Under a targeted state program, you can receive a subsidy for the development of a farm in the amount of 1 to 4 million rubles. It is valid until 2020, thousands of family farms and start-up entrepreneurs have already received grants.
Any individual entrepreneur and organization can be engaged in the production, processing and sale of agricultural products. However, special conditions and special forms of management are provided for the agricultural sector. How to become a farmer, what kind of enterprise to create in order to receive development subsidies, tax breaks, cheap loans? To make an informed choice, you need to pay attention to such points as:
- methods of organizing peasant farms (peasant farms);
- taxation, social payments to extra-budgetary funds;
- beneficial state support programs for agricultural producers.
Features of peasant farms: which form is better to choose
It should be noted right away that the legal status of peasant farms is characterized by duality. Since 1990, they have been created in the form of legal entities, and since 1994 - as individual entrepreneurs without forming a legal entity. In 2003, Law No. 74-FZ “On Peasant (Farm) Economy” was adopted, where it is defined as a family-related association of citizens by agreement. However, since 2012, such a voluntary entity has the right to create a legal entity - peasant farm enterprise-legal entity.
Thus, there are now officially three types of farms. To organize them, the following conditions must be met:
- engaging in the production of agricultural products, as well as their processing, storage, transportation and sale;
- personal participation in the activities of the farm, regardless of the presence (absence) of family relationships.
How are they different from each other?
Individual entrepreneur registered by the head of the peasant farm and acting alone.
In accordance with the law, a peasant farm can be organized by one person. In this case, he is not much different from other entrepreneurs, but gains the benefits of his special status. Registration of individual entrepreneurs is carried out as usual. Simultaneously with the submission of the general package of required documents, two applications are filled out at once: N P21001 and N P21002 - for peasant farms. An entrepreneur can work alone on the farm, or hire employees as an employer.
Peasant farm based on an agreement (without forming a legal entity).
Such a farm is created as a contractual association of persons related by family relations or kinship. There can be no more than 5 outsiders. The property is in common joint or shared ownership, this is stated in the agreement. The elected head of the peasant farm, who must have the status of an individual entrepreneur, is also indicated there. He makes all transactions on behalf of the farm and is its official representative in all authorities. In order for all participants to be registered as members of the farm, an agreement is submitted to the Federal Tax Service.
Anyone who voluntarily leaves the farm loses the right to land and tools of production. He receives only monetary compensation commensurate with his share in the common property, and for 2 years after exit he bears subsidiary liability for common debts within the limits of his share. In fact, this form differs from an individual farm in more complex property relationships and the need to pay insurance premiums for each participant.
Peasant farms as an organizational and legal form of a legal entity (Article 86.1 of the Civil Code).
In this case, a commercial organization is formed on the basis of membership - a corporate legal entity. The presence of family ties is not mandatory, but all other conditions must be met:
- the company operates in the agricultural sector;
- Only a member of a peasant farm can be a participant in the organization;
- each partner must make a property contribution;
- all partners are required to take personal part in the work.
The owner of the property is the peasant farm. However, unlike, for example, an LLC, the law provides for subsidiary liability of its members for the obligations of the farm, and not limited by size. There is one more feature. A commercial organization can participate in any transactions, become bankrupt or be liquidated. But a rule applies to a plot of land: it can be sold at public auction only to someone who will continue to use it for agricultural production.
These restrictions make the “legal entity” inferior. Peasant farm-legal entity is more like a simple partnership, but in the latter all participants have the status of individual entrepreneurs. The only plus is that family relationships are not required. In practice, this condition is met only for old organizations formed before 1994. Now, first, it is required to create a peasant farm under an agreement, after which it acquires the right to register as a legal entity. Such a farming business has more restrictions than ordinary entrepreneurship.
Right problem. The law does not contain provisions allowing for the forced exclusion of a member of a peasant farm from participation, as is permitted for other commercial organizations. Therefore, it is impossible to get rid of a partner who does not fulfill his duties or has caused losses to the farm. He can leave the farm only of his own free will (Article 1, No. 74-FZ). This applies to both a voluntary association by agreement and a legal entity.
Taxation of agricultural producers and benefits
Any enterprise engaged in the agricultural complex, including farming, has the right. It is paid at the rate of 6% (income minus expenses), and is additionally beneficial in that losses due to crop loss can be included in expenses. Such payers are exempt from taxes on profits, personal income tax (NDFL), property taxes, and VAT. Benefits do not apply to income taxed at a rate of 30% and customs goods. However, peasant farms have the right to apply any other taxation system: general (OSNO) or simplified taxation (USN), if they consider it more suitable.
As for contributions to pensions and health insurance (PFR, FFOMS), no exceptions are allowed. The head pays for himself, as an individual entrepreneur, and for members of the peasant farm, although they do not have such status. The only relief is a fixed amount, regardless of income. So, if the agreement was signed by 5 people, then the amount increases 5 times. For employees, all taxes and social contributions are paid as usual, depending on the size of the salary. When one of the members of a peasant farm is registered as an individual entrepreneur, for example, to engage in another type of activity, the head of the farm must still pay insurance premiums for him.
Not only a farmer, but also an ordinary entrepreneur working on a common system can receive government subsidies to reimburse part of the costs of paying for seeds, electricity, and equipment. However, heads of peasant farms do not pay taxes on them, and individual entrepreneurs are taxed at a general rate of 13% for all income received, including material benefits (Letter of the Ministry of Finance N 03-04-05/34876 dated 08/26/2013).
Participation in state support programs for peasant farms
Within the framework of the “State Program for the Development of Agriculture... for 2013-2020”
11 subroutines. They provide a variety of forms of support: preferential lending, coverage of losses, costs of land registration, purchase of equipment, gasification, restoration of irrigation systems, and so on. Their implementation is carried out by the Ministry of Agriculture and the Association of Peasant Farmers (AKKOR). Detailed information can be found on the official websites.
Each region approves its own action plan and develops its own target program, which is approved by the Ministry of Agriculture. Conditions for participation in competitions for grants and subsidies are published on the websites of local administrations. Applicants must submit a business plan for the development of the farm; selection is made directly in the region (Fig. 1). For example, let's look at three of them.
1 “Support for beginning farmers for the period 2012-2014”
In 2013, 76 regions participated in it, 2 billion rubles were allocated for it, and almost 3,000 farmers received grants. For 2015, an amount of 3.2 billion rubles was allocated, 3,500 start-up entrepreneurs received money, the average amount per farm was 1.14 million rubles.
2 “Development of family livestock farms.”
70 federal subjects take part in this subprogram. 797 farms were built and reconstructed using 1.5 billion rubles of state budget funds. The competition for participation reached 30 applications per place. In 2015, 3.08 billion rubles were allocated and 958 farms received them. The average grant amount was 4.35 million rubles per farm.
3 “Support for small businesses.”
Under this program of the year, subsidies are allocated not only to peasant farms, but also to other representatives of the agricultural complex: entrepreneurs, agricultural cooperatives.
