How to start your own farming business. Business plan for opening a farm: necessary documents, choosing a location, purchasing equipment, costs and profits. How are they different from each other?
When our first farmers appeared, the people around them who did not dare to start said:
It’s not time yet, there are no conditions to start - laws, loans, capital, etc. and so on.
Now the same people are saying:
They were lucky - they started on time, successfully used loans, now there are no such opportunities, again there are no funds, etc., etc.
And it will always be this way - some people do it, others weigh their own options. There are always opportunities, you just have to be ready to take advantage of them.
Starting is always difficult, both now and fifteen years ago. Especially when the wind is blowing in your pockets. Anyone can start with money, but starting from scratch will be a more difficult task. In short, it's quite a gamble. Yes, if you also consider that the bets in the game called “agriculture” are very risky.
Of course, it’s best to start in the direction that you know, know how to do, and what your heart is drawn to. When you do something you like, you get pleasure. And when, in addition to pleasure, there is also a good material result - what else can you dream of?
But it often happens that you yourself don’t know what you like best, but you need to start.
Of course, you need to try yourself in different directions, but first of all in those that can bring quick results with small financial investments. Even if your passion is gardening, for some time you will have to earn money for this in other directions, since starting a garden will require considerable financial resources and for several more years you will only have expenses that need to be covered with something.
Agricultural business from scratch. When I started and thought about which direction to choose, I proceeded from the following:
1) there is no money;
2) there is no technology;
3) there is no transport;
4) there are no special practical skills either.
I looked closely at everyone who worked on the land on their own. And I couldn’t find a better direction than growing vegetables.
What attracted me to vegetable growing:
Plant growing, and vegetable growing in particular, gives greater freedom than, for example, livestock farming.
Any animal with minimal care must be approached at least a couple of times a day so that it does not scream. And so every day, and 365 days a year.
Vegetable growing is seasonal. Although it has peaks at certain periods, it is not so intense throughout the year. You don’t have to approach the plants for more than one day. Even if it lacks something, it does not scream. Although an oversight can also lead to worse results.
Vegetable growing on a small area does not require large initial financial investments. These are mainly the costs of seeds, soil cultivation and plant protection.
It is possible to practice without having your own equipment. For basic tillage, equipment can be hired. There are few such works.
The main work is done manually. That is, basically everything depends on me.
Before me was an example of Koreans who were engaged in growing melons and vegetables. As a rule, they had neither their own equipment nor their own land, but they always had a lot of watermelons and vegetables.
I saw that my friends who had worked for at least a season with the Koreans had good results and no longer wanted to return to collective farm life.
All other intricacies of the technology of growing vegetable crops were mastered in the process of work. Familiarity with other people's experiences gave a lot. Healthy curiosity doesn't hurt here at all. And also the trial and error method is the oldest and best method of learning. Everything else is a work in progress.
The next year we were able to buy film and build greenhouses for seedlings to start growing early vegetables. We did not stick to one culture and one type of product. We tried to have early, middle, and late products.
You shouldn’t expect very big results right away in the first year. You just need to set yourself the task of annual development. You cannot be content with what has been achieved and mark time. Today we cultivated 1 hectare, next year - 2 hectares. Or you received 50 tons of products, the next year - 100 tons. And even better - work on doubling your income. In any case, you need to set yourself the goal of increasing the results of your business.
With such a gradual increase in production, the result will come. Over time, you will begin to acquire equipment and will be able to attract workers to help you.
And then there will be opportunities to engage in other areas that require large resources: gardening, viticulture, livestock farming, etc.
Over time, I was able to acquire equipment, the opportunity arose to rent large areas of land - I began to engage in grain production, where the processes require less manual labor and are more mechanized, since there are limited labor resources in our area.
Many farmers who started out the same way and do not experience problems with labor, on the contrary, did not get carried away with increasing their acreage, but began to intensify vegetable growing. They are expanding their product range, introducing drip irrigation, purchasing precision seeding machines, achieving higher yields, improving quality, and have taken up packaging.
After all, vegetable growing still provides the highest income per 1 hectare of land; it is several tens of times higher than when growing any grains, oilseeds and industrial crops.
