Financial Considerations for New Orchards & Farms

Disclaimer: I am not a financial professional, but I do like sharing information with my friends here. I’ve been trying to find ways to utilize available support for a newly purchased piece of property with an intent to begin a small orchard and farm. Really, I want to make a food forest I can feed the family from, begin some breeding projects, and possibly pay myself back for all the time and money invested in this wonderful hobby.

The three primary methods of obtaining ‘funding’ I have come across are loans, grants, and credits.

Loans- personal loans, arlgricultural loans, FSA loans, 401k loans, home equity loans

Grants- NRCS, private, non-profit

-Conservation Innovation Grants

USDA rural agriculture grant list

Credits - tax credits, carbon credits

I’ve found that a few options exist for new farmers. NRCS appears to have some grants new farmers are eligible for. I just found out today that the IRS offers a “fertility tax credit” for the year a property is purchased under section 180

Equipment depreciation, mileage reimbursement, I’m sure there are other options I haven’t come across.

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Here in Iowa we also have a fruit tree preserve property tax credit. Your state might have something similar.

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Pennsylvania has a “Clean and Green” program I should be eligible for with enough farm income on paper each year. The threshold is fairly low but may also reduce my home taxes depending on how it all plays out. I need to consult a tax professional on that.

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