The tax code in Minnesota has changed this year so everyone’s property taxes will be going up. This has made me wonder, would I be better off claiming this place as a Farm instead of a normal residential property? Does anyone claim their Hobby Farm as a “Farm” on their taxes?
I have read that if I do go the farm route that I would need to sell something for a profit within three years. I’m sure I can sell something but making a profit doesn’t really seem possible in the near future. The cost of hay, grain, minerals, medicine, new stock, equipment, fencing, clearing land, etc…, really puts the “hobby” into the “hobby farm”.
The chickens have paid for themselves and the goats may reach break even territory this year as well, but the start up costs won’t be made back in my lifetime. I figure that having some physical assets guarding against hard times my be more useful than a little extra money in the bank.