May 8, 2003
FAMILY LIVING INCOME AND EXPENSES FOR 2002
In 2002 the
total, noncapital, living expenses of 1,216 farm families enrolled
in the Illinois Farm Business Farm Management Association (FBFM)
averaged $44,475--or $3,706 a month for each family (Table 1). This
average was 2.9 percent higher than 2001 and 4.5 percent higher
than in 2000. Another $4,380 was used to buy capital items such
as the personal share of the family automobile, furniture, and household
equipment. Thus, the grand total for living expenses averaged $48,855
for 2002 compared with $48,097 for 2001, or a $758 increase per
family. The average amount spent per family for capital items was
$505 less, while noncapital expenses increased $1,263 per family.
The sample farms, which were mainly grain farms, were located primarily
in central and northern Illinois.
SOCIAL SECURITY TAXES PAID
social security tax payments decreased in 2002 compared to the year
before. The amount of income taxes paid in 2002 averaged $9,867
compared to $11,475 in 2001. The amount of income taxes paid was
at its lowest level since 1990. Medical expenses were higher in
2002 compared to 2001. In 2002, medical expenses averaged $6,335.
This is the first year medical expenses averaged over $6,000. Medical
expenses include out-of-pocket costs for health insurance along
with doctor and hospital expenses.
In the table,
the averages per farm for total family living expenses are divided
into five categories for 1999 through 2002. The "expendables"
category includes cash spent for food, operating expenses, clothing,
personal items, recreation, entertainment, education, and transportation.
This category also includes selected itemized deductions such as
the personal share of real estate taxes. Cash spent for capital
improvements exceeding $250 is not included. The use of a rented
house on an estimated 40 to 50 percent of the farms in this sample
is not included, since these data cover only cash outlays.
For the complete
narrative report, visit the management section at the farmdoc website:
Dale Lattz, Department
of Agricultural and Consumer Economics