And one more important point - when you start and the volume of grown products is small, in order to get a better result, we sold everything ourselves to the end consumer - we did not use the services of intermediaries and wholesalers. Although over time, when they began to grow large volumes of products, they moved away from retail trade. It has become more profitable for us to sell in bulk so as not to waste time on the market and focus only on production.
Although I no longer farm vegetables, I still believe that there is nothing better to start in the farming business.
Agriculture is an ancient branch of business that can be called quite profitable. Everything that is now sold on grocery store shelves - dairy products, meat, vegetables, fruits, eggs and much more - is the result of this activity.
Of course, many can immediately say that now the leading place is occupied by products from abroad, and therefore opening such a business will be unprofitable. It's not like that at all! Environmentally friendly and natural products are always in great demand. And knowing the right approach, developing a profitable idea and finding points of sale for finished products are all the main indicators of a smart investment. And in order to avoid difficulties at the initial stage, you can use ideas for starting your own business in the field of agriculture.
This is a profitable and quickly paid off business. First of all, you need to choose a profitable industry.
Rabbit breeding
- This is a very profitable option. In addition to the fact that the meat of these animals has good qualities and is of high cost, their reproduction rate is also quite high. By about 3-4 months the animal has commercial value.
Rabbits have high fertility. The pregnancy period lasts about a month. After giving birth, the female is ready for fertilization. A female rabbit can give birth to an average of 12 babies at a time. Therefore, you can be sure that this business will pay off in a short time.
It is best to start with 5 rabbits. From this amount per year, on average, you can get up to 300 kilograms of dietary meat.
The following breeds can be used for breeding:
- gray giant;
- butterfly;
- Californian;
- black-brown;
- Vienna blue;
- Flanders;
- Soviet Marder;
- veil-silver;
- rabbit ram;
- Russian ermine;
- downy;
- silver.
Before you start breeding, you definitely need to calculate the costs.
Cost calculation:
- Land rental costs range from 20 to 100 thousand rubles, it all depends on the region.
- Purchase or independent construction of cages for keeping animals - from 10 to 40 thousand.
- Purchasing 60 rabbits costs from 20 to 30 thousand, it also all depends on the region.
- The cost of compound feed for the year is from 50 thousand to 100 thousand.
- The employee’s salary per year is about 120 thousand.
On average, it will take a year of work from 218 to 390 thousand rubles.
Income calculation:
- Income from the sale of meat products. If you have 40 female rabbits and 20 males, then from each female you can get 20 rabbits in a year. As a result, there will be 800 of them per year. Each weighs 1.9 kilograms, which means 1.5 kg of pure meat comes out. A kilogram of rabbit meat costs an average of 200-250 rubles. You can earn up to 375 thousand rubles from meat per year.
- Income from the sale of skins. 1 skin costs 200 rubles, which means 800 skins will cost 160 thousand rubles.
In the first year you can earn about 535 thousand rubles.
Sheep breeding
What you need to open:
- The first step is to implement the milk production plan. It consists of 3 stages:
- Preparation. Funds are being sought to develop the business, contracts are being concluded with suppliers and purchasers of products. Duration is 5-7 months.
- Arrangement. At this stage, it is necessary to build a barn, a milking parlor, purchase equipment and feed. This stage will take 4-5 months.
- Work process. At this stage, direct activities are carried out. This includes the production of feed, sales of milk and dairy products.
- Feed production. To reduce feed costs, it is better to produce feed yourself. To grow fodder crops, you should use land that will be located near the farm. It is advisable to use spring vetch, corn, clover, oats, and perennial cereal grasses as forage crops. For production it is necessary to build a workshop. It will cost approximately 150-200 thousand rubles. Cows should be fed hay and silage. For deoxidation, soda is added to the feed.
- Work on the production and marketing of dairy products. To do this, you can purchase your own milk bottling and packaging line. High temperature processing is used during the filling and packaging process. Packaged products are transported to distribution points. Unprocessed milk can be sold to factories that specialize in processing it.
In the future it will be possible to expand the farm and increase the number of livestock.
