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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
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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.

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 

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Footnotes

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

References

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