You can get money:
- for the construction (reconstruction, modernization) of industrial buildings, workshops;
- equipment of laboratories for conducting veterinary examinations and quality control of agricultural products;
- equipping and modernizing premises for slaughter, processing, storage of meat, fish, milk, vegetables;
- acquisition of special transport: cars, vans, trailers for transporting goods, including leasing.
In 2015, 88 agricultural cooperatives from 25 regions received such support for a total amount of about 1 billion rubles. Of these: 34 are engaged in the processing of meat products, 33 - milk and dairy products, 21 - vegetables and berries.
Recently, changes were made to the requirements for selecting participants:
- Entrepreneurs with only 6 months of experience (for 3 years) are allowed to receive a grant for a beginning farmer;
- the period for using subsidies was extended to 18 months (from 12), for livestock farms - to 24 months (from 18);
- a beginning farmer, 3 years after the allocated funds have been fully spent, can receive money for a family farm;
- It is prohibited to allocate subsidies for the development of livestock farming if the head of a peasant farm was previously the founder of a commercial organization;
- To receive a grant, there must be no delay in paying insurance premiums, as well as penalties and fines.
conclusions
You can organize a farm as a business in the form of a peasant farm if you draw up a good business plan and show persistence by submitting applications for participation in federal and regional targeted programs. Also, nothing prevents you from engaging in agriculture by creating an LLC or individual entrepreneur. Especially if you count on the money of private investors - in the absence of restrictions in terms of personal participation, nepotism, and subsidiary liability. The state provides support to farmers by law, promotes their creation and development. Let us remind you that in all other cases, entrepreneurship is carried out at your own peril and risk.
Today there are a number of government programs that are aimed at developing and supporting farmers, and tax benefits have been defined for owners. This type of entrepreneurial activity has become promising in Russia. Let's figure out where to start farming, what expenses will be required and how to successfully start in this business.
A farm is a commercial organization that operates on a family basis and produces agricultural products for the purpose of sale for profit.
Before starting a business in this area and to draw up a business plan, decide on the choice of direction.
Branches for breeding
- Livestock: , horses, .
- : trout, carp, sturgeon, silver carp, pike, carp, catfish.
- Poultry breeding: laying hens, broiler chickens, ducks, geese, ostriches, .
What do they grow?
- Vegetables: cucumbers, tomatoes, cabbage, peppers, eggplants, pumpkin, potatoes, carrots.
- Fruits and berries: melons, watermelons, apricots, pears, apples, strawberries, cherries, prunes, plums.
- Greens: parsley, dill, onion, garlic.
- Grain crops: wheat, oats, barley, rye, corn, sunflower, buckwheat.
This is not a complete list, but we have listed common and traditional crops.
What type of activity should I choose additionally?
When drawing up a business plan for a farm, take into account that additional income from related activities is possible.
- If you decide to grow fruits and vegetables, additionally set up the production of frozen vegetables and fruits.
- If you want to deal with pigs, at the same time start the production of stewed meat, products and other meat delicacies. Cows also mean profit from the sale of dairy products: milk, sour cream, cottage cheese, cheese and others.
- When growing grain crops, organize the production of flour, cereals, or try.
Where to start when starting a farm
The procedure for the formation of property is determined by the Law “On Peasant (Farm) Farming” No. 74-FZ of June 11, 2003 (as amended on December 28, 2010 No. 420-FZ).
According to clause 1 of Article 3, any capable citizen of the Russian Federation, as well as a foreign or stateless person, have the right to create a peasant farm. Clause 2 of the article states that members can become: spouses and parents, grandparents, children, sisters, brothers, grandchildren (up to three families). Also persons who are not relatives of the head, but no more than five people.
Article 4 states that the creation of a business by a group of persons will require the conclusion of an agreement on joint activities.
Article 5 describes the procedure for registering a peasant farm.
Registration procedure
- pay the state fee;
- notarize the application for registration;
- submit a package of documents to the Federal Tax Service;
- register with the Funds;
- receive a letter from Rosstat with statistics codes;
- open a bank account.
On state support for agriculture
There are a number of benefits for newly created enterprises, but when you need a loan to develop an agricultural business, do not expect to receive a loan from the state. It is available to farms included in the agro-industrial complex development program. It also includes guarantors.
You are not a pensioner and do not work - contact the employment service with an application for inclusion in the self-employment program so that you have the opportunity to receive government assistance from 50 to 60 thousand rubles for opening an individual entrepreneur in the agricultural sector.
Farming can become a profitable business if done skillfully. In this book you will get acquainted with the main types of farming activities, find tips on finding start-up capital, calculating expenses and making a profit. You'll find guidance from experienced practitioners in today's most popular livestock industries on how to successfully raise broiler chickens, rabbits and pigs.
A series: Urozhaykins. Farmer's school
* * *
by liters company.
How to become a farmer
To become a successful farmer, you need to have one main quality - love for work, and for work on the land. Being a successful businessman in any other field of activity, but not having a peasant spirit, a craving for the land, it is difficult to count on a sudden transformation from a typical city dweller into a real farmer. But to be or not to be a farmer is a matter of personal choice. The purpose of our book is to provide the necessary initial information about what formal stages you need to go through on the way to organizing your own farm.
Selecting an activity
Choosing the type of agricultural activity is the very first stage. We discussed in detail what branches of farming exist and what are the advantages and disadvantages of each of them in the previous chapter. Here it remains only to briefly summarize everything that has been said. When choosing a type of farming activity, there are several main points to take into account.
The first is whether you are counting on quick profit and return on investment or are you ready to work for the future for some time. In the first case, the more preferable activities will be vegetable growing, poultry farming, rabbit farming, mushroom farming, and beekeeping. This also includes fish farming, pig farming, and dairy farming, which are a little slower to pay off. The most long-term projects include gardening, viticulture, beef cattle breeding, and horse breeding.
The second point concerns land holdings. If you already own good fertile agricultural land or have the opportunity to own or lease it, then it is better to choose some kind of crop production as your main activity. This does not mean that livestock farming should be completely abandoned; it can be an additional species. Accordingly, if there is no good arable land, then it is more advisable to engage in livestock farming.
The third point concerns the amount of starting capital, that is, how important the initial cost of the project is to you. The least expensive are vegetable growing and poultry farming. You can start with these types of activities, and then, as capital increases or if it is possible to attract investors, expand the business and engage in any type of farming activity that attracts you.
The fourth point concerns how much personal time you and your loved ones are willing to devote to working on the farm. If you are ready to work from dawn to dusk throughout the year, then you will be able to cope with any branch of animal husbandry. If you prefer a more gentle labor regime, then you should opt for crop production. Even if you combine vegetable growing in open and closed ground, that is, the work will not be seasonal, but year-round, caring for plants will still not be as difficult as caring for animals.