Growing vegetables
Food production is a profitable business because it is always in price and in great demand. Growing vegetables is especially profitable. At the first stage you need to consider:
- Landing place. First of all, you need to find a piece of land to grow. The soil must be of high quality and fertile. Therefore, an analysis must be carried out to identify soil contamination with nitrates, pesticides, and heavy metals.
- Selection of vegetable crops. To do this, a market analysis of the most popular options is required. You can choose potatoes, carrots, cabbage, tomatoes, cucumbers, bell peppers.
- Choice of variety. The variety is selected depending on the climatic conditions of the region.
Where can you sell your products:
- Sales on the wholesale and retail markets. At these points you can make high profits with fast turnover. But there must be transport for transporting vegetables.
- Sales of products to wholesalers. This method will save shipping and transportation costs, but the cost of vegetables will be lower.
- Sales to shops, supermarkets, restaurants.
- Growing for a specific buyer.
What you will have to spend on:
- costs for planting material;
- purchase of plant protection products from pests;
- purchases of fertilizers;
- costs of renting land, construction and repair of structures;
- costs of purchasing and maintaining transport;
- expenses for paying utility bills;
- payment to working personnel.
In general, the level of income depends on the amount of vegetable output per 1 square meter. m of land. If all conditions are met, proper planting is carried out and further work is carried out for the full growth of plants, you can get a good harvest. Vegetables can always be sold at a good price.
Despite the popularity of various business options based on the resale of finished products, manufacturing sectors turn out to be the most profitable in the long term. If it is almost impossible for a private individual to open a factory from scratch, then anyone can open a farm. Peasant farming is a family business. It is formed by relatives who personally work in the community. You can hire no more than 5 people from outside.
Opening a peasant farm - prospects and difficulties
Peasant family business- an interesting social and economic element of modern Russian society. From a political point of view, members of the farming industry represent a gradually emerging middle class, which, due to its significant dependence on the state and natural resources, will support conservative political trends. Capital is difficult to cash out and quickly transfer to another area of the economy. The farmer needs stability to allow his crops or animals to grow.
From an economic point of view, peasant farming is a promising form of business organization, since a small enterprise is maneuverable in its activities and can be restructured, for example, from rabbit farming to quail farming in a relatively short time. It is clear that the transition from livestock farming to crop farming will take longer. A small farm occupies an economic niche in which a large producer will not be comfortable.
Let's weigh the pros and cons of a farming enterprise
Having a personal agricultural farm has positive and negative aspects that must be taken into account when deciding to open your own business.
Let's look at the main advantages and disadvantages:
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Flaws |
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Business is regulated at the legislative level. Farmer associations are subject to Federal Law No. 74 “On Peasant Farming” dated June 11, 2003. The last changes to the law were made on June 23, 2004. The activities of such structures are partially regulated by the land and tax codes. As well as legislative acts regulating the issuance of loans by banking institutions.
How to open a CFC is indicated in detail in these regulations.
In particular, Article 3 of Article 74 of the Federal Law states that a capable citizen of Russia, as well as foreign citizens and stateless citizens, can open a farm. Associations include relatives and up to five persons who are not relatives of the founder of the business.
The KFK community includes: husbands, wives, brothers, sisters. Grandfathers, grandmothers, grandchildren, children, parents are also members of the courtyard.
When creating a KFK by several people, it is necessary to enter into an agreement regulating the provisions for the functioning of the farm. If the farm is created by one person, such an agreement is not required.
There are no plans for legislative changes in 2018, so the answer to the question of how to open a CFC is quite standard and is based on basic legislative norms.
Let's look at the similarities and differences in the legal organization of your business.
According to organizational and legal form:
- Individual entrepreneur – an individual carrying out activities aimed at making a profit;
- Peasant farm - can be a legal entity (difficult by law), can be one individual or a community of relatives.
By registration method:
- Entrepreneur - at the place of permanent or temporary registration;
- Peasant - similar to individual entrepreneur.
Responsibility for obligations:
- Individual entrepreneur – liable with all his property;
- Agricultural producer – subsidiary liability.
Upon receipt of benefits from the state and municipality:
- Entrepreneur – practically none;
- Agricultural producer - tax holidays, preferential loans, the opportunity to receive a government order, purchase of agricultural land at a reduced price.
