Incorporation and the Farm Family

Abstract

The corporation business arrangement is a relatively new phenomenon in agriculture, and little evidence exists for or against its generating expected benefits. Reported is a study of 13 Illinois farm households that utilizes data from a community survey, interviews, participant observation, and genealogical and land histories. Families with varied enterprise types were incorporated or considering it-mainly for perceived tax benefits-though they were not necessarily characterized by the high income and aggressiveness thought most suited to incorporation. Because a long-term strategy was overwhelmingly adopted for short-term goals, intergenerational issues were determined as most problematic to incorporated families.

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