The number of incorporated farms in the United States rose by 140 percent from 1969-78. Tax advantages provided the chief impetus for farmers to incorporate: corporate tax rates declined in the seventies, while individual tax rates rose, mainly because of inflation. Despite the increase in farm corporations, most farms remain sole proprietorships and most incorporated farms are family farms. Nonfamily farms accounted for only 7 percent of farm sales in 1978. Eleven States had enacted legislation as of 1981 to restrict corporate farm activities (farm operations, vertical integration, and ownership of farmland).