IDEAS home Printed from https://ideas.repec.org/p/ags/aaea25/361143.html
   My bibliography  Save this paper

Farm or Fortune? The Role of Heir’s Intentions and Tax Policies in Farmland Succession Planning

Author

Listed:
  • Hinds, Alan

Abstract

Capital gains taxation has been identified as a possible cause of limited sales transactions in farmland markets. This paper analyzes the impacts of capital gains and estate taxation on the optimal holding behavior of farmland owners. Using the Iowa Farmland Ownership and Tenure Survey (IFOTS), representative agents are derived for the nine agricultural districts in Iowa and their optimal land holding/selling behavior is simulated through four policy scenarios: current policy as a result of the 2017 Tax Cuts and Jobs Act, the possible sunsetting of the 2017 Tax Cuts and Jobs Act, H.R.1 - One Big Beautiful Bill Act (2025), and the proposed 2022 American Families Plan. The results show regional heterogeneity in the sensitivity of agents to changes in capital gains and estate tax policies that depends on the heir’s intent to keep or sell the farm.

Suggested Citation

  • Hinds, Alan, 2025. "Farm or Fortune? The Role of Heir’s Intentions and Tax Policies in Farmland Succession Planning," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361143, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:361143
    DOI: 10.22004/ag.econ.361143
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/361143/files/77517_77528_105300_Farm_or_Fortune_WP_6_18_2025.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.361143?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
    ---><---

    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:aaea25:361143. 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/aaeaaea.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.