In your case, it seems like you have both farm and non-farm businesses. A farm business includes all activities related to the production of crops and livestock. Non-farm business would be activities related to crops and livestock like processing, and packaging. According to farmers.gov, business could be split between farm and non-farm. An example given is a vineyard and winery:
- The production of grapes is farm income and should be reported on Schedule F.
- The sale of wine, juice, or jelly is considered non-farm income and should be reported on Schedule C.
You should include the income and expenses of raising your herd on Schedule F, and the income and expenses for the yarn on Schedule C.
An Introduction to Ag Taxes: What New Farmers Should Know
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