Advanced Search
MyIDEAS: Login to save this article or follow this journal

Tax Reform And Beef Cow Replacement Strategy


Author Info

  • Innes, Robert
  • Carman, Hoy F.


This paper models optimal beef cow replacement strategy in a stochastic environment under U.S. income tax rules effective before and after the Tax Reform Act of 1986. Under each tax regime, the producer's buy versus raise decision and optimal culling age choice are analyzed. Per-cow profit levels are also calculated. Results of the numerical analysis indicate that tax law changes, particularly the loss of the capital gains exclusion and restrictions on preproduction expensing, will have significant effects on both optimal decisions and profitability of beef cow operations. When provisions of the Tax Reform Act of 1986 are fully effective in 1988, the optimum age for culling beef cow will increase, as will the after-tax costs of beef cow operations.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Western Journal of Agricultural Economics.

Volume (Year): 13 (1988)
Issue (Month): 02 (December)

as in new window
Handle: RePEc:ags:wjagec:32112

Contact details of provider:
Web page:
More information through EDIRC

Related research

Keywords: Agricultural Finance; Livestock Production/Industries; Public Economics;


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Bentley, Ernest & Shumway, C. Richard, 1981. "Adaptive Planning Over The Cattle Price Cycle," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(01), July.
  2. Kay, Ronald D. & Rister, M. Edward, 1977. "Income Tax Effects On Beef Cow Replacement Strategy," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 9(01), July.
Full references (including those not matched with items on IDEAS)



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:ags:wjagec:32112. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.