For taxation:
- Entrepreneur – simplified tax system and special tax system available;
- Farmer - Unified agricultural tax, simplified tax system and OSN.
If the manager has not chosen a taxation system, he is automatically transferred to the general system. He will be able to change it no earlier than the end of the year (see).
There are three large groups of permitted production:
- Plant growing;
- Livestock;
- Other types of agricultural production.
A farmer can grow wheat, oats, and other grain crops. Oilseeds, root crops, as well as plants used in the production of medicines and cosmetics. Growing mushrooms is also permitted.
From livestock farming, the farmer can breed and raise cattle, horses, pigs, goats, sheep, rabbits, birds, camels, bees and even worms to obtain the final product.
Interesting fact! Fish breeding is highlighted as a separate item. Quite a costly, but fairly profitable type of business available to agricultural producers.
Other permitted activities include hunting, fur dressing, auxiliary work (for example, preparing seeds for planting), and transportation of agricultural products.
To get started, you need to analyze your capabilities, weigh your strengths and weaknesses. Solve the issue of initial financing. If there is a need, then before registering a farm, you must contact the employment service to receive an incentive payment in the amount of about fifty to sixty thousand rubles. This payment is made as part of the process of employing an unemployed citizen. After receiving a positive answer, you must register with government agencies.
How to register a KFC in 2018
In order to start legally engaging in this business, you must go through the following registration steps:
Stage 1
The agricultural producer collects a package of documents and submits them to the tax service at the place of residence. The kit includes: a passport of the future boss, an application for registration of a peasant farmstead, receipts for payment of state duty, a certificate of place of residence. If necessary, an agreement between community members is added to this package.
It is advisable at this same stage to write a statement about choosing a system.
Stage 2
After registration with the tax office, registration takes place with the Pension Fund, Social Insurance Fund, and Rosstat. A bank account is opened.
Stage 3
Within five working days, the tax office must either register a new enterprise or refuse registration. In case of a positive decision, data on the new participant in economic relations is entered into a single register. The applicant is given supporting documents, as well as a certificate of registration.
Important: what is needed to open a KFC in 2018
Passport, application for opening, payment of state duty, certificate of residence.
Opening a KFC from a financial point of view using examples
The amount of initial investment depends on the type of activity that the farmer plans to engage in.
The maximum costs will be for the construction of a livestock complex, the minimum costs will be for the creation of a farmstead for raising rabbits.
Interesting fact! Pigs are omnivores; if necessary, they can switch to a predator diet, although, on an industrial scale, it is more profitable to feed them plant foods. And they are also excellent swimmers.
Example 1. The financial plan for the development of a pig farm for 10 heads without capital construction, using your own real estate, includes start-up costs on average of two hundred and fifty thousand rubles. If capital construction costs are required, the amount will be at least half a million.
The payback period will be approximately eight to ten months.
Example 2. The starting amount for rabbit breeding will vary from 50 000 before 200,000 rubles, depending on capital construction costs. Rabbits grow less rapidly than pigs. The increase in live weight is less, therefore, the payback will not occur earlier than in a year.
Example 3. Growing potatoes or onions on an industrial scale will require costs ranging from 300 before 500 thousand rubles, the payback period will be at least 2 years.
Initial capital is provided by the bank on special terms for farmers, amount, order 50,000 – 60,000 rubles can be obtained through the labor exchange by submitting an appropriate application.
Interesting fact! A peasant farmstead is one of the riskiest types of business. According to statistics, in 2017, due to a drop in effective demand, for the period January–May, the number exceeded the number of new farms 3 times.
In addition to his main activity, the farmer is able to engage in other activities that he indicated when registering with the tax authorities.
Entrepreneurs involved in agricultural activities sooner or later face questions about the state of affairs, further development, and legislative registration of the enterprise.
There are several organizational and legal forms (hereinafter referred to as OPF) of business entities - from LLC to individual entrepreneur. And each of the OPFs has an impact on the organization’s taxation, reporting, and liability. Few people have complete information and understand the details of organizational and legal forms. Ultimately, if you make an erroneous, incorrect choice of status, you may incur unexpected expenses and losses.
