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| Read something a quite awhile back, there is no money in beef farming, but it is a wonderful way to build net worth . My wife askes me the same question on a regular basis, I give her a similar answer to your husband, but not the same as we are cow calf with no cropping enterprise, to me it is hard question to answer due to depreciation. Net worth statement at the end of the year probably will give you a the best picture of your financial health, but not necessarily where the money is coming from or going,, you also need to account for your personal expanses and where the off farm income is going. The side business is much easier to give her the position of financial standing on as there is no depreciation, just money in and out and change in inventory from one year to the next. Other thing you need to account for is that a dollar of farm income is worth more then a dollar from an off farm job, what I mean by this is that many expenses are deductible for you that are not if there was no farm enterprise, like some insurance, property tax, vehicle costs, tools, property maintenance if you live on the farm like driveway etc. Some income like breeding stock sold and machinery sold if they are held long enough are capital gains not earned income so lower rate many times and no SS tax.
Edited by WCWI 12/1/2024 09:54
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Farm wife talking. Please help me understand
