Corporate Farming, 1969-82

The number of incorporated farms in the United States rose by 178 percent in 1969-82. Most of the increase, 140 percent, occurred between 1969 and 1978. Tax advantages in the 1970's provided the chief impetus for farmers to incorporate: corporate tax rates declined while individual tax rates rose, mainly because of inflation. The Economic Recovery Tax Act of 1981 and liberalized estate tax laws have reduced the incentives for incorporating, however. Despite the increase in farm corporations, most farms remain sole proprietorships and most incorporated farms are family ones. Nonfamily corporations accounted for only 11 percent of the 59,792 farm corporations in 1982. Vertical integration and contract production appear to be increasing