Legal and administrative nuances
Having chosen the legal form of running an agricultural business in the form peasant farm, it is necessary to familiarize yourself and study in detail the existing subtleties and features of the administrative and legal field of peasant farms.
We can highlight the following characteristic nuances of a farm (peasant) economy, which are paramount and fundamental:
- tax registration is carried out at the place of registration of the head of the peasant farm as an individual;
- applicants for registration of a peasant (farm) enterprise can be: citizens of the Russian Federation, foreign individuals and people without Russian citizenship;
- in all public documentation only the abbreviation is indicated - peasant farm;
- there is no charter, and the semblance of a constituent agreement is an agreement signed by all participants;
- members of the peasant farm must be over 16 years of age and related by family ties (no more than three separate families), the number of which is not limited (it is acceptable to accept outside workers in the amount of 5 citizens, but no more);
- property of an economic entity - common shared or common joint property (if one of the relatives leaves the membership of a peasant farm, the property is not subject to division, but monetary compensation is paid for his share of the assets);
- The production and sale of agricultural products occur with the personal participation of each member of the farm.
Please note: the entrepreneurial activity of peasant farms occurs without the formation of a legal entity, but a farm is considered established only from the moment of state registration.
Features of state registration in 2019
In 2019, there were no changes in the registration regulations of peasant farms.
The composition of the package of documents submitted to state registration authorities has not changed and remains the same.
The establishment of a farm enterprise occurs in accordance with current regulations and laws previously approved by legislators.
Collection of documents for opening a peasant farm, constituent documents
Conducting an agricultural business can be carried out geographically anywhere in the country, and registration of a peasant farm is carried out at the tax office exclusively at the place of residence of the individual organizing the enterprise.
The following are submitted to the fiscal authorities:
- Application for registration of a peasant farm of the established type. Its form is practically no different from the application for registration of an individual entrepreneur and there are usually no difficulties in filling out the form.
- Passport of the future head of the enterprise.
- A decision in the form of a contract or agreement on the organization of a peasant farm. The drafting and conclusion of a contract/agreement between relatives who have expressed a desire to found a farming enterprise is legally defined. Such a constituent agreement sets out the main points of activity and relevant information:
- about shareholders (members) of an organized peasant community;
- on the election/appointment of the head of the peasant farm;
- about the methods and composition of the formation of the property fund of the economy, as well as the use and management of material resources;
- on the assigned responsibilities and rights of each participant in the agricultural enterprise;
- about the system of distribution of manufactured products and income received from joint agricultural activities;
- on the procedure for an individual to enter a peasant farm and leave it.
- Receipt/invoice for payment of state duty (in case of refusal to register a peasant farm, the tax paid is not returned to the payer).
- A certificate of the actual place of residence of the individual registering the agricultural enterprise.
Note:
- An agreement on the establishment of a farm is not required if a peasant farm is established by one person.
- If the future head of the peasant farm personally provides originals and copies of documents for registration, notarization of duplicates is not necessary.
Registration and Review Procedure
The process of registering a farm enterprise consists of the following sequential steps:
- Preparation and submission of a package of documents to the Federal Tax Service.
- Obtaining registration documentation.
- Receiving an information letter with statistics codes from Rosstat.
- Receiving notification from the Social Insurance Fund and Pension Fund about registration with assigned registration numbers.
- Opening a current account in a bank.
In parallel with submitting documents to the tax office, you can submit an application for the chosen tax regime (Unified Agricultural Tax, USN, OSN, UTII).
Tax response
The tax authority is assigned to consider and make a decision on registration of peasant farms five working days.
If the outcome of the case is positive, information about the newly created agricultural enterprise is entered into the Unified State Register of Individual Entrepreneurs and the applicant is issued:
- certificate of state registration of the head of a peasant (farm) enterprise;
- tax registration certificate;
- extract from individual entrepreneurs.
Registration documents can be sent to the entrepreneur by mail.
You should know: if an individual already has the status of an individual entrepreneur, then registration as the head of a peasant farm will be denied.
