasturing” shall mean the intentional combination of trees, forages
and livestock managed as a single integrated practice for the collective benefit of
each, including the planting of appropriate grasses and legume forages among trees
for sound grazing and livestock husbandry.

Application Process

• Go to your county Soil and Water District Conservation office (SWCD)

- complete a soils group worksheet. All land qualifying for agricultural
assessment is grouped by soil type. SWCD will do this for you – there may be
a fee and you will need your tax parcel numbers.
• Take the completed soils worksheet to your town/county assessor and obtain
copies of the Agricultural Assessment Application (form RP-305). Complete
one form for each parcel. The assessor will keep the soils worksheet on file.

76
 Make copies of the soils worksheet and application for your records.
• Agricultural assessment applications must be filed every year prior to the
taxable status date (March 1). Agricultural assessment is not automatic – you
must apply every year by the taxable status date. If you fail to apply, you will
not receive the exemption. If no changes have been made in land used for
farming, then after the initial application, you will file a short form RP-305-r.
• If you buy or sell land, make sure you complete a new soils worksheet and file
a new Agricultural Assessment form to reflect the changes.

Rented Land
Land rented to a farmer for agricultural production is eligible for agricultural
assessment if the land is subject to a written lease agreement for a term of at least 5
years. A copy of the lease or form RF-305-c must be filed with the assessor. Only
the land actually used by the farmer will be eligible for agricultural assessment.
Woodland is not eligible unless it involves sugarbush rental. Landowners must
complete the application process described above to qualify – complete the soils
worksheet, go the assessment office and complete form RP-305, and file every year
before the taxable status date to receive the exemption.

Renting land to a qualifying farmer is a way for rural landowners, who do not farm,
or small farmers who do not use all their land, to receive an agricultural exemption
on land that is rented.

Exception from Minimum Average Sales Value Requirement

If a farm does not meet the $10,000 gross sale value in a particular year to weather
or something else, they can file form RP-305-b in order to qualify to receive AVA.
Here is the description directly from the form:

“Notwithstanding any inconsistent general, special or local law to the contrary, if a

natural disaster, act of God or continued adverse weather conditions shall destroy
the agricultural production and such fact is certified by the Cooperative Extension
service and, as a result, such production does not produce a gross average sales
value of ten thousand dollars or more, the owner may nevertheless qualify for
an agricultural assessment provided the owner shall substantiate in such manner
as prescribed by the Office of Real Property Tax Services that the agricultural
production initiated on such land would have produced an average gross sales value
of ten thousand dollars or more but for the natural disaster, act of God or continued
adverse weather conditions.”

Penalties associated with conversion of agricultural land that has

received an agricultural exemption:

• A conversion takes place when the land is actually converted from potential
agricultural use to a built structure. Land that is sold, is no longer actively
farmed and lies idle is not considered to be converted until something is built
on the property.
• A penalty is assessed on the amount of land that is converted. This penalty

77
 is five times the taxes saved in the last year the land benefitted from an ag
assessment, plus interest of 6% per year--compounded annually--for each year
in which an ag assessment was granted (not exceeding five years) The penalty
is assessed to the owner making the conversion, who may not be the farmer
who sold the land but the new owner who changed the land use. The issue of
who pays the penalty is sometimes negotiated when the property is being sold.
• This topic is complicated so it pays to speak with your assessor if you have
concerns about the penalties associated with a conversion. Most often the
penalty is not a deterrent to whatever change is being proposed.

For More
Information:

1. Start with
your County
Assessment
Department

2. Visit with your

Town Assessor

3. NYS Department
of Taxation and
Finance website:
http://www.
tax.ny.gov/pit/
property/default.
htm

78
 22 Property Tax Exclusions
for Farm Buildings
Guide to Farming in New York State

Factsheet
Overview
NYS Real Property NYS Real Property Tax Law Section 483 – Production
Tax Law Section 483
– Production and
Storage Facilities and Storage Facilities
To be eligible: Structures and buildings essential to the operation of agricultural and horticultural
enterprises and used for such purpose are exempt from property taxes for a period of
To receive the 10 years (constructed or reconstructed between 1969- 2019).
exemption:

NYS Real Property Tax

Law Section 483-a – To be eligible:
Agricultural Structures
with Limited Uses At least 5 acres of land must be used in a bona fide agricultural and horticultural
operation with sales to qualify for the structure and building exemption. If there is
To receive the no active use of farmlands associated with the structure, then no exemption can be
exemption:
claimed even if other qualifications are met.
NYS Real Property Tax
Law Section 483-b – The following types of structures and buildings or portions thereof are eligible to
Historic Barns receive this exemption:
To receive the • The structure must be used for active farming purposes
exemption: • Used in the production and storage of agricultural and horticultural
NYS Real Property commodities that are raised for sale; facilities used for raising and breeding
Tax Law Section horses qualify under this definition
483-c – Temporary • Used mainly for ag/hort use and only incidentally for processing
Greenhouses • Used to house essential employees associated with the enterprise; family
To receive the members could qualify as essential employees if they do not have ownership in
exemption: the business

NYS Real Property The following types of structures and buildings are not eligible for this exemption:
Tax Law Section
483-d – Farm or • Processing and retailing facilities
Food Processing • The residence of the farmer and their immediate family (spouse & dependents)
Labor Camps or
Commissaries • Structures used for breeding pets, fur bearing animals, or animals for
experimental use
To receive the • Used in connection with raising timber (sawmill)
exemption:

How do farm building Note: if you have a production and storage facility with processing and retailing
exemptions work? under the same roof, the exemption applies only to the production and storage
portions of the facility and not the entire facility – pro-rated per square foot.

79
To receive the exemption:

Owners of the facility must apply with the county/town assessor before the
annual taxable status date and within one year from the date of completion of the
construction or reconstruction. The exemption continues for 10 years as long as the
facilities are used for ag/horticulture production and storage purposes. If their use
changes, the structures and buildings are subject to rollback taxes.

NYS Real Property Tax Law Section 483-a – Agricultural

Structures with Limited Uses
Farm silos, farm feed grain storage bins and commodity sheds used for feed
storage, bulk milk tanks and coolers, and manure storage and handling facilities are
permanently exempt from taxation and special levies/assessments. These structures
must be permanently affixed to agricultural land to qualify for this exemption.
Because these structures qualify for permanent exemption, they do not qualify for
the 10-year exemption.

To receive the exemption:

Owners must apply before the annual taxable status date with the county/town
assessor. Once the exemption is granted, it requires no renewal.

NYS Real Property Tax Law Section 483-b – Historic

Barns
Municipalities must pass a resolution permitting this exemption. Check with your
local assessor to see if a local law/resolution has been filed to allow this exemption.
If not, contact your county Farm Bureau or Agriculture and Farmland Protection
Board (AFPB) to initiate such a resolution for your county/town. No exemption
is granted for construction or reconstruction prior to the passing of a local law/
resolution. Historic barns are structures at least partially constructed before 1936
that were originally designed and used for storing farm equipment or agricultural
products, or for housing livestock. Historic barns used for residential purposes are
not eligible for this exemption. If the historic appearance of the barn is altered, it is
not eligible for the exemption.

Exemption from 100% of the increase in the assessed value attributable to

reconstruction or rehabilitation of a historic barn is granted for one year. Then the
exemption decreases each year by 10% from the increase in assessed value. If there
is a change in the assessment role, there will be an adjusted exemption base. If the
barn is eligible for 483 exemption (10 year), it is not eligible for this exemption.

80
 To receive the exemption:

Application is made with the county/town assessor before the annual taxable status
date.

NYS Real Property Tax Law Section 483-c – Temporary

Greenhouses
Temporary greenhouses consist of a frame covered with removable poly-film
and may be heated, include water and electrical utilities, and supporting poles.
Temporary greenhouses are permanently exempt from taxation and special levies/
assessments.

To receive the exemption:

Application is made with the county/town assessor or before the annual taxable
status date. Once the exemption is granted no renewal is necessary.

NYS Real Property Tax Law Section 483-d – Farm or

Food Processing Labor Camps or Commissaries
Farm or food processing labor camps or commissaries in compliance with standards
set by the Departments of Health and Labor and the State building commission shall
be exempt from taxation and special levies/assessments.

To receive the exemption:

Application is made with the county/town assessor or before the annual taxable
status date. Once the exemption is granted no renewal is necessary.

For More
Information: How do farm building exemptions work?
1. Start with your The cost of a building does not determine the amount of the exemption; the
County/Town exemption is from the increase in assessed property value that results from adding
Assessment the structure.
Department
Taxable Status Date: March 1 – check with your County/Town Assessor to be sure.
2. NYS Department
of Taxation and
Finance website:
http://www.
tax.ny.gov/pit/
property/default.
htm

81
82
 23 Assessing Your Market
Potential
Guide to Farming in New York State

Factsheet
Overview
Market Analysis: Market Analysis:
What is my Target
Market? What is my Target Market?
Product Development:
What am I going It is unwise to start a farm without considering your customers and what they want.
to market? While the “if I build it, they will come” approach may have been feasible a few
years ago, in many places the local food marketplace has become very competitive
Market Positioning: as larger companies have moved in, requiring farmers to be very clear and thoughtful
How does my about their marketing.
product satisfy
the needs of my A target market is a well-defined group of customers. Markets can be found within
market better than
my competition? any broad category: consumers, businesses, industries, institutions, etc, and then
narrowed down to specific sub-groups of these categories. Consumers, for instance,
Market Connection: can be characterized by demographics, geography, lifestyle, values, leisure, or
How will the occupation. Your target market might be “health-conscious exercise enthusiasts
market know I interested in nutrient-dense foods,” or “busy families with young children who seek
have what they
need? convenient ways to get good food into their kids.” Don’t cop out and say that your
target customer is anyone who will buy your product!

Begin market planning by clearly identifying this target market. Note that this may
or may not be the market you are working with now. The idea here is to think
creatively about your product to determine what set of customers are going to give
your business the cash flow, profit and growth it needs.

Start with a big piece of paper. Across the top write a brief description of your
product as currently conceived.

Next write your answers to the following four key questions:

1. Who will buy my product?

2. Why will they buy my product?
3. What will they pay for my product?
4. Where do they expect to find this product?

When you are finished, step back and consider what you have learned. Write:

• A brief, focused description of your target market

• An assessment of which aspects of your business need to change in order to
attract this market

83
 • A list of what is involved with making needed changes

Product Development:
What am I going to market?

Now that you have a clearer idea of WHO your market is and what they want, how
does your product meet their needs? Remember that products are continually fine-
tuned as you better understand the needs of your customers and the mechanics of
your business. The challenge is to think about your product from the perspective
of your target market. In order to best reach this target market, you may need to
change your packaging, pricing, or market channel. Next, answer the following set
of questions.

Research questions:

• What is my product?
• What is the best method to package and present my product?
• What need does my product fill?

When you have finished answering the research questions, take a second piece of
paper and summarize your answers into:

• A creative, market-informed description of your product

• A concept of how you will make your product meet the needs of your end
consumers and channel customers while being competitively priced and
profitable.

Market Positioning:
How does my product satisfy the needs of my market better than my
competition?

Market positioning is the way you communicate precisely the place your product
holds in the marketplace. How you position your product in the mind of your
customers determines how the product is perceived. Positioning is a strategic
component of marketing. It ties together information about your product, your
market, your competition and your industry. It is the answer to the very basic
question: What business am I in? “The what’s for dinner business?” “The family
vacation business?” Or you can distinguish yourself on the basis of the needs you
fill, the services you provide, the distribution channel you use, the pricing strategy
you employ. Think about your product from the perspective of your customer and
that of your competition. Note that buying usually comes down to a decision of
choice: your task is to figure out how to make the customer choose YOUR product.

