2019
DOI: 10.1017/aae.2019.26
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Do Most U.S. Farms Really Lose Money? Taxation and Farm Income Underreporting

Abstract: This article explores whether income underreporting for tax purposes can explain why the majority of U.S. farmers earn low or negative net farm income. Using 10 years of U.S. Department of Agriculture farm-level data, the extent of underreporting is estimated by exploiting the fact that farm households face an incentive to underreport farm income that varies with their reported off-farm income. Results indicate that 39% of total farm income is underreported. For large farms, the results imply a substantial dis… Show more

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Cited by 5 publications
(3 citation statements)
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“…Maka, pembagian hasil memang seharusnya penggaraplah yang memiliki lebih banyak bagian. Sementara itu, sistem akad mukhabrah pemilik tanah yang memiliki banyak bagian karena pemlik tanahlah yang mengeluarkan banyak modal, sedangkan penggarap hanya sebatas menyiapkan tenaga (Al-Daghistani, 2016;Darmada et al, 2016Hadrich et al, 2017Key, 2019;Kumar et al, 2017;Yasa, 2015).…”
Section: Gambar4 Dasar Budaya Sipallambi' Dalam Bidang Pertanianunclassified
“…Maka, pembagian hasil memang seharusnya penggaraplah yang memiliki lebih banyak bagian. Sementara itu, sistem akad mukhabrah pemilik tanah yang memiliki banyak bagian karena pemlik tanahlah yang mengeluarkan banyak modal, sedangkan penggarap hanya sebatas menyiapkan tenaga (Al-Daghistani, 2016;Darmada et al, 2016Hadrich et al, 2017Key, 2019;Kumar et al, 2017;Yasa, 2015).…”
Section: Gambar4 Dasar Budaya Sipallambi' Dalam Bidang Pertanianunclassified
“…Employment is the main approach for farmers to participate in off-farm employment. Farmers earn a relatively stable wage income through off-farm employment (KEY, 2019;ZHANG et al, 2021), but since they are mainly employed to provide low-end labour and services, the income they earn basically meets their subsistence consumption, limiting their investment in other dimensions, such as education, health, social security and living conditions. As a result, the poverty reduction effect of employment on development ability and living conditions is limited.…”
Section: The Impact Of Different Off-farm Employment Approaches On Th...mentioning
confidence: 99%
“…It was established that the goal of the agricultural holding formation is to supply the coordinated activity of all legal economic structures involved in organizational technological cycle of production of certain types of final products; economic and social interest of each partner in obtaining a high final result; qualitative organization of the agrarian market. N. Key (2019) believe that in comparison with small agricultural enterprises, agricultural holdings have better opportunities to attract investments, experienced and skilled staff, developed infrastructure and ability to diversify risks.…”
Section: Table 1 Dynamics Of Development Of Farming In Oblasts Of Ukr...mentioning
confidence: 99%