All these points must be taken into account when choosing the type of farming activity. Although ultimately the main selection criterion will be your personal preferences. The matter will be argued only when the soul is in it.
Business plan
Drawing up a farm business plan has two goals. Firstly, it will help the beginning farmer more clearly formulate for himself and the members of peasant farms (peasant farms) the tasks of developing their business, predict profits, and calculate possible risks. It allows you to visualize the entire process of developing their farm from scratch.
Clearly structured points of the plan will allow you to see some of the nuances of the business that slip away when simply discussing plans for the future in words, without using tables and graphs, without using exact numbers and calculations.
Secondly, a well-drafted business plan is the path to the trust of investors of any level. Only with a carefully thought-out business plan can a beginning farmer count on government support for his farm in the form of a grant or subsidy, obtaining bank loans or attracting private investors to the project. A business plan is a long-term document; it is developed for a specific period of time. On average, it is customary for peasant farms to develop a business plan for a period of 3-5 years, less often - more than 5 years. We present here the standard content of a business plan for a peasant farm, on the basis of which you can draw up a specific plan for your farm.
A peasant farm business plan should include the following sections.
1. Summary.
2. General characteristics of the agricultural enterprise.
3. Characteristics of agricultural goods and services.
4. Main indicators of production and financial activities.
5. Financial plan and financing strategy, economic efficiency, payback period.
6. Risk assessment and management.
This part of the business plan contains general introductory information about peasant farms:
Full name of the organization, legal address, postal and payment details, contact telephone number;
A complete list of technical means or technological equipment that is planned to be purchased during the specified period;
Sources of financing through which it is planned to purchase the main assets of the farm;
Predicted economic effect and payback period of investments.
General characteristics of peasant farms
This section of the plan should contain the following items.
1. Date of registration of the farm.
2. Information about the property of peasant farms:
Do you own your own lands (indicate area);
Is there any leased land (specify area) area;
Peasant farm property, its condition, degree of wear and tear, etc.;
Availability of transport and energy networks (indicating their owners).
3. Specialization of the farm - all types of activities that are planned in the peasant farm for the specified period, the structure of marketable products.
4. Characteristics of the production and financial activities of peasant farms.
Table 1
Characteristics of the production and financial activities of peasant farms
Characteristics of agricultural goods and services
This section should cover two issues:
List and volume of produced and sold agricultural products and products of their primary processing, as well as other products or services;
Sales channels for manufactured agricultural products, indicating the name of the sales channel, sales volumes, selling prices, terms of mutual settlements, availability of contracts for the supply of products.
Key indicators of production and financial activities
This section provides the production program for the selected peasant farm activity area (or for all, if there are several of them). If the activities of peasant farms include livestock sectors, the production program must contain justification for the number of livestock and poultry, animal productivity, herd reproduction indicators, volume of product production, and its marketability.
If one of the crop-growing industries is present in the activities of the peasant farm, it is necessary to highlight the organization of the land territory and possible changes in agricultural land. This section indicates methods of soil cultivation, crop rotation, soil irrigation and plant care systems, seed production systems, fertilization, weed control and other possible procedures. If there are pastures on your land, you can indicate measures to improve natural forage areas and increase their efficiency.
At the end of the production program of the crop growing industry, the plan for crop yields, land productivity, and the volume of production of marketable products is indicated. The indicators in this section are presented in table form (see Table 2).
table 2
Crop industry indicators
Financial plan and financing strategy. Economic efficiency
In this section, it is necessary to summarize the results of the previous sections of the business plan in value terms and indicate all the necessary information on the expected results of the financial activities of the farm. Such information includes:
Data on the costs of purchasing equipment, farm animals, planting material, feed, fertilizers, etc.;
Data on wages of members of peasant farms and employees;
Other possible expenses;
Sales volumes of agricultural products and their primary processing products;
Operational analysis of income, expenses, revenue, net profit.
The main points to consider when developing this section of the business plan are as follows.
1. Reliability of the data presented. If individual plan indicators differ in one direction or another from industry averages, they must be documented. Otherwise, potential investors may become distrustful of the reliability of the indicators.
2. Availability of two payment options– under favorable conditions for the development of peasant farms and unfavorable ones (natural disasters, lack of subsidies, failure in the sale of products, etc.).
3. No discrepancies between the financial plan and indicators of other sections of the business plan. For example, the receipt of funds and write-off of expenses for production needs must correspond to the period of product sales specified in the previous sections.
4. Financial plan must contain in a concise form all the initial data and forecasts used as the basis for the calculations.
The balance of income and expenses will look clear if it is presented in the form of a table (see Table 3).
Table 3
Balance of income and expenses
When describing a financing strategy, the following issues need to be addressed.
1. How much funds will be required to implement the project.
2. In what form and from what sources are these funds expected to be received?
3. When all funds invested by investors are subject to return.
4. What will be the income of investors and when can they receive it?
5. What are the terms for repaying loans and paying interest on them, in what parts will the loan be repaid, what is the share of interest that is expected to be reimbursed from the regional and federal budgets.
The need for investment and sources of financing for planned activities are presented in the following form.
1. Direction of investment (name of machinery, equipment or construction and reconstruction projects).
2. Number of units of each item.
3. Price of each item.
4. Total cost for each item.
5. Sources of financing (own funds, bank loans, targeted subsidies, funds from the regional and federal budgets).
6. Total amount.
The calculation of the return of credit resources is presented in the form of a table (see Table 4).
Table 4
Calculation of repayment of credit resources
The effectiveness of the plan's activities is reflected in the table (see Table 5).
Table 5
Efficiency of plan activities
Risk assessment and management
This section of the plan is very important because investors place one of the key importance on risk assessment. Risk is an expression of the sensitivity of a given project to changing environmental and market conditions. When developing a business plan, it is necessary to predict with the greatest possible accuracy the list of various risks and their impact on the project - what the losses may be if they occur, for what types of risks and for what amounts it is advisable to insure the farm. The organizations with which the peasant farm has entered into insurance contracts and the amounts of these contracts are also indicated here.
Where to get start-up capital
Everyone knows that without investment it is impossible to start any serious business. Therefore, to organize a farm you will need start-up capital. The amount of starting capital required depends on what type of farming activity and on what scale you intend to engage. But in any case, it is needed. Even if you manage to receive government support under the Beginning Farmer Assistance Program, one of the conditions for receiving a grant or subsidy is that you have equity capital of at least 10% of the financial support received. Therefore, the future farmer naturally faces the question of where to get the funds to organize his farm.
The ideal option is when you already have some initial funds. If at this stage you do not have them, there are two possible ways.
