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Farm business economics report, 1994 PDF

258 Pages·1996·19.5 MB·English
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Historic, Archive Document Do not assume content reflects current scientific knowledge, policies, or practices. United States An Economic Research Service Report Department of Agriculture Farm Business NAY Economics ECI-1995 Report, 1994 It’s Easy To Order Another Copy! Just dial 1-800-999-6779. Toll free in the United States and Canada. Other areas, please call 1-703-834-0125. Ask for Farm Business Economics Report, 1994 (ECI-1995). The cost is $15.00 per copy. For non-U.S. addresses (including Canada), add 25 percent. Charge your purchase to your VISA or MasterCard. Or send a check (made payable to ERS-NASS) to: ERS-NASS 341 Victory Drive Herndon, VA 22070 We'll fill your order by first-class mail. Can You Use an Electronic Database? Electronic databases containing the data used for this report are available. Just dial 1-800-999-6779. Toll free in the United States and Canada. Other areas, please call 1-703-834-0125. Ask for: e State Farm Income Data, stock #96002, $45. Three 3.5” disks. ¢ Historical Farm Income Indicators. By State, stock #93007A, $45. By Component, stock #93007B, $45. Each product contains three 3.5” disks. e Farm Sector Balance Sheets, stock #93013, $25. One 3.5” disk. e Value Added from the Ag Sector for the U.S. and State, stock #96009, $35. Two 3.5” disks. ¢ Costs-of-Production, stock #94010, $35. Two 3.5” disks. A free catalog listing these and other data products, publications, and services provided by ERS and NASS is available by calling our order desk at 1-800-999-6779. For further information about these databases, contact Dave Peacock, USDA-ERS, (202) 219-0805. For other methods of obtaining the information published in this report, turn to the back of the report. Farm Business Economics Report, 1994. Rural Economy Division, Economic Research Service, U.S. Department of Agriculture. ECI 1995. Abstract Final estimates put U.S. net farm income for 1994 at $46.7 billion, up 11 percent ($4.7 bil- lion) from the previous year. At the same time, farm debt reached nearly $147 billion, its highest level since 1986. Those are some highlights from this omnibus economic report, which combines three reports from ERS’ Economic Indicators of the Farm Sector series that were previously published separately: National Financial Summary, State Financial Summary, and Costs of Production—Major Field Crops, & Livestock and Dairy. Keywords: Net farm income, net cash income, production expenses, cash receipts, govern- ment payments, farm assets, debt, equity, costs of production, enterprise costs and returns Acknowledgments This publication benefited from the critiques of David Harrington, Charles Dodson, Charles Barnard, James Ryan, David Banker, Robert Hoppe, Robert Green, and Larry Traub. Washington, DC 20005-4788 August 1996 Preface This new Farm Business Economics Report combines the information formerly published in three separate documents of the Economic Indicators of the Farm Sector series: (1) National Financial Summary, (2) State Financial Summary, and (3) Costs of Production—Major Field Crops, & Livestock and Dairy. Part I of this publication covers national- and state-level farm income and financial balance sheet numbers, which have been reported separately in previous years. Part II provides the cost of production estimates for major crops and livestock. This publication was prepared jointly by the Farm Business Economics Branch's Farm Income Team and Cost of Production Team. The Farm Business Economics Branch is part of the Rural Economy Division, one of five divisions within the Economic Research Service dedicated to providing the public with timely analysis and information on the economics of the agricultural and rural sectors. Principal contributors to this report are: Branch Chief? Jim: Johnson siceisnste -eeseeecnescen eteaschees sceerc eeoea ee ee (202) 219-0001 Farm Financial Accounts Team. Leader:;Roger Strickland si cvccccceees eeeene tcec eoee eeee (202) 219-0806 Value added—Roger Stricklamcytepetyree weer ete tee occas cose tedonecaneeoenes (202) 219-0806 Cheryl: Stecles.24 12 i pscsrtvoee ectcnetserca coaee see e (202) 219-0793 Cash receipts —Larry Traubyag. 