Columbia Basin, Ephrata, WA | Badger - 9/6/2014 16:07
No Self employment tax on rent...15% saving.
It's possible to save that 15% and farm the ground yourself.
We've got over 400 acres subleased out this year, for various reasons. Some of it is potatoes which traditionally pay very good rent. Some is small fields for specialty seed production, and lately they've been paying even better than spud rents. The rest is an established timothy hay stand that we inherited from the former tenant. We don't have the right equipment to put up timothy, and the rent offer from an export company was enough that it made sense to just let them have it as long as the stand lasts. It's not the best quality ground, far from it. I would have never imagined anyone would ever pay that much when we bought it five years ago. To me subleasing is just another way to diversify a farming operation.
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Farmers who do not farm their owned land
