Tax-Deferred Retirement Savings of Farm Households: An Empirical Investigation
By: Mishra, Ashok K.; Chang, Hung-Hao
Mishra, Ashok K.; Chang, Hung-Hao, Tax-Deferred Retirement Savings of Farm Households: An Empirical Investigation, Journal of Agricultural and Resource Economics, Volume 36, Issue 1, April 2011, Pages 160-176
This study examines factors affecting tax-deferred retirement savings among farm households. A double-hurdle model is estimated using 2003 Agricultural Resource Management Survey (ARMS) farm-level national data. Results indicate that demographic factors, total household income, off-farm work, and risk preference play important roles in retirement savings plan participation. Retirement savings increase with household size, intensity of off-farm work by farm operator and spouse, and size of farming operation. We find that the amount of retirement savings decreases with operator’s age and increases with spouse’s age, and that cash grain and dairy farmers have lower retirement savings.