2. neh), Meeeeh ee e, (202) 219-0819 Cheryl Steele). teetik. Et Neer, RE. Se ede (202) 219-0793 Goyernment.paymentsnC CG loans——PatsV eS. i.e et ee (202) 219-0810 Productionrexpenses=—C hristopher McGathy,c-so.) o.aee.es -r.ee e-ee2 e.ee (202) 219-0808 Sales class and type of farm—Bobi Dubmanewre yen see eee (202) 219-0809 Farm balance sheet, financial ratios—Ken Erickson .................::ccccccceesseseeees (202) 219-0799 Farm, debt—Jimi Ry arts... feccevo.t certs. c cee ee eee ee ee (202) 219-0796 Costs of Production Team iLeader:: Robert McElroy irccis. face eet sore an ee (202) 219-0802 Data Coordinatore—nAés Prentice cosscse actett Mewes eon teat eos ue ase eee (202)-501-8310 Com ysoybeans.and hogs— BillsM cBride... seree ee (202)-501-8309 Grain sorghum and peanuts—Nora BrooKS.............::ccsssccessccessescesseecessseeeees (202)-219-0384 Oats andicow-cali—John Jinkins %.:.29ee: .cceeee ee (202)-219-0798 Barleyoand sugar beets=Mir;Alt feint ee eee. (202)-219-0374 Wiheatserudy SOMMED..-.0:5ncditen steer nciaee ie ee eee cee nee (202)-501-8313 Rice-—Janet Livezey «ceive cetera (202)-501-8312 Sugarcane and sugar processing—Robert McEIroy .............::cccsccceseeeeeeeesees (202)-219-0802 Cotton—Dargant Glaze ni cesteoone.csc3. feces cosedcethane ce tacettes cetee tna the Re eaee tee (202)-501-8307 Dairy—Sara Short... CR, Se, Sees, Se ioe ere, cone: (202)-501-8315 Editors: Linda Hatcher 22rd ecctccseues teeetcceees see eee nee cp reo e ene (202) 219-0519 Tom McDonald ii. Serteae re ee (202) 219-0518 Publication coordinator: Dave Peacock , isknasiha te vest Bape tention race eet eee een (202) 219-0805 Support group: Computer programming—Helen Devlin, Janusz Kubica Statistical assistance—Bessie Jones, Laverne Creek ii Farm Business Economics Report, 1994 Economic Research Service/USDA Contents Page Bist of-hic ures terse eae. oman Tenn ed homer then! pe. OI Vv Eistote Lab esmemerementttrerst.. tere eee em nts I alee) len wn ee Bel be) Vili SOULITAINL ANY. saeeees cect ce eectee ec ct scete sse eee eas eee aL Lateef Tet NITE... ccnsnoseasnctececececoseeseesoscecscers XIV Part I: Farm Income and Farm Financial Balance Sheet Chapter 1: National Farm Income Estimates, 1994 Net Fammlncome*and’Net. Value Added Higher in 1994 .0......ccc.cccsecssecsseeceeesseececcseseecsoeneacoves 2 Chapter 2: State Farm Income Estimates, 1994 Seven States Produced Net Farm Incomes in Excess of $2 Billion ...0..0.c.cccecsecesceeeeeseeees 14 Chapter 3: Farm Sector Balance Sheet, 1994 PALE AS Seis MO CLUS ANG MEQ UILY Me Pull O94 Ree. 2.5 f..ccksscnsttides sscb vesscncenoseesas sereteescdeestonssse 48 Chapter 4: Farm Sector Financial Performance Measures, 1994 FinancialiMeasures! Indicaters trong Sector Performance ...01...0....0000000ensonveecervossscosnavnsensoneee 76 Chapter 5: Farm Income Estimates by Sales Class and Commodity Specialization, 1994 Nation’s Farms Vary Across Commodity Specialty and Sales Class...........0.cccccccceeseeeees 90 Chapter 6: Government Payments, 1994 Government Payments in 1994 Dropped to Lowest Level in a Decade...............0.ccc0 104 Chapter 7: Farm Sector Debt, 1994 icc COmMc DUR Ose fmm Ilion ebOO4 siee, WRC Site, PII, oo csccceetsccsssserosssensoossacs ie Part IT: Costs of Production—Major Field Crops, Livestock, and Dairy Chapter 8: Costs of Production by Commodity Producnonm Input-Prices!Rose 1994) Led.by Fertilizer.at.9.3. Percent ....2..02.sc.cc0s-ecsee0e 126 Orem slat OSEsOVEE I PELCeNE IT LOO4 Ts ©. fetes cris ceta scenes: cnteuciossrerssenemberecs 129 Soybeans—Soybean Production Costs Also Up, but Less than Corn... ee 133 Wheat heatebroduction Pell® but Prices: ROSE .......60sccc.0.0sesccccsncssccndsccsovessssssseaseeenanesees 136 Cotton—Cotton Returns Driven by Conditions in ASia....... eee ee eee ceteeeneeeeneenneeens 139 Rice—Rice Economics Also Affected by Conditions Abroad .............eeeeeeseeeeseeeeeneeeees 143 Grain Sorghum—Grain Sorghum Average Costs of Production Rose 5-7 Percent ........ 