When your research is complete, take a third piece of paper and summarize your
findings into a position statement of 50 words or less that answers two questions:

1. What business am I in?

2. Why will my customers want my product rather than that of my competition?

84
 Market Connection:
How will the market know I have what they need?

Making connections with your target market lets the customer know you have the
product they need. Unless you are a direct marketer, these connections are made
with the assistance of intermediaries: businesses that warehouse, transport and sell
your product to those direct consumer contacts and the businesses that represent
your product to that system. These businesses are the marketing channels that move
products from the point of production to the final buyer. Some, such as wholesalers
and retailers, buy and resell the product, others, such as independent warehouses
and transportation companies provide distribution services for a fee. Others, such as
brokers, present the product in the marketplace for a commission.

Channel businesses are a key component of your marketing strategy. How a

channel business warehouses and distributes products, how it targets consumers
and how it features and merchandises goods all define its particular set of needs
and resulting buying criteria. To be an effective marketer, producers need to identify
and understand the differences among channel markets and market their products
accordingly. No single marketing program works for all markets.

The Small Farms Research questions:

Program website has
manuals and guides • What distribution channels are best suited to my product, my customers & my
on direct marketing, business?
CSAs, Food Hubs • What are channel costs/benefits?
as well as marketing • What will it take to sustain market/channel connections?
specific products
such as organic, When your research is complete prepare a strategic response to these questions:
value-added, and • What will it cost to reach each potential market segment?
whole sale. SFP • Where can my business reach the best market at the least cost?
also offers a 6-week • Which market and channel options should I develop now?
online course for
beginning farmers This fact sheet was developed as part of Market Planning for Value Added Products
just starting to by UNH Cooperative Extension in cooperation with NY Coalition for Sustaining
explore their potential Agriculture. It has since been edited slightly by the Cornell Small Farms Program.
markets:

Small Farms Program

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

Small Farms Online

Course: BF 102:
Exploring Markets
and Profits
https://cornell-small-
farms-program.
teachable.com/p/
bf-102-exploring-
markets-and-profits

85
86
 24 Pricing Farm Products
Guide to Farming in New York State

Factsheet
Overview
Know your Costs and Know your Costs and Price for Profit
Price for Profit
The price you ask for a product or a service is one of the four P’s of Marketing: Price,
Allocate Expenses by
Enterprise Product, Placement, and Promotion. Price is critically important to the profit on the
farm, but the other P’s of marketing contribute substantially to the price that you can
Value vs. Price get. Profit is the 5th P that keeps you in business. Many new farmers simply look
around at what other farms are charging and put a similar price on their products.
Calculations for While knowing what prices your competitors are charging is important, it’s only one
Determining Price
part of the picture, and simply using this as your pricing strategy may mean that you
Cost and Profit are unprofitable. You should also carefully analyze your costs, to be sure the price
Method you charge will help you achieve the profit you desire.
Gross Margin There are various costs that go into deciding what price you will charge for your
Method product.
Plan for Profit – Don’t 1. Start with the input costs = Variable Costs (VC) i.e. fertilizer, seed, gas, labor.
Drop Prices
If you don’t cover these you will have to shut down in a short amount of time,
Going Rate for Market unless you are subsidizing the farm with other earnings.
Area 2. Add in ownership costs = Fixed Costs (FC) i.e. depreciation, interest, repairs,
taxes, insurance. If you cover these you will meet your breakeven cost to the
business, but have nothing left for yourself. Every item should contribute to
ownership costs. If you don’t cover ownership costs, you will be able to operate
longer before you have to shut down (unless you are covering these costs from
off-farm income, but this means your farm is not financially sustainable and is
parasitizing your off-farm earnings).
3. Add in a return to you = Profitable Price - this is the price you need to survive in
the long run.

Allocate Expenses by Enterprise

To track labor and equipment costs by product requires excellent records. You can
keep track of tasks and expenses such as plowing time and fertilizer for the whole
farm and allocate by square feet used by a particular product. Keep track of daily
time spent for special efforts or expenses required by specific products such as
transplanting separately. Add all of these together to determine costs per product. Be
sure to keep track of harvestable yields or the amount of product that was actually
sold, as this impacts the price per unit significantly.

87
Value vs. Price
Many direct market farmers are afraid to charge what they need to in order to have
some profit for themselves. Keep in mind that you are providing more value to the
buyer as you are closer to the customer. Ask yourself who are your competitors? Do
you want to be a price ‘setter’ or a price ‘taker’?

Value = Quality + Service + Price

• Your buyers want a quality product that you can provide because you can
grow varieties for flavor instead of durability and shelf life
• Your buyers want to know how their food was grown. They like the fact that
they have a relationship with you. This takes time on your part, but they are
willing to pay for it
• You can introduce them to new products and ways to cook specialty items.
This is education that they are willing to pay for
• Fresh un-waxed products, less fuel used, and community support are also
cited as reasons many consumers are willing to pay more for local products
• You can charge more for early season products when customers are eager to
taste the first fresh local strawberries or sweet corn, so strive for early sales

Calculations for Determining Price

Cost and Profit Method

Add your variable cost + your fixed costs + profit needed for the particular product
= Income

Divide by number of units produced = price/unit

For example:

If it costs you $3,000 total variable costs and $2,000 total fixed costs and you
want $2,000 of profit for a specific product then your total income from that
product needs to be $7,000.

Divide this by the number of units produced, and you will have the price per
unit: $7,000 / 950 units = $7.38/unit

Gross Margin Method

This method derives from the whole business sales, costs, and planned profit. This
method is usually used by retail businesses that resell products.

88
 For example:

Gross margin method in a vegetable business might be calculated:

Know your total expected vegetable sales = $10,000

Know your total fixed costs + desired profit = $3,000 – this is the gross margin
needed.

Divide your gross margin by total sales: $3,000/$10,000 = 30%

Know your unit variable cost = $5.00

Divide the unit price by 1- 30% of the unit variable cost to determine the price

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

Plan for Profit – Don’t Drop Prices

What if you have corn at $3.50/dozen according to your calculations and your
neighbor has $3.00/dozen? Can you still make a profit by lowering your price?
Sometimes it is better to sell fewer at the higher price than sell more at the lower
price. For example, if your margin on the $3.50 is $0.50 toward profit. If you sell
300 dozen that will give you $150 in profit. You would have to sell 600 dozen if
you sold at $3.25 to get the same profit. For a 7% decrease in price you have to sell
twice as much product.

Do not price your farm product below the market just because the farm income is
inconsequential for you!

If your farm is very small and you have off-farm income, you may be able to afford
to sell a dozen fresh brown eggs for $2.00 just to cover your feed cost, but other
local farmers who rely on the farm income to support their household cannot –
they might need the full price of $4.00+ a dozen to cover their full expenses. They
could lose sales unfairly due to your indiscretion. In the interest of cooperating with
your local farm community, keep your prices in line with market rates for any farm
product, even if you can afford not to.

If profit is not part of your farming motivation, consider partnering with a local food
bank, soup kitchen or donation network to send the good food you produce to
people who can’t otherwise afford it.

Going Rate for Market Area

Many beginning farmers start out with a pricing strategy that reflects what everyone
else is charging. While this is a good place to begin, it is not where you want to be
forever. It is important to know your costs and price for profit.

89
90
 25 Finding Price
Information
Guide to Farming in New York State

Factsheet
Overview
Wholesale Price Wholesale Price Information
Information
The resources below are provided for reference. However, keep in mind that market
Produce
conditions are different across NY. Prices for produce in ENY are usually much
Organic higher than the North Country and far WNY. The NYS terminal market prices are
often higher than what buyers or distributors (like supermarkets or repackers) pay
Livestock and Field growers further away from NYC. Ultimately, each farmer and producer needs to
Crops know their cost of production. See Fact Sheet 24 – Pricing Farm Products.
Local Markets
Produce

• NY Terminal market listing put out by USDA AMS Monday through Friday
https://www.ams.usda.gov/market-news/fruit-and-vegetable-terminal-markets-
standard-reports
• Links to reports containing wholesale market price information are available at
http://www.farmersmarketonline.com/marketwa.htm.
These reports are updated daily during the growing season
• Additional reports covering many other aspects of agricultural pricing are
available through the USDA’s market news portal for fruits and vegetables at
https://www.ams.usda.gov/market-news

Organic

• Organic Produce Pricing Report from the Rodale Institute:

www.rodaleinstitute.org/Organic-Price-Report
• NOFA NY has a price index for members.
https://www.nofany.org/priceindex
The prices are entered in by farmers for various vegetables by variety, package
size, or other attribute. Fresh market and wholesale pricing.
• Organic Produce Pricing Data from United States Department of Agriculture:
http://www.ers.usda.gov/data-products/organic-prices.aspx#.U-FPufldUuc

Livestock and Field Crops

• Meat Pricing Tool at calculator.meatsuite.com. For assistance understanding

how to use this tool, see Improved Meat Marketing for Small Scale and Direct

91
 Marketing Farms in the Northeast, Part III or Part IV.
• The Weekly Livestock Reporter: www.livestockweekly.com
• USDA AMS Livestock & Grain Market News:
http://www.ams.usda.gov/AMSv1.0/LPSMarketNewsPage
• Dairylea/Empire Livestock Market Auctions. Find a listing of livestock auctions
in NYS here: http://www.empirelivestock.com/

Local Markets
It is important to check local outlets for price information. Ask other farmers about
what they charge, ask buyers in your area what they would pay, visit retail outlets
and note prices, shop at farmers’ markets and see what products are selling for. You
can find lists of farmers markets around the state through:

Farmers Market Federation of New York

http://www.nyfarmersmarket.com/

New York Ag and Markets

https://www.agriculture.ny.gov/AP/farmers_markets.html

Your pricing should be based on your costs, being competitive, and on what the
particular market area customer will pay for high quality local products. Offer high
quality and differentiate your products to capture a higher price.

92
 26 Direct Marketing
Options
Guide to Farming in New York State

Factsheet
Overview
Farmers Markets Direct marketing is a common strategy for beginning and small farmers. The main
On-farm Sales attraction compared with selling through traditional wholesale markets is that you
receive the full share of the consumer dollar and have more control over the price
Internet and Mail you receive for your products. But with direct marketing, you’ll also incur extra costs
Order – not the least of which is your time. Be sure to evaluate each option carefully as
part of a farm business plan.
Ways to Get
Started with
Internet Marketing

Community Supported Farmers Markets

Agriculture
Farmers markets are a good place to develop your marketing skills, but don’t assume
Restaurant Sales you can rely on them for all your sales. The best markets may be hard to get into,
and smaller markets are struggling to remain viable. If you really want to sell at a
Sales to Food Retailers market, start by visiting markets in your area. Inventory what’s available and note
Institutional Food what does not sell out by the end of the day. Don’t grow what doesn’t sell unless
Service Sales you can differentiate your product – for example selling heirloom tomatoes instead
of ‘garden variety’ fruit.

