IDEAS home Printed from https://ideas.repec.org/a/cup/jagaec/v18y1986i02p215-226_00.html
   My bibliography  Save this article

Effects of Selected Tax Policies on Management and Growth of A Catfish Enterprise

Author

Listed:
  • Kinnucan, Henry
  • Cacho, Oscar
  • Hanson, Gregory D.

Abstract

A multiperiod programming model was used to simulate the effects of lower marginal income tax rates, the soil and water conservation deduction, and the cash tax accounting option on firm growth for a “representative” farm operating in the Alabama Black Belt region. Results show the lowered marginal income tax rates associated with the Economic Recovery Tax Act (ERTA) of 1981 provide a positive growth stimulus to the modeled firm as measured by accumulated net worth over a 10-year planning horizon. The soil and water conservation deduction in general provides greater tax relief to the modeled firm than either the ERTA income tax rate changes or the cash tax accounting provision. Important complementary and substitute relationships were found to exist between marginal income tax rates and the various tax provisions studied, implying care must be exercised when attempting to evaluate the impact on farm firms of changes in tax policy.

Suggested Citation

  • Kinnucan, Henry & Cacho, Oscar & Hanson, Gregory D., 1986. "Effects of Selected Tax Policies on Management and Growth of A Catfish Enterprise," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 215-226, December.
    • Handle: RePEc:cup:jagaec:v:18:y:1986:i:02:p:215-226_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0081305200006269/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richardson, James W. & Nixon, Clair J., 1984. "The Effects of the 1980, 1981, and 1982 Tax Laws on Texas Rice Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(1), pages 137-144, July.
    2. Doye, Damona G. & Boehlje, Michael, 1985. "A Flat Rate Tax: Impacts On Representative Hog And Grain Farms," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(2), pages 1-15, December.
    3. Hanson, Gregory D. & Martin, Neil R., Jr. & Flynn, John B., 1984. "Production, Price And Risk Factors In Channel Catfish Farming," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(01), pages 1-10, July.
    4. Donald W. Reid & Wesley N. Musser & Neil R. Martin, 1980. "Consideration of Investment Tax Credit in a Multiperiod Mathematical Programming Model of Farm Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 152-157.
    5. Brake, John R. & Melichar, Emanuel, 1977. "Agricultural Finance and Capital Markets," A Survey of Agricultural Economics Literature, Volume 1: Traditional Fields of Agricultural Economics 1940s to 1970s,, Agricultural and Applied Economics Association.
    6. Hansen, Gregory D. & Kinnucan, Henry & Otto, Daniel, 1986. "A Characterization of Tax Management Costs in Agriculture: Evidence from Iowa and Alabama," Staff General Research Papers Archive 11020, Iowa State University, Department of Economics.
    7. Philip M. Raup, 1978. "Some Questions of Value and Scale in American Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 303-308.
    8. Kinnucan, Henry & Sullivan, Gregory, 1986. "Monopsonistic Food Processing and Farm Prices: The Case of the West Alabama Catfish Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 15-24, December.
    9. Hanson, Gregory D. & Martin, Neil R. & Flynn, John B., 1984. "Production, Price and Risk Factors in Channel Catfish Farming," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(1), pages 173-182, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kolajo, Ebenezer F. & Martin, Neil R., Jr., 1987. "Farm Firm Decisions Modeling: A Methodological Evaluation Of Alternative Farm Growth Modeling Approaches," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269948, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Michael P. Watters & Zoel W. Daughtrey, 1991. "Tax accounting methods of aquacultural producers," Agribusiness, John Wiley & Sons, Ltd., vol. 7(1), pages 39-55.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boggess, William G. & Anaman, Kwabena A. & Hanson, Gregory D., 1985. "Importance, Causes, And Management Responses To Farm Risks: Evidence From Florida And Alabama," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-12, December.