The first way is to independently accumulate the necessary funds. The option is long-term, but the most reliable. In addition, it can be carried out in the agricultural direction of your choice, only for now on a smaller scale than farming. You can try to start a small personal business on a personal plot, in the courtyard of a private house, or in a country house. The simplest thing you can try is growing mushrooms. This requires a small area and low initial costs. Or you can buy a dozen or two chickens and try to master the basics of poultry farming. If you and your family have not had any agricultural experience before, then at the same time you can test yourself to see how much you really have a passion for farming. If it is, then it will not be difficult for you to save at least the minimum initial amount in a few years to move on to the next stage - organizing your own farm. In addition, these few years can subsequently be of great service to you in obtaining a grant or subsidy from the state, since experience in agricultural production, regardless of the scale, is one of the advantages for the applicant’s candidacy.
The second possible way is the use of borrowed funds. There are several options:
Obtaining an interest-free and perpetual loan from loved ones (relatives, friends);
Borrowing money against a receipt with the condition to repay not only the debt, but also the agreed interest on it;
Obtaining a bank loan;
Attracting an investor with the condition of allocating to him a certain agreed portion of the farm’s profit.
All four options have both their advantages and disadvantages. The most win-win financial option is a loan from loved ones. But if your business does not work out and you cannot repay them, then morally it will be very difficult.
The disadvantage of a bank loan is that payments must be made every month, and before receiving the first profit from the farm, it can take from several months to a year (and this is even in the best case scenario). In addition, to obtain a loan, you must have a very convincing, well-written business plan with transparent tracking of financial flows. And not every bank will understand the intricacies of a business plan; it is better to contact an institution that specializes in issuing loans specifically for agricultural purposes. In addition, if you do not have a permanent job and documented official income, which is quite possible if you are planning to create a farm in the near future, the bank may refuse to consider your loan application at all.
Borrowing money against a receipt with an obligation to pay interest also has its difficulties. Firstly, the lender may refuse to give a loan without any guarantee of its repayment, simply for a business idea. Secondly, if your project fails, which results in failure to return the money within the agreed period, the matter may end in litigation.
At first glance, attracting investors does not threaten such serious complications. If you have confidence in your own abilities, sooner or later you will be able to implement your planned project. You won't be pressured by deadlines. But this option may also have its pitfalls. If the share of profits promised to the investor is large enough, then this may significantly prejudice your own interests as the business grows.
However, if you really count on the successful development of your farming enterprise, have a clear, well-developed business plan, have experience in agricultural activities and the necessary knowledge for competent farming, you can take a risk and try any of the described options. Your success depends only on you.
Registration
The procedure for registering a peasant (farm) enterprise includes the following steps.
1. Payment of state duty.
2. Certification of the application for registration by a notary.
3. Submitting documents to the Federal Tax Service.
4. Obtaining registration documents.
5. Registration in funds.
6. Receive a letter from Rosstat with statistics codes.
7. Opening a current account.
A peasant farm in the Russian Federation is an association of a group of persons who have common ownership of property, with the use of which they carry out joint activities in the production, storage, processing, transportation and sale of any type of agricultural products.
The concept of agricultural products is one of the most significant in civil and tax legislation relating to farming activities. Both the possibility of registering a peasant farm, as well as the taxation system and the availability of tax benefits that will apply to the entrepreneur, depend on whether the products you produce are specifically agricultural. Therefore, before you start registering a peasant farm, you need to clearly understand what is called agricultural products and whether what you are going to produce falls under this definition.
In 2006, the Government of the Russian Federation adopted a resolution “On classifying types of products as agricultural products and primary processed products made from agricultural raw materials of their own production.” This document provides a complete list of relevant products. Each type of product is assigned a classification code. The list of agricultural products contains 131 items in the following product groups:
Cereals and leguminous crops;
Industrial crops;
Tubers, vegetables, melons and greenhouse products;
Forage crops of field cultivation;
Other feed products;
Products of gardens, vineyards, perennial plantings and floriculture;
Seeds of trees and shrubs, seeds in fruits;
Seedlings of trees and shrubs;
Tree and shrub seedlings;
Livestock products;
Pig products;
Sheep and goat products;
Poultry products;
Products of horses, donkeys and mules (including hinnies);
Reindeer and camel breeding products;
Products of rabbit breeding, fur farming and hunting;
Products of fish farming, beekeeping, sericulture, artificial insemination;
Other livestock products;
Agricultural products (not including livestock);
Commercial fish food products.
According to the same document, the products of primary processing of agricultural raw materials of own production include 52 items in the following groups:
Meat and meat products;
Processed fish and fish products;
Processed vegetables and fruits;
Vegetable and animal oils and fats;
Dairy products;
Products of the flour milling industry;
Prepared feed for animals;
Other food products;
Wine materials;
Malt and other raw materials;
Wild forest products;
Raw materials for tobacco production;
Raw materials for the textile industry;
Raw materials for the production of fur products.
Having made sure that the products produced comply with this list, you can proceed to the legal and legal procedures for registering peasant farms. In the Russian Federation, a farm can carry out its activities without forming a legal entity, that is, if the head of the farm registers as an individual entrepreneur. However, at the same time, all points of civil legislation that also apply to legal entities apply to the entrepreneurial activity of the farmer. This results in a double situation, in which the formation of a legal entity is not mandatory, but all the norms mandatory for legal entities also apply to farmers. Therefore, you should weigh the pros and cons of forming a legal entity (LLC).
In both cases, you need to register with the local tax office and pay the state fee. If a farmer registers as an individual entrepreneur (individual), less money is spent on this and less time is spent on completing the necessary documents. However, by registering as an individual entrepreneur, the farmer will be able to provide services only to individuals. If you register the farm as a Limited Liability Company (LLC), then the head of the farm will be able to carry out transactions with legal entities - various organizations and enterprises.
Next, let's say a few words about who can create a peasant farm and who can be its member. In this regard, Russian legislation is very flexible. The right to create a farm belongs to capable persons, not only citizens of the Russian Federation, but also foreign citizens and stateless persons. For persons who decide to organize a farm, there are also no requirements regarding special education, qualifications, training, or experience in agriculture. Thus, any person who has reached the age of majority has the right to submit documents for registration of a farm. However, this only applies to the registration of peasant farms. But in order to receive state financial support, many different requirements are presented to the farmer, which will be discussed in detail in the corresponding section of the chapter.
There are some age and number restrictions regarding who can become a farm member. The following persons can be members of a farm.
1. Any direct relatives of the head of the farm: spouse, parents, children, grandparents, sisters, brothers, grandchildren. But at the same time, the farm should not unite more than three families. For example, this could be the family of the head of the farm, the family of his son or daughter (including their children) and the family of his brother or sister (including their children). Children, grandchildren, and younger brothers and sisters can only become members of a farm from the age of 16.
2. Persons not directly related (nephews, cousins, second cousins, etc.), as well as persons not at all related to the head of the farm. However, there can be no more than five such members of a peasant farm. The decision to accept them into the farm is made jointly by all current members of the peasant farm.
In addition to members of the farm, hired workers may also work on the farm. Their number is not limited. The hiring of workers is fixed in the form of an employment contract concluded between the peasant farm represented by its head and the worker himself. If hiring takes place for seasonal work, it is formalized in the form of a contract agreement.
