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Western Ky. | One big thing to think about is FICA. If you have it custom farmed for yourself you will owe the 15.3 percent FICA on the first $118000. If you rent out your ground to another farmer it is no longer earned income so no Fica is incurred. For the small farmer who nets less than $118000 there is very little difference in farming your land yourself versus renting out your farmland when FICA is entered into the equation. Of course, the kicker is finding a good farmer to farm your land.Tax laws make it virtually for the small farmer to compete against the large farmer whose net is way above $118000.
Edited by Gro-Mor Farms 6/27/2016 22:27
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Custom farm vs rent advise for landlord