Conclusion
Currently, in many regions of the country, agricultural entrepreneurs choose a legal form of activity in the form of peasant farms. This is explained by support in the formation and development of small forms of participants in the agricultural sector both at the federal and intraregional levels.
Assistance is provided in the form of grants and funds within the special “Beginner Farmer” program. Despite government support, every farmer should realistically assess their strengths and capabilities in this difficult activity.
Interest in the village has grown significantly in recent years. Russians are returning to agricultural work not only in their dacha plots, but are also thinking about deeper “naturalization.”
Someone chooses a type of activity such as farming and opens an enterprise of the corresponding profile.
How to do this legally? This is what we will discuss in our material today. We bring to your attention step-by-step instructions for registering a peasant farm in 2019.
Pros and cons of farming
Before we figure out how to open a peasant farm in 2019, let’s think about what makes this type of business attractive. And let's be sincere about its risks. So, a peasant farm is an agricultural enterprise in which mainly relatives work. They independently produce and sell products on the basis of owning their own property.
Why is this type of activity gaining more and more followers? Let's list the attractive factors:
- Food products are always in demand;
- Food prices are rising steadily, ensuring profit for the manufacturer;
- Sanctions from Western countries in recent years have cleared a place for Russian agricultural producers in the domestic market in a number of ways;
- Consumers often give preference to domestic food products, trusting their quality and environmental friendliness;
- The choice of types of activities is wide, a person also thinks about this when deciding how to register a peasant farm in 2017. It is possible to use the characteristics of the area of residence, climate, etc.;
- There are several federal and regional programs to support farmers, especially in the first years of peasant farming. For example, issuing subsidies and grants, reimbursements of interest rates.
Yes, there are difficulties and negative aspects. This is a profitable business, but when farming there are risks of crop failure due to weather conditions and force majeure situations. Livestock farming has its own nuances and complexities. There are questions about lending to agricultural producers, but so far banks have not agreed to significantly reduce rates. Nevertheless, the army of farmers is growing, if only because this type of activity gives people a lot of positive emotions.
How to open a peasant farm in 2019: organizational nuances
Another feature that makes the task of opening a peasant farm in 2019 easier is that no qualifications are initially required. Of course, special knowledge will be very helpful in growing vegetables, raising poultry, beekeeping and other industries where farmers can prove themselves. But for the registration process itself there is no such mandatory condition as professional training of personnel.
What is needed, what are the features of creating a peasant farm?
- Both Russians and foreign citizens or even stateless persons can become a member of the household;
- The future head of a peasant farm must register as an individual entrepreneur, without forming a legal entity;
- Relatives who are at least 16 years old can become members of the enterprise, including no more than three families, the number of members of which is not limited;
- If additional labor is required, the meeting of peasant farm members can admit up to 5 non-relatives as members;
- The property of the association becomes common or common;
- The production and sale of products produced by peasant farms take place with the personal participation of each member of the family farm.
Agreement is a fundamental document
The first document that people who decide to unite in a peasant farm are required to draw up is a written agreement. It will be transferred to the registration authorities, so it must contain the following data:
- About the head of the enterprise;
- About the members of the future peasant farm, their rights and responsibilities;
- On the rules of admission to and exit from an enterprise;
- On the procedure for obtaining property and using it;
- On methods of selling products;
- About the profit distribution procedure.
When an entrepreneur does not plan to have other members of the farm, he registers a peasant farm in the name of one person and himself makes a decision on its creation.
How to register a peasant farm in 2019: step-by-step instructions
Registration of a farm with the tax office is carried out at the place of residence of its head. Below we provide step-by-step instructions for registering a peasant farm in 2017. What documents will be required?
- certificate of residence of the head of the peasant farm;
- passport of the individual registering the household and its copy;
- application on form No. р21002;
- a receipt confirming payment of the state duty (in the amount of 800 rubles);
- decision or agreement on the creation of an agricultural enterprise.
In three days the farm will be registered. The farmer will be given a certificate of state registration as the head of a peasant farm and of registration with the Federal Tax Service, an extract from the Unified State Register of Individual Entrepreneurs and an information letter from Rosstat. The latter will record all the necessary data to help prepare reports.
