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FEFO Archive: Farm income

Cost to Produce Corn and Soybeans in Illinois-2013
Brandy M. Krapf, Dwight D. Raab, and Bradley L. Zwilling
FEFO 14-06, 3/21/2014
 
No Abstract Available
 
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Proportion of Farms with High Cash Rent Percentages and Levels
Gary Schnitkey
FEFO 13-20, 10/29/2013
 

Abstract

About 4% of the grain farms in Illinois cash rent 90% of there at average cash rents $25 per acre higher than county averages. These farms are the ones most to face the need to adjust cash rents downward.
 
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Farm and Family Living Income and Expenses for 2012
Brandy M. Krapf, Dwight D. Raab, and Bradley L. Zwilling
FEFO 13-15, 8/16/2013
 

Abstract

In 2012, the total noncapital living expenses of 1,300 farm families enrolled in the Illinois Farm Business Farm Management Association (FBFM) averaged $76,668--or $6,389 a month for each family. This average was 6.6 percent higher than in 2011.
 
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2013 Net Incomes for Grain Farms Likely Below Levels in Recent Years
Gary Schnitkey
FEFO 13-11, 7/10/2013
 

Abstract

Near normal yields and commodity prices near current forward price bids will result in less income on grain farms in 2013 as compared to incomes in recent years
 
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2013 Net Farm Income Projections
Gary Schnitkey
FEFO 12-23, 11/20/2012
 

Abstract

Overall, 2013 currently is projected as a good income year for crop farms. Worst case incomes will be influenced by projected prices and coverage level choices. Likely projected prices will provide significant downside risk protection given that relatively high crop insurance coverage levels are selected.
 
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Grain Farm Income Prospects Given Drought Conditions in 2012
Gary Schnitkey
FEFO 12-15, 6/28/2012
 

Abstract

Low corn and soybean yields are increasingly likely as hot, dry weather is forecast to continue. Because prices likely will increase with lower yields, grain farm incomes likely will be above projections made in winter of 2012. However, some farms will suffer losses.
 
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Good Yields and High Grain Prices Lead to Strong Farm Earnings in 2007
Dale Lattz
FEFO 08-08, 4/18/2008
 

Abstract

Illinois Farm Business Farm Management records indicate that average farm operator returns for labor and management was higher in 2007 than the average income for the previous five years.
 
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Farm and Family Living Income and Expenses for 2006
Dale Lattz
FEFO 07-10, 5/16/2007
 

Abstract

In 2006 the total, noncapital, living expenses of 1,196 farm families enrolled in the Illinois Farm Business Farm Management Association (FBFM) averaged $54,994.
 
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Good Yields and Higher Grain Prices Improve Farm Earnings in 2006
Dale Lattz
FEFO 07-09, 5/2/2007
 

Abstract

Based on Illinois Farm Business Farm Management Association (FBFM) records that have been recently summarized, average farm operator returns for labor and management on 2,640 Illinois farms was higher for all geographic areas in the state in 2006 compared to 2005 and above the average for the last five years.
 
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Higher Yields and Grain Prices Result in Higher Farm Income Projections for 2006
Dale Lattz, Gary Schnitkey and Paul Ellinger
FEFO 07-01, 1/11/2007
 

Abstract

Net farm incomes were projected for 742 grain farms enrolled in Illinois Farm Business Farm Management (FBFM) Association. Average net farm income in 2006 is projected at $93,600 per farm, up by over 60% from actual farm income of $57,700 in 2005.
 
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Farm and Family Living Income and Expense for 2005
Dale Lattz
FEFO 06-10, 06/19/2006
 

Abstract

In 2005 the total, noncapital, living expenses of 1,209 farm families enrolled in the Illinois Farm Business Farm Management Association (FBFM) averaged $52,743.
 
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Lower Corn Yields and Higher Input Costs Reduce Farm Earnings in 2005
Dale Lattz
FEFO 06-08, 05/17/2006
 

Abstract

Based on recently summarized Illinois Farm Business Farm Management Association (FBFM) records, average returns for labor and management on 2,940 Illinois farms was lower for all geographic areas in 2005 compared to 2004 and slightly below the average for the last five years.
 
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Considerably Lower Farm Incomes Projected for 2005
Dale Lattz, Gary Schnitkey and Paul Ellinger
FEFO 05-24, 12/28/2005
 

Abstract

Net farm incomes were projected for 805 grain farms enrolled in Illinois Farm Business Farm Management (FBFM) Association. Average net farm income in 2005 is projected at $43,600 per farm, down by over 50% from actual farm income of $90,700 in 2004.
 
