PickYourOwn.org
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Obtaining Funding to start a farm, PYO / U-Pick, Pumpkin Patch, Corn Maze or other Agri-Entertainment Farm OperationsHow to get money and where to start your farmAre you interested in starting a PYO operation and trying to find funding? This page This is adapted from an Ohio State University Fact Sheet: "Liability for Visitors to Farm Property". Obviously, the regulations and laws vary from state to state, so you must speak with a lawyer to understand what applies where you are located. There's a book on this subject, titled: "The Legal Guide for Direct Farm Marketing©" By Neil D. Hamilton, available from Drake University Agricultural Law Center. I haven't read the book, but you can find out more about it here.You will obviously need insurance to help mitigate and financial damage should an accident, lawsuit or other problem occur. NOTE: Do you have any suggestions who to contact for PYO Liability Insurance? A farmer has written, saying he wants to start a PYO but cannot find a company that will write a policy. If you have any suggestions, please write me!
IntroductionStarting your own farm business offers rewards that range from being your own
boss, to working at something you enjoy, to earning income for yourself. A
successful farm operation requires careful planning and decision-making, and
most importantly, a sound business plan to guide you through the initial
start-up years. This guide contains information about issues to consider before
starting a farming operation with links to full-text guides on how to start a
farm business, and develop business and marketing plans. It also contains
information about funding sources for beginning farmers, training, technical
assistance contacts, organizations with resources and programs for beginning and
experienced farmers, and more.
Developing a Farm Business Plan
Financial and Planning Resources
Funding and Program AssistanceState ProgramsStart your financial assistance search with your state Department of Agriculture to see if your state has a Beginning Farmer Loan Program. The Federal government provides tax-exempt status for Beginning Farmer Loan Programs or "Aggie Bonds" that allow states to assist beginning, first-time farmers purchase land, equipment, buildings and livestock with reduced interest rate loans. The state creates the bond that in turn, allows lenders to earn federally-tax exempt interest income on loans to eligible beginning farmers and ranchers. The tax-savings allows the lenders to provide the loans at a reduced interest rate for first time farmers. Aggie Bond programs are federal-state, public-private partnership programs that provide a cost effective way for states to assist beginning farmers.
Information on Small Farms and Farm Financial Management can be located on the USDA's Economic Research Service web site.
Farm Banks: The nation's more than 2,500 farm banks (defined by the Federal Reserve Board as banks that have above average proportions of farm real estate and production loans in their loan portfolios -- around 14 percent and higher) offer a variety of loans to small and large farms and agribusiness firms; they also handle many of the loans made under USDA's guaranteed farm loan programs. Farm banks may provide short-term operating loans, less than a year in duration, for annual expenses such as seed and fertilizer; intermediate-term loans, usually two to five years, for capital expenses such as livestock and equipment; and, long-term loans, lasting ten years or more, for real estate or major structures and construction.
Farm Credit System (FCS): The FCS is a network of slightly more than 100 federally chartered borrower-owned lending institutions and related service organizations that specialize in providing credit and related services to farmers (also young and beginning), ranchers, and producers or harvesters of aquatic products. The FCS's provides credit and lease financing for full-time and two-career farmers. In addition to offering the same category of loans as farm banks, FCS institutions also offer revolving credit lines that are popular financing tools tailored to specific borrowing situations with repayment tied to cash flows. Additional information about the FCS is available from the Farm Credit Administration at http://www.fca.gov/FCS-Institutions.htm
USDA's
Farm Service Agency (FSA): The FSA
provides a variety of farm loan programs, including raditional
operating loans, beginning farmer and youth programs.
FSA also includes a mediation program for agricultural disputes.
Agriculture Disaster Assistancehttp://www.fsa.usda.gov/FSA/webapp?area=home&subject=diap&topic=landing http://awic.nal.usda.gov/nal_display/index.php?info_center=3&tax_level=2&tax_subject=170&topic_id=1490&&placement_default=0 Organizations and Web SitesABA Center for
Agricultural and Rural Banking Acreage and Small Farm Insight ATTRA, National Sustainable Agriculture Information Service Begin Farming Ohio Beginning Farmers Center for Farm Financial Management Farm Credit System Foundation Growing Small Farms National Ag Risk Education Library National Association of State Departments of Agriculture New England Small Farm Institute Links for New Farmers Oregon Small Farms Small Farm Center Small Farm Connection Women's Agricultural Network
USDA ,
Rural Information Center
National Agricultural Library 10301 Baltimore Ave., Room 132 Beltsville, MD 20705-2351 ric@ars.usda.gov 1-800-633-7701 The purpose of this publication is to provide accurate information on the subject matter. In providing this information, the author does not intend to offer legal or other professional services. The reader should seek the services of a competent attorney if legal advice is necessary.
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Remember to ALWAYS call the farm or orchard BEFORE you go - weather, heavy picking and business conditions can always affect their hours and crops! PYO Farms in Other Countries: [ Australia ] [ Canada ] [ South Africa ] [ New Zealand ] [ United Kingdom ] Our other free, informative sites you may like:
EHSO.com - Environmental health and safety information and guidance for the
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