Florida Agricultural Exemption!

[Lover duck duck]

So I am going to apply for an agricultural exemption here in central Florida for poultry and other things such as crops. When filling out the application they want you to write down income and expenses. I have lots of expenses but I have not made enough income yet since I started in November 2022 selling ducklings, goslings and Turkey poults. I also bought a jersey cow who had her first calf December 20th, 2022. Does anyone know what do I write down? I am trying to make sure I fill out the application correctly to raise my chances of getting approved. Any suggestions or advice will be appreciated. Thanks.

 

[saysfaa]

Is this Form DR-482 R. 12/00?
or a different form?

 

[Lover duck duck]

Is this Form DR-482 R. 12/00?
or a different form?

The DR-482

 

[saysfaa]

They want four years of history and give four lines so I think they want the totals for each year on this form. You would add all the sales of your ducklings, goslings, and poults for the gross income. Then add all of the expenses related to the ducks, geese, and turkeys for the expense. Then subtract the expense from the gross income for the net income.

The crop or use would be poultry rather than livestock because one cow doesn't quality for "good faith commercial agricultural use of the land."

Then have details to show you are using the land for commercial agriculture when the "property appraiser may require supplemental and additional information, other than the application..." as the form says a few lines lower.

The statute says, "The term “bona fide agricultural purposes” means good faith commercial agricultural use of the land.

1. In determining whether the use of the land for agricultural purposes is bona fide, the following factors may be taken into consideration:
a. The length of time the land has been so used.
b. Whether the use has been continuous.
c. The purchase price paid.
d. Size, as it relates to specific agricultural use, but a minimum acreage may not be required for agricultural assessment.
e. Whether an indicated effort has been made to care sufficiently and adequately for the land in accordance with accepted commercial agricultural practices, including, without limitation, fertilizing, liming, tilling, mowing, reforesting, and other accepted agricultural practices.
f. Whether the land is under lease and, if so, the effective length, terms, and conditions of the lease.
g. Such other factors as may become applicable. "

They are particularly trying to differentiate between farming and personal use or hobby type uses. (see quote below from the University of Florida*) It is difficult to define commercial agriculture because there is many differences between different kinds of farming and many bona fide farms don't make a profit every year. So, they made a list of the kinds of things they consider. None of them will be the only determination but the whole needs to be identifiable.

If you don't have a profit or history then it is more important that you have the other parts. a business plan that projects a profit within a reasonable time frame. I don't know Florida but some states use 3 year or 5 years unless the crop is something accepted to have a longer lead time - like orchards that won't reach full production that soon (but they can and sometimes do check that the orchard is well taken care of in the meantime) . The IRS expects a profit in at least 3 out of five years, along with things like operating in a businesslike manner, whether you depend on the income for your livelihood, whether you have made a profit in similar activities in the past, and so on.

*https://edis.ifas.ufl.edu/publication/FY1497
"...A bona fide agricultural purpose is a good faith, commercial agricultural use of the land (i.e., the land is being used for agricultural purposes with the intent to make a profit). Thus, growing crops or keeping animals on your property for personal consumption, donation, or a hobby would not be considered bona fide agricultural purposes. .."

 

[Lover duck duck]

They want four years of history and give four lines so I think they want the totals for each year on this form. You would add all the sales of your ducklings, goslings, and poults for the gross income. Then add all of the expenses related to the ducks, geese, and turkeys for the expense. Then subtract the expense from the gross income for the net income.

The crop or use would be poultry rather than livestock because one cow doesn't quality for "good faith commercial agricultural use of the land."

Then have details to show you are using the land for commercial agriculture when the "property appraiser may require supplemental and additional information, other than the application..." as the form says a few lines lower.

The statute says, "The term “bona fide agricultural purposes” means good faith commercial agricultural use of the land.

1. In determining whether the use of the land for agricultural purposes is bona fide, the following factors may be taken into consideration:
a. The length of time the land has been so used.
b. Whether the use has been continuous.
c. The purchase price paid.
d. Size, as it relates to specific agricultural use, but a minimum acreage may not be required for agricultural assessment.
e. Whether an indicated effort has been made to care sufficiently and adequately for the land in accordance with accepted commercial agricultural practices, including, without limitation, fertilizing, liming, tilling, mowing, reforesting, and other accepted agricultural practices.
f. Whether the land is under lease and, if so, the effective length, terms, and conditions of the lease.
g. Such other factors as may become applicable. "

They are particularly trying to differentiate between farming and personal use or hobby type uses. (see quote below from the University of Florida*) It is difficult to define commercial agriculture because there is many differences between different kinds of farming and many bona fide farms don't make a profit every year. So, they made a list of the kinds of things they consider. None of them will be the only determination but the whole needs to be identifiable.

If you don't have a profit or history then it is more important that you have the other parts. a business plan that projects a profit within a reasonable time frame. I don't know Florida but some states use 3 year or 5 years unless the crop is something accepted to have a longer lead time - like orchards that won't reach full production that soon (but they can and sometimes do check that the orchard is well taken care of in the meantime) . The IRS expects a profit in at least 3 out of five years, along with things like operating in a businesslike manner, whether you depend on the income for your livelihood, whether you have made a profit in similar activities in the past, and so on.

*https://edis.ifas.ufl.edu/publication/FY1497
"...A bona fide agricultural purpose is a good faith, commercial agricultural use of the land (i.e., the land is being used for agricultural purposes with the intent to make a profit). Thus, growing crops or keeping animals on your property for personal consumption, donation, or a hobby would not be considered bona fide agricultural purposes. .."

I do have a business plan which shows future profits, etc. But since my income was very low compare to my expenses, my net profit will show a negative. So would that cause a problem or will the Business Plan be sufficient? Thank you for your reply.

 

[saysfaa]

I don't know, I'm sorry. I've just dealt with keeping ag status as my parents got older and able to do less. And with the rest of us trying to do enough from a distance to keep ag status when they couldn't anymore even with hiring much of it done.

 

[Lover duck duck]

I don't know, I'm sorry. I've just dealt with keeping ag status as my parents got older and able to do less. And with the rest of us trying to do enough from a distance to keep ag status when they couldn't anymore even with hiring much of it done.

It’s ok. Thank you