IDEAS home Printed from https://ideas.repec.org/a/wly/apecpp/v46y2024i2p677-697.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

An analysis of tax benefits by race and ethnicity for farm households

Author

Listed:
  • Tia M. McDonald
  • Ron Durst

Abstract

This research simulates the impact on tax liabilities of five tax provisions that provide benefits to farm households by race and ethnicity. Using pooled data from the Agricultural Resource Management Survey (2017–2021), we find that, relative to White non‐Hispanic principal operator farm households, certain business tax benefits are less prevalent and of lower value for Hispanic, African American, and Native American principal operator farm households due to differences in income and investment levels. Household tax credits are significantly higher for Hispanic and Native American principal operator farm households and Asian principal operator farm households have significantly higher total tax benefits from the five provisions examined.

Suggested Citation

  • Tia M. McDonald & Ron Durst, 2024. "An analysis of tax benefits by race and ethnicity for farm households," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 677-697, June.
    • Handle: RePEc:wly:apecpp:v:46:y:2024:i:2:p:677-697
    DOI: 10.1002/aepp.13423
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/aepp.13423
    Download Restriction: no
    File URL: https://libkey.io/10.1002/aepp.13423?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
    ---><---

    References listed on IDEAS

    as
    1. Davenport, Charles & Boehlje, Michael D. & Martin, David B. H., 1982. "The Effects of Tax Policy on American Agriculture," Agricultural Economic Reports 307912, United States Department of Agriculture, Economic Research Service.
    2. Durst, Ron L. & Monke, James D., 2001. "Effects Of Federal Tax Policy On Agriculture," Agricultural Economic Reports 33919, United States Department of Agriculture, Economic Research Service.
    3. Williamson, James M. & Bawa, Siraj G., 2018. "Estimated Effects of the Tax Cuts and Jobs Act on Farms and Farm Households," Economic Research Report 276226, United States Department of Agriculture, Economic Research Service.
    4. James M Williamson & Sarah Stutzman, 2016. "Tax policy and farm capital investment: Section 179 expensing and bonus depreciation," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(2), pages 246-269, July.
    5. Halvorsen, Robert, 1991. "The Effects of Tax Policy on Investment in Agriculture," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 393-400, August.
    6. Robert Carroll & Douglas Holtz-Eakin & Mark Rider & Harvey S. Rosen, 2001. "Personal Income Taxes and the Growth of Small Firms," NBER Chapters, in: Tax Policy and the Economy, Volume 15, pages 121-148, National Bureau of Economic Research, Inc.
    7. Dubman, Robert, 2000. "Variance Estimation With USDA's Farm Costs and Returns Surveys and Agricultural Resource Management Study Surveys," Staff Reports 276685, United States Department of Agriculture, Economic Research Service.
    8. Ya Wu & Cesar L. Escalante & Lewell F. Gunter & James E. Epperson, 2012. "A decomposition approach to analysing racial and gender biases in Farm Service Agency's lending decisions," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2841-2850, August.
    9. Escalante, Cesar L. & Osinubi, Adenola & Dodson, Charles & Taylor, Carmina E., 2018. "Looking Beyond Farm Loan Approval Decisions: Loan Pricing And Nonpricing Terms For Socially Disadvantaged Farm Borrowers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 50(1), pages 129-148, February.
    Full references (including those not matched with items on IDEAS)

    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. Siraj G. Bawa & James M. Williamson, 2020. "Distributional Impacts of the Tax Cuts and Jobs Act Using Farm Household Microdata," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 835-855, December.
    2. Ashok K. Mishra & Gianna Short & Charles B. Dodson, 2024. "Racial disparities in farm loan application processing: Are Black farmers disadvantaged?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 111-136, March.
    3. Katchova, Ani L., 2005. "A Comparison of Farm and Nonfarm Households," 2005 Agricultural and Rural Finance Markets in Transition, October 3-4, 2005, Minneapolis, Minnesota 132757, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    4. William Gale & Samuel Brown, 2013. "Small Business, Innovation, and Tax Policy: A Review," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(4), pages 871-892, December.
    5. Nathan D. DeLay & Nathanael M. Thompson & James R. Mintert, 2022. "Precision agriculture technology adoption and technical efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 195-219, February.
    6. Ashok Mishra & Barry Goodwin, 2006. "Revenue insurance purchase decisions of farmers," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 149-159.
    7. Erickson, Kenneth W. & Moss, Charles B. & Mishra, Ashok K., 2006. "Farm Wealth Inequality Within and Across States in the United States," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), pages 1-14, October.
    8. Nehring, Richard & Gillespie, Jeffrey & Hallahan, Charles & Sauer, Johannes, 2015. "The Economics and Productivity of Organic versus Non-organic U.S. Dairy Farms," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196805, Southern Agricultural Economics Association.
    9. William M. Gentry & R. Glenn Hubbard, 2005. ""Success Taxes," Entrepreneurial Entry, and Innovation," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 87-108, National Bureau of Economic Research, Inc.
    10. Ahearn, Mary Clare & Banker, David E. & MacDonald, James M., 2003. "Price And Nonprice Terms In U.S. Agricultural Contracts," 2003 Annual meeting, July 27-30, Montreal, Canada 21947, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Hansson, Åsa, 2009. "Are small business owners more successful in avoiding taxes: Evidence from Sweden," Working Papers 2009:6, Lund University, Department of Economics.
    12. Hitaj, Claudia & Weber, Jeremy G. & Hopkins, Jeffrey W. & Erickson, Kenneth W., 2018. "Ownership of Oil and Gas Rights and Farm Sector Income and Wealth," 2018 Annual Meeting, August 5-7, Washington, D.C. 274316, Agricultural and Applied Economics Association.
    13. Ashok Kumar Mishra & Krishna Paudel, 2011. "Estimating permanent income and wealth of the US farm households," Applied Economics, Taylor & Francis Journals, vol. 43(12), pages 1521-1533.
    14. Winikoff, Justin B. & Maguire, Karen, 2024. "The Role of Commercial Energy Payments in Agricultural Producer Income," Economic Information Bulletin 342468, United States Department of Agriculture, Economic Research Service.
    15. Diane Charlton & Genti Kostandini, 2021. "Can Technology Compensate for a Labor Shortage? Effects of 287(g) Immigration Policies on the U.S. Dairy Industry," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 70-89, January.
    16. Ana Claudia Sant'Anna & Kevin N. Kim & Iryna Demko, 2024. "Limits to capital: Assessing the role of race on the Paycheck Protection Program for African American farmers in America," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 217-233, March.
    17. Anil K. Giri & Dipak Subedi & Kathleen Kassel, 2024. "Analysis of the payments from the coronavirus food assistance program and the market facilitation program to minority producers," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(1), pages 189-201, March.
    18. Korb, Penelope J. & Blank, Steven C. & Erickson, Kenneth W., 2004. "Profit Patterns In The U.S. And The West, 1992 And 1997: What County-Level Data Reveal," 2004 Annual Meeting, June 30-July 2, 2004, Honolulu, Hawaii 36253, Western Agricultural Economics Association.
    19. Mina Baliamoune-Lutz & Pierre Garello, 2014. "Tax structure and entrepreneurship," Small Business Economics, Springer, vol. 42(1), pages 165-190, January.
    20. Ali, Mir B., 2004. "Characteristics and Production Costs of U.S. Sugarbeet Farms," Statistical Bulletin 262276, United States Department of Agriculture, Economic Research Service.

    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:wly:apecpp:v:46:y:2024:i:2:p:677-697. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2040-5804 .

    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.