How to Find NY Also study the customers. How many are there? What is their ethnicity? Are they
Farmers Markets young or old? Families or single buyers? Affluent or bargain shoppers? Ask shoppers
Near You: and vendors what they like and don’t like about the market, and get a copy of the
market rules.
1. Contact the
Federation of NY To be successful, you need to enjoy interacting with people and be willing to invest
Farmers Markets the time it takes to pick, pack, transport, set up and sell. To maximize potential
at 315-637- returns, you need to sell for as long a season as possible. For produce vendors, this
4690 or www. means growing a wide variety of crops. Farmers market sales alone may not generate
nyfarmersmarket. enough money to make a living, requiring you to look at additional market channels,
com but markets can be a good place to start a business.
2. Visit the NYS
Dept. or
Agriculture and On-farm Sales
Markets website,
http://www. Methods range from simple, self-serve stands to multi-department, year-round farm
agriculture. stores that may include pick-your-own or agritourism enterprises. The higher the
ny.gov/, and overhead, the slimmer the margins will be. But if done right, a successful farm
click on Farm market will attract many regular customers and offer good returns.
and Market
93
Self-serve stands are a good way to assess the potential draw from drive-by traffic.
Strawberries, sweet corn, tomatoes, peaches, and pumpkins are crops that stop
traffic. Consumers learn about local farms primarily through word-of-mouth. Build a
product line based on what customers want, and pay attention to quality. Sufficient
traffic may generate enough sales to warrant investment in facilities and staffing.

Pick-your-own (PYO) requires advertising and staffing. It can be very profitable, but
risky if it rains every weekend during narrow harvest seasons. PYO can complement
agritourism activities where it is one of several activities that families can enjoy.

To be successful, you need to enjoy having lots of people at your farm – and in
your fields, in the case of PYO. Risk management and liability insurance is a must.
Building loyal clientele is key, and may take many years. Your business plan must
be based on realistic customer numbers and sales projections.

Internet and Mail Order

Using online tools to connect with potential customers and to make sales online has Note: Internet sales
never been easier, yet the marketplace is changing very rapidly so it’s difficult to are only considered
know which options will have staying power. Here are a few things to know about exempt under the
selling online: Home Processors
Exemption (Fact
1. It’s essential to evaluate each website, platform, or online sales tool to make Sheet #28 in this
sure it will really meet your needs. If a company is making big promises about Guide) if buyers
how much they’ll help you sell online, research how long they’ve been in are also within the
business, talk to other farmers who are selling through them (if possible), and state.
find out what will be expected of you. Where will you need to deliver your
product? How much will this company charge you for this service?
2. You do not need to ship your products if you are selling online. There are many
options that allow you to create an online store—either a shopping cart feature
attached to your farm website, or a store hosted on a 3rd party platform—where
you can set the expectations for customers. You can decide whether you expect
people to pick up orders at your farm, whether you will deliver to a specified
pick-up spot or bring all orders to a weekly farmer’s market booth, or whether
you will ship products directly to people.
3. As with any marketing strategy, it’s unwise to rely solely on internet sales. What
if the company you’re selling through closes its doors? Consider internet sales to
be one prong of your marketing strategy.

If you develop unique, high-value products that are easy to ship, this strategy can
complement your other direct marketing efforts. Current customers who love your
product can order more and help you market your products through word of mouth.
Packaging and shipping costs need to be considered but for products that are not
bulky or heavy, this can be a profitable strategy.

94
 Ways to Get Started with Internet Marketing

Places to list your farm online to help consumers find you:

• Eatwild.com
Listing for livestock and dairy producers
• LocalHarvest.org
Listing for any type of farm, may help consumers find you, but you can also
use Local Harvest as a sales platform by creating an online store within the site
• Meatsuite.com
For livestock producers who sell animals via quarter, half, or whole direct to
consumers

Third-party sites that help you sell product online:

• Eatfromfarms.com
Created by a farmer, this low-cost platform has been around since 2013, so it
has staying power. Allows farmers to set their own terms around delivery, and
is especially useful for products that have variable weights.
• Farmersmarketonline.com
You must be willing to ship if you use this site
• Farmersweb.com
This platform has been around for many years and connects farmers to
wholesale buyers
• Locallygrown.net
This site allows groups of farmers to come together to create an online farmers’
market with customer orders placed in a certain time frame, and then farmers
fill the orders and deliver to a specified site.

Create an online store on your website:

• Squarespace.com
• Weebly.com/square
• Wix.com

Community Supported Agriculture

Community Supported Agriculture (CSA) operations typically provide a weekly
‘share’ (box) of produce to customers who pay for their shares at the beginning of
the season – usually $300 to $600 per household. The up-front money reduces
financial and marketing risks for farmers, and customers share in production
risks. Sometimes customers help harvest and pack shares in return for a discount.
Depending on the operation, customers pick up shares at the farm, a central
distribution point, or pay extra for home delivery.

One challenge is to have enough different crops each week so customers feel like
they are getting their money’s worth. CSA farmers often grow more than what their
customers need and have additional outlets for surplus produce. Sometimes several
farms collaborate to offer a wider range of products including fruit, eggs, meat and
more. Starting small and keeping customer turnover low is a good way to grow the

95
business while minimizing risks.

A key advantage to a CSA is that you know how many customers you have early
in the season, have their money in hand and can produce accordingly. This makes
financial planning easier. However, in many parts of the state, the CSA market is
saturated, and existing businesses are struggling to retain their members.

Restaurant Sales
Many chefs (especially from higher-end restaurants) are looking for fresh, local
products to feature in their menus. You will find that chefs are as busy as farmers.
Develop a personal relationship with chefs, find out what they want and grow a
wide range of products for them for as long a season as possible. You need to offer
exceptional quality clean products that are delivered on time (avoid mealtimes).
Restaurant sales need to be an intentional strategy, not a way to dump surplus
product. Most chefs will pay about 75 percent of retail for produce, though if they
are ordering small quantities, you may be able to charge them full retail price.

Watch that delivery costs and time don’t eat up profits, and be clear on payment
terms. Once a relationship is solid, less face time is needed.

Sales to Food Retailers

Increasingly small food retailers are interested in sources of locally grown food. One
option is to contact retail farm markets in your area. Many do not grow all they sell.
Also, check out food cooperatives, natural foods stores, and independent groceries.
Most will only pay wholesale prices found at regional markets.

Everything else, from convenience stores to super-centers, is a chain and each

has unique purchasing requirements. Some purchasing decisions are made at the
local store level, but most require approval from higher-ups. Start with local store
managers. For produce, a head buyer is usually involved. It is most common for
retailers to buy seasonal produce. Very few handle local meats, cheese, eggs or
other products.

Food retailers expect local prices to be in line with wholesale prices. Understand
buyer expectations and prices before agreeing to delivery. Some may reject product
on quality or simply because they have a better supply and price elsewhere. The
advantage of selling to food retailers is that you can move more volume to fewer
buyers, reducing your marketing costs. But the disadvantage is that it can be a
fickle, price-driven market. Be sure to spread your risks.

96
 Institutional Food Service Sales
Some schools, nursing homes, hospitals, prisons, etc. can purchase local products.
But many are part of a buying consortium and have a single goal: keeping costs
low. Meals are often pre-prepared or ready-to-serve, using few fresh items.
Institutional food sales also come with institutional barriers, including regulations
and requirements that dictate their purchasing practices. One way to tap
institutional markets is to go through the distributors who sell to them. This adds a
middleman and reduces returns. High quality, volume sales, standard packaging,
and reliable delivery will be required.

For More Information:

http://smallfarms.
Cornell Small Farms The CSFP offers several online courses covering different
cornell.edu/online-
Program (CSFP) aspects of marketing.
courses/

This publication is a decision-making aid for new farmers

http://smallfarms.
and for those considering marketing through a new
cornell.edu/
channel, whether wholesale or direct. The guide focuses
Guide to Marketing files/2014/07/Guide-
on describing the marketing of fresh-market produce,
Channel Selection to-Marketing-Channel-
however, many of the principles apply to the marketing
1ib5phn.pdf
of other agricultural products including cut flowers,
meats, honey, maple syrup, and dairy products.

97
98
 27 Marketing
Regulations
Guide to Farming in New York State

Factsheet
Overview
Weights and Measures Weights and Measures
Basic Rules How does a customer know that what they just paid for is actually what they
Marketing Regulations received? The system that provides this public trust is a carefully regulated process.
Article 16 of the Agriculture and Markets Law regulates how “commodities” are
Selling Plants packaged and sold in New York State. The complete Article can be found at
https://www.agriculture.ny.gov/WM/LawArticle16.pdf
Selling Produce

Selling Seeds
Basic Rules
Slaughter and Sale
of Farm-raised • Food products that are not in containers must be sold by net weight, standard
Meats measure or numerical count
• If selling food items pre-packaged, these need to be accurately marked, with (a)
Selling Fish the net weight, standard measure or numerical count, (b) the selling price per
pound or unit of standard measure and (c) the total selling price.
Selling Eggs
• If selling bulk items by weight an approved scale must be used. The vendor
Selling Honey and is responsible for purchasing an approved device AND having it certified by
Maple Syrup a local Weights and Measures official. Many scales available at common
retail outlets are not appropriate for use; visit http://www.agriculture.ny.gov/
Alcoholic Beverages WM/725.pdf for a list of approved commercial devices. At this time there is
Making/Selling no fee in many counties to have equipment certified, but there is a fine for not
Wine using approved scales and for every mis-weighed unit available for sale.
• When using open containers, they should be standard sizes, i.e. pints, quarts;
Brewing Beer and remain open to allow consumer inspection. If closed, they need to be
labeled.
Soft and Hard
Cider
Weights and measures officials throughout the State routinely inspect a wide range
Dairy Products of commercial devices and packaged commodities to assure accurate measure in
the marketplace. These inspections serve to eliminate from the marketplace those
Milk devices and packages that do not provide an accurate measure of the commodities or
Selling Raw Milk services that are exchanged. The inspections involve more than just accuracy tests,
as the official must verify that the device or package meets other operational and/or
Selling Cheese marking and labeling requirements.

99
Look for the Weights and Measures Seal on Devices:

The seal indicates that that device has been inspected and was performing
correctly and within the applicable tolerances

For More Information:

NYS Department of Agriculture and Markets Bureau of Weights and Measures

http://www.agriculture.ny.gov/WM/WMHome.html
518-457-3146
[email protected]

Marketing Regulations
Selling Plants

If you sell plants for landscape use including bedding plants, perennials, shrubs and
trees grown in a nursery or greenhouse, you will need to be licensed as a Retail or
Wholesale Nursery, or Plant Grower by the NYS Dept. of Agriculture & Markets. If
you sell cut flowers or houseplants the license is not required. As a plant seller your
greenhouse/nursery crops are subject to inspection to protect the customer from
potentially diseased or insect infested plant materials.

Contact for Licensing Information:

The NYS Ag & Markets Division of Plant Industry

http://www.agriculture.ny.gov/PI/PIHome.html

Albany office: 1-800-342-3464 or 518-457-2087

Regional Inspectors will visit your production facility to inspect plants before
you begin sales and thereafter annually. There is a fee for the license.

Selling Produce

No licenses are required. Federal regulations through the Food Safety Modernization
Act (FSMA) Produce Safety Rule (PSR) and/or buyer requirements, such as a third-
party audit, may apply to some produce growers.

Some produce is subject to USDA grade and quality For grading

standards if packaged. This includes: potatoes, apples, information consult
lettuce, and grapes. Grade, quantity of contents, name the following website
and address of producer are required on all closed for fact sheets
packages. NYS Agriculture & Markets enforces quality pertaining to each of
and grade standards. the mentioned crops:
Grade and Standards
http://www.
Guides to vegetable grades and sizes, including print-out agriculture.ny.gov/
sizing templates and color photo fact sheets with grading FS/general/farmprods.
and packing standards are available on the Cornell html
Vegetable Program website and are especially useful for https://cvp.cce.cornell.
farmers looking to sell into wholesale markets. edu/submission.

