Operation is done for personal reasons/ pleasure and there is no reasonable expectation of profit.  

Operating a farm business but your off-farm income sources are not subordinate to your  farming activity.

Operating a farm business where farm activity is your main source of revenue.  

Direct farming expenses can be claimed against income but cannot exceed the income declared.  

Direct farming expenses and home office expenses are deductible. 

Direct farming expenses and home office expenses are deductible.  

Losses cannot be deducted on your tax return.  

Losses are restricted to a maximum of $17,500 in one year. The restricted losses can be carried back 3 years or forward 20 years and used to reduce farming income only.  

Losses are not restricted and can be deducted against all other sources of income.