Peasant farming: how to start from scratch. Peasant farm business plan - step-by-step instructions with financial calculations. What features does a farming business have?

Everyone has experience working on a household plot, but not everyone takes the risk of starting own business on the ground. But this is one of the profitable directions doing business, and I will tell you how to open a farm even from scratch. Moreover, there is a state program to support entrepreneurs who want to start farming.

Active development of farming was not observed until the corresponding law was adopted in 1997, aimed at developing the agro-industrial complex. The Government did not stop there and further adopted a stabilization program, further development. Beginning farmers received preferential lending and taxation opportunities.

This attracted the attention of young entrepreneurs, who within a few years became successful farmers. Every year, programs are developed to help develop farming in Russia. Young entrepreneurs receive grants and begin their journey in the world of successful agricultural business. This is one of the few types of activity in the development of which the state is interested.

Many people can cultivate the land and care for livestock, but this is only to cover the needs of their own family. But it is on the basis of personal plots that now successful farmers start their business. You can run a business independently, or you can unite several yards on the basis of a joint activity agreement.

How to start farming

One solution is not enough. Moreover, it must be thoughtful and balanced. I helped many people do this. And I’ll tell you from my own point of view personal experience, that the most stable and quickly achieved profit are those who began to develop in several directions. But for a beginner it is better to start small:

poultry breeding;
rabbit breeding;
meat and dairy products;
beekeeping;
fisheries;
growing vegetables;
growing greens.

These are the areas that can be visited by one family of 2-3 people. However, in order to start selling what you have grown, you cannot do without registration. It is necessary to collect a package of documents and submit it to the local registration authority.

Application (P21002) for registration of farming, certified by a notary.
Photocopies of personal documents;
Notarized parental consent.
A copy of the birth certificate, which acts as confirmation that the farmer will not abandon his venture.
Svid. marriage certificate (copy), notarized.
Receipt for payment of state duty.

Only citizens of the Russian Federation have the right to engage in this type of activity. After receiving a certificate, a newly-minted farmer becomes eligible to participate in state and federal programs that provide financing for farmers. At the first stage it will be individual entrepreneurship, but it does not exclude a mandatory taxation system. IP has certain advantages:

simplified taxation system;
there is no need to maintain accounting records;
there is no need to report purchases;
cash accounting using a simplified system.

After registration, you must contact the tax service, register and select a simplified taxation system.

At the first stage, this will be enough to develop the business to a certain size. But there definitely comes a time when you need to hire people, purchase equipment and machinery. In a word, expand. And this is where the farmer faces a problem, since he cannot take advantage of the farm loan program. If, for example, he found an investor, then the individual entrepreneur will not be able to take advantage of his investments.

It is necessary to open an LLC, a peasant farm (collective farming enterprise). This is a different level, a different form of responsibility. You will need to recruit staff, officially register as an accountant, re-register with self-government bodies, and change the form of taxation. You will need the following package of documents:

application (FR11001);
charter;
payment of state duty (receipt);
legal (actual) address;
minutes of the meeting at which the decision to create the LLC was made.

Permits from fire inspection and sanitary epidemiology may be required. stations and so on.

How to purchase land for farming

Many people believe that only people living in rural areas. You don't have to be a villager. It is more important to have a plot of land. There are several ways to own land:

rent;
purchase;
free receipt.

The most important thing is to buy if you have the finances. Renting is quite dangerous, since the lessor may violate the terms of the contract. And even the proposed penalty will not cover the losses. Moreover, rented land must be paid monthly certain amounts which negatively impact profitability.

A dubious option, but you can try to get a plot of land for free. To do this, you need to contact the local government authorities at the location of the farm with an application for the provision of an allotment. Maybe you'll get lucky and a plot of land will be allocated. But before asking for land, the farmer needs to find it himself. Take measurements and make a cadastral number, which is submitted to the local government along with the application. The land plot is provided for ownership or long-term lease.

Important! All citizens of the Russian Federation who have reached the age of 18 have the right to receive a land plot.

Financial questions

The government is interested in allocating land for farming. After the collapse of the Union, and with it the collective farm, too many lands and dilapidated farms are simply empty. If you have to choose land for farming, it is better to choose abandoned plots. So there is an option that self-government bodies will give it for rent or ownership.

