Most farm operations barely break even. It’s a sad fact, but it’s true. 

According to data from the USDA, the average on-farm income in 2020 was -$1,198 per year, while off-farm income is $67,873. This is likely because most small farms barely break even, even in a good year. 

Given the anticipated low crop yields this year, it’s possible that land values will fluctuate, and cash rental rates along with them. For landowners looking to maximize their monetary investment on the land, this presents a problem. 

Fortunately, there are a number of revenue streams that have nothing to do with planting seasonal crops. In fact, for most of these, you can implement them with no negative impact on your regular planting process. 

If you’re concerned about losing rental income this year, here are five other ways you can make money from your land. 

Farming is a precarious business. Commodity prices, Mother Nature, and other factors outside of your control can seriously affect your land valuation—and your cash rental rate by extension. 

So don’t put all your eggs in one basket. Instead, consider the benefits of finding multiple ways to make money off your land. 

Right now, however, there are a number of reasons why additional revenue streams may seem appealing to landowners:

Of course, since you already have this land asset at your disposal, you should find out how to make the most of it. So let’s walk through some ways that you can put your land to better use. 

Including double or triple cropping clauses in your lease agreement is a great way to get additional value out of your land. First, it introduces diversity into your operation, so if one crop fails, the other may still succeed and contribute to your land valuation. 

Also, planting multiple crops during the same season, like cover crops, enables you to maximize the land’s use year-round. Multi-year crop rotations also help to replenish the soil and break pest cycles, producing larger yields in the long run. 

Some common alternatives to standard row crops include: 

Depending on the crops you choose, you can either harvest and sell them directly, or rent your land for pasture and grazing. 

If you have non-tillable land, then clearing it for farming is an expensive undertaking. Another option is to rent the land to hunters—sometimes for weeks or a month at a time. 

This will require you to have large tracts of land with abundant game, like deer, turkey, or elk. A well-stocked lake on the property is also a bonus. 

Keep in mind that anytime someone steps onto your land, they become your legal responsibility. Written agreements, liability waivers, and accident insurance are all essential components of a hunting rental operation. 

The profitability of this revenue stream depends on the size and quality of the land, as well as the amount of game on it. At the very least, you should be able to earn enough to pay your property taxes. 

Many farms across the U.S. function not only as planting or livestock operations, but also as tourism attractions. Consumers are interested in learning about where their food comes from, and if you can turn your operation into a full-blown experience, they’ll show up. 

Working with your tenant to develop an agritourism business can include any of the following operations: 

While agritourism likely won’t be your most profitable venture, it can at least provide an extra source of revenue—and help you connect with your local community. 

If you have a suitably sized and well-located space for large scale wind turbine installation, you may be able to lease your land to wind developers or utility companies. These companies generally cover 100% of the installation costs, then pay you a sum based on the number of wind turbines in operation and total energy output. 

Given the increasing importance of renewable energy for energy companies, you shouldn’t have a hard time finding an energy company who’s willing to lease your land for wind production. This can be a highly lucrative venture, provided your land meets the following requirements:

Additionally, because the amount of land taken by the turbine is relatively little, this leaves a significant portion of the land that can be used for your tenant farmer to continue their operations. So for most farmers, it’s not an either-or proposition! 

The only downside is that many wind farming contracts are quite long—as long as 20 years in some cases. That said, the almost risk-free nature of this investment makes it hard to turn down.

If you have large swaths of undeveloped land, you could also consider foraging as a way to generate additional income. There are a number of wild plants that are highly lucrative, including:

Because you don’t have to plant or maintain these crops, the only investment on your part will be the labor it takes to forage. While this likely won’t be a highly profitable activity, it can be enough to impact your household’s bottom line. 

If you have a valuable asset like a piece of farmland, it makes sense to get as much value out of that land as you can. Finding alternative sources of income, whether large or small, can give you an extra boost in both good times and bad. 

With CommonGround, you gain instant access to a marketplace where you can find:

Learn more about the CommonGround marketplace and get your FREE Cashrentstimate to find the true value of your land at CommonGround.io!