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Farm Real Estate Disinvestment Strategies

Published online by Cambridge University Press:  28 April 2015

D. Lynn Forster  and
Richard D. Duvick
D. Lynn Forster
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
Richard D. Duvick
Affiliation:
Department of Agricultural Economics and Rural Sociology, The Ohio State University
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Extract

The combination of larger farms, rapidly increasing land values, and tax laws has resulted in increasing tax liabilities for the seller of farm real estate. After a real estate owner has made the decision to sell, he must choose the method of sale from several alternative selling strategies. Each selling strategy has a different impact on after-tax earnings. In the U.S., large numbers of farmers face this decision each year, as 4 to 5 percent of farms transfer annually. In addition, more than four-fifths of farm transfers are credit-financed. Sellers have been the predominant source of financing, providing more than two-fifths of all credit extended annually for farm real estate purchases.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 10 , Issue 2 , December 1978 , pp. 1 - 7
Copyright
Copyright © Southern Agricultural Economics Association 1978

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References

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