Who can be the head of a farm? If the KHF is created by one person, then he is the head. If the KHF is created by the whole family, then any family member who has reached the age of majority can be chosen as the head by mutual agreement. The head must register as an individual entrepreneur, regardless of the form in which the peasant farm itself is registered. The head manages all property and enters into contracts and transactions on behalf of the peasant farm in the interests of the farm. For completed transactions, the head of the farm is liable with his property.
To register, you must fill out an application in the appropriate form. The application form for state registration of a farm is almost identical to the application form for state registration of an individual as an individual entrepreneur. In addition to the application, it is necessary to conclude an agreement between relatives who will be members of the farm. This agreement and copies of documents confirming the relationship of the persons who entered into the agreement are attached to the application. There is no need to provide original documents for reconciliation, since the registering organization does not track the degree of relationship of peasant farm members.
Below is a complete list of documents that must be submitted to the registration service to register a peasant farm. The list is taken from the Federal Law of 08.08.2001 No. 129-FZ “On State Registration of Legal Entities and Individual Entrepreneurs”.
1. Application for state registration of a peasant (farm) enterprise. The application shall indicate the TIN number, if available. The application is submitted in stitched and numbered form, the number of sheets is confirmed by the applicant’s signature on the back of the last sheet at the place of the stitching. When submitting an application by a representative of the applicant, the signature in the application must be notarized.
2. Applicant’s passport (copy and original for verification).
3. A simple power of attorney for the MFC (Multifunctional Center for the Provision of State and Municipal Services). An original power of attorney is required.
4. In the case of an application not by the applicant himself, but by his representative, a notarized power of attorney is required for the applicant’s representative (the original, which will be returned after the authority is established).
5. Receipt for payment of state duty, original.
6. A document confirming the address of the place of residence of an individual: passport (copy and original for verification) or, if the passport does not contain data on the place of residence, temporary registration certificate, F-3 certificate, house register.
7. Birth certificate (if the passport does not contain information about the applicant’s date and place of birth), a copy and the original for verification.
8. Residence permit (if applying for a stateless person or a foreign citizen who has a residence permit), copy and original for verification.
9. Temporary residence permit (if applied by a stateless person or a foreign citizen who has a temporary residence permit), copy and original for verification.
10. Passport of a foreign citizen (if a foreign citizen applies), notarized copies of all pages of the foreign citizen’s passport with translation.
11. Notarized consent of the parents, adoptive parents or trustee for the head of the peasant farm to carry out entrepreneurial activities, or a certificate of marriage by the head of the peasant farm, or a decision of the guardianship and trusteeship body or a court decision declaring the head of the peasant farm fully capable (if the applicant is a minor), a copy and the original for verification.
Once the application is submitted to the local tax office, it will be reviewed by the tax authorities within five working days. At the end of the period, a decision is made on registration and a corresponding entry is made about this in the Unified State Register of Individual Entrepreneurs (USRIP). One day after making the entry, the tax service sends by mail or hands over the following set of documents to the head of the farm:
Certificate of state registration;
Tax registration certificate (TIN), if it has not been previously issued;
Sheet for making an entry in the Unified State Register of Individual Entrepreneurs.
When making an entry in the Unified State Register of Individual Entrepreneurs, the head of the farm is assigned the Main State Registration Number of an Individual Entrepreneur (OGRNIP).
If for any reason the head of the farm changes, you need to report the changes to the registering organization. The head of a peasant farm can be changed in two cases:
If he himself refuses to fulfill his duties;
If he is unable to perform his duties for 6 months or more.
In both cases, members of the farm, by mutual agreement, elect a new head. The new head on behalf of the peasant farm must report the changes that have occurred. In addition, it is necessary to inform the registration authorities about changes in any data from the head of the peasant farm (change of passport, change of place of residence, etc.). In order to report any changes to the head of the peasant farm, he needs to submit an application to the registration authority and attach copies of documents on the basis of which changes should be made to the entry in the Unified State Register of Individual Entrepreneurs.
The application must contain the following information:
Old data of the entrepreneur (last name, first name, patronymic, passport data, date of registration of the peasant farm, OGRNIP, INN);
Reason for making changes (change of head of a peasant farm, change of data about the head of a peasant farm, error when making an entry in the register of individual entrepreneurs);
New information about the head of the peasant farm.
Within five working days after submitting the application, the registration authorities review it, make changes to the Unified State Register of Individual Entrepreneurs and assign the head of the peasant farm a new registration number of the individual entrepreneur. Another day later, the chapter is sent by mail or given a new certificate.
Expenses, income and profit
Like any enterprise, farming has the ultimate goal of making a profit. The profit of a farm is the positive difference between its income and expenses (if the difference is negative, then the farm is, accordingly, not profitable, but unprofitable). Thus, profit is income for a certain period of time minus expenses for the same period of time.
What are farm income and expenses?
By the most general definition, income is an increase in economic benefits as a result of the receipt of assets (inventories, cash, other property) or the repayment of liabilities, leading to an increase in the capital of the economy.
Expenses are justified (economically justified) and documented costs of a farm, as well as certain types of losses.
Not any expenses can be recognized as expenses, but only those incurred to carry out activities aimed at generating income. For example, the purchase of planting material is an expense of the peasant farm, but the purchase of personal transport by members of the peasant farm is not considered a farm expense.
To determine the financial result of a peasant farm, careful accounting of the income and expenses of the farm is necessary.
A farm can receive income from the following sources:
Sales of crop and livestock products;
Sales of auxiliary production products of the farm;
Income from the sale of fixed assets;
Execution of work;
Provision of services;
Income on invested share;
Income from purchased shares and other securities;
Charitable and other gratuitous contributions;
Insurance compensation.
Farm expenses include funds associated with the production and sale of agricultural products and their primary processing products, as well as funds associated with the provision of work and services.
The list of expenses includes the following items:
Cost of used seeds and other planting material;
Cost of feed;
Cost of fertilizers and plant protection products from pests and diseases;
Cost of raw materials and petroleum products;
Cost of services from other farms;
Cost of services of agricultural service enterprises and other enterprises;
Depreciation deductions going towards the complete restoration of the main facilities and assets of the farm;
The cost of repairing the main property of the farm;
Payment of labor for members of the farm and hired workers;
Payment of taxes;
Contributions to the Pension Fund and the Compulsory Medical Insurance Fund.
In addition to commodity and material assets, peasant farm expenses also include work and services performed for the farm by third-party enterprises and organizations. These can be services for the transportation of various goods, water supply, pest control and plant diseases, soil treatment, treatment of sick animals and various agricultural work. In addition, expenses may include rent for agricultural land, fixed assets of the farm, rental of adult farm animals, interest on bank loans, travel expenses, entertainment and charitable expenses, postal and telegraph expenses, expenses for the provision of communication services. Expenses for renting fixed assets are taken into account only if they exceed depreciation charges.
