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Article as seen in the November edition of Money magazine by Susan Hely.

Questions: What is the smartest way forward financially for us given that Clare will not be working for some time? Should we invest in shares, buy an investment property or focus on paying down the mortgage? What is the best way to buy land, build a house and set up a hobby farm?

Names: Clare and Michael

Status: Married and expecting a baby.

If you have a small farm and are looking to expand, there are various ways you may be able to achieve that. Business expansion for small or lifestyle farmers can take place in many forms, including: 
1.    purchasing additional land;
2.    agistment;
3.    share farming; or 
4.    leasing additional farmland. 

As with any new business, starting a small farming business can be a daunting task. The fact that there are different taxation rules that apply specifically to small businesses in the agricultural sector can complicate matters even more.

The Australian Tax Office (ATO) website contains a plethora of information relating to hobby farm business structures, possible tax deductions and options for claiming losses, but we have condensed the most important information in this article.