It is better to choose one closer to populated area. This way it will be easier to restore or build a farm, and there will be no problems with the working layer. It is worth remembering that the site must be located in an environmentally friendly area.

In order to apply for a loan for the development of a farm, you need to find a bank that participates in federal and state programs to support farms. For getting financial assistance you need to prepare:

business plan;
charter of the enterprise;
bank account;
description of fixed assets (usually they are indicated in the business plan).

If everything in the documents is correct, then financial institution may approve lending. Under these conditions, a preferential loan is issued for 5 years. The farmer begins to make the first payments only after a year with a gradual decrease in the annual interest rate.

Approximate calculations for a farm of 200 pigs:

Analyzing the data in the table, it becomes clear that to open a pig farm you need to ask the bank for 5-6 million rubles. After all, payments for utilities and equipment costs have not yet been indicated. These numbers cannot be spontaneous; they must be indicated in the business plan.

Tips about that. how to become a farmer in Russia - in the video below:

Investors

Quite a profitable solution. Today, many investors are happy to invest own funds in the development of agriculture. But it is necessary to prove that the enterprise breaks even. Hypermarkets and developed outlets can act as investors Catering.

It is better to make contacts with investors at the IP stage. Then they have confidence that this economy will prosper. But there is some disadvantage to this. Since the owner of a farm cannot be the sole owner of the business. Part of the profit will have to be given away. But also positive side– there will be no problems with the sale of products.

Sales market

The food market is quite competitive. You need to make yourself known loudly. Therefore, established sales channels are not everything. The economy is growing, we will need to look for new points. Therefore, the farmer must take care of his own advertising. It's not just advertising in media mass media. To do this you will need:

trade your own products in markets;
participation in holiday and weekend fairs;
own store;
establishing wholesale sales.

It is necessary to register a farm on one or more agricultural product sales platforms or create your own Internet platform. It is advisable to be a member of the consumer. cooperative. Membership usually costs money, but it's worth it.

Conclusion

Creating your own farm is quite difficult, but it is a promising and profitable business. Demand for environmentally friendly clean products farms are growing from high speed. Creation large enterprise requires large investments, but they pay for themselves literally in a year, at best in two. This is practically the only type of business that is not threatened with bankruptcy.

A detailed guide on how to start a farming business. What documents are required and how much money do I need to invest? The answers are here.

Capital investments in peasant farms: from 770,000 rubles

Payback period: 9-12 months

This article will discuss how to start a farm from scratch.

For those who are not yet “in the know,” then: a farm (also known as a peasant farm) is an enterprise that produces and sells agricultural products.

In the minds of many people, this definition may evoke associations with hundreds of hectares of fields, large numbers of livestock and other similar pictures.

However, any entrepreneur can organize a mini production. And running it is very profitable.

And an analysis of development trends shows that demand will only grow in the future.

What are the main activities involved in farming as a business?

Farming can be divided into several categories:

Plant growing.

A huge range of plants can be planted and sold in the Russian Federation.
But several types are especially popular:

various greens;
cereals;
vegetables;
berries and fruits.

Home farm (breeding).
There are several popular directions:
1. Cattle: cows and goats (for dairy and meat products), pigs, sheep (wool), rabbits;
2. fish farming (trout, sturgeon, carp);
3. birds (chickens, geese, ducks, turkeys).
Additional areas of farming activity.
This is one of the strengths farming.
Almost any type of activity allows for additional profit.
This is beneficial, because you use your own raw materials for production, and do not buy:
1. vegetables, berries, fruits can be frozen and sold;
2. dairy products can be used for the production and sale of cottage cheese, sour cream, cheese, fermented baked milk;
3. If the farm produces grain, you can make flour or bake bakery products from it.

What features does a farming business have?

To open and run a farming business profitably and legally, there are several things to consider: distinctive features from other options entrepreneurial activity:

Farming is often a family affair.
After all, only people related by family ties and over 16 years of age can be its members.
But don’t think that you can only open a mini farm with such a small staff.
It is allowed to attract external workers, but no more than 5.
Each member of the farm is obliged to take personal part in production.
A farm can be called a farm if it produces at least 70% of agricultural products.
The state supports farming in every possible way, so entrepreneurs can count on assistance in purchasing equipment and even receiving a plot of land for free.

How to open a farm: step-by-step instructions for collecting documents

Starting a farm is most often decided by the family.

But this does not mean that you will not need to register with the tax authorities!

