How to Build Off-Farm Passive Income: Stocks VS Property 

Life on the farm is inherently unpredictable – we all know that.

One year, you might revel in a bumper harvest that brings a broad grin to your face; the next, you could be wrestling with waterlogged fields and pest infestations that leave you barely making ends meet.

You might find that issues with cash flow and accumulating debt become all too familiar in your farming life. It’s a challenging business, but it’s your business. However, it doesn’t have to be the only one.

The world of off-farm passive income is another option, and it’s not as complex or intimidating as you might think. Nor does it take up as much time and energy as you might believe.

In this post, you’ll be guided through the ins and outs of stocks and property – two reliable channels for diversifying your income and laying the groundwork for your financial security.

You’ll hear stories of farmers just like yourself who have successfully navigated this new landscape, and receive practical, friendly advice. So make yourself a cuppa, sit down, and let’s dive into building your off-farm passive income.

The Problem: Cash Flow and Debt

Before we delve into the world of stocks and property, let’s take a moment to reflect on the challenges that many farmers face in their financial lives.

In the agricultural industry, cash flow can be erratic at best. With fluctuations in crop prices and unexpected expenses, it can be challenging to maintain a steady income stream. This can make it difficult to cover expenses and invest in the future growth of your farm.

Additionally, many farmers often rely on debt to finance their operations. While this can be a necessary means of keeping things running smoothly, it also comes with its own set of challenges. High-interest rates and mounting debt can quickly become overwhelming and hinder your ability to grow your farm in the long term.

But don’t despair – there are solutions to these problems, and they lie in creating off-farm passive income streams. Let’s explore two popular options: stocks and property.

Property vs Stock Investing for Farmers

I’ve briefly spoken about stocks and property as avenues for passive income before in a previous post, but let’s quickly summarise each strategy for farmers.

Understanding Property Investment

Investing in property involves purchasing a physical asset with the intention of generating income from it. This could be rental properties, farmland, or commercial buildings. The idea is to generate regular passive income through rent payments and potentially earn profits when you sell the property.

Farmers are often naturally inclined towards investing in property as they already have experience managing land and understanding its value. Additionally, investing in farmland can also provide the opportunity to diversify your farming operations and explore new areas of growth.

However, property investment requires a significant upfront cost, which can be a barrier for many farmers. It also comes with ongoing expenses such as maintenance and taxes that need to be factored into the overall financial plan. On top of that, even though it’s ‘passive income’ and you can outsource management to someone else, there is still quite a bit of involvement required to ensure the property runs smoothly (think calls from your property manager in the middle of harvest season about broken toilets needing to be fixed).

Overall, property investment can be a reliable source of passive income for farmers, but it requires careful planning and a significant initial investment.

Exploring Stock Market Investing

Stock market investing involves buying shares in a company with the expectation of earning a return on your investment. This can be through dividends paid by the company or by selling your shares at a higher price than what you originally bought them for.

One advantage of stock market investing is the lower initial investment required compared to property. Farmers can also easily access the stock market through online trading platforms, making it a convenient option. On top of that, stock market investing requires much less involvement (ranging from 20-45 minutes a day at most) once you’ve set your systems up, and strategies are flexible enough to work around busy farming seasons. It also offers greater liquidity, meaning you can quickly cash out your investments if needed (as opposed to trying to sell a whole property, which may take months).

However, stock market investing does come with risks as the value of your stocks can fluctuate daily. It’s essential to research and diversify your investments to minimize potential losses.

Which One’s Better? Property vs Stocks for Farmers…

So, which is the better option for farmers looking to build off-farm passive income – property or stocks?

The answer isn’t so straightforward and depends largely on your individual financial goals and preferences. Some farmers may prefer investing in farmland as it aligns with their existing skills and knowledge, while others may appreciate the flexibility and lower costs associated with stock market investing.

But here’s the good news – you don’t have to choose between the two. In fact, many successful farmers have diversified their passive income streams by investing in both property and stocks.

I, myself, even though I am known as ‘the stock guy’, own several properties and have profited from them over the years. There’s no black and white, or right and wrong answer here.

But what I have found from personal experience, is that stock market investing offers a more accessible and flexible option for farmers looking to generate passive income. It requires less involvement, has lower initial costs, and greater liquidity.

I used to own several property investments, and while they were profitable, the time and energy required to manage them was not worth it for me personally (I would receive non-stop calls about tenants or problems with the property). I now focus mainly on stock market investing and have found it to be a more suitable option for my lifestyle – and many of our farming students feel the same.

How to Get Started with Creating Off-Farm Wealth through Stock Investing

Again, it’s essential to note that there is no ‘one size fits all’ solution when it comes to investing. What works for one farmer may not work for another.

