For the past month or so, most of the farm-related work around here has had to do more with forms and computers than with soil and seeds. Luckily, though, the taxes are done, most of our seeds have been ordered, and the weather has been good enough to allow us to get some tilling done (with our new tiller!).
This was the first year we’ve done any business taxes at all, and I confess it’s a little intimidating. Because we also live where we are farming, we decided to be very conservative regarding what expenditures were business-related vs. home-related. It might seem straight-forward, but consider such things as fencing (would we have put that fence up anyway?) and certain seeds (would we have grown that if we weren’t farming?) We might be splitting hairs, but we surely want to be able to justify every last cent in the case of an audit.
For some reason financial information feels like such a private subject - which is probably why it is so hard to get an idea of what to expect when starting a small-scale farm. But that’s why Peaceful Valley has asked us to share such information - to help others who may be contemplating it.
Our “record-keeping system” worked for us this year because we are so small, but we’ll need to get better in the future. We basically just put all potentially business-related receipts in a particular drawer. As tax time came near, I sat down with a simple calculating spreadsheet and the receipts, entering business expenses into the categories shown on Schedule F (the federal Profit or Loss From Farming tax form). Expenses that we decided to consider as home-related were set aside, although we are keeping all of it together with our 2010 tax records.
Reading about farmers and taxes online, one gets the impression that a lot of farmers do what felt instinctive to us this year - underestimating expenses (due to caution, or - unfortunately - incomplete record keeping). This is clearly not good business. However, the thought of being audited and not being able to produce ample support is terrifying. I say all this to warn you that our numbers, although probably close, are not an absolute accounting of what was spent (although the income is accurate to the penny!).
Driftwood Farm’s 2010 Financials - “For Tax Purposes”
Total gross sales: $2,893.90
Expenses: $6,595.35
(Expense category breakdown - “Fertilizers and lime”: $739.91 (includes compost); “Vehicle, machinery and equipment rental” $494.51; “Seeds and plants” $452.72; “Supplies “: $4908.21. The large numbers include tractor rental, and the purchase and delivery of two 1200-gallon water tanks.)
Of course, our expenses relative to income in 2011 should be lower, considering that most of the equipment and more expensive “infrastructure” are in place. We recently received a “Business Property Statement” packet in the mail from our county assessor. My phone call to their office helped a little, but we still need to sit down with this form and figure out what exactly is going on. We’ll let you know…
PS - As we have for years, we prepared our taxes using one of the well-known tax prep websites. The information they asked for seemed very thorough, definitely above and beyond what was needed for a small, owner-run farm.
An interesting thing I’ve noticed about some farmers (and a lot of dudes) is an almost rabid desire to own giant pieces of machinery. Someone even told me “if you are going to farm, get a tractor.” Period. Sure, owning a large tractor that I would get to sit on would be the least physically demanding way to go, but could our land (and our bank account) deal with such a purchase? For us, the answer to both questions was a resounding “no”. Our main area of cultivation is only 3/4 of an acre. If we provide enough room at the ends of our rows to turn a tractor around, our growing area would be significantly reduced (perhaps even reduced to the point of not necessitating a tractor!).
So a full-on tractor is too big, but an 8hp roto-tiller is too small…fortunately, the tradition of small farms had continued on in Europe through the latter half of the 20th century, and a few manufacturers still produce a tool that falls somewhere in between: the “walk-behind” tractor.
After a few weeks of cogitating, weighing pros and cons and consulting with other, more experienced farmers, we decided that this was the way to go. Depending on the model, a walk-behind tractor can offer more power than even the heaviest duty Honda or Troy-Bilt tiller, but the real value lies in the walk-behind tractor’s versatility. Although it is oriented to be operated like a tiller, the biggest advantage of a walk-behind tiller is the presence of a PTO (power take off) that allows for any number of implements to be attached.
