Suchergebnisse

Farmland preservation increasingly is becoming an area of public policy concern. A variety of policy options can be used to slow the conversion of farmland to Ur uses, including direct methods such as zoning, & indirect methods such as tax incentives. The potential of the latter is examined in detail. The two principal objects of the tax incentive approach are: (1) to relieve the tax burden experienced by farmers, & (2) to maintain enough farmland to ensure needed food & fiber. Alternative tax incentive programs are evaluated, with the conclusion that many can achieve the first objective, but none the second. One method discussed is a conveyance tax, equal to the difference between market value for the best nonagricultural use & use value as farmland, but so strong a tax would nullify the land market & lead to a variety of undesirable side effects. Thus, while tax incentives can be used to reduce the tax burden on farmers that may force them to sell, this approach is not desirable as a means for countering the profitability of land conversion. 20 References. Modified AA.