Cannabis, hemp & botanicals
Books and taxes for hemp farms.
Seed costs, planting labor, a harvest that has to test compliant before it sells, and processor contracts paid over time. Your own bookkeeper costs the season right, an accountant checks every transaction, and you get one number a month.
- From $197 a month
- An accountant on every transaction
- Cancel whenever
October made $21,000 off the harvest delivery to the processor. The three acres that tested hot and had to be destroyed got logged as a crop loss, not folded into what shipped.
- Processor contract paymentBiomass sales
- Seed and clone orderPlanting inputs
- Harvest crew payrollHarvest labor
- Compliance THC testingRequired testing
- Tractor fuel and repairFarm equipment
Why your books are different
A hemp crop has to pass a test before it can pass a sale.
A hemp farm plants, grows, and harvests like any row crop, but every field has to test under a legal THC threshold before it can be sold at all. A generalist books a harvest the day it comes in. Hemp needs the test result and the crop loss both accounted for first.
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1
A hot crop is a real loss, not a bad month
A field that tests over the legal THC threshold at harvest cannot be sold and has to be destroyed. The seed, labor, and fertilizer that went into it were real costs, but a season with a hot field can look like the farm simply had a bad year if that loss is never separated out.
What we doLogs a destroyed or hot crop as its own loss against that field's cost, so the season's real numbers are not blamed on the wrong acres. -
2
Planting costs land months before the harvest check
Seed, clones, and spring labor go out the door well before a single pound of biomass gets sold in the fall. Expensed the day they were paid, spring looks like a loss and the harvest month looks unusually strong.
What we doHolds planting and growing costs against the crop until it sells, so a planting month and a harvest month both read honestly. -
3
A processor contract pays on its own schedule
A contract to deliver biomass to a processor might pay a portion on delivery and the rest after the processor runs its own testing, weeks or months later. Booked as one lump sale, the timing gets confused and cash flow planning gets harder.
What we doTracks each contract's payment stages separately, so what has actually been paid and what is still owed both stay clear. -
4
Farm equipment gets mixed with everyday supplies
A used combine set up for hemp harvest or a new drying barn can cost as much as a truck. Filed as a farm supply purchase, it muddles the month and gets missed when it comes time to write it off.
What we doFlags large equipment purchases the day they post, logs them as equipment, and gets the accountant's call on how they are written off. -
5
Seasonal labor looks like one lump payroll number
A harvest crew brought on for a few intense weeks looks like a payroll spike with no context. Without separating it from year-round labor, an owner cannot see the true cost of bringing in that year's crop.
What we doKeeps seasonal harvest labor in its own line, tied to the crop it brought in, separate from regular farm wages.
Your categories
The categories Gus keeps for a hemp farm.
Set up once for how the crop sells and what it takes to grow it. You never pick a category, he does, and an accountant checks it.
Money in
- Biomass salesHarvested hemp sold to a processor, usually under a delivery contract.
- Grain and fiber salesHemp grain or fiber sold to a mill or grain buyer, for farms growing those varieties.
- Seed and clone salesStarts sold to other growers, where the farm produces its own genetics.
- Custom harvest feesEquipment and labor rented out to a neighboring farm during the season.
Money out
- Planting inputsSeed, clones, fertilizer, and soil amendments for the season.
- Harvest laborSeasonal crews brought in for planting and harvest, kept apart from year-round wages.
- Required testingPre-harvest THC compliance testing on every field before it can be cut.
- Farm equipmentTractors, combines, and drying equipment, fuel and repairs included.
- Crop insuranceCoverage against weather, disease, or a field testing hot before harvest.
- Drying and storageBarn space, drying equipment, and storage until the crop ships to a processor.
What we watch for you
- Cost per acre
What it actually cost to plant and grow each acre, against what it sold for.
- Crop loss rate
How much of the planted acreage never made it to a sale, whether from testing hot or weather.
- Contract payments owed
What a processor still owes on a delivery contract after its own testing clears.
- Seasonal labor cost
Harvest crew pay against that season's crop, kept apart from year-round wages.
Ask Gus
Things hemp farmers ask Gus.
Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.
It does. I logged that field's seed, labor, and input costs as a loss instead of folding it into what actually shipped, so the season's real numbers are not blamed on the wrong acres.
Each payment stage gets tracked on its own, so you can see what has actually landed and what is still owed once their testing clears, instead of guessing from one lump number.
Usually it can. I logged it as equipment, not a supply purchase, and flagged it so the accountant makes the call with your whole year in view.
