IDEAS home Printed from https://ideas.repec.org/p/ags/tamfbs/42087.html
   My bibliography  Save this paper

Economic Impact of a Proposed AGI Means Test on Representative Crop Farms

Author

Listed:
  • Richardson, James W.
  • Outlaw, Joe L.
  • Raulston, J. Marc

Abstract

The Administration has proposed revising the AGI means test for eligibility to farm program payments. The 2002 farm bill excludes producers from farm program payments (CCP, DP, and MLG/LDP) if their average adjusted gross income (AGI) for three preceding years exceeds $2.5 million and less than 75% of their AGI comes from farming, ranching or forestry operations. The revised means test would reduce the AGI cut-off to $200,000 and repeal the 75% exclusion. The purpose of this report is to estimate the impacts of the AGI proposal on average annual government payments and real net worth in 2014 for representative crop farms. The AFPC maintains a data base of 64 representative commercial family farms in major production regions across the United States. The farms represent a full-time, commercial operation that is typical of farms in a particular area. The farmers who participate in the bi-annual farm update interviews are selected by the county agent based on farm size (typical for the area), crop mix and farming practices (typical for the area), and being full-time farmers (not employed off the farm). The farms were constructed with no off-farm income to illustrate the changes in wellbeing due to farm policy changes. To the extent that a farm has off-farm income, the results will be conservative.

Suggested Citation

  • Richardson, James W. & Outlaw, Joe L. & Raulston, J. Marc, 2007. "Economic Impact of a Proposed AGI Means Test on Representative Crop Farms," Briefing Series 42087, Texas A&M University, Agricultural and Food Policy Center.
    • Handle: RePEc:ags:tamfbs:42087
    DOI: 10.22004/ag.econ.42087
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/42087/files/BP%2007-01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.42087?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:tamfbs:42087. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aftamus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.