Subsistence Farming - Kenai or Mat-Su? (Anchorage, Fairbanks: for sale, transporting, how much)

[MissingAll4Seasons]

Which area is best for subsistence/mini-farming and raising smaller animals (goats, sheep, chickens) - Kenai or Mat-Su? I've seen small farms in both areas, but was wondering if the two areas have different crops or different benefits/difficulties for ag & ranching. We're not too concerned about whether there are utilities or "perfect" soil at the property, but having at least 3 season road/trail access and a good water source would be important. I know that Anderson just lotteried a bunch of farm parcels, but I missed it by a few months (darn!!).

I've also noticed there is "ag" land for sale in the northern region, even up to North Slope. Is it even feasible to farm that far north, or is that land better used for ranching bison, musk ox or caribou?

[rotorhead]

The mat-su is the traditional epicenter of larger scale farming in AK. This isn't to say that you can't grow gardens elsewhere, of course. One thing to keep in mind is that raising small animals up here can get a bit involved. The Kenai is bear country, so the varmint control issues get a lot more difficult.

Just yesterday a family a bit up the road here watched as a brown bear tore part of a wall off the barn, disemboweled their pregnant nanny goat, and then leisurely ate her in the yard while still alive. Yuck...

[MissingAll4Seasons]

OUCH! I'll have to keep that in mind... I'll either have to build my barn as a maximum security building or choose a location that isn't such a high bear risk.

[Marty Van Diest]

Mat-Su is good for farming, but you might need to really shop if you want much land. If you only need 5 acres or so, that is doable.

There aren't many bears here unless you are on the edges of the valley near the mountains. Of course, that's where there are more of the larger lots.

Now, if you need 5 acres of the top quality top soil...that's a different deal. It's really hard to find that stuff.

[arctichomesteader]

You might also consider the taxes if you want to subsistence farm, they can be the biggest obstacle to this sort of lifestyle sometimes.

I don't know about the North Slope (without a greenhouse I don't believe you can grow a lot of normal crops up there, probably just cool weather stuff), but you can definately raise many crops and some livestock in the Interior, quite far North. The soil isn't often that great though so would need to be worked on. Be sure to get enough land though, buying animal feed would be expensive.

[MissingAll4Seasons]

Thanks for the tips. We are back to considering Mat-Su as our primary location. Our farm/livestock plans could easily work with only 5 acres... but then trees and wood (for heat & material) might be sacrificed. Our initial biz/lifestyle plan looks better (less expensive and more sustainable) with 10 acres, with only 5 being cleared and used for crops and livestock.

We've seen a few larger acreages out past the Trapper Creek area that look (aerial anyway) to be fairly fertile, but access is a little sketchy and we really won't know until we get there what the soil is really like. I've also noticed that some of the more remote areas don't seem to be property taxed, or are taxed fairly low. This is probably due to access and possibly due to it being crappy land. And of course, there is that bear problem!

We are planning to have a greenhouse and use raised bed tech for our crops (which can be insulated & amended better/easier than ground soil)... so northern region might be doable if I can still grow enough good pasture. The last thing I want to do is buy lots of supplemental winter feed!

[bigjim]

Originally Posted by arctichomesteader

You might also consider the taxes if you want to subsistence farm, they can be the biggest obstacle to this sort of lifestyle sometimes.

Are you saying there are specific taxes particular to farming, or just that the normal property, sales, federal income taxes would be hard on someone who is not making a lot of money?

[MissingAll4Seasons]

Originally Posted by bigjim

Are you saying there are specific taxes particular to farming, or just that the normal property, sales, federal income taxes would be hard on someone who is not making a lot of money?

During my investigations, here's what I've found:

Primarily, it would be the state property taxes that cause problems for many small farmers (everywhere, not just AK). If your 10 acres carries annual property taxes of $8k, you have to make sure that you have income to cover those... plus any federal personal income tax if you make just a little too much money that year. Depending on the size and income of your operation, you may also have to pay AK and Federal business income taxes for any income generated by your farm... whether that's selling your produce, animals, hay or firewood. There is a "magic threshold" where your income, minus applicable deductions, isn't high enough to be taxable but it's a very fine line and requires excellent bookkeeping and a skilled tax accountant.

Secondly, you don't want to make so much that you can't file your personal and business income jointly (and owe nothing), but you don't want to make so little that your business is considered a hobby and therefore any farm-related expenditures would not be tax deductible business expenses.

Thirdly, there are business license fees and regulatory licenses required for many farm-related business operations. In general, small farmers can expect to be required to have an agricultural business license and collect any applicable state sales taxes for selling their produce (sales tax is normally collected only if you prepare & sell things like jellies and pickles from your crops).