The following costs are not included in the costs of production of agricultural products:
Cost of purchased cars;
Cost of adult productive farm animals;
Cost of draft animals;
Costs of construction of main production facilities.
All these costs are made from depreciation charges already included in the expense item, and from the net income that remains at the disposal of the peasant farm.
Before the start of each business year, you should calculate in advance all expenses and income coming in the coming year (of course, approximately with two predicted options - favorable and unfavorable). Such a preliminary calculation will help the farmer determine his solvency, determine whether he will need to raise additional funds in the form of loans and credits, and in what periods of the year they may be required. Calculation of income and expenses will indicate whether the household should be run more economically in the coming year or, on the contrary, some funds can be invested in expanding the business. In addition, it will help distribute funds taking into account repayment of loans and making cash settlements with other enterprises and organizations. It is advisable to draw up the calculation of income and expenses in the form of an estimate broken down by quarter.
All income, expenses, settlement transactions, and cash flows of the farm must be recorded in a special journal for recording business transactions and cash. This journal consists of two sections - income and expenses. Entries in the journal are made in a strict calendar sequence, after each business or financial transaction.
The income section of the journal should reflect both the main income received from the sale of manufactured products, performance of work and provision of economic services, as well as all other income. Other income may include the sale of machinery, equipment, adult productive and working livestock, income received from transactions with securities, etc.
The incoming part of the journal also takes into account all receipts of funds, both cash and non-cash. The expense section of the journal indicates all the expenses of the farm for the production and sale of products, provision of services and performance of work. Thus, according to the accounting journal, you can determine the total amount of income and expenses for each month and track their dynamics throughout the year.
At the end of the calendar year, the farmer uses accounts to determine the final financial result of the farm’s economic activities. The difference between the income and expenditure parts is the financial result of the farm, that is, profit for the past year.
The concept of peasant farm profitability is often used as another indicator of the financial performance of a farm. Profitability is the percentage of profit to costs. To calculate it, net profit is divided by the sum of all costs, one is subtracted from the result obtained and the remainder is multiplied by 100%.
High profitability is an important and objective indicator of the success of a farm. It indicates the success of a business more accurately than net profit. After all, profits can increase due to large financial investments. For example, you can purchase expensive planting material and sell finished products at a higher price. The profit will be higher than when buying and selling at lower prices. But profitability may be even lower.
Farm taxes
Taxation of farms has a number of features, which will be discussed in this section.
First of all, you need to keep in mind that after registering a peasant farm, you need to register with several authorities:
At the local tax office (IFTS);
In the Pension Fund of the Russian Federation;
In the Health Insurance Fund (federal and territorial);
In the Social Security Fund.
The head of the farm must register with the listed organizations within 10 days after registration with the Federal Tax Service. When registering with the Federal Tax Service, the tax system of a registered farm is determined. The head of the peasant farm must indicate the taxation regime he expects. If the regime is not specified by the taxpayer, the Federal Tax Service will automatically assign him a general regime, which is the least profitable of all possible options for the farmer. Therefore, the head of a peasant farm should have a good understanding of the existing taxation regimes and find an opportunity to obtain some preferential treatment. The right to switch to preferential treatment gives the farmer recognition of his farm as an agricultural producer. According to the legislation of the Russian Federation, a farm is recognized as an agricultural producer if its revenue from the sale of agricultural products or products of their primary processing of its own production is more than 70%. In this case, the farm can count on one of the preferential tax regimes - the Unified Agricultural Tax (UST) or the Simplified Agricultural Tax (SAT). Let us consider in detail all three mentioned modes.
General tax regime
This regime involves the following types of taxes.
Federal taxes:
Value added tax (VAT);
Unified Social Tax (UST);
Personal income tax (NDFL);
Tax to the Federal Compulsory Medical Insurance Fund (FFOMS);
Income tax.
Regional taxes:
Tax to the territorial compulsory health insurance fund (TFIF);
Transport tax;
Property tax.
Local taxes:
Land tax.
In addition to the listed taxes, the general taxation regime also requires mandatory contributions to the Pension Fund of the Russian Federation for personalized accounting:
Contributions to the insurance and funded part of the labor pension;
Mandatory payments for environmental protection (they are of a notification nature and are carried out according to a special program).
Unified agricultural tax
A farm as an agricultural producer has the right to switch to the preferential Unified Agricultural Tax tax if, based on the results of work for the calendar year preceding the year in which the application for transition to the preferential regime (Unified Agricultural Tax) is submitted, the products of its own production amount to at least 70% (Article 346.2 clause 5 of the Tax Code).
End of introductory fragment.
* * *
The given introductory fragment of the book How to become a farmer. Profitable business with a skillful approach (T. F. Plotnikova, 2015) provided by our book partner -
Given the country's course towards import substitution farming became relevant. This line of business is attractive for several reasons:
- demand for products;
- fewer investments compared to “urban” types of entrepreneurship
Farming allows you to do interesting things and earn good income. The truth of this statement is supported by numerous examples of successful business in rural areas, the existence of numerous enterprises engaged not only in the production of agricultural products, but also in their processing. If you listen to the advice of “experienced” people, you can figure out how to open and develop your own farm.
Farming is hard work
At the initial stage, you need to start developing a business plan. It will help you systematize everything, calculate expected expenses and income, and direct your activities in the right direction.
When drawing up a business plan, it is better to take the advice of experienced farmers, who will show the real picture of things and will not allow you to make mistakes. It is the business plan that will allow you to take the right steps in starting your business. Next, you will have to navigate according to the circumstances.
Definition of a specific industry
Farming involves a variety of activities. Trying to do everything in a row is not practical. It's better to choose one thing. If funds allow, it is better to engage in livestock farming. Here you can get a good profit throughout the year, but you will have to invest a lot of money in the purchase of breeding stock or poultry. You can turn your attention to the production of dairy products, raise livestock for meat, raise ducks, or focus on laying hens.
If you have a limited amount of money, you should focus on melons or simple vegetables. If everything works out, the profit from vegetable growing is gradually invested in the purchase of equipment. As a result, it becomes possible to significantly expand production and make it larger.
Regardless of the industry, you will have to take care of the availability of labor. You won't be able to handle everything on your own. Typically, farmers easily find hired workers by inviting residents of nearby villages to work.
What do you need to know about registering a business activity?
Land is a must for farming
To start your own farm, you need appropriate land. The authorities prefer to allocate land to local residents. But even a city resident can receive land from the category of rural land. At the moment, in many regions there are programs under which arable land is allocated free of charge for farming.
To officially register a farm, you need to prepare the following documents:
- Receipt.
- Copies and .
Once the farm is officially registered, it becomes possible to participate in government support programs. Any large farm must be registered and also pay the appropriate taxes. If the farm is small, you don’t have to fill out any paperwork, just consume some of the produce yourself and sell the excess on the market. This is permitted by law.
First stage
Without initial capital - no way!