Especially if you want to receive benefits or a plot of land from the state.

You can obtain the list of documents and the registration instructions themselves from the law that regulates farming (N 74-FZ of June 11, 2003).

Only after all the paperwork has been completed can you begin to organize the farm itself.

You need to start by finding a suitable piece of land, and then start solving other issues.

Analysis of the current situation in agriculture

Small businesses are now actively developing all over the world, and the Russian Federation is no exception.

We can especially highlight such areas as trade, services and private farming.

The latter demonstrates a high level of profitability and receives full support from the state.

If we evaluate the growth rate of agriculture as a whole, we can say that it is falling.

It has been replaced by technical progress and GMOs.

There are fewer and fewer able-bodied people left in the villages, and young people are not eager to devote themselves to farming.

But it is worth noting that in the wake of craze in a healthy way life, the boom of vegetarianism and raw food diets, the demand for farming began to grow again.

But mainly in mini production of homemade, absolutely environmentally friendly products.

This state of affairs provides excellent prospects for starting a farm.

There is no point in wasting time when competition is at a moderate level and farm demand begins to gradually increase.

How to open your own farm: choosing land for farming

The first thing that is important for an entrepreneur who decides to start a farm from scratch is a suitable plot of land.

It is not necessary to buy it at the start, especially since not everyone has the appropriate starting capital.

First, rent it.

If business activity progresses profitably, then it will be possible to return to the issue of purchasing in the future.

It is best to look for a farming area outside the city, away from any industrial facilities, major roads, other farms.

But not at a great distance, so that farm products can be quickly and inexpensively transported to customers.

If you intend to plant plants or raise cattle, environmental friendliness and environmental safety are important.

Also, some features appear depending on the chosen area of farming:

To raise cattle, the plot of land must be large, have sufficient lawn area for grazing, and a reservoir.
If the farm is beekeeping, there must be fields with flower stalks next to the apiary.
Otherwise, you will have to plant them yourself.
The presence of a pond is also important if you will be raising domestic waterfowl.

What personnel should you hire for your peasant farm?

Farming is extremely difficult, especially for a novice entrepreneur.

Therefore, even if you have all the knowledge necessary for work, a businessman needs to hire a staff of workers.

For each area of activity, the list of required positions will be different.

But any farming niche related to animals cannot do without a key person - a veterinarian.

He will be involved in preventing or minimizing the main risk - diseases and quarantine of animals.

The veterinarian also allows for childbirth to be carried out at the highest level, that is, to increase the farm's livestock population naturally without purchasing costs. So investing in the best veterinarian is beneficial for an entrepreneur.

The rest of the list of hired people will look like this:

An ordinary peasant farm mini-farm: butcher, livestock specialist, milkmaid, manager, cleaner.
Beekeeping: depends on the number of hives, usually there is 1 beekeeper for 10 of them.
Raising rabbits or poultry: a simple task, just hire 1-2 assistants.
But this is only relevant for mini-farm production.
For a business with a thousand headcount, the number of employees will be tens of times greater.

How to open a farm: points of sale of products

Homemade natural products obtained from farms are in demand by many buyers.

For example, the main product of livestock farming - meat - will be bought by restaurants, shops, and private individuals.

There is also a demand for by-products of production - wool, fluff. Although the demand for them, of course, is lower than for meat.

Also, public catering outlets and various trading companies will buy fruits, vegetables, herbs, and grains.

It is worth considering that in this case, sales will occur in wholesale quantities, so the purchasing cost for customers will be lower than the usual retail price.

If for crop farming it is not difficult to trade in large quantities, then collecting sufficient volumes of honey is no longer so easy.

So if you decide to breed bees on the scale of a full-fledged business, a mini apiary will not be suitable for these purposes.

You will need to purchase at least 50 bee families to produce the required volume of product.

Therefore, most often beekeeping is organized by the whole family - after all, it is almost impossible to maintain such a large apiary yourself.

But at the same time, farming is very profitable, the profitability level is at least 20-30%.

How much money do you need to start a farm?

An item that must be carefully calculated is the size of the investment.

After all, everyone will have their own list of expenses, and, accordingly, the amount.

Most of it will be spent on renting territory that will be suitable for your agriculture.

Also, if you choose livestock farming, a considerable amount of capital will be spent on purchasing the first batch of animals or insects (beekeeping).

