Gregory D. Hanson

Production, Price and Risk Factors in Channel Catfish Farming

The effects of several production/management, price and risk factors upon channel catfish profitability are analyzed with a multiperiod mixed-integer linear programming model. Factors analyzed include pond size and optimal stocking rates, alternate levels and trends in catfish prices, pond production losses and level of family consumption withdrawals. Model results indicate that channel catfish offer the potential to significantly increase farm rates of return while providing an avenue of intensive farm growth, without expanding the land base of the farm. However, the long range financial success of the firm was very sensitive to several of the management and risk factors examined.

Agricultural Income Tax Expenditures—A Microeconomic Analysis

Annual agricultural tax expenditures (tax subsidies) for farms in the sample increased dramatically from

Tax Management Costs in Agriculture: Evidence from Iowa and Alabama

2,430 in 1967–72 to

Effects of capital rationing and tax incentives on the internal growth of an aquacultural firm

8,590 in 1973–78. Tax expenditures were beneficial to all major enterprises and farm sizes. While large farmers received nearly three times the value of small farm tax savings, small farmers received more tax expenditures per dollar of farm sales. Tax progressivity declined during the sample period based on adjusted gross and economic measures of income, and combined state income and self-employment taxes exceeded federal income taxes during 1973–78. Also, tax expenditures far exceeded direct government payments to sample farmers during 1973–78.

Importance, Causes, and Management Responses to Farm Risks: Evidence From Florida and Alabama

Farm survey data for Iowa and Alabama are analyzed and related to Internal Revenue Service sample data for these states and published tax statistics for the agricultural sector as a whole. The primary research objective was to characterize several categories of tax preparation and management costs associated with the three taxes levied on income in these states. Typical tax preparation costs were estimated to range from 650-1,000 for the two states when the cost of operator time was included with preparation fees. This compliance cost was estimated to represent as much as 40 percent of the income tax liabilities of commercial size farms, and a higher percentage for small farms. There was a clear perception among the farmers sampled that the income tax system strongly influenced farm investment, marketing and management decisions. Relationships between preparation costs and operator and farm characteristics were explored with regression analysis.

Financial Analysis of a Proposed Large-Scale Ethanol Cogeneration Project

Abstract Capital rationing and tax incentive issues for an aquacultural firm are developed in the context of intensive firm growth (growth from within rather than through acquisition) with a channel catfish enterprise. Beginning firm debt levels and stringently imposed debt limits (which the firm was not permitted to exceed) were found to have prominent effects upon pond construction levels and growth in profitability. Wide fluctuations in interest rate levels had little impact upon growth of the aquacultural enterprise, although higher interest rates significantly reduced profitability. The tax incentive examined also had little effect upon firm growth. The methodology developed and the effect of the capital, debt, interest rate level and tax features analyzed provide insights that may apply wherever capital and credit rationing impacts upon investment decisions by aquacultural firms.