This report presents estimates of the effective tax burden placed on the lifetime income stream from a marginal addition to regional farm sector capital portfolios, and the ownership costs of these capital additions. Estimates are based on a framework that uses Jorgenson's method of measuring the cost of capital, and data requirements are largely met using official U.S. Government statistics and State and Federal statutory tax rules. Results vary widely across farm production regions due to Federal and State income and wealth tax systems. This disparity systematically changes with alternative assumptions regarding inflationary expectations and the rate of return from employing capital in production. The tax system, inflationary expectations, and the expected rate of return to capital-all of which are influenced by fiscal and monetary policies- affect the relative tax burden and expected lifetime net income from new investments in productive capital across farm production regions.