DEFINITION of 'Investment Farm'

An agricultural business operation that is purchased and operated with the intention of making a profit or to create a tax deduction for the owner. Investment farms are owned by investors who typically do not live on the farm or take part in any day-to-day operations. The investor generally hires farm hands and other employees to do the actual farming.

BREAKING DOWN 'Investment Farm'

Investment farming is more common as family farming declines. Many investment farms exist as commercial farming businesses that grow cash crops which can be sold in the commodities markets. These include crops such as soybeans, corn, wheat, cotton and livestock, including cattle and hogs.

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