Stabilising post-tax incomes of New Zealand sheep farms

Abstract

This report is an empirical attempt to investigate various procedures and schemes aimed at reducing post-tax income variability of New Zealand sheep farmers. Section 2 of this report is a brief review of some measures aimed at reducing post-tax income variation and includes a description of the schemes selected for this study. Section 3 describes the data and the procedures adopted in comparing the various selected schemes. Section 4 presents the results of empirical analyses in terms of the degree of variation in post-tax income achieved under the different schemes; average post-tax incomes are also reported in order to assess the tax equity producing attributes of the various schemes. Finally, a discussion of these results and their implications for policy is given in Section 5 of the report.