One of the significant advantages is the one-time cost of starting a farm.

Almost any other business requires monthly injections of considerable amounts.

An entrepreneur invests money in a peasant farm once and then works for himself.

An approximate list of expenses for starting a peasant business looks like this:

What risks exist for farming?

Having your own farming business is definitely not the most risky activity, according to many.

However, in this area, in fact, there are many potential troubles that can ruin the economy and lead to losses.

The list for the specific selected area of peasant farming will be different, but in common list includes:

weather conditions unfavorable for plant growth,
various natural disasters,
pest infestations,
diseases among livestock,
quarantine areas for animals.

How profitable is it to own a farm?

a working farmer tells us in real numbers:

How quickly will your peasant farm pay for itself?

The size of the investment from scratch will be determined by what particular sector of agriculture the entrepreneur has decided to engage in.

After all, opening from scratch will require a different list of equipment, number of personnel, type and cost of purchased consumables.

Products obtained in rural production are in demand among all segments of the population.

The fashion for an organic lifestyle that has emerged in recent years has only strengthened the growing demand for natural products.

So if the above step-by-step instruction How to open a farm is carried out by the entrepreneur point by point and he produces exclusively quality goods, business on peasant farms will flourish!

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Almost every year, interest in farming activities increases, and exponentially. This is not at all surprising, because agricultural products are always in demand among numerous buyers. At the same time, the government Russian Federation is trying to introduce numerous innovations into legislation that help improve the functioning of peasant farming.

For those who decide to engage in agricultural work, and on a serious scale, it is best to choose a peasant farm (peasant farm) to sell their products and grow them. We will analyze further how to open a peasant farm in 2019 and what are the advantages of this type of business activity.

Advantages and disadvantages of farming entrepreneurship

Almost every citizen of the Russian Federation and even a foreign citizen interested in agricultural work will be able to receive subsidies for farming. But before opening a peasant farm, you should find out what is needed for this event and what are the pros and cons of farming.

A peasant farm is considered an agricultural enterprise where the main staff consists of close relatives of the person for whom the peasant farm is registered. That is, to the question “Is there an individual entrepreneur on the list of those persons who can register their agricultural work in peasant farms?” the answer will be unequivocal - of course, there is. When working on the analyzed type of business activity, all participants must take part in both the production and sale of goods that are grown on the land considered as their property.

Farming is increasingly gaining attention due to several positive factors, namely:

buyers always purchase food products, which means that agricultural products are considered the most in demand;
the cost of food products, as statistics show, is constantly growing, so the manufacturer is guaranteed to make a profit;
Buyers primarily consider food products grown by domestic producers, trusting the quality of the goods sold and their environmental friendliness.

Those who have not yet decided which type of business activity to choose should keep in mind that if you register a peasant farm, you can use certain features, for example, take into account the climatic conditions of the place where agricultural products will be grown in the future, and so on.

As previously noted, the legislation of our country seeks to support farmers, therefore it offers those registered for the first time to take advantage of both regional and federal programs to maintain financial situation, especially in the first years of doing business. The most convenient way, as experienced farmers note, is to receive subsidies from Rosselkhozbank, since in this financial institution Flexible and acceptable conditions for receiving subsidies are provided.

How to open a peasant farm

To open a peasant farm, it is not at all necessary to have qualifications. To create farming, the following features are taken into account:

the citizen for whom the peasant farm will be registered must be registered as an individual entrepreneur;
both relatives and other persons whose return is up to 16 years can work on the farm staff;
all property owned by the company is considered as common property.

If it is necessary to expand the staff, then the peasant farm can hire, at the mutual desire of all participants, 5 employees who are not related to the head of the peasant farm.

What documents are required to open

Citizens who decide to start their work on peasant farming must first draw up a written agreement, which is forwarded to the registering government agencies.

A peasant farm is registered at the place of registration of the future head, by employees of the tax inspectorate. To get started, you need to provide the following documentation:

certificate of location permanent residence future head of farming;
identification document of the person in whose name the peasant farm is registered;
an application that must be prepared according to the sample R 21002;
confirming receipt of payment of the state duty, the amount of which is 800 rubles.

Before starting an agricultural business, you need to decide on the organizational and legal form. The most optimal one in 2020 is, step-by-step instructions for its design will be given in the article.

