Tree Farms

[murphy1244]

Does it need to serve commercial purposes such as lumber etc.? I couldn't find much information online for Missouri.

Yes and there is two ways to go about it. You can go AG and get a bigger tax break but you must show some business and make some money every so many years. Or go forestry which is less of a tax break but don't have to go through the books.

Try this site Larry, G5999 Forestry Assistance for Landowners | University of Missouri Extension

 

[TripleR]

Yes and there is two ways to go about it. You can go AG and get a bigger tax break but you must show some business and make some money every so many years. Or go forestry which is less of a tax break but don't have to go through the books.

Try this site Larry, G5999 Forestry Assistance for Landowners | University of Missouri Extension

Thanks for the link, I'll check into it, but since we only use ours for recreation/wildlife, I doubt we could do it.

 

[smstonypoint]

Larry, here you need at least 10 acres to qualify for it plus you need a forestry plan which is easy to do.

Does it need to serve commercial purposes such as lumber etc.? I couldn't find much information online for Missouri.

I think two separate issues are being confounded in this thread:

1. classification as a tree farm (e.g., AMERICAN TREE FARM SYSTEM CERTIFICATION) and

2. qualification for property tax land-use assessment as a forest, The qualification criteria differ by state: State Tax Laws — National Timber Tax.

Steve

 

[newbury]

Check your state laws! AFAIK Mississippi gives no tax break. If it did similar to Indiana my taxes, although low, would drop GREATLY.

 

[murphy1244]

I think two separate issues are being confounded in this thread:

1. classification as a tree farm (e.g., AMERICAN TREE FARM SYSTEM CERTIFICATION) and

2. qualification for property tax land-use assessment as a forest, The qualification criteria differ by state: State Tax Laws — National Timber Tax.

Steve

Right Steve, if your raising timber AG is the way to go. I was reaching out to TBN members to see if anyone else is a certified forest so I could learn from them. I just got my documentation yesterday.

 

[ChemE]

TripleR, our 312 acres are in the ATF. We went through our local MDC Forester who set us up, they require a management plan and a appraisal. It cost roughly $2200, but the MDC had funds to cover the entire cost. We have been in it for 5 years and have no plans to sell timber in the next 10 to 15 years, but it was an easy way figure out what we had in timber. Once you do sell, you need to know your cost basis (appraisal) to off set the tax. Ours in the mean time is used for recreation.

I am converting a 4.5 acre field into pines (2,450 seedlings) in the spring. It's an old field my hay guy says is to rough to cut for hay.

The USDA did come through and offer us funds to clean up some wind storm damage in 2009.

 

[teg]

...No need to get huffy over it.

WTF???

Thanks for those that have gave useful information... another question, how long do you have to stay in the program and/or is there any penalty for leaving?

Edit: I'll read through the links posted and look into see if Va. has anything. I already did the forestry plan, wasn't too impressed with the plan, basic stuff.

 

[murphy1244]

WTF???

Thanks for those that have gave useful information... another question, how long do you have to stay in the program and/or is there any penalty for leaving?

Edit: I'll read through the links posted and look into see if Va. has anything. I already did the forestry plan, wasn't too impressed with the plan, basic stuff.

Sorry Teg, I must of took it wrong.Did you get a tax break? Did you do EQUIP?

 

[ChemE]

Our plan was pretty basic also, common sense stuff and NOTHING earth shattering. It did let me know what areas I needed to do some timber stand improvement (TSI) on and it was not the area I thought needed it. Almost all of the cost of ours was the appraisal. I just looked, we have been in it since the beginning of 2009. If getting in it had a negative impact on our wallet, I doubt I would have done it.

I forgot the term to stay in, maybe 5 or 10? The only penalty I can recall is if we want to get back in any cost would be on us, they would not provide any funds. So really revenue neutral. The benefit was the USDA considered us a farm and most projects I do (plant trees, etc.) the MDC has funds available.

 

[murphy1244]

I have only made money and have only spent money on herbicides like Pathfinder 2.

 

[teg]

No problem, my grammar is not the greatest and after re-reading, I can see where you might have taken it the wrong way.

...Did you get a tax break? Did you do EQUIP?

If there was a tax break, the forester didn't mention it at the time. We did not sign up for anything mainly because we were not 100% sure what we wanted to do with the land, and still not really sure. The program we were looking at the time was geared towards wildlife, quail, IIRC and was for 10 years.

Once I get TBN reading caught up, I'll investigate this more. I have 13 acres each of woods and open space... I don't plan to harvest the woods except for culling out small trees for firewood.

 

[murphy1244]

" I don't plan to harvest the woods except for culling out small trees for firewood." thats where I am at. The reason I did the project was a 50% tax break. The EQUIP was a little money maker, not much but you need to go out there and spray and cut bushes and grape vine. Like getting paid to make your woods better!

EDIT, The forestry project is run through the state and EQUIP is federal.

 

[Citydude]

Thanks for the Thread Murphy. I will have to check into this. Sounds very promising.


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[TripleR]

TripleR, our 312 acres are in the ATF. We went through our local MDC Forester who set us up, they require a management plan and a appraisal. It cost roughly $2200, but the MDC had funds to cover the entire cost. We have been in it for 5 years and have no plans to sell timber in the next 10 to 15 years, but it was an easy way figure out what we had in timber. Once you do sell, you need to know your cost basis (appraisal) to off set the tax. Ours in the mean time is used for recreation.

I am converting a 4.5 acre field into pines (2,450 seedlings) in the spring. It's an old field my hay guy says is to rough to cut for hay.

The USDA did come through and offer us funds to clean up some wind storm damage in 2009.

Thanks, I'll check into it. Some of our land qualifies for CRP and some doesn't. The last four acres went into CRP and we have a forester who checks on it.

 

[murphy1244]

Thanks for the Thread Murphy. I will have to check into this. Sounds very promising.


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Your very welcome. I posted this thread in hopes to learn from you people out there.