6 Ways to Make Money Off of Farmland

6 Ways to Make Money Off of Farmland

Updated Sep 27 




Owning farmland is fantastic because even if you sell nothing off it, it gains value over time for simply being a large plot of land. However, if you don't want to wait to earn an income, more quick ways to make money off this property.


These are the top ways to gain money off of your farmland besides selling crops! But, of course, if you have a large enough property, you can combine many of these options to achieve an even larger income!

1. Raising Animals To Produce Products


6 Ways to Make Money Off of Farmland


Animals are a natural part of owning and working farmland. Not only are they fantastic for creating fertilizer for your crops, but they can also keep away any invasive plant species like kudzu and allow you to create items that you can sell.


Even caring for one type of animal only, like goats, can offer you many ways to make an income.  For example, goat soap made from their milk is soft on the skin and good for your complexion, while that milk can also be made into cheese, and their meat can be sold in most markets.


Consider which animals you already own or which animals you'd like to own, and try to find at least two to three different sources of income you can gain from each animal.

2. Build A Barndominium For Others to Rent


6 Ways to Make Money Off of Farmland


small barndominium is a fantastic addition to any farm property because it gives it the chance to offer something that many farms don't have. Barndominiums are modern buildings that can be used for everything from bed and breakfast to an event location for weddings and reunions.


"Even if, over time, you decide to stop offering this as an event space, you can rent it out monthly so that people who want to escape the city can enjoy it as a bed and breakfast or even a long-term rental." - Corey Tyner of Buy Yo Dirt

3. Rent Plots of Land to Local Growers

Many local growers need more land or can't afford to buy land of their own. Offering a space for them to rent lets you keep your soil fed and healthy and make an income from grounds you're not using.


You can advertise this land in local areas or even further away, listing it in cities up to an hour or two away so that people in the town who want to grow produce can have a location to drive out to once a week or so.


It’s a good idea to put up several fences if you’re making this type of property so that your renters will know what they’re growing is safe, and those who visit the property will know not to trespass in these locations.


4. Offer Campsites For Vacationers


6 Ways to Make Money Off of Farmland


Camping is a popular seasonal way to get away from city life: but many don't know where to go besides national parks. Creating campsites for tents requires flat ground, easy access, and a safe area. When renting out this space: pay attention to the permissions you give those who stay on this land. Leave clear signs on how to put out campfires, what behavior is allowed, and how they can dispose of their trash.


If you say there’s a steep cleaning fee for anyone who doesn’t follow these rules, more people will stick to these instructions. Using permeable landscape, you can make the camping areas clear without having to use fencing or anything that would detract from the natural appearance of your land.

5. Rent Out The Property for Fishing or Hunting

Fishing and hunting are fantastic past-times that get people away from thinking about window trim ideas for the exterior of their homes or what type of paper they have to buy for their home office. Instead, they get to disappear into the wilderness and enjoy taking part in a sport as old as time. You can rent out passes so that anyone who wants to hunt or fish can use the property during different times and ensure it's available.


As with camping, you should ensure that clear rules are posted to protect your land from fires or littering.

6. Create Storage Space for Others To Use

Storage is something that nearly every person can use. We collect more items than we have room for, and people need somewhere to store those items. Building and renting out storage space gives you a great way to gain a passive income without worrying about how someone is using your property. Ensure that your rates aren't too competitive so that you can still make an income, and research the local laws for what you should do if someone forfeits their belongings.

Farmland Income Can Be More Than Crops

Many think the only source of income for farmland is the crops they grow to sell. Instead, pay attention to the other options out there! Each of these six options is fantastic and requires minimal work to create spaces others will gladly give you money for. 

Farm Management

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Corey Tyner Phoenix, AZ
Updated Sep 27
 
6 Ways to Make Money Off of Farmland

6 Ways to Make Money Off of Farmland

Owning farmland is fantastic because even if you sell nothing off it, it gains value over time for simply being a large plot of land. However, if you don't want to wait to earn an income, more quick ways to make money off this property.These are the top...

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Categories: Farm Management

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Hi, Corey!

Thanks for publishing this wonderful article, which we'll share using our social media accounts on Twitter, Instagram, etc. If you have an @ you'd like us to mention while promoting, please let us know. Thank you!

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Ray Bohacz Hackettstown, NJ
Sep 27
All good concepts but here in New Jersey idea numbers 2,4,6 would not be allowed. If the property is farm assessed for taxes you cannot use it to host weddings, etc, since that is a commercial use. The same holds true for camping and storage. The same goes for a cell phone tower or a commercial solar panel operation. You can have a large farm stand/store, but 80% of what is sold you need to grow. I do not believe they go and take inventory but for example, you raise sweet corn, tomatoes, and peppers. Now you add grapes, bananas, watermelon... they now consider it a supermarket and tell you that the zoning does not allow that. Welcome to Communist/Liberal New Jersey where I farm.

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Corey Tyner Phoenix, AZ
Sep 27
Hi Ray, that's really tough. Have to reupdated myself with zoning laws in NJ thanks for this valuable info.

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Ray Bohacz Hackettstown, NJ
Sep 27
We have a program called The Farmland Assessment Act of 1964. To qualify you need to farm for two consecutive years and on the third year you get the substantially lower tax rate. If you stop farming or sell the land for a non-farm use, you are subjected to three years of rollback taxes at the non-farm rate. For example, our farm is 100 acres with 3 acres excluded for the two houses which are taxed at the normal rate. Our tax on the 97 acres +- is around $900/year. The taxes on my house are $10,000/yr and on my parents old farm house $3,000/yr. A rough estimate of the taxes on the 97 acres if it were not farm assessed would be around $40,000 to $50,000/year. So even if you took the lower figure, you would have to write a check to the township for $120,000 for the rollback. Plus, NJ has a property deed transfer tax that is based on the sale price of the land. It is a rough deal here in the Garden State!

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We're giving #4 & #5 a try.. not quite ready yet, but believe we'll be all setup by Thanksgiving. BTW - great tips.

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Corey Tyner Phoenix, AZ
Sep 27
Thanks Rodney! Let me know how it goes.

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