Unified agricultural tax in the algorithm for the functioning of peasant farms
Practice shows that the most suitable taxation system for farming is the Unified Agricultural Tax (USAT). This is a simplified regime in which you do not have to pay separate taxes on property, profit, and added value.
During the process of registering an enterprise, a corresponding application is submitted to the local tax authority. But we must keep in mind that only those farms that have at least 70% of their activities in the production of agricultural products have the right to use it.
The main benefit of this regime: the tax is only 6% of profit, and in some regions even less. For example, in Crimea and Sevastopol the Unified Agricultural Tax rate is 4%. The declaration will need to be completed once a year, and payments will be made semi-annually. Another advantage of this format is the possibility of reducing the tax base by the amount of losses from previous years. Moreover, this benefit is valid for 10 years from the moment the loss occurred.
The format for paying social contributions is also convenient for a farmer who has chosen the single agricultural tax regime. It is fixed: in 2019 it is 36,238 rubles (29,354 for pension insurance; 6,884 for health insurance) with a household income of no more than 300 thousand rubles. If the profit is above 300 thousand, then you will have to pay (on the excess amount) an additional tax of 1 percent. Payments can be made quarterly or monthly.
As for hired workers, contributions from them must be transferred every month; they amount to 30% of wages + contributions for injuries, the rate of which is set according to the main type of activity.
For all members of peasant farms it is necessary to pay a fixed amount of insurance premiums in the amount of 36,238 rubles per year.
Peasant farm reporting on insurance premiums
There is a slight difference in the reporting of peasant farms from other forms of entrepreneurship:
- If individual entrepreneurs do not submit reports on fixed insurance premiums, then in 2019, for the first time, heads of peasant farms (peasant farms) that do not have employees must submit to the Federal Tax Service a calculation of insurance premiums for the past year by January 30, 2019.
The calculation of insurance premiums for peasant farms without hired labor consists of section 2 and appendix 1 to section 2 (with identification of individuals) - for members of the peasant farm, including the head of the peasant farm. The presentation location code should be “124”.
For peasant farms with hired workers, standard reports are submitted:
- to the Federal Tax Service - calculation of insurance premiums, 2 personal income taxes, 6 personal income taxes
- in the Pension Fund of Russia - SZV-M, SZV-STAZH
- in the FSS - form 4-FSS.
State assistance for peasant farms
From 2013 to 2020, a state program for the development of agriculture has been in effect in the Russian Federation. The program includes 11 areas of assistance for collective farming. Each region has the right to independently develop and apply conditions for assistance to peasant farms. The main requirements for receiving assistance are the provision of a business plan, on the basis of which local authorities decide whether to refuse or provide assistance. Information on the implementation of support programs for this category of entrepreneurs is contained on the official websites of regional departments or departments of agriculture.
One of the unsettled legal problems for peasant farms is the lack of forced exclusion of a peasant farm member from participants. According to Article 1 of Federal Law 74, a participant can leave the peasant farm only voluntarily.
But it is possible to change the head of a peasant farm if the head of the peasant farm does not fulfill his duties for six months or refuses to fulfill them voluntarily. In a peasant farm, the profit received belongs to all members of the farm and is distributed according to the shares specified in the agreement (decision) on the creation of the peasant farm.
Important change in the Unified Agricultural Tax from 2019
According to the Law of November 27, 2017 N335-FZ, from January 1, 2019, Unified Agricultural Tax payers are recognized as VAT payers. However, there is a category of entrepreneurs, including peasant farms, who do not have to pay VAT. To do this, it is necessary that the income does not exceed 100 million rubles for 2018, 90 million rubles for 2019, 80 million rubles for 2020, 70 million rubles for 2021, 60 million rubles for 2022 and subsequent years.
This rule does not apply by default, but on the basis of a written notification of the use of the right to exemption from the duties of a VAT payer. To submit a notification pp. “b” clause 1 of article 2 of Federal Law No. 355 of November 27, 2017, a deadline is established - no later than the 20th day of the month from which this right is used. The notification must be submitted to the Federal Tax Service at the place of registration of the peasant farm.