Rules for making sure that your farm is a "for profit" business

Hey Betty,
My main email is this gmail one.
How are you? Thanks for the IRS info, I found the page HERE great in an IRS sort-of way. Good work.
I am lined up to make a profit in 2011 at Aslan's How, assuming the initial startup costs were a gift from a generous donator. I have income from the (5) CSA members, (2) collective families, and will have income from retail sales to local restaurants/markets.
My main expenses will be soil fertility, seeds, and yearly expansion projects.
-Aaron
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From: Betty J. McMaster [b.j.-att.net]
Sent: Monday, March 28, 2011 9:53 AM
To: Lois Luke
Cc: Aaron C. Luke
Subject: Rules for making sure that your farm is a "for profit" business

Hi Lois and Aaron,
We are taking depreciation deductions, which is appropriate. However, this IRS guideline shows that one of the standards that the IRS likes to use for making the determination as to whether the farm is a "for profit" business is whether the business "shows a profit in three of the past five year"s.
We of course won't know that for five years, but I just thought that I would point that out.
Please read the other factors, since in my opinion they do show that this is not inteded to be a "hobby".
-Betty