How do tax loss benefits and asset appreciation affect the returns to farming for U.S. farm households?

Daniel Prager, Sarah Tulman and Ron Durst

No 266304, 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania from Agricultural and Applied Economics Association

Abstract: Net farm income and net cash farm income, as well as the farm household’s income or loss from the farm business, are commonly used measures of farm financial performance. However, other factors may affect the household’s economic return from farming. Almost half of all farm households face a loss from the farm business in any given year, and those households can benefit from offsetting these tax losses. Households may also gain from appreciation of their assets, particularly farmland, depending on how much of their operated land is owned. This paper analyzes farm returns after adjusting for these factors, estimating the additional gains households receive from offsetting tax losses and asset appreciation. Economic returns are found to be higher for larger farms, and those with higher debt.

Keywords: Agricultural and Food Policy; Agricultural Finance; Consumer/Household Economics (search for similar items in EconPapers)
Pages: 20
Date: 2017-12-01
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://ageconsearch.umn.edu/record/266304/files/P ... pt%20to%20AgEcon.pdf (application/pdf)
https://ageconsearch.umn.edu/record/266304/files/P ... n.pdf?subformat=pdfa (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:assa18:266304

DOI: 10.22004/ag.econ.266304

Access Statistics for this paper

More papers in 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().