100
 For general
information and
compliance dates visit:
https://www.
fda.gov/Food/
The FSMA PSR establishes, for the first time, science-
GuidanceRegulation/
based minimum standards for the safe growing,
FSMA/ucm334114.
harvesting, packing, and holding of fruits and vegetables
htm
grown for human consumption. Some farms may be
For coverage and
Food Safety exempt or not covered by this regulation; however,
exemption status
Modernization Act buyer requirements for food safety, such as a third-
determination visit:
(FSMA) Produce Safety party audit may still be required. Compliance dates are
https://www.fda.gov/
Rule (PSR) staggered based on total produce sales, with the first
downloads/Food/
inspections beginning for some farms in 2019. Training
GuidanceRegulation/
is required for farms covered by this regulation; to learn
FSMA/UCM472499.
more about upcoming trainings visit the Produce Safety
pdf
Alliance website.
To attend a Produce
Safety Alliance Grower
Training visit: www.
producesafetyalliance.
cornell.edu

For more information

about On Farm
Readiness Reviews
visit:
The New York State Department of Agriculture and https://www.nasda.
Markets, together with food safety specialists from org/foundation/food-
Cornell Cooperative Extension, are offering On-Farm safety-cooperative-
On Farm Readiness Readiness Reviews (OFRR) to prepare growers for agreements/on-farm-
Reviews (OFRR) compliance with the FSMA PSR. All On-Farm Readiness readiness-review
Review visits are free, non-regulatory, voluntary, and Contact the NYS
confidential. Feedback is shared only with the farm OFRR Team by
owner/grower who requested the review. phone (518) 457-
3846 or e-mail to
Steve Schirmer (steve.
schirmer@agriculture.
ny.gov.)

For information visit:

The National Good Agricultural Practices Program
www.gaps.cornell.edu
provides foundational on-farm food safety knowledge
National Good to produce growers and packers. A wide variety
Or contact Gretchen
Agricultural Practices of educational resources are available including
Wall at glw53@
Program (GAPs) recordkeeping templates, Standard Operating Procedures
cornell.edu or Betsy
(SOPs), worker training posters, photo novellas, training
Bihn at eab38@
DVD, and the GAPs Online Produce Safety Course.
cornell.edu.

101
 Contact your buyer
directly for more
information. Be sure
to ask which audit
(USDA Harmonized,
GlobalGAP, Primus,
Third-party audit certification is meant to provide
etc.) is required (if
verification to the buyer that the produce they purchase
any) and what scopes
is grown and packed under conditions that result in safe,
must be completed.
wholesome fresh produce. Safe food is important for
many reasons, primary among them being the health of
More information is
consumers. It is also important from a liability standpoint
available in Questions
to have standards that help assure consumers that the
Buyer Requirements and Answers about
produce they buy is safe. Not all buyers require third-
& Third-Party Audits the GAP Assistance
party audits. Prices for the audit vary and there are many
(Produce Safety) Program on AMS’
organizations that offer audits.
Harmonized GAP
webpage, https://
For a limited time, USDA is providing funding to 16
www.ams.usda.gov/
states (including NYS) for the GAP Assistance Program to
services/auditing/
enhance market access by defraying costs of undergoing
gap-ghp/harmonized,
voluntary USDA Harmonized Good Agricultural
and by contacting
Practices (GAP) audits in 2019.
AMS’ Specialty Crops
Inspection Division,
Audit Services Branch
at (202) 720-5021 or
[email protected].
gov.

Learn more about

New York State Grown & Certified is the first statewide,
New York State
multi-faceted food certification program designed to
Grown & Certified
strengthen consumer confidence in New York products,
at https://certified.
address food product labeling, and assist New York
ny.gov/
farmers so they can take advantage of the growing
Requirements
market demand for foods locally grown and produced
vary based on the
to a higher standard. New York State Grown & Certified
NYS Grown & Certified commodity.
is open to New York producers who adhere to the
best practices in safe food handling and environmental
For questions
stewardship. It is currently available to New York State
regarding
producers or processors of produce, dairy, eggs, beef,
applications or other
poultry, pork, shellfish, Christmas trees, maple, cut
commodities, e-mail:
flowers, craft beverage ingredients, wine, spirits, beer
NYSGrownandCertifie
and cider.
[email protected]

Selling Seeds

Labeling requirements, as well as purity and germination rate standards apply to

“Each container of seed which is sold, offered or exposed for sale, or transported

102
 A readable in this state for planting purposes.” Provisions differ across various categories of
summary of the seed, and are set out in Article 9 of the Agriculture and Markets Law Chapter 631.
regulations as they Circular 826 presents these rules and regulations
relate to agricultural https://www.agriculture.ny.gov/PI/commodities/ARTICLE9.pdf
seeds can be found
here:
https://cpb-us-e1. Slaughter and Sale of Farm-raised Meats
wpmucdn.com/
blogs.cornell. The best source of information on marketing your meat is: “A Resource Guide to
edu/dist/e/1628/ Direct Marketing Livestock and Poultry” (Available in PDF at https://bit.ly/2TYjSbu)
files/2016/02/
Here is a brief summary of some regulations.
Ag-Seed-Sales-
177g9c9.pdf • Poultry exemption
Farm-raised poultry is exempt from NYS and USDA inspection and can be
slaughtered and butchered on farm ONLY if you raise and slaughter not more
than 250 turkeys OR not more than 1000 of all other poultry (chickens, ducks,
geese, etc.) per year. If you raise more than this per year the birds must be
processed in a licensed 5-A or USDA facility and stamped for commercial/
retail sale.
• Other Meats (beef, lamb, goat, pork)
These species must be slaughtered and butchered in a USDA inspected
facility if you intend to sell individual cuts of meat. If you are selling whole,
halves, or quarters of an animal direct to consumers, the animal can be
processed in a NYS custom exempt slaughter plant. The meat must be
stamped “Not for resale.” If you want to receive your meat from a USDA-
inspected slaughterhouse and do further processing, such as making sausage
or charcuterie, this must be done in a USDA inspected facility or NYS certified
For questions about
processing facility/kitchen holding an Article 20-C license. See Fact Sheet #28
meat slaughter and
for more info on 20-C licensing.
sales, contact NYS
• Exotic Animals
Ag & Markets at
Bison, deer, rabbits, game birds and ratites must be slaughtered and butchered
518-457-4492.
in a 5-A inspected facility if the meat will be sold.

Selling Fish

Regulations

• Whole fish
Without any special permits, you may sell a fresh whole fish at your farm to
a private customer. You may bring completely chilled fresh whole fish to a
farmer’s market and sell to a private customer. Keep fresh whole fish at 32°F
with crushed ice or in a refrigerated unit.
• Eviscerated fish
Entire gut contents are removed and the fish is thoroughly rinsed with fresh
water that is 38°F or lower (water from public source or from a tested well.)
Chill the fish to 32°F immediately. At this point, the fish can be frozen and
kept in a frozen state for sale. Frozen eviscerated fish may be sold at the farm
or at a farmer’s market; fresh and properly chilled eviscerated fish may be sold
at a farmer’s market or at the farm.
• Fillets
Filleting fish or any similar processing requires an Article 20-C Food Processing
License at your farm or a facility off-farm that carries a current 20-C Food
103
 Processing License. You may transport your fish to a 20-C facility and use it Rules and
temporarily (usually for a rental fee). Such fish may be sold to individuals, regulations
stores, or restaurants if in a frozen state. Fresh fillet sales require an Article surrounding
28 Retail Food Store license (where food and food products are offered to the aquaculture-raised
consumer and intended for off-premises consumption and conducts no food fish are subject to
processing). Current price for an Article 20-C license fee is $400.00 for 2 years change. Contact
and an Article 28 license fee is $250.00. the office in your
region:

Selling Eggs NYS Department

of Agriculture and
Egg cartons must be marked with grade and size (though producers selling eggs of Markets Food Safety
their own production directly to consumers are exempt from this requirement). Eggs and Inspection
may be sold in bulk displays but grade and size must be indicated. Additionally, Division:
eggs should be washed and candled, cartons must include the name and address of 518-457-4492
producer and the date packed, and eggs must be held at 45 degrees F or lower. or http://www.
agriculture.ny.gov/
For a fact sheet on egg sales consult: FS/FSHome.html
https://www.agriculture.ny.gov/FS/industry/shelleggs.html

A more comprehensive fact sheet, particularly relevant for larger operations needing
to deal with grading, etc., can also be found here:
http://www.agriculture.ny.gov/FS/general/farmprods.html.

Selling Honey and Maple Syrup

Circular 947 can
These products are exempt from licensing if you do not add ingredients or repack. be requested from
Production facilities must be clean and sanitary. If you make specialty flavored the NYS Dept.
honey or maple products, you must have an Article 20-C license. Maple syrup is of Agriculture
subject to grade identification. & Markets or
downloaded as a
For more information on the sale of Maple Syrup, visit https://www.agriculture. PDF here: https://
ny.gov/FS/general/maple_syrup_honey.html www.agriculture.
ny.gov/FS/
industry/04circs/

Alcoholic Beverages
The production and distribution of this category of products is regulated by the Visit the SLA’s
New York State Liquor Authority (SLA). http://www.sla.ny.gov/ Wine, beer, spirits, “Become a
cider, and mead are each treated differently. The NYS Liquor Authority are also Manufacturer or
distinguishes between manufacturers and wholesalers, regulating and licensing these Wholesaler” page
differently. Finally, the SLA also offers less-costly “micro” licenses for small-scale for more: https://
producers, and special dispensations for small “Farm” manufacturers using New sla.ny.gov/become-
York State grown ingredients. Depending on the particularities of your enterprise, manufacturer-or-wh
you will need different permits. olesalermaplesyrup
ansugarCIR947.pdf
To apply for manufacturing licenses, visit: https://www.businessexpress.ny.gov/app/
answers/cms/a_id/2027/kw/Alcoholic%20Beverage%20Manufacturer%20License

An “application wizard” tool will then help you to find the license application fees
and forms relevant to your case. After completing this brief questionnaire, you will
104
 be able to email the various documents to yourself. https://on.ny.gov/2vL3e0G

Making/Selling Wine

• There are 4 types of winery licenses that apply to the following situations:
• Individuals who make wines without having a vineyard
• A retail facility that retails wines but is neither a producer or processor of
grapes
• A farm winery which must have its own vineyard and processing facilities and
any purchased grapes must be 100% NY grown
• A special farm winery that does not have its own processing facility but works
with another established wine processing facility. Farm wineries may sell their
own wine at their wineries, at NYS Farmers Markets and to restaurants and
retail stores in NYS

For assistance in developing a farm winery consult the following sources:

• New York Wine & Grape Foundation

www.newyorkwines.org
585-394-3620
• Cornell Viticulture & Enology Program - Geneva
http://www.grapesandwine.cals.cornell.edu
315-787-2277
• NYS Liquor Authority Licensing
[email protected]
• Cornell University Enology Resources
http://fruit.cornell.edu/enology/

Brewing Beer

In order to receive a Farm Brewery license in New York State, the beer must be
made primarily from locally grown farm products. The schedule for the license is as
follows:

• From January 1, 2019 to December 31, 2023, no less than 60% of the hops
and 60% of all other ingredients must be grown in New York State.
• From January 1, 2024, no less than 90% of the hops and 90% of all other
ingredients must be grown in New York State.

For assistance in developing a farm brewery consult the following sources:

• New York State Brewers Association

http://newyorkcraftbeer.com/farm-brewery/
• Article 20-C Licensing Requirements
http://newyorkcraftbeer.com/wp-content/uploads/2014/05/20-C-FARM-Ag-and-
Markets-Doc.pdf
• Cornell University Brewing Program
http://blogs.cornell.edu/brewing/

105
Soft and Hard Cider

Previously, cideries fell under the SLA’s “Winery” category. Commercial scale
processing of hard cider requires an Article 20-C food processing license and a site
inspection, but “farm” cideries making only hard (alcoholic) cider may be exempt.
Good manufacturing practices must be followed. If you are interested in making
hard cider, we recommend joining the NY Cider Association, a trade association for
cider-makers: https://www.newyorkciderassociation.com/.