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Variable Cost Increases for Corn and Soybeans in Historical Perspective
Gary Schnitkey, Dale Lattz
FEFO 05-18, 09/30/2005
 

Abstract

On Illinois grain farms, variable costs for corn are projected to be $55 per acre higher in 2006 than in 2002. Similarly, variable costs for soybeans will be $20 per acre higher in 2006 than in 2002. In percentage terms, cost increases are 33% for corn and 19% for soybeans over the four-year period from 2002 to 2006. Increases of this magnitude have not occurred in recent history and will cause reductions in farm profitability. Further historical perspectives on these increases are provided in this article.
 
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2005 and 2006 Crop Budgets: Implications for Cash Rents and Production Decisions
Gary Schnitkey, Dale Lattz
FEFO 05-16, 08/30/2005
 

Abstract

Per acre corn and soybean returns in 2005 and 2006 are projected to be significantly lower than returns in 2003 and 2004. As a result, less funds will be available to pay cash rents in 2005 and 2006. Landlords and tenants may wish to renegotiate cash rents. Fertilizer and fuel costs have increased dramatically, causing soybean profitability to increase relative to corn profitability. Shifting acres to soybeans may be prudent. Also, reducing fertilization rates and eliminating tillage passes may be economical.
 
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Growth In Farm Size
Gary Schnitkey
FEFO 05-12, 06/25/2005
 

Abstract

Changes in tillable acres on farms enrolled in Illinois Farm Business Farm Management (FBFM) were calculated for the five-year period between 1999 and 2004. On average, farms increased tillable acres by 7%. However, considerable range in growth rates existed across farms. Over 40% of all farms lost acres during the period while 22% increased acres by more than 20%.
 
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Agricultural Debt Increases But Still Manageable
Gary Schnitkey
FEFO 05-11, 06/10/2005
 

Abstract

Nominal, agricultural debt in Illinois has been increasing since 1991. In this paper, data from the U.S. Department of Agriculture (USDA) and Illinois Farm Business Farm Management (FBFM) are presented to see if increasing debt levels pose problems for the financial health of Illinois farms. While a small number of farms are financially stressed, increasing debt levels do not appear to seriously threaten many farms.
 
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Record Yields Boost 2004 Farm Earnings
Dale Lattz
FEFO 05-07, 04/14/2005
 

Abstract

Based on Illinois Farm Business Farm Management Association (FBFM) records that have been recently summarized, a verage farm operator returns for labor and management on 3,015 Illinois farms was higher for all geographic areas in the state in 2004 compared to 2003 and significantly above the average for the last five years. Record breaking corn and soybean yields and strong grain prices early in the year more than offset increased costs. Relatively high livestock prices also contributed to the better incomes on livestock farms. Lower grain prices at harvest resulted in the opportunity for producers to receive loan deficiency payments on corn and for part of the time on soybeans. Thus, total government payments received in 2004 by producers were above payments received in 2002 and 2003. Farm earnings were highest in the west central and far southern areas of the state. Earnings were lowest in the northeastern part of the state.
 
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Projected 2005 Commodity Prices Suggest Caution In Farm Rental Bidding
Gary Schnitkey
FEFO 04-12, 08/15/2004
 

Abstract

Many observers believe that cash rents for the 2005 cropping year will rise above 2004 levels because average cash rents have been increasing in northern and central Illinois for the past several years. Moreover, higher commodity prices during late 2003 and the first half of 2004 led to projections of higher agricultural profitability and were anticipated to further increase cash rent bids.
 
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Illinois Farm Incomes Higher in 2003
Dale Lattz
FEFO 04-09, 05/18/2004
 

Abstract

Average farm operator returns for labor and management on 3,018 Illinois farms was higher for all geographic areas in the state and increased considerably in 2003 compared to returns experienced by producers in 2002. Record breaking corn yields along with higher grain prices offset below average soybean yields. Improved livestock returns also contributed to the better incomes on farms producing livestock. A change in the method of calculating depreciation also affected the earnings figure. As a result of the higher grain prices, for the second year in a row government farm program payments were at levels considerably below farm program payments made during the 1998 through 2001 time period.
 
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Recognizing Income and Budgeting for Counter Cyclical Payments
Gary Schnitkey, Dale Lattz
FEFO 03-16, 08/29/2003
 

Abstract

The counter cyclical (CC) program authorized under the 2002 Farm Bill can make payments for a program year across two calendar years. For example, payments for the 2003 program year can occur in 2003 and 2004. Many farmers prepare financial statements at the end of the year. At year-end 2003, income from the 2003 program year that will be received in 2004 should be recognized on the 2003 income statement, thereby causing a matching of revenue to expenses. At year-end 2003, however, the amount of CC payments that will occur in 2004 will not be known. Not knowing the amount of future CC payments presents difficult in 1) determining how much revenue to recognize on the 2003 income statement and 2) determining the amount of CC payments to include on 2004 cash flow budgets. This newsletter addresses these two issues. Before discussing these issues, the mechanics and timing of CC payments are described because they have direct impacts on revenue recognition and cash flow budgeting.
 
