Farm or Fortune? The Role of Heir’s Intentions and Tax Policies in Farmland Succession Planning

Alan Hinds

No 361143, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: Capital gains taxation has been identified as a possible cause of limited sales transactions in farmland markets. This paper analyzes the impacts of capital gains and estate taxation on the optimal holding behavior of farmland owners. Using the Iowa Farmland Ownership and Tenure Survey (IFOTS), representative agents are derived for the nine agricultural districts in Iowa and their optimal land holding/selling behavior is simulated through four policy scenarios: current policy as a result of the 2017 Tax Cuts and Jobs Act, the possible sunsetting of the 2017 Tax Cuts and Jobs Act, H.R.1 - One Big Beautiful Bill Act (2025), and the proposed 2022 American Families Plan. The results show regional heterogeneity in the sensitivity of agents to changes in capital gains and estate tax policies that depends on the heir’s intent to keep or sell the farm.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 21
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/361143/files/7 ... une_WP_6_18_2025.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:361143

DOI: 10.22004/ag.econ.361143

Access Statistics for this paper

More papers in 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().