For soft cider, apples must be firm and washed. Pasteurization or Ultra Violet
treatment is required. HACCP (Hazard Analysis Critical Control Point) plans are
required for cider and juice processing facilities if selling wholesale.

Dairy Products
If you are interested in making processed dairy products, like cheese, yogurt, or
butter, we suggest contacting the Dairy Extension Program for help understanding all
the requirements and evaluating potential profitability. This team also occasionally
has grant funding to host workshops for artisan cheese and dairy food producers, so
it’s worth asking if there are any upcoming to help you learn the ropes.

Milk

Processing facilities are regulated by: The primary

resource to
• NYS Department of Agriculture & Markets Division of Milk Control and Dairy familiarize
Services yourself with in
http://www.agriculture.ny.gov/DI/DIHome.html the development
518-457-1772 (Matt Morgan) of your plant is
• Division of Food Safety & Inspection New York State
http://www.agriculture.ny.gov/FS/FSHome.html Department of
518-457-4492 Agriculture and
Markets Circular
Milk cannot be transported from a farm to a processing facility without a license, 958 (Part 2), which
and dairy products processed in your home kitchen or a commercial kitchen covers the rules
cannot be sold to the general public. You must have and maintain a certified milk and regulations for
processing plant on your farm if you plan to sell dairy products to the public. operating a milk
processing facility
Once a plan has been developed, you may also want to contact the Cornell in NY:
Department of Food Science Cooperative Extension (http://foodscience.cornell.edu/ http://www.
cals/foodsci/extension/index.cfm) or the Dairy Plant at SUNY Morrisville at 315-684- agriculture.ny.gov/
6106. They offer instructional programming schools/workshops for dairy processors DI/Laws%20in%20
and have staff that may be able to help review your plans and offer advice.z PDF/PART2_milk_
control_law.pdf

Selling Raw Milk

Due to the potential liabilities of selling unpasteurized milk to the public, it is highly
discouraged by the State and the Cornell University Department of Food Science.
However, it can be legal. In New York, raw milk can only be sold on the farm

106
 More legal where it is produced, and only if the producer holds a Raw Milk Sales Part 2 permit
information can be and meets several additional tests and requirements that other milk processing
found here: facilities do not have to meet. Even if the farmer gives away one gallon of milk, a
https://www. permit is required. To receive a permit the farmer must have:
agriculture.ny.gov/
DI/PDF%20 • A Brucellosis ring test on file with the Department’s Division of Animal
WebDocs/ Industry.
RawMilkRegsPart2. • A Tuberculosis test performed on each animal.
pdf • The farm operation must be enrolled in the Quality Milk Production Services
(QMPS) program and must have a report showing that each animal was tested
for pathogens, including but not limited to Staph. aureus and E. Coli.
• The farm operation must have a milk sample tested for the following
pathogens: Salmonella, Listeria, Escherichia coliform, E. Coli 0157:H7,
Campylobacter, and Staphylocci. These tests are required initially and
monthly.
• Satisfactory farm water test must be on file.

Please contact the state Division of Milk Control and Dairy Services in Albany for
requirements to sell raw goat’s or sheep’s milk.

A farm selling raw milk is required to post the following signage:

• “NOTICE: Raw milk sold here. Raw milk does not provide the protection of
pasteurization.”

Selling Cheese

Hard cheese made from raw milk may be sold to the public if labeled raw milk
cheese and aged at least 60 days. A permit is still required.

For All Other Food Inspection Questions, Contact:

NYS Dept. of Agriculture & Markets: Division of Food Safety & Inspection
http://www.agriculture.ny.gov/FS/FSHome.html
518-457-4492

107
108
 28 Becoming a Small-Scale
Food Processor
Guide to Farming in New York State

Factsheet
Overview
Foods that Information prepared by Dr. Olga Padilla-Zakour and Dr. Bruno Xavier from the NYS
are regulated
and require a Food Venture Center at Cornell University (https://cfvc.foodscience.cals.cornell.edu/)
Processing License – for educational purposes only – please contact pertinent regulatory agencies for
in NY further detail.

Food Safety The Federal government, individual states, cities and municipalities govern the
operation of food processing facilities, whether home kitchens or commercial
Home Processing facilities. Regulations differ from state to state and are determined by the type of
Exemption
food product being prepared and the processing methods used. When considering
Zoning Regulations starting up a home or commercial kitchen, it is important to research which agencies
regulate licensing of the product, inspection of the facility, foods allowed and not
Basic Requirements allowed to be produced in each facility, local zoning laws governing the use of the
for a Small-Scale building, and building codes. All food facilities are required to register with FDA
Food Processing
Establishment (based on the Bioterrorism Act of 2002) and to renew registration every other year (to
comply with Food Safety Modernization Act of 2011, website: http://www.fda.gov/
State of NY Food/GuidanceRegulation/FoodFacilityRegistration/default.htm).
Department of
Health (DOH)
– Restaurants Foods that are regulated and require a Processing License in NY –
NYS Department Article 20-C License from the NYS Department of Agriculture and
of Agriculture and Markets
Markets
– Food preparation This regulation applies to anything that is altered by baking, canning, preserving,
and processing freezing, dehydrating, juicing, cider making, pickling, brining, bottling, packaging,
repackaging, pressing, waxing, heating or cooking, smoking, roasting, or
Helpful Resources manufacturing. Requirements vary depending on product. A scheduled process must
for Small Scale Food
Processors be developed which outlines recipe testing/formulation, critical control points (to
avoid contamination and control hazards), processing steps, storage requirements,
distribution and selling conditions/restrictions.

Assistance for developing a scheduled process is available:

NYS Food Venture Center
https://cfvc.foodscience.cals.cornell.edu/

For a complete list of products that require an Article 20-C license visit the
following website:
http://www.agriculture.ny.gov/FS/general/license.html
518-457-4492

109
Food Safety
HACCP (Hazard Analysis & Critical Control Points) Plans are mandated by FDA
regulations for certain products and processes, specifying procedures to be
followed to minimize contamination and to minimize/eliminate chemical, physical
and biological hazards when processing foods. HACCP plans are required for
wholesale (not for retail) sale of seafood, dairy, meat and poultry products, juice
and cider processing facilities. Other sectors of the food industry are coming into
voluntary compliance. For more information check: https://www.fda.gov/Food/
GuidanceRegulation/HACCP/

The Food Safety Modernization Act (FSMA), enacted in 2011, requires that food
manufacturers enhance food safety and quality by implementing Food Safety
Plans, which include Preventive Controls for all aspects of food processing, from
incoming ingredients through processing to storage, distribution and sale of the
final product. Specific requirements for continuous training programs are also
part of FSMA requirements, including that food safety personnel receive specific
training on Preventive Controls. Some manufacturers are exempt, in parts or
completely, from having Food Safety Plans, depending on the size and types of
products manufactured. More information on FSMA and on how to get Preventive
Controls training can be obtained on the FDA website: http://www.fda.gov/Food/
GuidanceRegulation/FSMA/ucm461513.htm

Home Processing Exemption

New York State allows non-hazardous foods such as candy, cakes not requiring New York State
refrigeration, cookies, brownies, two-crusted fruit pies, breads and rolls, standard Home Processor
fruit jams and jellies, dried spices and herbs, and snack items to be produced Registration
in home kitchens (see full list of “‘approved’ non-potentially hazardous home Information Sheet:
processed foods” on information sheet below). A review of processing procedures https://www.
may be required for certain products before exemption is granted. agriculture.ny.gov/
FS/consumer/
Anyone seeking a Home Processing Exemption must: FSI-898D_Home_
Processor.pdf
• Contact the NYS Department of Agriculture & Markets to obtain this certificate
https://www.agriculture.ny.gov/FS/consumer/FSI898c.pdf
• Complete an annual water test for bacteria if using private water

Some types of foods may not be produced in a home kitchen, as mandated by

Federal regulations. These foods are considered potentially hazardous: Note: Internet sales
(Fact Sheet #26
• Low acid and acidified (pickled) foods packed in hermetically sealed in this Guide) are
containers must be registered with the US Food and Drug Administration only considered
(FDA) exempt under the
• Meat products with more than 3% raw or 2% cooked meat ingredients in a Home Processors
completed product are regulated by the US Department of Agriculture (USDA) Exemption if buyers
• Vacuum packaged and any other reduced oxygen packaged products are also within the
state.

110
 Zoning Regulations
Local municipal zoning and planning boards determine the scale of operations
permitted in an establishment. They regulate the number of employees allowed on
premises and whether a second separate kitchen facility is allowed to operate on
site. Check with local building inspectors to determine what operations can take
place in the kitchen chosen for food production. There are local building codes that
govern the volume of business in a building and egress from a building, drainage
issues such as back flow protection, and grease traps. Commercial equipment must
comply with fire codes, FDA and USDA requirements as appropriate.

Minimum Food Processing Facility Requirements for New York State:

Procedure Home Kitchen Home Annex Commercial

Yes, Potable water Yes, Potable water

Yes, Potable water required
required (documented) – required (documented)
Inspection (documented) – municipal
municipal or treated well – municipal or treated
or treated well water
water well water

20-C license (obtained

Non-potentially hazardous
from NYSDAM)
foods for wholesale market 20-C license
Separate cleaning,
Licensing exempt from licensing by Fee – $400.00/2
sanitizing, and hand
NYS Dept of Agriculture & years
wash facilities
Markets (NYSDAM)
Fee: $400.00/2 years
NYSDAM
NYSDAM NYSDAM
May request review of
Dept. of Health (for Dept. of Health
processing procedures
fresh-serve foods (fresh-serve foods
Inspection Agency by recognized processing
only) Kitchen held to only) Kitchen held to
authority. Only normal
restaurant standards (see restaurant standards
kitchen facilities can be
below). (see below).
used.
Check with municipality
Zoning/Planning Board Check with
Check with city/town municipality Zoning/
Zoning/Planning Board Issues: scale of Planning Board
Zoning operation; number of
Issues: Scale of operation, employees Issues: scale of
number of employees operation, number of
2nd kitchen may not be employees
allowed on premise

111
 Procedure Home Kitchen Home Annex Commercial

Any processed food

Low acid and
• Candy (non-chocolate) acidified foods
• Fudge Any processed food packed in
• Cakes not requiring Low acid and acidified hermetically sealed
refrigeration foods packed in containers. Must
• Cookies hermetically sealed register and file
• Brownies containers. Must register with FDA. If you
• Two-crust fruit pies and file with FDA. If are producing an
• Bread you are producing an
acidified food (i.e.
Foods Allowed • Rolls acidified food (i.e. you
• Fruit jams are adding lemon juice
you are adding
• Jellies or any type of acid), you lemon juice or any
• Spices, herbs will need to take part type of acid), you
• Snack items in an official Acidified will need to take
• Baked goods (i.e. Food Manufacturing part in an official
bread, rolls) for Training, either in person Acidified Food
wholesale distribution or online, for $400 Manufacturing
Training, either in
person or online, for
$400.