Peasant farming as an organizational and legal form has its own administrative nuances and subtleties. The following features of peasant farms are highlighted:

tax registration occurs at the place of permanent residence of the head of the peasant farm;
Citizens of the Russian Federation can register peasant farms, Foreign citizens, as well as stateless persons;
there is no need to draw up a Charter;
in all documentation only the generally accepted abbreviation KFH is written;
the main constituent document is an agreement that is signed by all participants in farming;
all participants must be over 16 years of age;
all members of the peasant farm must be relatives, no more than three separate families are allowed;
The number of farming participants is not limited.

Employment of third parties is permitted. Maximum amount outside employees – five people.

All property is registered as common property - joint or shared. If someone leaves the membership, the property will not be divided. The withdrawing participant is entitled to monetary compensation.

The entrepreneurial activity of a peasant farm does not imply the formation of a legal entity. However, despite this, it will be necessary state registration. Until this procedure is completed, the farm will not be considered established and operating.

How to register a peasant farm in 2020?

Registration of peasant farms is carried out according to the step-by-step instructions given below.

Step 1. Collection of documentation

As mentioned above, it is necessary to register a peasant farm at the place of permanent residence of the head. However, agricultural activities can be carried out in any region in the Russian Federation.

To register with the Federal Tax Service you will need to submit:

application for registration of peasant farm;
general civil passport of the manager;
agreement on the creation of a peasant farm between relatives participating in the newly formed farming;
receipt of payment of state duty;
a certificate from the place of actual residence of the applicant.

Agreement serving as constituent document, must contain the following information:

data on farming participants;
details of the elected leader;
methods of forming farming property and its composition;
methods of managing material assets;
rights and obligations of members of peasant farms;
system for distribution of profits and products;
the procedure for individuals to become members of peasant farms, as well as for participants to leave the farm.

If a peasant farm is created by one person, then an agreement is not required. The Federal Tax Service will need to provide originals and copies of the above documents. There is no need to certify copies at a notary office.

Step 2. Registration of peasant farms

Direct registration of a peasant farm includes the following procedure:

Preparation of the necessary documentation.
Submission of documents to the territorial branch of the Federal Tax Service.
Receive documents confirming completion of the registration procedure.
Receiving a letter from Rosstat, which will indicate statistics codes.
Receive written notice from Pension Fund and the Foundation social insurance about registration.
Opening a current account in any bank.

Step 3. Final stage of registration

The registration process will last no more than five working days. If the Federal Tax Service satisfies the registration requirement, then information about the established agricultural enterprise is entered into a unified register.

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Based on the results of consideration and registration, the applicant receives the following documents:

certificate of registration with the tax office;
extract from the unified register;
Peasant farm registration certificate.

An important point is that if a citizen is already registered as an individual entrepreneur, he will not be able to be registered as a farm manager.

Pros and cons of peasant farms

The relatives who founded the peasant farm independently conduct agricultural activities and sell finished products. All property is in their joint ownership. This type of activity has a lot of advantages, which is why more and more people are registering this particular organizational and legal form.

The main advantages include the following features:

products produced by farming are always in demand;
food prices regularly increase, which increases producer profits;
after the imposition of sanctions from Western countries Russian agricultural producers occupy higher positions in the state market;
the country's population trusts domestic products more, as they are believed to be of higher quality and environmentally friendly;
You can operate in any region of the country, so participants in peasant farms can produce products, taking into account the characteristics of the area, climate, etc.;
agricultural business (especially in the first years) can benefit from government support under existing programs.

Despite all the advantages, there are also negative factors. For example, force majeure situations, climate disasters and other difficulties may arise.

Unified agricultural tax at peasant farms

The most appropriate and rational taxation system for running such a business is considered to be the use of the Unified Agricultural Tax (USAT). This is a simplified system that combines all taxes necessary for payment to the state by legal entities and entrepreneurs (property tax, VAT, income tax).

To switch to the Unified Agricultural Tax, you must write a corresponding application in the established form to the tax office. The right to use the simplified system is available to peasant-farmer entities whose activities consist of 70% of agricultural production.

As part of the single agricultural tax, it will be necessary to pay 6% of the profit received to the state. Tax must be paid in installments - half-yearly. Reporting on Form 3-NDFL will need to be submitted once a year.

If losses were identified in the course of business, the entrepreneur has the right to reduce the tax base for calculating payment by the amount of these losses. This benefit is provided for ten years after the loss-making period.

