RETURN ON CAPITAL AND MODEST INFLATION: A NOTE

Geoff Bright

Journal of Agricultural Economics, 1997, vol. 48, issue 1‐3, 442-450

Abstract: Hill (1984) suggested adjustments to farm accounts to deal with inflation. This note provides further detail as to how inflation may be dealt with to produce meaningful return on capital measures and uses an example to illustrate their construction. The note suggests that, although under current levels of inflation there may be less sense of urgency, timely consideration should be given to making further adjustments to Farm Business Survey data and to presenting several measures of real return on capital.

Date: 1997
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