FAFSA farm account reporting confusion - how to list our ranch accounts?

Hi there! I help families with FAFSA questions pretty regularly, including several with small agricultural operations. Here's my understanding: 1) Yes, include your farm checking account in the "Total Cash, Savings, and Checking" section. Even though it's only for farm expenses, it's still considered a liquid asset. 2) For bank accounts, the FAFSA asks for the balance as of the day you file. However, if you're planning ahead, use a reasonable average that represents your typical monthly position - not your highest balance, but not completely empty either. 3) For your ranch property: If it's a family farm that you actively participate in operating (not just leasing the land), AND you live on the property, you can exclude the value from your FAFSA assets completely. The FAFSA doesn't count family farms where you both live and work. 4) If you do need to report real estate values (for non-farm property), tax assessments are generally acceptable, though they're often below market value. Hope this helps clarify things!

We have a small cattle operation that's similar to yours. I remember struggling with this same question last year! Our tax guy told us that since we live on our farm and actually work it ourselves (not just lease it out), we didn't have to include the farm value on the FAFSA. Saved us from looking like we had a ton of assets when really we're just getting by.

this is super confusing to me too. my parents have a small farm and our financial aid person at college told me that family farms are totally excluded from assets if u actually live on the farm. but idk about the farm checking account part, we just included everything to be safe

For the checking account balances, I recommend using a 3-month average rather than picking a specific day. This gives a more accurate picture of your available resources, which is what the Department of Education is trying to assess. The FAFSA instructions say to report the value "as of today," but financial aid officers understand that bank accounts fluctuate. Regarding the farm property, Section 480(f) of the Higher Education Act specifically excludes family farm value if it's your primary residence and you materially participate in its operation. Just be prepared to provide documentation if selected for verification. One more tip: if your farm operates as a sole proprietorship (Schedule F on your taxes), it's considered a family farm. If it's incorporated, the rules get more complicated.

lol im in the same boat!! my family has chickens and a little bit of cattle and the FAFSA is sooooo confusing about it. we just guessed on most of it tbh. the financial aid office at my school helped fix it later. good luck!!

I spent 3 HOURS trying to get through to FSA last month with questions about our family farm reporting. Kept getting disconnected or put on hold forever. Finally I found this service called Claimyr that got me through to an actual FAFSA agent in about 15 minutes. They connected me directly to the Federal Student Aid helpline without all the waiting. Saved my sanity! You can check them out at claimyr.com - they have a video showing how it works here: https://youtu.be/TbC8dZQWYNQ The agent confirmed that family farms where you live and materially participate are excluded from assets. They also said to use the balance as of the day you file for checking accounts, but if you're planning ahead, a reasonable average is fine.

DONT REPORT THE FARM VALUE!! We made this mistake and our SAI was 3x higher than it should have been!! Had to appeal with college financial aid office and it was a nightmare. If u actually live on it and work it dont include it as investment. They cant tell u this directly but trust me.

The new FAFSA is a TOTAL DISASTER for farm families!!! My daughter almost didnt get any aid because we included our farm equipment value when we shouldn't have! Make sure you ONLY report liquid assets in the first question - cash, savings, checking. For farm operations, if its your primary residence AND you materially participate, leave it OFF the form completely!

Just to clarify a few things from reading all the comments: 1. Family farm exclusion applies if: you live on the farm AND materially participate in its operation 2. All checking/savings accounts should be reported, including farm-specific accounts 3. For verification, keep documentation showing you live on the property (utility bills, driver's license) and documentation of your active participation (Schedule F tax forms, farm income/expense records) 4. If filing a Schedule F, you typically qualify for the family farm exclusion 5. The asset protection allowance will shield some of your liquid assets depending on the parents' ages Hope this helps everyone! The 2025-2026 FAFSA has changed many things, but the family farm exclusion remains intact.

I went through this exact same situation last year with our small hobby farm! Just wanted to add a couple things that might help: For the checking account balances - I ended up taking screenshots of our accounts on the day I filed the FAFSA and kept those for my records. Our financial aid office said that was perfect documentation if we got selected for verification. Also, if you're unsure about the "materially participate" requirement, the IRS definition is helpful - you need to work at least 100 hours per year OR 500 hours if it's your primary occupation. For most small ranch families like ours, the 100 hour threshold is pretty easy to meet between daily chores, maintenance, etc. One last tip: when I wasn't sure about something, I erred on the side of reporting it and then explained the situation in the "Additional Financial Information" section. Better to over-report and let the financial aid office sort it out than to accidentally under-report and get in trouble later! Good luck with your FAFSA - it's definitely confusing but you've got this!

I'm dealing with a very similar situation with our small ranch operation! Reading through all these responses has been incredibly helpful. Just wanted to share what our CPA told us when we were preparing for this year's FAFSA: He emphasized that the key distinction for the family farm exclusion is that you have to BOTH live on the property AND actively work it yourself (not just lease it out to someone else). Since you mentioned your husband handles the livestock while working his regular job, that definitely sounds like you qualify for the exclusion. For the farm checking account, we decided to include it in our liquid assets but made sure to note in the additional information section that it's exclusively for agricultural expenses with minimal balance. Our CPA said this shows transparency while still being accurate. One thing I wish I'd known earlier - if you do get selected for verification, having your Schedule F forms organized and ready to go makes the whole process much smoother. The financial aid office will want to see proof of your farming activity and that you actually live on the property. The whole process is definitely overwhelming when you're trying to balance farming life with college planning, but it sounds like you're asking all the right questions!