Farm Real Estate Disinvestment Strategies
D. Lynn Forster and
Richard D. Duvick
Journal of Agricultural and Applied Economics, 1978, vol. 10, issue 2, 1-7
Abstract:
The combination of larger farms, rapidly increasing land values, and tax laws has resulted in increasing tax liabilities for the seller of farm real estate. After a real estate owner has made the decision to sell, he must choose the method of sale from several alternative selling strategies. Each selling strategy has a different impact on after-tax earnings. In the U.S., large numbers of farmers face this decision each year, as 4 to 5 percent of farms transfer annually. In addition, more than four-fifths of farm transfers are credit-financed. Sellers have been the predominant source of financing, providing more than two-fifths of all credit extended annually for farm real estate purchases.
Date: 1978
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