• Cakes that require

refrigeration Meat products - if more Meat products - if
• Pies containing milk, than 3% raw or 2% more than 3% raw
Foods Not Allowed eggs or meat products cooked or 2% cooked
• Chocolates meat ingredients – meat ingredients –
• Low acid/acidified USDA regulated USDA regulated
foods

Basic Requirements for a Small-Scale Food Processing

Establishment
State of NY Department of Health (DOH) – Restaurants

• Submit kitchen drawings before construction

• Three-bay sink with stainless steel drain boards or two-bay sink with a
commercial dishwasher
• Separate hand washing/mop sink
• Washable materials on walls and work surfaces
• Restaurant grade, commercial tile floors- painted concrete not allowed
• Commercial coolers/refrigeration
• Water from non-municipal water supply must be tested quarterly.
• Review DOH “Checklist for New or Remodeled Establishments”
• Some locales require food worker certification.
112
 NYS Department of Agriculture and Markets – Food preparation and
processing

*Circulars are • Kitchen requirements based on food item(s) being produced- Determined upon
available through inspection
local Dept. of • Easily cleanable, smooth work surfaces
Agriculture and • Non-absorbent, smooth and easily cleanable floors, walls and ceilings
Markets • Review of processing procedures including hand washing, sanitizing,
equipment sinks, water potability and food preparation
NYSDAM, 10B • Review NYSDAM Circular 951 -Pursuant to the Licensing of Food Processing
Airline Drive Establishments
Albany, NY 12235 • *Circular 938 – Rules and Regulations Relating to Food Processing
Establishments
518-457-3880 or
• *Circular 933-Good Manufacturing Practices
1-800-554-4501

Helpful Resources for Small Scale Food Processors

For assistance in developing a scheduled process for your recipe or developing a
processed food product, contact:

Cornell Food Venture Center

Cornell AgriTech
315-787-2273 or [email protected]

To request the publication “Small Scale Food Entrepreneurship: A Technical Guide

for Food Ventures”, contact the CFVC using one of the options above or download it
directly at:

https://cornell.app.box.com/v/NECFEGuide/file/70787122021

The center has a number of other helpful guides available for download in a public
Box folder:

https://cornell.box.com/v/NECFEGuide

The Institute for Food Safety at Cornell provides a number of programs, courses and
services to help reduce food safety risks from farm to fork. They are a good resource
for small farm processors across the board from dairy, produce, and craft beverages
looking for general food science extension and food safety programs. A schedule of
current offerings can be found on the training page of their website:

https://instituteforfoodsafety.cornell.edu/trainings/food-safety-training-
opportunities/

Among them is an online Good Manufacturing Practices course which reviews

GMP requirements that are part of the FSMA Preventive Controls for Human Food
regulation in 21 CFR Part 117 Subpart B.

https://instituteforfoodsafety.cornell.edu/trainings/good-manufacturing-practices-
registration/

113
To learn about small scale food processing activities in NYS:

Join the NYS Small Scale Food Processors Association

www.nyssfpa.com

Regional Offices of the NYS Department of Agriculture and Markets, Division of

Food and Inspection Services:

• 10B Airline Drive,

Albany, New York 12235
518-457-5380
[email protected]
• 55 Hanson Place
Brooklyn, NY 11217-1583
718-722-2876
• Electric Tower Building
535 Washington Street, 2nd Floor Suite 203
Buffalo, NY 14203
716-847-3185
• 900 Jefferson Road
Rochester, NY 14623
585-487-0200
• NYS Fairgrounds – Art and Home Center
Syracuse, NY 13209
315-487-0852

Additional Resources:

New York State Grown and Certified

https://certified.ny.gov/
Contact Jessica Brooks 518-402-7398 or
[email protected]
More information available at https://instituteforfoodsafety.cornell.edu/nys-
grown-certified/nys-grown-certified-program-information/

United States Food and Drug Administration

300 Pearl Street, Suite 100
Buffalo, NY 14202
716-551-4478

New York District Office

158-15 Liberty Avenue
Jamaica, NY 11433
718-662-5447

United States Department of Agriculture –

Food Safety Inspection Service (USDA FSIS)
5 Washington Square
Albany, NY 12205
518-457-4492

114
 29 Collecting Sales Tax
Guide to Farming in New York State

Factsheet
Overview
Products Exempt from Products Exempt from Sales Tax Collection
Sales Tax Collection
Farmers do not need to collect sales tax on farm and food products intended for
Taxable Farm and
Food Sales human consumption; this includes: all fresh and processed foods: fruits, vegetables,
baked goods, jellies, jams, preserves, meats, eggs, dairy products, syrup, honey,
Becoming a Sales cider, etc. (unless listed below).
Tax Vendor

Filing Taxable Farm and Food Sales

Requirements
When selling direct to consumer, you must collect sales tax on:

Note: if these items • Prepared foods intended for immediate on-site consumption
are sold to someone • Candy
else who will sell • Soft drinks and fruit juices with less than 70% real juice
them directly to the • All non-food products that are being sold to the end user
public, you do NOT • Cut flowers, bedding plants, trees, shrubs, and other nursery products
have to collect the • Forest products, firewood**, Christmas trees, lumber
sales tax, but you • Fiber products (raw fleece or wool products when sold direct to end users)
will need to file a • Hay, grain, straw (taxable if not being sold to another farmer)
resale certificate. • Horses sold for pleasure riding
• Ornamental crops like gourds, Indian corn, dried flowers, evergreens, etc.
• Crafts
• Topsoil, turf, gravel

**Firewood sold for home heating is not taxable; while firewood sold for recreational
purposes (campfire, bonfire, cookout) is taxable.

Becoming a Sales Tax Vendor – Form DTF-17-I – Certificate of Authority

This means you are involved in the direct sale of products to consumers/end users
and must collect sales tax if selling the above taxable items.

There are several types of sales tax vendors:

• Regular Vendors – with a permanent location

• Temporary Vendor – with sales in no more than 2 consecutive quarters in any
12-month period

115
 • Show Vendor – sells products at a flea market, craft fair, show, or farmers’
market, on either a regular or temporary basis and does not have a permanent
location

You cannot legally make taxable sales until you have received your valid Certificate
of Authority.

• Apply for your Certificate of Authority at least 20 days before you begin
operating your business
• Your Certificate of Authority must be displayed prominently at your place of
business or at fairs/markets
• It is very important to keep detailed records of your taxable sales
• Each transaction must include the item price and sales tax amount. Retain a
copy of the receipt. Records should be kept for 3 years

Filing Requirements

• You must file a return each quarter even if you had no sales. Initially you
will be classified as a quarterly filer. Monthly and annual filing options are
available if you qualify. Do not forget to file as penalties are stiff
• Download the form as a PDF at www.tax.ny.gov/pdf/current_forms/st/dtf17i.
pdf

For More
Information:
NYS Dept. of
Taxation and Finance
Publication 750: A
Guide to Sales Tax in
New York State

Obtain by contacting:
800-462-8100

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

116
 Website: www.nfccertification.com

30 Organic Certification Scope: crop, livestock, wild crop, handling

Accredited: 10/08/02

Guide to Farming in New York State

General Overview of Regulations
Organic regulations are complex and ever-changing, which is why it is important to The National Center
work with your certifying agency on everything that you do to assure compliance. for Appropriate
Technology has
Factsheet In general, you cannot use synthetic pesticides, antibiotics, or petroleum-based a really good
Overview fertilizers. To certify a field as organic it must not have had pesticides or petroleum database of videos
fertilizers applied for the past three years. To certify animals as organic, there are and fact sheets
Becoming Certified Becoming Certified various transition requirements depending upon the animal species: dairy, beef, to help farmers
pork, poultry, etc. understand the
General Overview of Organic production offers many advantages for small farmers including ecologically
Regulations requirements of
friendly production methods, strong consumer demand for organic products, and Great attention is paid to nurturing the soil by the use of composts, cover crops,
organic production
Cost-Share for Organic higher prices. Regardless of whether you use organic practices, if you have farm rock minerals and natural fertilizers. Plant disease and pests are controlled through
and record-keeping:
Certification sales of more than $5,000/year you cannot legally sell your products as “organic,” the use of crop rotations, resistant varieties, cultivation, and biological and botanical
https://attra.ncat.
or even use the word organic in your marketing, unless your farm has been officially pest control. Animal health is maintained with wholesome food, adequate shelter,
org/organic/
certified as organic. access to the outdoors, and preventive health plans.
The USDA also
If you sell less than $5,000/year of product and would like to use the word “organic” Documentation of field maps, adjoining fields, complaints, crop inputs used, yields,
offers a collection
in your marketing, you must adhere to organic practices even though there is no sales, feeds purchased, medications used, and equipment-cleaning logs must be
of helpful
certification process required. To learn more about this, download the PDF: kept to maintain your certification.
resources on
organic education
Small Scale Organics
and transition
www.kerrcenter.com/publications/small-scale-organics.pdf
assistance:
You can find the list of all certifying agencies by going to the USDA’s National Cost-Share for Organic Certification https://www.usda.
Organic Program website: gov/topics/organic/
NYS usually offers a program to reimburse you for up to 75% of organic certification get-organic-training-
USDA Organic Program fees, not exceeding $750. Check the latest status of this program here: and-transition-
http://www.ams.usda.gov/AMSv1.0/nop https://www.agriculture.ny.gov/AP/Organic/reimbursement.html assistance

Click “List of Certifying Agents.” You can use any agency listed. The two located in
New York are:

NOFA — New York, LLC

840 Upper Front St.
Binghamton, NY 13905
607-724-9851
E-mail: [email protected]
Website: www.nofany.org
Scope: crop, livestock, handling
Accredited: 4/29/02

Natural Food Certifiers

119a S Main Street,
Spring Valley, NY 10977
888-422-4632
E-mail: [email protected]

117 118
 1. Grants for business planning, adding value and increasing farm viability

31 Grant Opportunities 2. Grants for on-farm research and demonstration projects that are mostly
production-oriented though some include marketing demonstration projects

for Farmers 3. Grants for farm energy conservation, alternative energy, environmental
protection/conservation and waste management
Guide to Farming in New York State
New York State Sources

Factsheet Various funding opportunities available for farmers in

http://www.
Overview New York State
NYS
agriculture.ny.gov/
Note: Grants from NYS now require a cumbersome pre-
Challenges of Grants 518-457-7076
Challenges of Grants qualification process: grantsgateway.ny.gov
Available Grant Grants are NOT available to start a farm and are not a reliable strategy for growing
Programs
your business. Grants may enable you to expand a particular aspect of your farm For more information:
New York State business to make your operation more viable, or provide funding to try a new http://www.
Sources The Department will pay up to $750 for a private firm
practice on your farm. agriculture.ny.gov/
or NYS Dept. of Agriculture audit, including water tests,
NYS Good Agriculture rfps/GAP/2012/GAP-
Federal Sources Grants are highly competitive so apply only if the project you are proposing clearly to verify a farm’s food safety program. This certification
Practices/Good Certification.pdf
meets the grantor’s objectives. Always find out what kinds of projects were funded applies to produce farms who sell to retail and wholesale
USDA FSA Rural Handling Assistance
in the past to determine if your project is in line with what has been funded. buyers requiring GAP Certification. Applications must
Youth Loan Certification Program Link to application:
be approved prior to the audit. Funds are available on a
(GAP/GHP) http://www.
Other Sources It takes significant time and effort to write a winning grant proposal. Instructions first-come first-serve basis until the funds are depleted or
agriculture.ny.gov/rfps/
must be followed precisely. Grants often require a cash or in-kind match that December 31.
GAP/GAP-Application.
must be documented in the budget you propose. They also often operate on a
pdf
“reimbursement” basis, meaning that if you are awarded a grant, you have to front
the cash to implement the project and then get reimbursed later by the grant funds, Organic farmers and processors are eligible for a
which can put a real strain on farm finances. http://www.
reimbursement of 75% of their annual certification fee
Organic Certification agriculture.ny.gov/
costs not to exceed $750. The certification must be
Grant proposals will not be considered if they arrive late after the deadline for Funding Assistance AP/Organic/
conducted by an organization accredited by the U.S.
application. Deadlines for application submission and instructions are generally reimbursement.html
Department of Agriculture.
announced once a year. Most grants are not available on an ongoing basis.

