Building a Farm Business: Beginning Farmer Resources
Agricultural Economics & Community Development
Rachel Painter
Extension Specialist
United States
Manchester
Abstract
According to the Census of Agriculture, there were over 1 million beginning farmers in the United States in 2022 (those with 10 or fewer years of experience), marking an 11% increase from 2017 (USDA). Beginning farmers face many challenges when establishing a farm operation and often struggle to navigate the various agencies, programs, regulations, and resources available. Many are seeking a single, comprehensive resource to guide them through the many considerations when beginning a farm. Additionally, new farmers may be unsure if they are starting a farm business or pursuing a hobby or homestead, a distinction which affects tax status, financial planning, and decision-making. To address these challenges and improve farm viability, the University of Tennessee (UT) MANAGE team developed a suite of educational materials to guide beginning farmers in June 2024. The MANAGE team developed the “Building a Farm Business” website and pamphlet to provide practical resources to help new farmers build farm businesses by improving their knowledge of business planning, financial management, and risk management strategies, while also helping them navigate considerations such as greenbelt designation, farm insurance, ownership structure, and common tax forms. These resources outline three simple steps to get started, followed by key considerations such as developing a farm advisory team, recordkeeping, and business plan development, which includes a new publication series and video to assist beginning farmers. The pamphlet includes a QR code to the website, which links to additional resources from the Internal Revenue Service, Farm Service Agency, Natural Resource Conservation Service, and others. To ensure Extension agents can effectively support beginning farmers, these resources were presented at an in-service training, equipping agents with the materials and answers to common questions. Results from implementing these resources include 1,083 webpage visits and positive feedback. Farmers who engaged with the materials reported a better understanding of whether their farm meets the criteria of a farm business under IRS guidelines. Extension agents reported increased confidence in assisting beginning farmers a significant decrease in time spent locating resources and addressing common questions. This approach can easily be adapted for other states to support beginning farmers.
Authors: Rachel Painter
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Rachel Painter Extension Specialist, University of Tennessee, Tennessee, 37355