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Abstract

Registered retirement savings plans (RRSPs) are gaining in popularity as tools for building a retirement fund. How taxfilers use these plans, therefore, is an interesting area for investigation. This study focusses on a specific group of taxfilers, namely, farm producers. It describes RRSP contribution habits by farm producers from two points of view. First, it compares farmers with other groups of workers. Second, it takes a closer look at the specific situation of farm producers by exploring a number of characteristics specific to this group. The main results indicate that farm producers are among those who use RRSPs least, and who contribute the smallest amounts to RRSPs. The data also indicate, however, that farm producers who do contribute to RRSPs take full advantage of the opportunities provided by this tool. Like other workers, Canadian farm producers are most likely to contribute to RRPS when their incomes are higher and as they approach retirement age. The farm producer's province is another variable (albeit less important than the first two) that explains RRSP contribution habits. When full-time and part-time farm producers are examined separately, part-time producers are found to contribute to RRSPs more frequently and in larger amounts than their full-time colleagues. Full-time farm producers use the deduction limit as often as their part-time colleagues, however, and even more when only contributors are examined. Finally, the type of farm enterprise and the value of total sales are two factors that influence RRSP participation by Canadian farm producers.

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