![]() ![]() USDA loans are not limited to first-time homebuyers, require no down payment, have flexible credit guidelines, low annual mortgage insurance premiums, and more.īut, if you’re looking for a loan program specifically designed for hobby farmers, our RuraLiving® Home Mortgage program offers competitive pricing and products for rural homes and hobby farm properties that typically fall outside of traditional guidelines. The US Department of Agriculture (USDA) backs financing for properties located in eligible designated rural areas. ( Spoiler alert: We aren’t tax professionals!) 5. There are possible hobby deductions, though, so just be sure to speak with your accountant or another tax professional before you make any decisions. If you make any money off your farm, the IRS will probably consider it to be hobby income. You are not in the business of farming if you cultivate or operate a farm for recreation or pleasure, rather than for profit.” Because hobby farms are for pleasure, yours will likely not count as a “real” farm when tax time rolls around. How will your hobby farm impact your taxes?Īccording to the IRS, “you are in the business of farming if you cultivate, operate, or manage a farm for profit, either as an owner or a tenant. ![]() The amount of land you purchase depends on the crops you choose to grow or the animals you need to accommodate. Full-scale farming in the US requires several hundred acres or more, while subsistence farming can be accomplished on as little as one acre of land. Hobby farms aren’t usually more than a few acres. Do you have the financial resources of a full-time job, trust fund, pension, or retirement income to fall back on? 3. Hobby farming, by definition, is more for pleasure than for generating income. Farming, even on a small scale, is not for the faint of heart. Weather, disease, and predators can destroy the crops and livestock you’ve worked so hard to grow and nourish. And, while your farm may be just a hobby, your investments of time, effort, and money are subject to the whims of Mother Nature. Hardworking and stoic in the face of adversity, the farmer’s life can be richly rewarding and devastatingly disappointing. The classic image of a farmer is one of the rugged individualist. Is a hobby farm right for you? Here are some things you’ll want to consider before making a decision: 1. Growing your own food and raising livestock in a rural area can provide a much-needed escape from city living and the suburban sprawl. Rural living and hobby farming hold great appeal as alternative lifestyles. ![]()
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