Depending on the state, you may be required to have a Health Department license/stamp if you want to sell any prepared fruit or vegetable items (because this is considered "food" not "produce"). You may also be required to get a similar license if you sell any animals for meat -- in AK you cannot slaughter animals for sale because there is no meat inspector, so all animals must be bought alive (on the hoof) and the consumer must either slaughter it themselves or take it Palmer to have it slaughtered (for personal use only, not resale). Dairy operations will require an additional certification, inspection and license (on your hygiene and pasturization equipment) if the milk, cheese, butter, or yogurt is to be sold to humans (although you can sell raw goat's milk as an animal food source). Eggs and honey may also fall under similar guidelines.

You will also be required to have separate business licenses for each type of business venture that is not directly related to the agricultural operations of your farm... like selling wool or pelts, country arts & crafts, small engine repair etc that you operate on/from your farm for additional income.

All told, the property taxes are the biggest chunk, but all the nickle and dime regulations, licenses, fees and hoops required to actually be able to make income on your farm (as a small business) are fast becoming cost prohibitive to the average small farm... which is why they're all being sold out to the mega-agri-corps. Of course, if you aren't planning on making your income from your farm (i.e. not a business), just using it to feed your family and making your cash some other way... then you only have to pay the property taxes (and possibly some land use fees for agriculture) plus your normal personal income taxes for your "day job".

[arctichomesteader]

Originally Posted by bigjim

Are you saying there are specific taxes particular to farming, or just that the normal property, sales, federal income taxes would be hard on someone who is not making a lot of money?

All of them, but especially property taxes. You can make no money but be able to grow all your own food, supply your own heat (wood), not rely on any outside sources of energy or water or anything, and in most of this country, you'd be out on the streets soon because of property taxes. They force people into the "system" of working for fiat money (the cash economy). I truly despise property taxes, it's feudalism by corporations (incorporated municipalities, and state governments, are corporations) plain and simple. Income tax and sales tax are generally avoidable by not making much or any money and not buying anything from stores. Property taxes aren't. Fortunately, at least at the moment, in AK you can get property without property taxes. That won't be in Mat-Su though...nor Anchorage nor Fairbanks (it's also not a coincidence that politicians from those areas are also frequently trying to force taxation as bad as theirs onto the unorganized borough). I'd fully encourage missingall4seasons to look into parts of the unorganized borough outside of any incorporated area if subsistence farming of some sort is the goal...the only problem being, if you don't want to be entirely off the road system, is that there isn't much land on the road system available in the unorganized borough; a large portion of it is in the bush.

Oh and missingall4seasons: you mentioned buying 10 acres and having half left forested for firewood. Based on my own observations, of the nature of the slow growth of trees (most of those trees in the Interior aren't too big you'll notice) in the Interior and how much wood people said they were using for heat (give or take, about 10 cords a winter, which sounds about right based on what I know about firewood and wood heating), 5 acres wouldn't be enough to supply firewood sustainably. One reason I went from thinking about buying 5 to maybe 10 acres, to actually buying 20 acres, was to have firewood available from my own land should firewood permits on government land become unavailable or too much trouble. You could get by with less further South in the state than where I bought land, but keep this in mind because even there the re-growth rate of the forest is slower than, say, Vermont, a place I'm very familiar with in the lower 48, and the trees you'll use for fuel in Alaska are mostly spruce and birch, not nearly as good as the maple, oak, etc., available elsewhere.

I won't advise someone to break the law, but FWIW, if you're mostly growing/raising for your own use, and only selling or bartering small amounts away to neighbors in the surrounding area, you could easily get away without all those licenses/etc., in the real rural areas...it's the case even here in Vermont...

[MissingAll4Seasons]

Thanks ArcticHomesteader. I'm not 100% against property taxes, but since we don't have any children and the majority of prop. taxes goes to school funding it does seem to be a bit of taxation without representation! I have been looking into larger parcels in the unincorporated burroughs since I was pretty sure I was going to end up off-grid anyway... so I might as well go remote. As long as we can get to and from our place in the summers fairly inexpensively and easily enough to haul supplies we'd be happy. My biggest concern is getting building materials and our renewable energy stuff up there... after that initial part it's only a matter of transporting a few animals and supplies twice a year or so. I'd be more than happy to make my "neighbors" a fresh, hearty, organic meal; and if they feel like giving me, say, 10 lbs of coarse salt out of the goodness of thier hearts... why, that doesn't seem like breaking any laws to me