IDEAS home Printed from https://ideas.repec.org/a/ags/abajal/336483.html

Farm business equity is partly illusion

Author

Listed:
  • LaDue, Eddy
  • Cagley, Charles
  • Dawson, James
  • Brown, Charles

Abstract

Market value balance sheets are required to appropriately assess the collateral position of a farm borrower. However, in most cases, part of the equity listed on the farmer's balance sheet is really an illusion. The balance sheet does not include the taxes the farmer would have to pay if he or she sold the farm. The Farm Financial Standards Council recommends that these taxes be shown on a market value balance and calls the taxes that would be paid deferred taxes. The equity that farmers think they have, but which would be paid in taxes if the farm were sold, is really equity illusion.

Suggested Citation

  • LaDue, Eddy & Cagley, Charles & Dawson, James & Brown, Charles, 1999. "Farm business equity is partly illusion," American Bankers Association, American Bankers Association > Journal of Agricultural Lending, vol. 12(4).
    • Handle: RePEc:ags:abajal:336483
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/336483/files/ers2022-23-0440.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    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:abajal:336483. 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://www.aba.com/ .

    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.