AGEC 2003 Lecture Notes - Lecture 2: Employee Benefits
20 Jan 2016
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A corporate form of organization can be used to transfer farms to others at a lower cost than other forms of business organization. Employee benefits such as social security and unemployment insurance are tax deductible for the corporation but not an individual proprietorship. A corporation can separate management from ownership in order to reduce liability of both management and owners. Classifying farms by value of farm products sold (2002) For a beef producer, k is an equivalent to about 50-60 cows. Not a lot of money, smaller-medium sized farms. Spouses work off-farm to produce a separate income. Sales between ,000 and ,000 - a part-time farm - almost like a hobby. Sales less than ,000 - doesn"t necessarily mean a profitof k. Cooperatives - a business that is organized, capitalized, and managed for its. Vertical coordination - the linking of successive stages in the marketing and production of a commodity in one decision entity.
