What do I need to prove that I am a farmer, so I can sell my garden produce?

Asked March 30, 2015, 9:50 AM EDT

I am setting up a small market garden this year. I plan to sell vegetables at a stand along the edge of the road that passes my property. What do I need to prove that I am a farmer?

Chester County Pennsylvania

1 Response

There is nothing you need to do to prove you are a farmer.

The definition of a farmer used by USDA is - you have to have the potential to sell $1,000 worth of farm products annually.

IRS wants to see profits occasionally. No profits means you are a hobbyist to the IRS and not entitled to tax benefits of being a farmer.

Farmers do not pay some sales taxes in PA. There is no official registration or anything. At the store when buying business inputs you just fill out a one page form provided by the store so they have paperwork should they get a sales tax audit.

Some municipalities may have zoning/ordinances you should be in compliance with. Just check with the zoning folks and see what they say.