In addition to income tax, it is also necessary to pay social contributions off-budget funds. For “simplified people” in 2018, the amount of social payments will be 26,545 rubles if the income is no more than 300 thousand rubles. If this maximum base is exceeded, an additional 1% of the excess amount must be paid. Social contributions can be transferred quarterly or in a lump sum at the end of the calendar year.

If difficulties arise with registering peasant farms for plot of land Please consult a lawyer. Get free legal assistance possible on our website. Ask a question to an expert in a special window.

With the help of step-by-step instructions, registering a peasant farm will not cause any difficulties. This type of activity is becoming increasingly popular in our country.

There are several forms of doing business, depending on the type and scale of commercial activity. When starting a business from scratch, many prefer to register as an individual entrepreneur, as this is a fairly simple and quick procedure. But if a person decides to engage in agricultural activities, he can also register a farm. To understand which is better - individual entrepreneur or peasant farm, and choose optimal shape running a business, you need to understand the intricacies of each of them.

Peasant farms as a type of activity

A peasant farm (peasant farm) is represented by a group of people who are most often relatives, or for some other reason have joint property and are engaged in agriculture for the purpose of profit. Members of peasant farms are engaged in the production of products, their processing, storage, transportation and sales. A peasant farm can produce any product, but only if it is agricultural: poultry, livestock, vegetables, cereals.

If you are going to produce products of a different kind, a form of business such as peasant farming will not suit you.

What are the advantages

Peasant farming has a number of advantages:

support and privileges from the state;
tax grace period;
the possibility of using large plots of land, the area of which exceeds 2.5 hectares;
the opportunity to receive grants under support programs from various foundations;
official registration of employees;
preferential conditions for obtaining loans for the purchase of land and equipment;
in the absence of violations of the law, peasant farms are not subject to inspection by commissions from local government.

Therefore, many rural residents who have sufficient initial capital to develop agriculture, they prefer to create peasant farms.

Disadvantages of peasant farms

Unfortunately, no form of doing business is perfect. And peasant farming has disadvantages, which, however, are not many:

Large costs for registering a farm compared to a regular individual entrepreneur.
Mandatory use of land for its intended purpose. That is, if your land is intended for growing crops, you cannot graze livestock on it.
A participant in such a farm can be a member of only one peasant farm.

The agricultural business has fairly long payback periods. And if you want to speed up the process of making a profit, and also have some guarantees for yourself, you should follow a few recommendations:

What is IP

IP (individual entrepreneur) is individual, the person who formalized commercial activities and pays taxes. That is, an entrepreneur does not register a legal entity in order to engage in a certain type of business.

Registration of an individual entrepreneur is a fairly simple procedure that does not require a long time and significant financial costs. Therefore, this way of doing business will suit for those who want to start their own business from scratch.

Who can start a peasant farm?

A peasant farm can be created either by a group of people or by one person - the head of the peasant farm - individual entrepreneur. That is, the founder of the farm must already be individual entrepreneur. Therefore, the concepts of peasant farms and individual entrepreneurs are closely related.

If the household will include more than one person, an agreement must be concluded between the co-owners. This document includes the following sections:

General provisions on the work of the farmers' association.
Information about the head of the peasant farm.
Rights, duties and responsibilities of all members of the peasant farm.
Rules for entering and leaving a peasant farm.
Regulations on the transfer of personal property into the ownership of peasant farms.
Distribution of profits from farm activities.

Package of documents for registration

Only one member of the company takes part in the registration of the peasant farm - the head of the peasant farm with the status of individual entrepreneur. To register, he must collect a package of documents:

A notarized application for the establishment of a peasant farm signed by the head of the farm.
Agreement between members of peasant farms.
A copy of the passport of the person in whose name the company is registered.
Copies of passports of all members of the household.
TIN of all members of peasant farms.
Copies of certificates confirming the family ties of the co-owners.
List of OKVED codes.
Bank details.
Receipt for payment of the duty.

Peasant farm members

As we have already said, members of peasant farms are mainly relatives: spouses, parents and children, sisters and brothers and more distant relatives. Their number in a farm is not limited. For other people who cannot confirm family ties with the head of the peasant farm, there are 2 rules:

You can accept strangers into society, but only so that their total number does not exceed 5.
Maximum amount different families in society – 3.

