Hostname: page-component-cb9f654ff-k7rjm Total loading time: 0 Render date: 2025-08-26T00:43:04.609Z Has data issue: false hasContentIssue false
  • English
  • Français

An Empirical Analysis of Dairy Farm Reinvestment Versus Tax-Deferred Plans for Retirement Income

Published online by Cambridge University Press:  10 May 2017

Loren W. Tauer
Loren W. Tauer*
Affiliation:
Department of Agricultural Economics, Cornell University
Get access

Abstract

This study empirically compares the retirement values of dairy farm investments to tax-deferred retirement investments that are funded with bank certificates of deposit or common stock. For a successful dairy farm, the results indicate that tax-deferred retirement plans that generate rates of return similar to certificates of deposit or common stock mutual funds are probably not as good an investment as reinvesting farm earnings back into the farm business.

Information

Type
Articles
Information
Journal of the Northeastern Agricultural Economics Council , Volume 13 , Issue 1 , April 1984 , pp. 1 - 6
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

Footnotes

The author wishes to thank John R. Brake and Eddy L. LaDue for helpful suggestions and comments.

References

Acker, D. L., Wright, P. L., and Harrison, G. A. “Tax Sheltered Retirement Plans or Farm Investments,” North Central Regional Extension Publication No. 55, 1978.Google Scholar
Anderson, J. R., Dillon, J. L., and Hardaker, B. Agricultural Decision Analysis, The Iowa State University Press, Ames, Iowa, 1977.Google Scholar
Bratton, C. A., and LaDue, E. L. “1966 Dairy Farm Business Summary,” A.E. Res. 222, Department of Agricultural Economics, Cornell University, July 1967.Google Scholar
Buxton, B. M., and Jensen, H. R. “Economics of Size in Dairy Farming,” University of Minnesota Agricultural Experiment Station Bulletin 488, 1968.Google Scholar
Lee, W. F., and Brake, J. R. “Conversion of Farm Assets for Retirement Purposes,” Research Report 129, Michigan Agricultural Experiment Station, January 1971.Google Scholar
Spence, L. C., and Mapp, H. F. Jr. “A Retirement Income Simulation Model for Farm Operators,” Southern Journal of Agricultural Economics 8 (1), July 1976.Google Scholar
Tauer, L. W. “Calculating the Values of Alternative Investments for a Farmer's Retirement,” North Central Journal of Agricultural Economics 3 (2), July 1981.Google Scholar
Wiesenberger Investment Companies Service, A Division of Warren, Gorham and Lamont, Inc., New York, New York.Google Scholar