How many chickens does it take to make you a chicken farmer?

[Peep_Show]

Quote:
According to who?

Back when I did it for a horse biz, we wrote off nearly everything: barn building, feed, vet bills, fencing, transportation, maintenance, stock purchases, a portion of the mortgage, amortization of equipment. Ended up without a profit for several years on this endeavor, so got a huge tax break to the point that for five years I didn't pay taxes. Unfortunately, got audited twice during that time, too (with a "No Change" status, so no penalties...but had to pay accountant to come with us to visit the IRS).

The paperwork was a drag, but the benefits tax-wise were worth it. The only year I made a profit is when I sold my last horse....

Don't know on how big a scale you'd have to be to declare a poultry business vs. a hobby, but it seems to me you've got far more sale opportunities than horses to churn some money.

 

[Olive Hill]

Those who are looking for information about taxes for farmers may want to check out the IRS guide for farmers for 2010 (2009 returns).

 

[Katy]

Quote:
According to who?

Back when I did it for a horse biz, we wrote off nearly everything: barn building, feed, vet bills, fencing, transportation, maintenance, stock purchases, a portion of the mortgage, amortization of equipment. Ended up without a profit for several years on this endeavor, so got a huge tax break to the point that for five years I didn't pay taxes. Unfortunately, got audited twice during that time, too (with a "No Change" status, so no penalties...but had to pay accountant to come with us to visit the IRS).

The paperwork was a drag, but the benefits tax-wise were worth it. The only year I made a profit is when I sold my last horse....

Don't know on how big a scale you'd have to be to declare a poultry business vs. a hobby, but it seems to me you've got far more sale opportunities than horses to churn some money.

That's no different than any business. Our most major expense we can't write off......the purchase of land.

 

[tazcat70]

Quote:
I guess that means I am a crazy chicken lady. It never really sunk in until just now.

 

[Katy]

Quote:
I guess that means I am a crazy chicken lady. It never really sunk in until just now.

I could have told you that!!

 

[tazcat70]

Thanks Katy, glad to know you have my back.

 

[tazcat70]

So is it cheaper in the long run to buy the land or rent it?

 

[underground chickenman]

I have 6 hens and 8 4-week old chicks on a quarter-acre lot in a suburban neighborhood with a homeowners association and don't make a dime on chickens or eggs. I call myself a chicken farmer, I don't care what the government says. BTW, on a slightly related note, the bright yellow "Don't Tread On Me" flag I recently ordered should arrive any day.

 

[Katy]

Quote:
It probably depends on what kind of farm you want to have. From a grain farmer's with a cow herd perspective, Buying is better in that if you rent your farm ground there is always the chance you can lose it to another farmer who offers the owner a better deal. Then if you've invested in the machinery to farm it you'll still have those payments to make, but no ground to get a crop from to pay them. It honestly is pretty hard to find land to rent.....at least in our area and I have a feeling most places are the same. You might find a small parcel to rent, but not nearly big enough to make a living from. Same if you have a cow herd, if you don't own the pasture, you can be out of that pasture and nowhere to put your herd.

As far as buying the ground...... Prices of farm ground have more than tripled in the last 15 years or so here.....some even higher than that. If a person is starting farming from scratch...no family machinery to use and family ground to farm, it would be a multi-million dollar investment by the time you bought ground and machinery.

Now if a person wants to have a truck farm and grow and sell some veggies, eggs. etc, in season you can do that on a lot less ground and with less machinery.

 

[Olive Hill]

Quote:

I'm sure your homeowner's association will be impressed.