Maple syrup,AG and the IRS

[Louie]

Trying to decide on how to file taxes. Called the IRS and they say maple production is not farming and is manufacturing. I mentioned the North American Industry Classification System lists maple as farming and asked it they use it. They said yes but it is only a guide and carries no legal weight. He claimed they have specific law that maple production is manufacturing and also fuel burned in an evaporator is not farm fuel. Only sap collection is farming. State taxes could vary but not the IRS. There is no way to know how everyone files and I definitely don't expect anyone to say what they do but thought maybe Dr. Perkins would comment.

[maple flats]

I never called the IRS on that but I've claimed the sales as farm income and the expenses as farm expenses from the beginning. My farm only has 2 farm crops, maple and blueberries. By NYS laws my fuel is farm fuel for the tractors, and my evaporator fuel is wood. I can't speak for any other states. I know the IRS cashes my tax checks OK.
I file it all on schedule F.

[DrTimPerkins]

Trying to decide on how to file taxes. …. but thought maybe Dr. Perkins would comment.

Given that I am a scientist and not an accountant or a lawyer, I don't believe I can be of any help with this question.

[Russell Lampron]

I've always claimed my maple income as farm income and was even audited by the IRS. They never said that I should have claimed it as manufacturing income. Maple syrup is my only farm crop.

[Louie]

It can make a big difference in certain situations if it is AG or not, farming has quite a few advantages. There was a push by some group in the NE to get maple in to the farming category on a revision of the NAICS. Don't know if that was a producers organization, government department or on an academic level. Before that revision the crop report asked for gallons of sap produced and now it is how much syrup is produced.

I have had tax assessors tell me maple syrup is not farming and right after that I get a call from the department of AG demanding I fill out the crop report. I have been filling them out but probably not any more.

[Thompson's Tree Farm]

I have always filed a schedule F for my maple production and it has never been questioned. The census of agriculture seems to think it is farming. Your mistake may have been asking

[PerryFamily]

Exactly what Thompson’s said

[DaveB]

Trying to decide on how to file taxes. Called the IRS and they say maple production is not farming and is manufacturing. I mentioned the North American Industry Classification System lists maple as farming and asked it they use it. They said yes but it is only a guide and carries no legal weight. He claimed they have specific law that maple production is manufacturing and also fuel burned in an evaporator is not farm fuel. Only sap collection is farming. State taxes could vary but not the IRS. There is no way to know how everyone files and I definitely don't expect anyone to say what they do but thought maybe Dr. Perkins would comment.

I'm like others and have filed a Schedule F for years and never had an issue. My form even specifically mentions maple syrup. You could probably talk to two different agents and get two different answers because they have no clue about maple syrup production. It's that latter word that probably makes them think it's "manufacturing" when it's not. They acknowledge that collecting sap is harvesting and it's no different to process that harvested product to make a final product like harvesting wheat or corn and processing it on a machine make a finished product to take harvested sap to make a finished product. There's dozens of farm products that are harvested but need further processing and the IRS has no problem calling those items farming and as others have pointed out, they use a Schedule F without an issue.

Manufacturing involves combining two components together to make another but maple syrup/sugar is a pure product as a result of the harvested product. I would really just chalk the response you received to an ignorant agent who is not properly analyzing the situation because they lack experience or knowledge of the maple process to make such a statement.