147 Barley—Barley Costs Vary Dramatically Among Regi0ns.............cccceseseeseeeeseeneetesees 151 Oats—Oat Costs Rose Most in the North Central Region... ieee eeeeeeeeceeeeeneeeeees 155 Sugar Beets—Sugar Beet Costs Revised From Earlier Estimates.............:.:::ceceeeeee 158 Sucarcane-—sUparcane COsts A1SO REVISCA (i...) ne-cct--csecs-cosntnace eqneeaeetcosancseooeurvedearstncdeoees 162 Economic Research Service/USDA Farm Business Economics Report, 1994 _ iii a Page Peanuts—Peanut Output Recovers From 1993 Drought, Offsetting Increased Costs......166 Tobacco—Production Costs per Acre Rose for Both Flue-Cured and Burley Tobacco ...169 Milk—Milk Production Costs Rose an Average of 54 Cents per Hundredweight ........... Lid Hogs—Variable Cash Costs of Hog Production Rose in 1994, but Total Costs Fell........ 175 Cow-Calf—Cow-Calf Costs of Production Little Changed for 1994.00.00... cece eens 181 Appendix: Cash Receipts by State Appendix (Table. cocicss.cede-ttevardiccaiscasoctteepsretr scinguessy ahovs eciecaeeneeceenmcnnsc teeetr eetcirn eAabueseery 186 iv Farm Business Economics Report, 1994 Economic Research Service/USDA List of Figures Figure Page Part I: Farm Income and Farm Financial Balance Sheet Chapter 1: National Farm Income Estimates, 1994 1-1 Netiiasintincomes! (90504. Grr ete hy Sek? 225. AO J ner i 1-2 Sash CCerptseelO Ol), 94 wee erect cre sree Ptavesareacvseeheee abscec ecLitsblee lscsecvnosdnsseossee se a 1-3 IN Ge ASIVBTING CTT LOU eee ee ta ES Pee 8 vs cores cvpvaitviedooMvOecdencce, f) 1-4 Sources of eross cash incomer1990-94 «.5.......8s ee ee ended 7 1-5 Gross farm income, expenses, and net farm income, 1990-94 .0......ececcceeceeeeeeeeee i 1-6 ValuetaddeditowproductionH1 990-94 oscsiscccsssisse. Sete ssh S ANN ccessesctiee. | 1-7 Beeland:porkeproductionye 1992-94 cu, eS 5..ceee ts Mle RE ot DOA cccceneede 8 1-8 Monthiyebeehiprcess1993-and 1994 mon Fey ree Pe) PW SRR 2. ON... cen. 8 1-9 Monthlychogpricestal99 3vandiL994 5 eee fItN TL RA A IMEE cacisnetocens 8 1-10 Gousandssoybeamproduction 1992-9405 hee 1. AN IOn RIA. AR AA oe atecens 20. 8 1-11 POO VECOMMEDEICe SU) atch LOO sen ray meres ere eatee s po-esar ickest0scbacl ele ictedsenenenlteencorerss 8 1-12 NOM VEsoy DeAIMDLICES M1995 ,A Nd L994 Te ere tees sttcgesseachpanecdncscofts-cncannseecarndnccsoese 8 Chapter 2: State Farm Income Estimates, 1994 2-1 Topel2 Slates in net farmuncome, 1994 aaae.7, 2 ee tk 2. TR 7 2-2 opalies tates casn receipts O94 cucc,t aiuecscatsvseeerss astet eecest enceaeses nc bed1 7 2-3 plopeieas tatesunalivestockgsalesmLOO4¥:: 7.25 ,4. ee, Re Nd. owen zee hi, 2-4 Slicprmniomes Ftc SutmCEOOES ALCS LOA ari re, rate ra Ohya canted mead piaes nceeravneioevioredeemeviusuneswnes 17 2-5 Sidte-py-stale chances im net farm income, 1993-94 ageo.ono cstsealeve.ucesennr tee 18 Chapter 3: Farm Sector Balance Sheet, 1994 3-1 SAEITE ASSES mmN 2G) a2 oda Ceara is Racine avearc lagoa Heetca e emuoananoomady sesss t anubeveaeseNaUS ais4 9 3-2 sea Dame OOo) Ag emma eta ete we Somes vos ec ahs ceeeeeeen cake senesdaceseecnee ne MEMO 49 3-3 Barmuassetsand. debtsl 990-04 pce keaers eeie ese Mee e eseaaaders 49 3-4 eae Geq uity A OOO 94 erro Reese LO ee LT, SEIS wseensahbee 49 Chapter 4: Farm Sector Financial Performance Measures, 1994 4-1 Rateseotretiii a bO 75-94 sec rnncemncavatces