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Taxes, Farm Programs, and Competitive Advantage for U.S. and Canadian Farmers: A Case Study
Author(s) -
Perry Gregory M.,
Nixon Clair J.,
Bunnage Kenneth J.
Publication year - 1992
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242484
Subject(s) - principal (computer security) , production (economics) , government (linguistics) , agricultural economics , business , economics , competitive advantage , marketing , microeconomics , computer science , linguistics , philosophy , operating system
Abstract The objective of this study was to understand the impact of tax and social program policies on competitiveness in trade. A case study approach was used, comparing returns to representative wheat farms located in Montana and Alberta. The principal analytical tool was a financial simulation model. The results suggest farmers in Alberta have significant tax and social program advantages and that, for the base scenario, these advantages outweighed government farm program and production cost advantages enjoyed by the Montana farmer. Taxes and social program advantages became relatively less important with an increase in farm size.