The tax side
The tax side of a hemp farm.
This is agricultural income under ordinary farm tax rules, not the rule that applies to a state-licensed cannabis grower.
What your return has to get right
Your accountant signs it, so it gets done right the first time.
- Ordinary farm rules apply hereA hemp farm growing within the legal THC threshold is not subject to the rule that strips deductions from plant-touching cannabis businesses. Seed, labor, and equipment are deductible the way they are for any other row crop farm.
- Crop loss for a hot or failed fieldA field destroyed for testing over the legal THC threshold, or lost to weather or disease, is generally a deductible loss once the crop is actually destroyed and documented.
- Equipment depreciation for farm gearTractors, combines, and drying equipment can usually be written off through Section 179 expensing, up to $2,560,000, or 100 percent bonus depreciation for property placed in service after January 19, 2025.
- Contractor 1099s for harvest crewsA harvest crew or custom operator paid $2,000 or more in 2026, who is not on payroll, gets a 1099-NEC by January 31.
Deductions hemp farms miss
Your bookkeeper knows what to look for in your statements. You never have to.
- Seed and clone stock
- Fertilizer and soil amendments
- Compliance THC testing
- Seasonal harvest labor
- Tractor fuel and repairs
- Drying and storage costs
- Crop insurance premiums
- Destroyed or hot crop losses
- Irrigation equipment repairs
General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.
All year, not just April
A hemp farm year, kept every month.
Planting, growing, testing, and harvest each land in their own season. Your team keeps the books current through all of them, not just at tax time. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.
- January
Plan the year
Last year's return gets started, harvest crew classification gets confirmed, and a monthly set-aside is planned around this year's planting and harvest schedule.
- April
Filed. Done.
Your return is filed and signed, with planting and crop loss documented clearly, right as this year's planting season gets underway.
- July
Halfway check
Where the farm stands, what it will owe, and how this season's crop is costing out against last year's numbers so far.
- October
Before harvest closes out
As compliance testing and harvest wrap up, Gus looks at any equipment worth buying and anything worth doing before December closes the year.
What you get
What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.
Book a call- Monthly bookkeeping
Every transaction sorted into categories set up for hemp farms. You never categorize a thing.
- An accountant checks every transaction
Real review, every month, before your books close. Not a spot check.
- Your business tax return, filed
Prepared, reviewed, and signed by that same accountant every year.
- The monthly number
What you made, what you spent, what to set aside for taxes.
- Your own bookkeeper
A real person assigned to your business, in the app whenever you need them. No hold music.
- On your books all year
Every month, not just in April. Your team speaks up whenever something is worth your attention.
- Cancel any time
No contract. No cancellation call. Your books are yours.
Straight answers
Questions hemp farmers ask first.
Is a hemp farm taxed like a cannabis cultivator?
No. A hemp farm growing within the legal THC threshold files under ordinary farm rules, not the rule that strips deductions from a state-licensed cannabis grower. Seed, labor, and equipment are deductible the way they would be for any row crop.
What happens on the books when a field tests hot and has to be destroyed?
That field's seed, labor, and input costs get logged as a crop loss rather than folded into what actually shipped, so the rest of the season's numbers stay accurate instead of absorbing the loss quietly.
Our processor pays us in two installments after their own testing. Can Gus track that?
Yes. Each payment stage on a delivery contract gets tracked separately, so what has been paid and what is still owed both stay visible instead of guessing from one number.
We hire a big crew just for harvest. Does that complicate payroll?
No. Seasonal harvest labor gets kept in its own line, tied to that year's crop, separate from year-round wages, so you can see the real cost of bringing in the harvest.
My farm's books have never separated planting costs from harvest income. Can that be fixed?
Yes. Send what you have, even a season of mixed records. Gus separates planting costs from what the crop actually sold for, and most owners see their real cost per acre within a couple of weeks.
Is a real accountant checking my books?
Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.
What does it cost, and can I cancel?
It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.
More in cannabis, hemp & botanicals
We keep books for the business next door too.
- Cannabis cultivators
- Cannabis delivery services
- Cannabis processors & manufacturers
- Head shops
- Hemp-derived THC shops
- Hydroponic & grow supply shops
- Kratom & botanical shops
- Cannabis dispensaries
- Functional mushroom brands
- Hemp & CBD brands
What makes a bookkeeper worth paying for Every business we keep books for
Book a call
Pick a time. That's the whole signup.
Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.
- $197 a month to start
- An accountant on every transaction
- Cancel whenever