Columbia Basin, Ephrata, WA | mjl - 9/6/2013 18:53
besides what's the difference if I make my money farming or from the land investment?
There's a huge difference. Each one should make money on it's own, and if you're doing both, you should get paid for both.
Lets say a young man inherits a farm. All is well, he farms his entire career, lives well, never goes broke, but never really banks any more than he would have had he just rented the ground out. At retirement he has a paid for farm. Did he ever get ahead? Not really. Is it a bad way to live? No, probably a nice stress free lifestyle. Sounds like a hobby farm to me. He would have been better off to rent it out and collect a rent check and also wages from a regular job.
If you're farming your own paid for ground, you should collect both checks, one for rent and one for wage (for farming). If there's not enough cash left at the end of the year for both checks, you're not really getting ahead.
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here ya go
