 Farm Corporations: A Financial AnalysisGeorge Coffman No 307484, Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service Abstract: In 1968, of the total of 3.1 million farm tax returns filed, only 20,000 were from farm corporations. Even this small number represents an increase, but most of this increase is in corporations using the subchapter S option. These are closely held corporations, taxed like partnerships. Farm corporations as a group tended to have more losses and lower returns, with greater variability than certain other corporate industries. The 1963-68 average rate of earning on assets (cost or acquisition value) was 4.5 percent and the rate of return on equity was 5.3 percent. Farm corporations had moderate financial strength. Equity capital was 39 percent of the total. More than half of the assets of farm corporations were invested in land and depreciable assets. The slow turnover rate on these assets and low profit margin on receipts contributed to the low returns on assets and equity. In 1968, farm corporations averaged $317,000 in assets, produced $260,000 in receipts, and earned $17,000 net income. Keywords: Farm Management; Financial Economics; Production Economics (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:uerser:307484 Access Statistics for this paper More papers in Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.