    2. Kinnucan, Henry W. & Sullivan, Gregory M., 1986. "Monopsonistic Food Processing And Farm Prices: The Case Of The West Alabama Catfish Industry," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-10, December.
    3. van der Merwe, G. P., 1990. "Research Note: Organised Futures Trading," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 29(01), February.
    4. Kim, C.S. & Schaible, Glenn D., 1987. "Monopsonistic Food Processing And Farm Prices: Comment," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-2, December.
    5. Chavas, Jean-Paul & Shumway, C. Richard, 1982. "A Pooled Time-Series Cross-Section Analysis Of Land Prices," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(01), pages 1-12, July.
    6. Knutson, Ronald D. & Smith, Edward G. & Richardson, James W., 1990. "The Incidence of Farm Program Benefits: Implications for Payment Limit Policies," Working Papers 258045, Texas A&M University, Agricultural and Food Policy Center.
    7. Robertson, J. Douglas & Musser, Wesley N. & Tew, Bernard V., 1982. "Lease Versus Purchase Of A Center-Pivot Irrigation System: A Georgia Example," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(2), pages 1-6, December.
    8. Wampach, Jean-Pierre, 1983. "Productivité, efficacité économique et équité dans le secteur agricole québécois," L'Actualité Economique, Société Canadienne de Science Economique, vol. 59(4), pages 669-685, décembre.
    9. Nixon, Clair J. & Richardson, James W., 0. "Implications Of Tax Policy Changes For Agriculture, Rural Communities, And Businesses," Increasing Understanding of Public Problems and Policies, Farm Foundation.
    10. Meekhof, Ronald L. & Penn, J.B. & Johnson, James & Miller, Thomas A., 1980. "Agricultural-Food Policy Review," Economics Statistics and Cooperative Services (ESCS) Reports 279723, United States Department of Agriculture, Economic Research Service.
    11. Ureta-Bravo, Boris E. & Helmers, Glenn A., 1981. "Impact Of Selected Federal Tax Provisions On The Growth Of Two Cash-Grain Farms Differing In Size," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279395, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Nixon, Clair J. & Richardson, James W., 1986. "The Effect of Federal Tax Policy on Farm Operators: An Application of Whole Farm Simulation for the Years 1975-1985," 1986 Annual Meeting, July 27-30, Reno, Nevada 278019, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Makus, Larry D. & Guenthner, Joseph F. & Lin, Biing-Hwan, 1992. "Factors Influencing Producer Support For A State Mandatory Seed Law: An Empirical Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(2), pages 1-8, December.
    14. Richardson, James W. & Smith, Edward G. & Knutson, Ronald D., 1988. "Who Benefits from Farm Programs: Size and Structure Issues?," Staff Reports 257911, Texas A&M University, Agricultural and Food Policy Center.
    15. Bagi, Faqir Singh, 1982. "Relationship Between Farm Size And Technical Efficiency In West Tennessee Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(2), pages 1-6, December.
    16. Lumnije Thaçi, 2022. "Bank Loans Types and Economic Growth - Literature Review," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 8, ejes_v8_i.
    17. Hanson, Gregory D. & Eidman, Vernon R., 1982. "A Micro Estimate of Tax Expenditures Received by Farmers," 1982 Annual Meeting, August 1-4, Logan, Utah 279177, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Kinnucan, Henry & Duffy, Patricia A., 1987. "The Farm Tax Burden: 1979 Versus 1983 With Regional Comparisons," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270121, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. David Bouras & Troy Frank & Eric Burgess, 2017. "Functional Forms and Oligopolistic Models: An Empirical Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 645-649.
    20. Lowenberg-DeBoer, James & Boehlje, Michael, 1987. "The Distributional Impact Of 1981 And 1982 Federal Income Tax Legislation: Which Farmers Benefit?," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(01), pages 1-10, April.

    More about this item

    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:cup:jagaec:v:18:y:1986:i:02:p:215-226_00. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/aae .

    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.