There are two main manufacturers of “walk-behind” tractors: BCS and Grillo (both in Italy). Peaceful Valley offers a pretty wide range of the BCS tractors, and most of the local mechanics are more familiar with them. We picked up a 732GX, the smallest of BCS’ “Professional” line, and a 30” tiller attachment. Besides having an 11hp engine, the BCS is all metal-to-metal direct drive, no belts. This helps maintain torque in tough situations…situations like, say, breaking up rock-laden, clay soil in the Sierra Foothills…?
It took a little while to get used to it, but as you can see in the pictures, the BCS has been able to efficiently handle what I’ve thrown at it so far. I was able to incorporate semi-composted horse bedding into about a third of an acre of previously unworked soil in one morning of work. The BCS tiller is also a great tool to incorporate cover crop matter into the dirt; our summer buckwheat cover was turned into “organic matter” in just a few minutes. Awesome! The BCS is also small enough for us to be able to go in and work the soil beds one at a time, and our pre-existing pathways do not need to be adjusted to accommodate its size.
(Aside: for those who might be interested in my method, we wet down the horse bedding as we unloaded it, creating “instant hot compost piles” which we then spread over the area a week or so later. Even though this step is not necessary, given that food won’t come out of here until next May or June, we wanted our winter cover crop to have as much readily available nutrition as possible. Deeper penetrating roots + greater nitrogen fixing efficiency by legumes = better results for next year’s crops.)
Any cons so far? Given our heavy clay soil, the action of the BCS’s tiller will eventually create an impenetrable layer of hardpan. Luckily, a “subsoiler/ripper” attachment exists, and we already have one on order. This attachment is essentially a single, deep chisel that cuts a groove into the subsoil, allowing roots and other good stuff to penetrate deep into the ground. I also had a little trouble with the bolts and threaded pieces on the “quick-release hitch” coming undone as a result of vibration, but that was easily fixed with a few drops of red Loctite.
Overall the BCS has shown itself to be just as its long-time proponents described: rugged, dependable, powerful, easy to use. What is most exciting for us is that we seem to have found a piece of machinery that makes moving forward with the farm project a much more comfortable thought :D
They are turning the dirt and hoping to be successful enough to turn a profit, and to become a valuable part of their communities as suppliers of organically grown food.
Peaceful Valley is giving them a head start by offering them special pricing as part of this Freshman Farmer program.
| Freshman: | |
| New Farms Coming Soon! | |
| Sophomores: | |
![]() | Daily Grace Farms Crescent City, CA |
![]() | Freestone Family Farm Vernal, UT |
![]() | Wise Moon Farm Redding, CA |
| Graduates: | |
![]() | Coyote House Farm Palermo, CA |
![]() | DeepSeeded Community Farm Arcata, CA |
![]() | Driftwood Farm Fort Bragg, CA |
![]() | EarthDance Farm St. Louis, MO |
![]() | Ellwood Canyon Farms Goleta, CA |
![]() | Four Frog Farm Penn Valley, CA |
![]() | Hand Sown Homegrown Heritage Farm Poulsbo, WA |
![]() | Home Plate Organic Farm Orleans, CA |
![]() | Honey in the Heart Farm Nevada City, CA |
![]() | Willow Springs Farm Penn Valley, CA |
| Coyote House Farm Palermo, CA |
| Daily Grace Farms Crescent City, CA |
| DeepSeeded Community Farm Arcata, CA |
| Driftwood Farm Fort Bragg, CA |
| EarthDance Farm St. Louis, MO |
| Ellwood Canyon Farms Goleta, CA |
| Four Frog Farm Penn Valley, CA |
| Freestone Family Farm Vernal, UT |
| Hand Sown Homegrown Heritage Farm Poulsbo, WA |
| Home Plate Organic Farm Orleans, CA |
| Honey in the Heart Farm Nevada City, CA |
| Willow Springs Farm Penn Valley, CA |
| Wise Moon Farm Redding, CA |