etcrea htehaee nteun beeueen neeve scceieaeest et 78 4-2 Debteto-assetsratios:l 975-94 eeene eT OF 205882 78 4-3 ENC SE REDE AMSV CAT ALECS) W AL ce) eer epoe EeOE Eee aeee ys eecwadatwac nssderessaeees 78 4-4 Interest t0-210ss-casn-income fatios, 1975-94 re feccnse-cecce. sonctacessbscsacnanasrasnansserrne 78 4-5 Earniebusiness,debt.service- coverage ratios 1979-94" 2 2 HANIiid,... cenees 78 4-6 DebUsenvicing TatiOS e197 9-94 «Gc wewonre tresses atte eS CPA Aeaa ceeds ones odes 78 Chapter 5: Farm Income Estimates by Sales Class and Commodity Specialization, 1994 5-1 Commodity specialization by region, 1994... cscwece INE I LT aac eceoonostee 92 5-2 Share of farms with sales of less than $20,000 by region, 1994 ..........ccceeeeeeeeees 92 5-3 Share of farms with sales of more than $250,000 by region, 1994 ......... cece 93 5-4 Number and share of farms in each sales class, 1994.0... ccccceseeseteeeeeeeeeeeeeeeeeeeees 93 5-5 Share of marketings in each farm sales class, 1994...........ccscccseseseesessesseeeseseenseneees 93 5-6 Government payments by sales class, 1991-94..........eeessseeseseesetseeesesetessesseneeseneees 94 Economic Research Service/USDA Farm Business Economics Report, 1994 v Figure Page Chapter 6: Government Payments, 1994 6-1 Government payments;'1985=94 5: (uj. cm, ccsoteet nc ccttbeencete eee, eNO atabbe oesp v ee terete ane 105 6-2 Government payments as a share of gross cash income, 1985-94...........:cccsceeeeee 105 6-3 Government payments by type of program, 1993 and 1994.00.00... .cecseeeseeeseeeneeens 106 6-4 Top 12 States to receive government payments by program, 1994 0.0... eee 106 6-5 Government payments as a share of gross cash income by top 12 States, 1993. and 1994... ea). S AS Ae Oe OS. otra, elra oon. one 106 Chapter 7: Farm Sector Debt, 1994 7-1 Farm business debtx1 980-94 ssc: cet. dee Bes teat eee eee eee ec 113 7-2 Interest expenses, 1970-94. ......:.¢.s1c-gcu acransa uostnecret. uake fbeeopeeeeu-cetaet aettee cssse+ .5 8 113 7-3 Top 12 States with farm debt, 1994)... 2 ays: weneeecetrcea ebvee eraeee e 114 7-4 Top 12 States with farm debt per acre, 1994 Sac Rey. mesa Pee iene. 114 7-5 Farm.debt per acre by region, 1994 ..... Rees aaves FORS.. crests peek eee; 114 7-6 Farm debt. by credit source, 1980-94 Se) aeeae spergeeriyt eter weetemtate- oe nee, es ere 114 Part II; Costs of Production—Major Field Crops, Livestock, and Dairy Chapter 8: Costs of Production by Commodity 8-1 Input prices, 1991-94 .-..:.cscDUsOect <poaeeeecaerse etase eTesee ones caeeeen ce e 128 8-2 Corn and soybean production, 1991-O4ggrs cakee Wie einehl see cee eee 128 Corn 8-3 Com ‘costs-and:retucns; 1991-94 re ee 130 8-4 Corn production réegionS......S.e:e. e:.e.e2 :e0:e5 .e-e<e..0 eed.e 130 Soybeans 8-5 Soybean production, 1992-94... .::..:).ae.eeet-nees <<sc ecttes eraee ceetcaees RseRe de 134 8-6 Soybean production regions 5...:4-sses-sencoonccserceMaytaess.c eeerle aasrneso esrea setcteecee 134 Wheat 8-7 Wheat production, 1992-94 oss saszcrsncseoee tt.e eneeea pae retee tiree e 137 8-8 Wheat production regions. \.p..c::cc:staec stet oEnRs sSeeoan eeesesress IB? Cotton 8-9 Cotton production, 1992-0502. vite meeeeries serine a eee eae ee 140 8-10 Cotton production regions ».:casatanDnit-o oseeenee recoenee reecea ne 140 Rice 8-11 Net. cash returns from rice, 1994...:..:.de.ne. :e1e.e ..2e:2.e..02 2. 144 8-12 Rice production regions......c2,--e-te -e-e8 00se-n-, .eceeeeea eaes 144 Grain sorghum 8-13 Net cash returns from grain sorghumigl 993-947 a22229 ee ee oe ee 148 8-14 Grain sorghum productionivesions=.salcs 2270. doen.otg eee ee 148 Barley 8-15 Barley-costs and returns, 1993-94 aoe eet cece ee bs2 8-16 Barley production régions vcciccs2¢cescceaseeeee e-seen cesccseveet tie 152 vi Farm Business Economics Report, 1994 Economic Research Service/USDA

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