Hostname: page-component-586b7cd67f-dsjbd Total loading time: 0 Render date: 2024-11-29T13:27:42.436Z Has data issue: false hasContentIssue false
  • English
  • Français

A Retirement Income Simulation Model for Farm Operators*

Published online by Cambridge University Press:  28 April 2015

Lyle C. Spence  and
Harry P. Mapp Jr.
Lyle C. Spence
Affiliation:
Oklahoma State University, is currently employed at Nortrust Farm Management, Inc., Chicago, Illinois
Harry P. Mapp Jr.
Affiliation:
Oklahoma State University
Get access Rights & Permissions [Opens in a new window]

Extract

Retirement planning for farm families is complicated by the unique relationship between the farmer and his business. Farm operators combine their labor and management with owned or borrowed capital to generate income, a combination of labor and investment return. When earned income exceeds immediate consumption needs, the excess is often invested in the farm business. In fact, the high demand for capital reinvestment in the business enterprise may leave little opportunity for farm families to establish a savings or investment program designed to produce adequate income for their retirement needs.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 8 , Issue 1 , July 1976 , pp. 163 - 168
Copyright
Copyright © Southern Agricultural Economics Association 1976

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Oklahoma State Agricultural Experiment Station Journal Article No. J-3107. Research reported herein was conducted under Oklahoma State Project No. 1535. Comments by Clint E. Roush, Odell L. Walker, Joseph E. Williams and anonymous reviewers are gratefully acknowledged.

References

[1] Boehlje, Michael. “The Entry-Growth-Exit Process in Agriculture,” Southern Journal of Agricultural Economics, July 1972, pp. 23–36.Google Scholar
[2] Brucker, M. H., Baker, C. B. and Erickson, D. E.. Planning Retirement from Farming: A Computer-Assisted Method for Low-Income Farmers, University of Illinois, College of Agriculture, Special Publication 34, May, 1975.Google Scholar
[3] Clements, Alvin M., Mapp, Harry P. Jr. and Eidman., Vernon R. A Procedure for Correlating Events in Farm Firm Simulation Models, Oklahoma Agriculture Experiment Station Technical Bulletin T-131, August 1971.Google Scholar
[4] Fisher, Irving. The Theory of Interest, New York: Kelley and Milliman, Inc., 1954.Google Scholar
[5] Folks, J. Leroy. “Statistical Considerations and Analyses,” Agricultural Production Systems Simulation, Eidman, Vernon R., ed., Oklahoma State University, May 1971.Google Scholar
[6] Lee, W. F. and Brake, J. R.. Conversion of Farm Assets for Retirement Purposes, Michigan Agricultural Experiment Station Research Report 129, January 1971.Google Scholar
[7] Markowitz, Harry M. Portfolio Selection, New York: John Wiley and Sons, Inc., 1959.Google Scholar
[8] Naylor, Thomas H., Balintfy, Joseph L., Burdick, Donald S. and Chu, Kong. Computer Simulation Techniques, New York: John Wiley and Sons, Inc., 1968.Google Scholar
[9] Sharpe, William F. “A Simplified Model for Portfolio Selection,” Management Science, 9(1963):277–293.CrossRefGoogle Scholar
[10] Spence, Lyle C. “An Analysis of Investment Strategies for Retiring Farmers,” unpublished M.S. Thesis, Oklahoma State University, 1976.Google Scholar
[11] Spence, Lyle C. and Mapp, Harry P. Jr. Simulating Investment Strategies for Retiring Farmers, Oklahoma Agricultural Experiment Station Bulletin (forthcoming).Google Scholar