However, if you’re interested in exploring stock market investing as a means of generating passive income, here are some steps to get started:

Step 1: Figure out what your current financial situation is and what your goals are.

What is your current level of profit / income? What ongoing expenses do you have? How much debt do you have? What are your financial goals for the future? How much can you save and allocate to a portfolio each month?

I encourage you to ponder over these questions and get a clear understanding of your finances before diving into any investment strategy.

If you’d like some help with this, I encourage you to download our FREE Financial Freedom Number Calculator and training. This will help you determine how much passive income you’d approximately need to support your desired lifestyle.

Step 2: Find out what investing style and strategy suits you best.

There are various investing styles and strategies you can explore, including passive growth investing, active growth investing, and dividend/income investing.

Not all farmers are the same. Some may have more time and energy to devote to actively managing their investments, while others may prefer a more hands-off approach. It’s essential to find a strategy that works best for you and your lifestyle.

If you’d like some help with that, you can check out our FREE Investing Style Quiz here. It only takes a few minutes and will help you determine which investing style aligns best with your personality and goals.

Step 3: Learn how to filter out the good stocks from the bad ones.

As with any investment, there is always a level of risk involved. However, by learning how to analyze and filter stocks, you can minimize these risks and increase your chances of success in the stock market.

One of the best ways to do this is through something called fundamental analysis, which is basically just a fancy finance term for researching and analyzing a company’s financial health, management, and competitive advantage.

Now, before you start panicking at the thought of having to go through complicated financial statements, don’t worry – you don’t need to be an accountant or have a degree in finance to understand fundamental analysis.

In fact, knowing how to understand the strength of a company boils down to just 10 simple numbers. And we have a FREE stock checklist that teaches you how to understand and analyze these numbers in less than 5 minutes. You can download it here.

Step 4: Understand how to read the markets.

Another crucial aspect of successful stock market investing is understanding how to read the markets and make timely investment decisions.

You might think this entails keeping track of market trends, economic factors, and company news that may affect stock prices.

But while it’s true that these pieces of information can help, it’s not the end all and be all. In fact, it can actually be detrimental sometimes to be following the news regularly, trying to keep tabs on companies’ every move – especially as the media tends to sensationalize and exaggerate events.

Instead, a better approach is to learn how to read and understand market psychology. By learning how to read the emotions and behaviours of other investors, you can better predict market movements and make informed investment decisions.

If you’d like to learn more about how to read market psychology, I encourage you to check out our FREE LIVE Online Masterclass. It’s beginner friendly and suitable for all levels of investors.

Step 5: Get some personalised 1-on-1 help.

While it’s great to learn from resources and online courses, there’s nothing quite like getting personalized support and guidance from experts in the field.

That’s why we offer 1-on-1 wealth discovery calls for farmers who are serious about building off-farm passive income through stock investing.

We dive deep into your current financial situation and goals, assess what’s working for you and what’s not, and provide personalized suggestions on how to get started and continue growing your wealth with a 90-day action plan.

If you’d like to book a FREE call with us, you can do so here. It’s completely confidential, and there is no obligation to sign up for any services or programs.

Start Building Off-Farm Wealth Today

As a farmer, you may face challenges with cash flow and debt. However, by exploring options for off-farm passive income through stock market investing, you can create a sustainable and profitable financial future for yourself.

Remember to assess your current financial situation and goals before diving into any investment strategy. Then, find an investing style that suits your personality and lifestyle. Learn how to analyze and filter out good stocks from bad ones through fundamental analysis, and understand how to read market psychology.

And if you need personalized help and guidance, don’t be afraid to reach out for a 1-on-1 wealth discovery call with experts in the field. With the right knowledge and support, you can successfully build off-farm passive income and secure your financial freedom.

So why not start today? Take the first step towards achieving financial freedom by downloading our FREE resources and signing up for our online masterclass and personalized wealth discovery call. The possibilities are endless when you have the right tools and knowledge to succeed.

Happy investing!


You may also like


Effective Trading Solutions Pty Ltd t/as (ABN: 98 160 101 959) (“theFreedomTrader”) is an Australian Financial Services License Holder (AFSL # 543386). All material provided on this website is general advice only and does not take into consideration your personal objectives, financial situation or needs. You should seek independent financial advice and read the relevant disclosure statements prior to acquiring our services. does not operate as a formal training provider and is not registered as a training provider.

This site is not a part of the YouTube, Bing Google or Facebook website; Google Inc, Microsoft INC or Meta Inc. Additionally, This site is NOT endorsed by YouTube, Google, Bing or Facebook in any way. FACEBOOK is a trademark of FACEBOOK, Inc. YOUTUBE is a trademark of GOOGLE Inc. BING is a trademark of MICROSOFT Inc.

Step 1.