IDEAS home Printed from https://ideas.repec.org/a/eme/afrpps/v72y2012i2p210-221.html
   My bibliography  Save this article

Multiple entity farms: a growing and challenging phenomenon

Author

Listed:
  • Allen M. Featherstone
  • Mark A. Wood
  • Kevin L. Herbel
  • Michael R. Langemeier

Abstract

Purpose - Understanding complex farming organizations is important in the USA given the rapid consolidation of the agricultural production sector. Multiple entity farms arise from a desire to enhance the ability to transfer the farm from one generation to the next, a desire to affect tax liability, and a desire to affect legal liability. To determine the extent of the multiple entity phenomena and the complications that multiple entities can cause in data collection, the purpose of this article is to address the importance of multiple entities in Kansas. Design/methodology/approach - An overview of reasons leading to additional organizational complexity are discussed. Two case farms are presented to understand the depth of the complexity and how that complexity has implications for data collection. Findings - The number of multiple entity farms is expected to continue to increase. Obtaining data through the Agricultural Resource Management Survey (ARMS) will become more difficult as production agriculture increases the use of multiple entities. ARMS must reconsider how multiple entity organizations are handled. Possible solutions include an alternative system for data collection of multiple entity farms. Documenting the prevalence of multiple entity organizations in the production sector and tracing through how those organizations are currently handled is critical to understanding potential impacts on the current data collected. Originality/value - The National Research Council completed a review of ARMS that addressed challenges in keeping the survey relevant into the future. However, research that examines the construction of financial statements and other information had not been conducted since the early 1990s. This study fills part of that gap.

Suggested Citation

  • Allen M. Featherstone & Mark A. Wood & Kevin L. Herbel & Michael R. Langemeier, 2012. "Multiple entity farms: a growing and challenging phenomenon," Agricultural Finance Review, Emerald Group Publishing, vol. 72(2), pages 210-221, July.
  • Handle: RePEc:eme:afrpps:v:72:y:2012:i:2:p:210-221
    as

    Download full text from publisher

    File URL: http://www.emeraldinsight.com/10.1108/00021461211250447?utm_campaign=RePEc&WT.mc_id=RePEc
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    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:eme:afrpps:v:72:y:2012:i:2:p:210-221. 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: (Virginia Chapman). General contact details of provider: http://www.emeraldinsight.com .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.