Separate business from personal

It can be difficult to separate the “farmer” from the “farm”.  There are few other professions or businesses where identity, business and multi-generation family histories are so intertwined.  At the same time, maintaining some space between personal and business can have significant benefits:

• Helps you stay in control by comparing financial decisions to other income options and investments
• Provides structure and transparency enabling partners/spouses to make informed decisions about time and dollar commitment
• Manages risks through diversification
• Makes implementation of back-up plans and fresh starts easier
• Make smart purchases by understanding how the item will positively impact the farm, your time or the environment
• Helps make the jump from hobby to business
• Offers potential tax and financial benefits
• Gives the business a professional appearance and attitude
• Helps with recordkeeping and the paper trail
• Helps you determine what parts of your farm you run for the money, and what parts are just for pleasure.
• Positions for growth by enabling the business’ performance to be assessed and enhanced.

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