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Farm Incomes Vary Considerably Across Illinois in 2002
Dale Lattz
FEFO 03-07, 04/08/2003
 

Abstract

Average farm operator returns for labor and management on 3,165 Illinois farms varied considerably between geographic areas and decreased slightly in 2002 compared to returns experienced by producers in 2001. Higher grain prices and slightly lower costs did not offset lower corn yields and less government payments. Lower livestock returns also contributed to lower incomes on farms producing livestock. Changes in the government farm program and higher grain prices sharply reduced the amount of government farm program payments producers received in 2002.
 
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Lower, Highly Variable Incomes Projected for 2002
Dale Lattz, Gary Schnitkey, Paul Ellinger
FEFO 02-22, 11/27/2002
 

Abstract

The November, 2002 Illinois Agricultural Statistical Service (IASS) yield estimates for Illinois (see http://www.agstats.state.il.us/releases/crop.htm) indicated state average corn, soybean and wheat yields will be lower for 2002 compared to 2001. However, yields varied considerably between the different Crop Reporting Districts (CRD) in the state. These yields, a $2.40 corn price, a $5.60 soybean price, significantly lower government farm program payments and slight adjustments in operating expenses are used to project 2002 net farm incomes for 993 Illinois grain farms. The farms used in the study come from a sample of grain farms enrolled in the Illinois Farm Business Farm Management (FBFM) Association.
 
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Cash Flows Tight on Many Grain Farms Because of Reduced Government Payments
Dale Lattz
FEFO 02-18, 09/30/2002
 

Abstract

After four years of low grain prices, this summer's price upswing has been welcomed by producers. However, higher prices may not completely offset lower revenue caused by lower yields as a result of adverse weather conditions. In addition, higher grain prices will reduce the amount of farm program payments. There will be little, if any, loan deficiency and counter cyclical payments this fall. In addition, the new farm bill does not contain provisions for market loss assistance and oilseed payments that have been paid out the past few years. These payments came about due to additional legislative action in response to low market prices.
 
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Study Show Drop In 2001 Farm Incomes
Dale Lattz
FEFO 02-06, 03/27/2002
 

Abstract

Average farm operator returns for labor and management on 3,072 Illinois farms decreased significantly in 2001 compared to returns experienced by producers in 2000. The 2001 returns were the lowest since 1998 and the second lowest since 1991. Incomes declined despite good corn and soybean yields recorded by producers across most of the state. Lower soybean prices and higher costs were the major reasons for the decline in incomes. For the most part, livestock returns were good, which helped support incomes on farms producing livestock. Although lower rates paid for government Production Flexibility Contract and Market Loss Assistance payments contributed to the lower incomes, government farm program payments continue to be an important factor in supporting farm incomes.
 
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Net Farm Income on Grain Farms Projected Down in 2001
Gary Schnitkey, Paul Ellinger, Dale Lattz
FEFO 01-17, 08/17/2001
 

Abstract

The Illinois Agricultural Statistical Service (IASS) released their first estimates of 2001 yields for Illinois Crop Reporting Districts (see http://www.agr.state.il.us/agstats/releases/crop.htm). These yields, a $2.10 corn price, a $4.95 soybean price, and an overall 2.69 percent increase in operating expenses are used to project 2001 net farm incomes for 1,025 Illinois grain farms.
 
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2000 Farm Income Results Show Improvement
Gary Schnitkey
FEFO 01-07, 04/03/2001
 

Abstract

Average farm operator returns for labor and management on 3,143 Illinois farms increased in 2000 compared to returns experienced by producers in 1999. The 2000 returns were the highest since 1996. Good corn and soybean yields across most of the state along with continued strong livestock returns for most livestock enterprises were the major reasons for the improved incomes. Government farm program payments also continue to be an important factor in supporting farm incomes.
 
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Grain Farm Incomes In 2000 And Prospects For 2001
Gary Schnitkey, Dale Lattz, Paul Ellinger
FEFO 00-01, 11/21/2000
 

Abstract

Projected net farm incomes for 1,037 Illinois grain farms suggest that 2000 incomes will be slightly lower than 1999 incomes. These 1,037 farms are enrolled in Illinois Farm Business Farm Management (FBFM) and have an average of 833 tillable acres. Average net income on these farms was $33,180 per farm in 1999. Projected 2000 net income is $32,414, about $750 lower than 1999 income.
 
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