The current map of agricultural land is full of blank spots. Many villages are abandoned, the land is not used for its intended purpose, and is often simply overgrown with weeds. Recently, the government has been taking certain steps to restore this sector of the economy.
Therefore, if there is no big difference where to establish your farm, it is better to choose a place that the authorities plan to revive in the near future.
The next step is to decide how much work you can handle. Experts recommend that inexperienced farmers start with 300 head of cattle. The maximum quantity that can be taken at the start is 800 heads. If your direction is growing vegetables or cereals, you need to think about how much acreage you can cultivate.
Any direction of farming activity requires certain knowledge and skills. Turning to the experience of successful entrepreneurs, using innovative technologies and modern equipment will increase productivity and get more.
It is important that there are villages, towns, communications, and roads nearby. Depending on the quality and location, the cost per hectare will vary: from 50 thousand to 500 thousand rubles
Do you need start-up capital?
Help from the state is minimal
A common mistake of many people who want to become farmers is the hope that the state will provide financial support for their desire to engage in agriculture. In fact, participation in state programs to support farmers is quite problematic. At the initial stage, it is very difficult for a farm to meet all the requirements imposed by the state on those wishing to receive support.
It’s good if the opportunity arises, but in any case it will be only a small part of all the necessary expenses. It is not advisable to rely on a loan. Banks consider farming activities too unreliable, so they refuse loans to eliminate the risk of losing money.
And if they give at high interest rates, it’s not worth taking a loan at all, because it’s impossible to get super profits in agriculture. Therefore, before opening a farm, you need to find money that will become starting capital.
Are hired workers needed?
Even a family farm will need staff as it expands. Agriculture is a very labor-intensive industry, so you always have to hire people. When selecting personnel, you need to pay attention to the following criteria:
- availability of the necessary skills;
- lack of addiction to alcohol;
Sales of products
Need to draw up a business plan
Producing products is half the battle; selling them profitably is much more important. Therefore, even at the initial stage, it is necessary to think about to whom and how the products will be sold. When the goods are ready for sale, you should already know where you will take them. After all, almost all agricultural products deteriorate very quickly, and downtime will bring losses.
Sales may be difficult. Profitable sales channels are already occupied; it will be difficult for a newcomer to break in there. You can sell the goods you produce yourself, but this involves additional costs and hassle. After all, you will need to arrange a lot more.
To sell goods to a store, you need a quality certificate. To sell grains, you need to go through a lot of offices. Because of these rules, most simply hand over their grain to resellers, making a very small profit.
Pros and cons of farming
Wanting to become a farmer is a responsible act. So as not to regret the hasty decision. It is necessary to delve into all the advantages of this business in advance and analyze the existing disadvantages.
pros
- Good income. The cost of hired workers' services is lower than in the city.
- Free products on your table
Minuses
- Large initial investment.
- High energy costs.
- Impossibility of managing a household without certain knowledge.
To engage in farming, you need to be mentally prepared for this difficult task. It's not just about spending time in nature. It's hard work with many difficult decisions. But the investment will definitely bring profit. At the moment, this is one of the most promising areas of human economic activity in our country.
Expert lawyer's opinion:
Farming activities can be carried out in any organizational and legal form. A farmer can be an individual entrepreneur, the head of a peasant farm (peasant farm) or the head of a legal entity (production cooperative or LLC). The tax system, which can also have different options, also depends on which option the farmer chooses.
The most popular form of activity is peasant farming. The farmer himself is registered as the head of this farm. The peasant farm is not a legal entity. Instead of constituent documents, an agreement is concluded between the participants on the creation of a peasant farm, signed by all its participants. Peasant farm members must be over 16 years of age and be relatives (no more than three separate families). The law does not determine the number of families. Participation by other citizens is possible, but no more than 5 people. Property – common shared or common joint property. Labor participation of all members is mandatory. A peasant farm may also consist of one person, its head, then an agreement on its creation is not needed.
The main taxation system for peasant farms is the Unified Agricultural Tax (USAT). The tax base is income minus expenses. Tax rate 6%. The state is trying in every possible way to create conditions for farmers to successfully farm. However, as noted in the article, at the beginning of activity, it is difficult to count on serious support. Farmers have to invest a lot of work and money to get on their feet.
Video for those interested in farming:
Many people now want to become a farmer.
Some - because they have long wanted to move to live in the village, others - because of their desire to have their own plot of land, and still others - see in this status a prospect for good earnings.
But whatever the reason for the choice, being a farmer is truly profitable.
Relevance of the idea
First of all, it is worth noting that the crisis in interstate relations of 2014-2016. exposed the problem of Russian agriculture, comparing it to an unplowed field of black soil. Those. There is fertile ground for the development of the private sector in this area, but there has been no government support so far.
Until a certain point, Russia had a policy of free trading, in which their own agricultural producers were not favored, giving preference to products of foreign origin. And the current turn to protectionism is an opportunity, including for beginning farmers.
The second fact, which indicates not only the relevance, but also the prospects of the farming business, is the wide opportunities for its directions. You can engage in livestock farming, growing seedlings or, etc.
And the third, indisputable fact is the physiological need of a person for food. In other words, people always need food, and therefore the farming business will never lose its customer.
Pros and cons of this business
The advantage of farming, first of all, is that the business is out of season. Therefore, preference should always be given to differentiated business management, i.e. those areas that will allow you to generate income all year round.
In addition, choosing several types of agricultural activities at once makes the entire business more sustainable: if one direction brings a loss, then the rest can be highly profitable and less risky. This also makes it possible to engage in experimental and exotic areas of agriculture for the given area.
Farming allows you to build several industries on one platform. For example, the presence provides biofertilizer for greenhouses. If the products from greenhouses are not fully sold, they can be used (if possible) as feed for pigs. This reduces costs and, accordingly, .
But the farming business also has your shortcomings, in particular:
- if a farmer is engaged in only one type of activity, then his entire business becomes high-risk;
- weather is one of agriculture's worst enemies. Therefore, to minimize its impact on future harvests, farmers must have significant current assets to save their crops or animals;
- if you do not look for direct access to the buyer, the farmer risks selling his products at a low price, which may not even recoup the cost of the goods;
- The constant increase in prices for fuel and fertilizers is a mandatory increase in the cost of the crop. Therefore, you should always look for options to reduce these costs.
However, what business doesn't face problems? Therefore, they need to be solved - the success of his business depends on the mobility and flexibility of the businessman himself.
If you have not yet registered an organization, then easiest way This can be done using online services that will help you generate all the necessary documents for free: If you already have an organization and you are thinking about how to simplify and automate accounting and reporting, then the following online services will come to the rescue and will completely replace an accountant at your enterprise and will save a lot of money and time. All reporting is generated automatically, signed electronically and sent automatically online. It is ideal for individual entrepreneurs or LLCs on the simplified tax system, UTII, PSN, TS, OSNO.
Everything happens in a few clicks, without queues and stress. Try it and you will be surprised how easy it has become!