Registration forms

Previously, it was possible to register a peasant farm as a legal entity or settle on an association of people, among whom one would have the status of an individual entrepreneur. But in 2003, the Law on Peasant Farming was adopted, in which there was no talk of registering a legal entity. Since then, community heads have been required to register individual entrepreneurs and submit reports independently.

In what cases is a legal entity formed?

If you want to run an agricultural business with a large number of partners who are not your relatives, you will not be able to register a peasant farm. Registration of individual entrepreneur of one of the participants and hiring of others according to employment contract does not provide guarantees to partners and does not protect their rights. In this case the best option LLC will be registered.

Individual entrepreneur - head of peasant farm

The main advantage of creating a peasant farm is that there is no need to register an enterprise. The main thing is that one of the community members has the appropriate status.

The head of a peasant farm is called an individual entrepreneur, and a farming society is opened at his place of registration.

The head of the peasant farm carries out all organizational work:

acts on behalf of the community;
organizes its work;
signs all necessary documents;
makes transactions with sellers;
hires employees;
maintains all records;
submits reports.

Private household plot or peasant farm

The form of agricultural activity closest to peasant farms is private household plots. The difference between personal subsidiary farming and peasant farming is as follows:

The owner of a private household plot works informally; he does not need to register as an individual entrepreneur, pay taxes and provide reports.
The owner of a subsidiary farm cannot issue declarations and quality certificates for his products. Therefore, he makes products more for own consumption, not for sale. The activities of peasant farms primarily involve making a profit.
Private household plots can use no more than 2.5 hectares of land for growing crops. While for peasant farms there is no limitation in land resources.
The head of a peasant farm has a better chance of receiving a loan, since he is perceived as an individual entrepreneur and not a private individual.

As you can see, private household plots are not a way of doing business; In order to make a profit, it is recommended to create a farm. But, unfortunately, not everyone can afford to buy a large plot of land. Others do not want to live in rural areas just to open a family business.

Peasant farm accounting

Since peasant farms are not legal entity, head of the community, agrees with federal law dated December 29, 1995 No. 222-FZ, can keep records using a simplified system. Financial statements, according to the law, must be kept according to a book of income and expenses. But different peasant farms can differ greatly in their scale. For large farms, the most common system will be accounts and double entry. It allows you to reflect in detail all business transactions and processes.

Tax benefits for peasant farms

After receiving a certificate of registration of a peasant farm, the head of the community must choose a taxation system. Most often, in this case, they choose a single agricultural tax, in which the community pays 6% of profits every six months. But for farms there is a grace period for paying taxes, which is 5 years from the date of registration of the individual entrepreneur by the head of the peasant farm. During this period, the farm does not pay taxes, which has a good effect on the payback period of the business.

State support for peasant farms

Peasant farms are one of the few forms of doing business that have received significant government support:

Support for lending to agricultural producers. Companies are awarded subsidies to cover part of the costs of paying interest rate loan.
Financial assistance in the form of grants and one-time assistance for the creation and development of peasant farms.
Property support in the form of transfer of ownership of land plots, non-residential premises, transport, equipment, machinery, inventory and other state property based on a lease agreement on preferential terms.
Compensation from the social insurance fund in case of loss of a breadwinner.

Let's sum it up

You already understand that the concepts of peasant farms and individual entrepreneurs are closely intertwined. But in their pure form, these two types of business have significant differences. For a clear example, we have created a table of differences, which is better - a peasant farm or an individual entrepreneur:

Criterion		Individual entrepreneurship
Number of organization members	An unlimited number of related people, in other cases no more than five.	One man
Registration	Only the head of the peasant farm is registered, but an agreement is required in the case of several co-owners.	Registration of one person with information about his identity.
Income distribution	Between all participants of the company, according to the agreement.	All income belongs to the entrepreneur.
Responsibility	Distributed among all participants of the peasant farm, in accordance with the relevant provision in the agreement.	All responsibility lies with the individual entrepreneur. Responsible with personal property.
Privileges	Grace period in taxation, property state support, insurance compensation.	Simplified taxation system, reduced insurance premiums, grants and subsidies for a start-up entrepreneur.

The advantages of an individual entrepreneur over a peasant farm appear only if you want to run your own business. In the case of a family or partnership business, it would be better to register a peasant farm or LLC so that all business participants have the same rights and guarantees.