Once you submit a grant, it may take 3 to 6 months to find out if your application
NYS Specialty Crops Block Grants Program:
was selected for funding. If funded, it also takes time to finalize the contract.
Generally, you will not be reimbursed for money spent prior to receiving the signed • Purpose:
contract. Grant contracts require that you write a report of the results and provide an Increase the competitiveness of specialty crops, encourage efficiency,
accounting of how the money was spent; therefore, you must keep accurate records. partnerships, innovation, and new markets. The RFP includes many areas
Grants are also considered income for tax purposes, so keep in mind that you will of focus including: packaging/labeling, environmental quality, distribution,
pay income tax on the funds you are awarded. education and outreach, food safety, food security, marketing and promotion,
product development, plant health and international trade.
• Eligibility:
Funding available to non-profits, for profits, individuals, educational
Available Grant Programs institutions, and government; however, individuals and businesses must
partner with others. Eligible crops are defined as fruits and vegetables, tree
If you’ve carefully read all of the above and still want to apply for a grant, there nuts, dried fruits, horticulture and nursery crops (including floriculture), herbs
are several programs available to farmers from federal or state sources, each with and spices.
specific objectives. Grants fall into three general types: • Information:
For questions, contact: Mark McMullen, 518-457-4383
http://www.agriculture.ny.gov/AP/slide/SpecialtyCrop.html
119 120
 New Farmer Grant Fund: • Information:
Free Agriculture Energy Audits are available as well as technical assistance
• Purpose: identifying other third-party funding opportunities. There are three levels of
Assistance for beginning farmers audits available and separated by level of detail.
• Eligibility: https://www.nyserda.ny.gov/All-Programs/Programs/Agriculture-Energy-Audit
Must be in the first 10 years of business with a significant ownership in a farm
operation that generates at least $10,000 in sales. Eligible projects include, NYS Climate Resilient Farming Program:
but are not limited to, the purchase of machinery and equipment, supplies,
or construction or improvement of physical structures used exclusively for • Purpose: ***Application must
agricultural purposes. Implement practices to improve climate resiliency be submitted by
• Funding: • Information: your county soil
Will fund up to $50,000 and the applicant must pay for half of the proposed There are 3 tracks and applicants must choose one: and water district!
project cost (50% cost share match). 1. Manure cover and flare systems
• Information: 2. Water Management
http://esd.ny.gov/BusinessPrograms/Data/NewFarmersGrantFund/2015_ 3. Soil Management.
Guidelines_NewFarmers.pdf Grants cover 75% of project costs and focus on practices to mitigate
The opportunity to apply is announced annually in October, applications agriculture’s contribution to climate change, as well as helping farms adapt
are due in January and awards are announced in June. Contracts follow and to the changing climate. Applications are usually due sometime in the first
therefore it may be fall before a project can start. quarter of the year. Contact your county Soil and Water Conservation District
to get more information:
NYS Dept. of Ag & Markets – Agriculture & Farmland Protection Projects http://www.nys-soilandwater.org/contacts/county_offices.html

• Purpose:
State assistance for the purchase of agricultural conservation easements
(development rights) to permanently restrict development of valuable Federal Sources
agricultural lands
• Eligibility: USDA-SARE/Sustainable Agriculture – Farmer/Grower Grant:
Counties or municipalities with approved Ag & Farmland Protection Plans – • Purpose:
Farmers should contact county or town government if interested in the sale of Support on-farm research demonstrations, marketing innovations, value adding
development rights. activities and other projects.
This application is submitted by the municipality and not the farmer. • Funding Level:
• Funding:
Capped at $15,000; capital improvements limited to $500 of total project cost;
No cap; State provides 75% of the cost to acquire the easement; farmers or no match required. Annual deadline in late November.
local government provides 25% • Information:
• Information:
[email protected]
http://www.agriculture.ny.gov/AP/agservices/farmprotect.html http://www.nesare.org/Grants/Get-a-Grant/Farmer-Grant
802-656-0471
NYS DEC Water Quality Improvement Projects:

• Purpose: USDA Rural Development – Value Added Producer Grant:

***Check with
county soil and Implement practices to improve water quality • Purpose:
water district • Information:
Encourage producers of commodities to add value to products by further
regarding programs Contact your county SWCD for information on local funds; funding is not processing them – for feasibility studies, business and marketing plans, studies
and federal competitive but funds are limited and must meet criteria for water quality to establish a new venture, and working capital for established ventures with a
funds for project protection. Here is a link to county offices: business plan.
implementation! http://www.nys-soilandwater.org/contacts/county_offices.html • Funding Level:
Planning grants up to $100,000 and working capital grants up to $300,000
NYSERDA-New York State Energy Research and Development Authority:
Loans, grants, • Information:
incentives • Purpose: http://www.rd.usda.gov/programs-services/value-added-producer-grants/ny
NYSERDA offers technical assistance to identify energy efficiency measures for Scott Collins: 315-477-6400
eligible farms and on-farm producers.

121 122
 USDA Rural Development – Rural Energy for America Program (REAP) Other Sources

• Purpose: Fund a Farmer (a project of Food Animal Concerns Trust)

Help farmers and rural businesses make energy improvements and install
renewable systems • Purpose:
Three programs available: Energy Audit and Renewable Energy Development Grants for projects that help family farmers transition to pasture-based systems,
Assistance; Energy Systems/Energy Efficiency Improvement; and Feasibility improve the marketing of their humane products, or more generally to enrich
Studies Grant Program. the conditions in which the farm animals are raised.
• Eligibility: • Funding Levels:
Project must be located in an area with less than 50,000 inhabitants.Funding Up to $2,500
for systems that generate energy from wind, solar, biomass, geothermal • Information:
sources; and for energy efficiency improvements-upgrade equipment or Full eligibility requirements, application, and program details available at
processes. www.fundafarmer.org/apply-for-grant/grant-guidelines
• Funding Level:
Varies with program (see info on website)
• Information:
[email protected]
http://www.rd.usda.gov/programs-services/rural-energy-america-program-
renewable-energy-systems-energy-efficiency
Gary Pereira: 315-736-3316

USDA NRCS – Farm Bill Initiatives for Conservation Practices:

• Purpose:
The Farm Bill authorizes several new initiatives geared at land conservation
and water quality protection. There are 3 main funding areas: Ag
Management Assistance for water management or irrigation systems;
Conservation Stewardship Program focused on protecting soil and water
quality and energy; and EQIP – Environmental Quality Incentives program for
practices that address natural resource concerns on land. Under EQIP, there is
a popular High Tunnel funding program:
http://www.nrcs.usda.gov/wps/portal/nrcs/detail/ny/programs/financial/
eqip/?cid=nrcs144p2_027074
• Information:
Find out what is available by contacting your county or regional USDA Service
Center:
http://www.nrcs.usda.gov/wps/portal/nrcs/detail/national/
programs/?&cid=stelprdb1048817
315-477-6504

USDA FSA Rural Youth Loan

For an FSA makes loans to individual youths to establish and operate income-producing
application, projects of modest size in connection with their participation in 4-H clubs, FFA,
contact: and similar organizations. Each project must be part of an organized and supervised
USDA FSA office program of work designed to provide practical business and educational experience.
that serves your The project must be planned and operated with the help of the organization adviser
county and produce sufficient income to repay the loan. A youth loan is available to young
http://offices. persons between the ages 10 and 20 years. The maximum loan amount is $5,000.
sc.egov.usda. Loan funds may be used to buy livestock, seed, equipment and supplies; buy, rent
gov/locator/ or repair tools and equipment, or pay operating expenses.

123 124
 Veterans Outreach Center Inc.

32
Founded locally in 1973 by returning Vietnam veterans, the center is serving the
Opportunities for veterans and military families of Greater Rochester (585) 546-1081 and Buffalo, NY

Veterans in Farming
(716) 424-1892. Offering a comprehensive portfolio of supportive services designed
to meet the needs of veterans and their families. http://veteransoutreachcenter.org

Guide to Farming in New York State Clear Path for Veterans

Clear Path for Veterans is a program to help veterans, military members and their
families. They provide myriad programs and services to make this happen. Each
program and service relies on one of three methods: Self-empowerment, Peer-to-
Peer support, or Community involvement. http://www.clearpath4vets.com/ (315)
687-3300.

USDA Start Farming

An increasing number of programs and resources are available for veterans This agency provides support to farmers to help them start and continue farming.
entering farming. Navigating through federal, state and local channels can be time https://newfarmers.usda.gov/veterans (202) 720-2791
consuming. While not intended to be all encompassing the information below will
USDA Wants You!
help you get started.
Veterans in Agriculture brochure: https://www.nal.usda.gov/sites/default/files/
Sign up for the New York State Veterans in Agriculture Listserve: vetsagbrochure.pdf
From the email address you’d like to use for your list subscription, send an email to
[email protected] and type the word “join” (without quotations) in
the body of the message. The Small Farms Program and our partners will be using Contact your Regional Learning Network Leader. Tell them you are a veteran in
this forum to publicize events, resources, and opportunities related to veterans their region who is interested in a career in agriculture (or already farming) and get
interested in farming in NYS. plugged in to activities near you.
Armed to Farm (ATF)
In Western NY – Lynn Bliven: [email protected] (585)268-7644 ext. 18
Armed to Farm is a National Center for Appropriate Technology program that
provides training on sustainable agriculture to veterans. ATF is a combination of In Northern NY – Cathy Moore: [email protected] (315) 788-8450 ext. 236
farm tours and classroom instruction that focuses on business planning, livestock
production, and fruit and vegetable production. https://www.ncat.org/armedtofarm/ In Eastern NY – Leora Barish: [email protected] (917) 806-5055

The Farm Bureau Resource Guide to Assist Veterans in Agriculture. In Southern NY – Laura Biasillo: [email protected] (607) 584-5007
A Farm Bureau and Farmer Veteran Coalition Partnership https://www.farmvetco.org/
wp-content/uploads/2014/03/FB_Vet_GuideOct13final.pdf In Central NY – Matt Weiss: [email protected] (607) 255-9911

Download a The Farmer Veteran Coalition.

free copy of the National non-profit organization “mobilizing veterans to feed America”: http://www.
Veteran Careers farmvetco.org/. In New York State contact Jamie Critelli: [email protected] Get Local Help:
in Agriculture: A (530) 756-1395. It’s always best to first ask questions to your local small farm agent since they are
Resource Guide: familiar with events and opportunities for your county. You can find your local
http://www. Heroic Food Cooperative Extension Small Farms liaison by checking the county-by-county listing
farmvetco.org/ Heroic Food is based in Columbia County, NY and is being developed in at: http://smallfarms.cornell.edu/contact/local-contacts/
wp-content/ collaboration with the Farmer Veteran Coalition. It’s a residential, tuition-free
program, and participants will have paid training positions on farms and other Looking for local events/trainings? We highly recommend subscribing to the Cornell
uploads/2014/01/ Small Farms Program’s bi-monthly newsletter. It brings you statewide events,
RG_FINAL_WEB_ income streams throughout the program. http://heroicfood.org/ (917) 806-5055.
ag funding opportunities, new resources, and small farm related job or career
compressed.pdf National AgrAbility Project opportunities every two weeks. Subscribe at http://smallfarms.cornell.edu/contact/e-
The vision of AgrAbility is to enhance quality of life for farmers, ranchers, and other news-sign-up/
agricultural workers with disabilities. While the term “disability” often brings to mind
conditions such as spinal cord injuries and amputations, AgrAbility addresses not
only these but also many other conditions, such as arthritis, back impairments, and
behavioral health issues. http://www.agrability.org/ 1-800-825-4264.