How to choose a farming sector?
You should not think that you can engage in any type of agriculture. The choice of one direction or another is influenced by many factors, which will have to be taken into account.
Here are the main ones:
- weather and climatic conditions . They first of all determine what the future farmer will do and how much investment he will need for this. For example, in the north-west of Russia the climate is very changeable and treacherous in a northern way. Therefore, it is difficult to do without greenhouses there. However, in this region you can perfectly raise cows, goats, etc., since in the north-west most of the territories are occupied by meadows and there are many reservoirs;
- distance from transport infrastructure . A large distance from a normal road leads to higher prices for agricultural products and complicates the process of their sale. Therefore, when choosing a site, you should immediately pay attention to this;
- nature of the area . It’s good if the farmer gets a flat meadow, but what if it’s a swampy area? Then you will have to invest in raising such a site;
- soil quality . This determines what farming will be oriented towards. If the soil is sandy, then carrots and, not surprisingly, strawberries grow well in it. Almost everything grows in black soil, of course. But there are crops that love soil that is poorer in composition. Therefore, this issue should be understood.
But still, what can you do? For example: 
- crop production . It is very important that the area allows, since many crops cannot be planted in the same place every year in a row, i.e. there must be fruit production. Moreover, it is necessary for crops to produce harvests as long and as early as possible;
- growing berries . Here, too, the variety is of great importance. For example, there are species or strawberries that produce a harvest in the fall and before frost, but “dormant” in July. It is therefore important that varieties be planted that will allow harvesting over a long period of time and without interruption;
- growing seedlings . This is a real problem - seed germination. When planting a crop begins, it is like a lottery - whether it will sprout or not. Therefore, seed guaranteed for germination can bring great income. You can also add berry seedlings, shrubs, trees, etc. to this.
- mushroom growing (or champignons). Now there are technologies that make this business year-round. Moreover, you can even buy mushrooms from villagers for the purpose of drying, canning, or even for resale as raw materials to factories;
- livestock farming . This area cannot do without a closed loop. Those. If you only engage, for example, in the production and sale of milk, then it is not profitable. But if you produce cottage cheese, sour cream and other products from milk, the business’s opportunities expand, which make it more attractive for investment and sustainable;
- beekeeping . This type of agricultural business requires knowledge. But if you do it on a large scale, you can involve experienced specialists in the work. Moreover, bees provide not only honey, but also wax, royal jelly, beebread, propolis, etc. This means that the clients of such a farm are not only stores, but also manufacturers of cosmetics, medications, etc.
The main thing when choosing a type of agricultural activity is to remember the need to differentiate this business.
The following video explains where to start to become a farmer:
Small farm or big farm?
Very often many farmers start small, since such a business is less expensive, does not require substantial investments, and allows you to test your strengths and take into account mistakes when organizing a business. Of course, one cannot immediately expect big profits from such an economy.
But this option less risky:
- there is no need to hire labor - the efforts of your own family and friends are enough;
- allows you to not depend on external capital investments. This is very important when making decisions and distributing profits. Moreover, investors always put pressure on a business, which often leads to its death;
- minimizes the tax burden;
- allows you to experiment.
However, small businesses are always limited in their consumer audience and it is more difficult for them to obtain bank borrowings. And here large farm- this is an immediate jerk:
- such a business has fewer competitors compared to a small farm;
- below - what a family business does not have;
- they are given to him with great pleasure, since there is collateral;
- are more likely to promote such an enterprise than a small family farm;
- production volumes are higher and the consumer audience is larger.
However, large-scale farming means higher taxes and greater risk; this is the need to hire employees and, accordingly, social responsibility towards them. In addition, such a farm requires machinery and equipment for its maintenance, since without them all work will become labor-intensive and expensive. And this requires significant investments in the business! As for business, everything depends not on its scale, but on the efficiency of the owner himself. 
Business registration
If there is a farm, you will need:
- – drawn up in two identical copies, one of which will remain with the tax authority, and the other, after registration, will be given to the company with a mark;
- decision to create an enterprise (if there is only one founder) or (if there are two or more founders);
- application for business registration with the tax authority, form P11001;
- receipt of payment of state duty for company registration.
In addition, you will need to pay for the services of a notary for certifying the signatures of the founders on the application.
You must immediately submit an application for transition to a special regime within 30 calendar days after registering an enterprise or entrepreneur. Otherwise, the farm runs the risk of being left on a farm, which is contraindicated in the initial stages of doing business. By the way, agricultural producers have their own special regime - (Chapter 26.1 of the Tax Code of the Russian Federation). This special regime applies to both legal entities and entrepreneurs. But his choice is voluntary.
You will need:
- application form ;
- receipt of payment of state duty;
- a copy of the passport (or other identification document), if the documents are sent by mail. The copy is certified by a notary.
It should be noted that submit documents for registration both the future entrepreneur and the founders of the enterprise can:
- via Russian Post;
- through a notary via telecommunication channels with certification of his package of documents;
- directly to the tax authority (if a package of documents is submitted by a representative, then his authority must be confirmed by a notary);
- through MFC.
When submitting documents for registration, the applicant must have a passport (or other identification document).
Registration is ongoing 3 days from the date of receipt of all documents at the tax office. No licenses are required to conduct agricultural activities.
Start-up capital: where to get it?
This is the hardest part! The fact is that now banks do not provide loans for starting a business, but issue them to already existing companies.
So there are only four left most likely options:
- attract an investor. This will require a guaranteed income;
- obtaining a regular consumer loan secured by the property of an individual. But you should only take it from a bank - the interest rates are lower;
- loan from friends or relatives. But such borrowing will necessarily require the conclusion of an agreement that will help avoid claims;
- grant to start your own business. You should find out about receiving it by writing directly to the Ministry of Agriculture of the Russian Federation. This can be done through their official website. They answer quite quickly and in detail. It makes sense to ask because there are many in action right now. The same letter can be sent to regional authorities.
There are no other financing options for the new venture. If only you sell your own apartment!
Personal experience of receiving a subsidy for farming is described in the following video:
How to sell products?
– this is something worth thinking about right away.
As a rule, for farmers there is many implementation options of your harvest, in particular: 
- direct search for large, wholesale clients. These can be shops, restaurants and wholesale centers;
- participation in fairs. But they are not held often and are full of competitors;
- opening your own retail outlet. This could be a farm produce store, a small stall, or all together (which is much better).
The most important thing in promotion is advertising. But you should not immediately rush to its expensive types. Often, flyers, leaflets and other similar methods of informing consumers are more effective and mobile than banners or even advertising in the media.
But promotion must be comprehensive, and we should not forget about the Internet. Now the lion's share of communication between the seller and the buyer occurs through Internet resources.
Farming is a lot of work. But it allows you to generate income. Moreover, with proper organization of the business and its promotion, this business can quickly expand. Moreover, doing it now is very profitable!
An example of a farm is presented in the following video: