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Hello, we have a 107 acre farm. While we do no farming ourselves, we rent out the majority of our land to farmers for their own crops. Is this considered rental income?

 
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Hello, we have a 107 acre farm. While we do no farming ourselves, we rent out the majority of our land to farmers for their own crops. Is this considered rental income?

Generally, if you are not sharing in the risk of the farming operations your income cannot be treated as farming income. Since you are not active in farming the land you should treat this income as rental income.

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Hello, we have a 107 acre farm. While we do no farming ourselves, we rent out the majority of our land to farmers for their own crops. Is this considered rental income?

Generally, if you are not sharing in the risk of the farming operations your income cannot be treated as farming income. Since you are not active in farming the land you should treat this income as rental income.