125 126
 State environmental regulatory agency with programs

33 Agricultural Agencies/ addressing: water quality, mineral resources, lands

NYS Department
and forests, fish and wildlife, and pesticide/hazardous http://www.dec.
of Environmental
Organizations Conservation
materials regulation. They offer some technical assistance
but generally focus on the regulation of activities to
ny.gov/

assure compliance with state pollution regulations.

Guide to Farming in New York State

Cornell Programs
Factsheet
Key outreach system of Cornell University with a strong
Overview public mission and an extensive local presence that is
Federal Agencies responsive to needs in New York communities. There
Cornell Cooperative www.cce.cornell.edu
Serving Agriculture are 56 associations across the state to offer educational
Extension
programming in the areas of community development,
NYS Agencies agriculture, environment, family and youth, financial
management, gardening, and nutrition and health.
Cornell Programs

Organizations Fostering the sustainability of diverse, thriving small www.smallfarms.

Serving Agriculture Cornell Small Farms farms through information, events and activities, small cornell.edu
Program farms research, and a free quarterly newsletter that is a 607-255-9227
Federal Agencies Serving Agriculture
must read for small farmers.

Federal agency with county offices across the state Free and confidential on-farm consultants help farm
www.nyfarmnet.org
USDA Farm Service to administer farm loans, price support programs, www.fsa.usda.gov/ny families answer business and personal questions about
NY FarmNet 800-547-3276
Agency commodity programs and payments, conservation 315-477-6300 finances, farm transfer, natural disaster, personal stress,
programs, and disaster assistance. family communication, and marital conflict.

Federal agency that has a mutual agreement with state-

funded Soil and Water Conservation Districts. NRCS www.ny.nrcs.usda.
USDA Natural Resource has 47 field offices and provides one-on-one assistance gov/ Organizations Serving Agriculture
Conservation Service to private landowners and local governmental units in 315-477-6504
all aspects of natural resource protection. They also The state’s largest non-governmental, volunteer
administer federal cost-share conservation programs. agricultural organization financed and controlled by farm
www.nyfb.org
families for the purpose of solving economic and public
New York State Farm 800-342-4143
policy issues challenging the agriculture industry. They
NYS Agencies Bureau
are a grassroots-based lobbying organization and offer
educational resources to farmers in the state in addition
There are 62 county soil and water conservation districts to discounts on insurance and other products.
in the state that provide information on conservation and www.nyacd.org/
Soil and Water Agricultural and rural community fraternal organization http://www.nysgrange.
wise use of the natural resources. Depending upon the 518-857-0060
Conservation Districts with a focus on community involvement. They are a org/
district office, they may have money available for cost- New York State Grange
grassroots organization with a legislative agenda and 607-756-7553
share on land improvement and conservation projects.
many community involvement programs.
State agency regulating agricultural businesses and
commerce. They administer marketing regulations that http://www.
NYS Department of govern product sales, the agricultural districts program, agriculture.ny.gov/
Agriculture and Markets agricultural conservation easements, provide market 800-554-4501
assistance and promotion, and offer several grants
programs to increase farm viability.

127 128
 Farmers and conservationists concerned about the rapid
loss of the nation’s farmland to development, American
Farmland Trust (AFT) is a nonprofit membership https://www.farmland.
American Farmland
organization dedicated to protecting our nation’s org/
Trust
agricultural resources. They have a legislative agenda
and programs to help deter and/or stop the development
of farmland.
NOFA-NY is an organization of consumers, gardeners
http://www.nofany.
NOFA-NY – New and farmers creating a sustainable regional food system
org/
York Organic Farmers’ that is ecologically sound and economically viable.
607-724-9851
Association They also have a separate LLC that is the leading organic
certification organization in the state.

There are many organizations specific to production To view this directory

interests (for example, NYS Apple Association, Vegetable online, visit:
Other NYS Producer
Growers, Christmas Tree Growers, etc.). The NYS Dept. https://www.
Organizations
of Agriculture & Markets publishes a Directory of New agriculture.ny.gov/
York State Agricultural Organizations. Ag_Org_Directory.pdf

129 130
 Books

34 Information for • Building a Sustainable Business: A Guide to Developing a Business Plan for
Farms and Rural Businesses
Getting Started Available online in PDF format from: http://www.sare.org/Learning-Center/
Books/Building-a-Sustainable-Business
Guide to Farming in New York State • Starting an Ag Business? A Pre-Planning Guide by Steve Richards
Available online in PDF format from: https://www.agmrc.org/media/cms/
AgBizPrePlanningGuide_91D3019CA30CE.pdf
• Farms with a Future: Creating and Growing a Sustainable Farm Business by
Rebecca Thistlethwaite
Factsheet Lays out key lessons on starting and operating a successful farm business,
Overview based on the author’s experience and travels around the country interviewing
farmers. Available from Chelsea Green Publishers.
Websites There are numerous resources to help you learn how to grow or market specific • The Organic Farmer’s Business Handbook by Richard Wiswall
products. These are a few that have been verified for content. Reading and research Contains excellent advice and a clear process for managing your farm for
Books are great, but if you want to start a farm, the best way is to learn from farmers who profit, also comes with a CD with template forms. Available from Chelsea
Journals and are already doing it! Green Publishers
Magazines
Sign up to receive the monthly Small Farms Update, which contains links to several
Conferences and event calendars, as well as resources useful to farmers: Journals and Magazines
Events
Cornell Small Farms Program Update Sign- Up • Small Farm Quarterly
http://smallfarms.cornell.edu/contact/e-news-sign-up/ All articles available in PDF format online at: http://smallfarms.cornell.edu/
quarterly/
• Acres USA – Voice for Eco-Agriculture
Websites
https://www.acresusa.com/
www.smallfarms. • Growing for Market
Cornell Small Farms Contains a wealth of information about production, cornell.edu www.growingformarket.com
Program marketing, and business management 607-255-9227
Conferences and Events
www.attra.org
One of the best clearinghouses of information on Toll-free helpline: • NOFA-NY – the Northeast Organic Farming Association’s (NOFA) of NY
sustainable agriculture in the country. ATTRA is 800-346-9140 Annual Conference is in January each year
ATTRA (Appropriate Check www.nofany.org for details in the fall
committed to providing high value information and (English) 7 a.m. to 7
Technology Transfer to • PASA – the Pennsylvania Association of Sustainable Agriculture (PASA) holds
technical assistance to farmers, ranchers, Extension p.m. Central Time
Rural Areas) its annual conference in February in State College, PA
educators, and others involved in sustainable agriculture 800-411-3222
in the United States. (Español) 8 a.m. to 5 Check www.pasafarming.org for details
p.m. Pacific Time • Other NOFA conferences – Most Northeastern US states have a NOFA
organization, and most of them also host an annual conference, though there
is one Summer Conference in MA. Search for an “organic farming association”
An interactive learning environment that has information in your state, or check out the links to the right.
on agriculture production and business management NOFA-VT: https://nofavt.org/conference
eXtension issues. The information posted here represents the best www.extension.org NOFA-MA: https://www.nofamass.org/events/wc
information based upon researchers and educators across https://www.nofamass.org/tags/summer-conference
the country. New content is added regularly. NOFA-NJ: https://nofanj.org/
NOFA-NH: https://www.nofanh.org/winterconference
Rodale Institute’s New http://rodaleinstitute. NOFA-RI: https://nofari.org/events/winter-conference/
Covers everything of interest to organic farmers
Farm website org/farm/newfarm/

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 • Get Farm Insurance, including Product Liability –

35 When Am I a Farm? See Fact Sheet #5 Farm Risk Management and Fact Sheet #6 Farm Insurance
in this Guide for an overview on types of insurance and considerations as you
shop around.
Guide to Farming in New York State • Start selling crops or livestock
(Note: Some benefits of being a farm are applied as soon as you start
producing a multi-year crop – like perennial woody species or beef cattle –
rather than when you start selling.)
• Include your farm sales and expenses on your annual tax return –
IF you make $1,000 in sales, you should file a Schedule F with your federal
Factsheet taxes. It’s worth finding a tax accountant with farm expertise to help with your
Overview taxes, as there are many special considerations for farms with which general
tax preparers or accountants are not likely to be familiar. See Fact Sheet #16
Checklist for Starting a The answer to this question varies, as different programs and agencies each have Income Taxes for more detail.
Farm
their own thresholds for what is officially considered a farm. Below are some basic
Farming first steps to follow to create a farm business and start generating sales. The table
Farming Milestones
Milestones following the checklist provides some information sources for understanding what it
means to achieve various sales levels.
Criteria Implications Agency

Checklist for Starting a Farm You do not need to pay sales tax on most farm-related
purchases. Locate the ST-125 Sales Tax Exemption form
• Register your farm name as a DBA (“Doing Business As”) or an LLC – (see Fact Sheet #17 Sales Tax Exemptions and Refunds in
Consult Fact Sheet #13 Business Structures in this Guide to learn more about You are purchasing any this Guide, http://smallfarms.cornell.edu/2017/05/01/17-
how to do this, and other options for legal structures. Do a thorough search supplies to be used in sales-tax-exemptionsrefunds/) Bring this form with you NYS Dept of Taxation
online of any farm name you are considering, to see who else is using it, and the production of farm when you shop, and give a copy to each vendor. If you and Finance
whether the website URL and social media handles you want are available. goods for sale check the “blanket use” box, they will have it on file
• Open a business bank account – all year so you won’t have to submit it to them again,
From the very beginning, you should keep your farm income and expenses though you will need to remind them at each purchase
separate from your household finances. Open a bank account in the name of that you are exempt from sales tax.
your farm business, and transfer some seed money into it so you’ll have funds
You will be expected to keep financial records, including
to purchase your start-up supplies. If you use personal savings for this seed
all receipts, and submit your farm income and expenses
money, keep track it as your equity in the farm business. If you use a loan,
on the Schedule F form as part of your annual income Internal Revenue
you’ll need to track that too, which leads to the next step: $1,000 in gross sales
taxes. See Fact Sheet #16 Income Taxes for more detail, Service
• Choose a method to track expenses (save receipts) and income –
http://smallfarms.cornell.edu/2017/05/01/16-income-
See Fact Sheet #15 Record Keeping in this Guide for some options.
taxes/
• Register your farm with the Farm Service Agency (FSA)
and get a farm # - $10,000 in avg gross You (or your landlord, if you rent land) will qualify for
The FSA is the financial arm of the US Dept of Agriculture. They maintain an sales over 2 years Agricultural Assessment on property taxes, which lowers Town/County
office in nearly every county; search online or use this search tool to locate the ($50,000 if you farm on the amount owed annually. See Fact Sheet #21 Ag Value Assessor’s Office
one that serves farms in your area. fewer than 7 acres) Assessment for Farmland in this Guide for more detail.
https://offices.sc.egov.usda.gov/locator/app
Why is it important to register as a farm “operator” with FSA? Two reasons: The Farmers’ School Tax Credit allows you to receive a
even if you are leasing the land on which you are farming, you will be credit on your State Income Tax equal to 100% of the
counted as part of the Ag Census, and whenever there are programs that could Farm income is at least school taxes paid on the first 350 acres of property and
NYS Dept of Taxation
provide funding or conservation assistance to your farm—like farm loans, 2/3 your total household 50% of the school taxes paid on the acreage beyond
and Finance
crop insurance, disaster assistance compensation, or cost-share on fencing or income 350. To learn more, see Fact Sheet #16 Income Taxes,
pollinator planting--you will already have a record set up with the FSA. And http://smallfarms.cornell.edu/2017/05/01/16-income-
you’ll be on their contact list so you are more likely to hear about upcoming taxes/
funding sources!

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