Economic and Marketing Information for Indiana Farmers (May 31, 1969) |
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Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana May 31, 1969 WHAT THE 1968 FARM RECORDS SHOW & by F. V. Smith, Agricultural Economics .VERAGE FARM LABOR income (net farm income minus 5 per cent interest on the capital investment) for 341 Indiana farm account cooperators was $7,935 in 1968 compared with $1,042 in 1967 (Table 1). The higher farm labor incomes in 1968, resulted mostly from an increase in volume of business and higher crop yields. The increase in net cash farm income accounted for about one-half of the increase in earnings in 1968 and the increase in inventories accounted for the other one-half. The index of the prices of Indiana farm products averaged about the same for the two years. Livestock prices averaged slightly higher in 1968 than in 1967, grain prices were lower, and prices paid by farmers for production items purchased were about 4 per cent higher. Yields per acre of corn, oats and soybeans in the northern and central areas were significantly higher in 1968 than in 1967. Corn yields in the southern area averaged 93 bushels per acre in 1968, 22 bushels less than the record high in 1967. Average labor income in the south ern area in 1968 ($7,698) was slightly lower than the $8,197 average in 1967. The 1968 averages for the northern and central areas were $8,805, and $7,555 compared with $210, and -$1470 for the two areas respectively in 1967. In 1967, drouth in these areas cut grain yields substantially. Cooperators' farm units average larger than the average for all farms in Indiana and are operated somewhat more efficiently. Although data from cooperators' farms reflect the trends in farm earnings in the state, they should not be considered representative of all farms in the State. Farms and Investments Larger Average size of cooperators' farm units (457 acres in 1968) was about 60 acres larger than in 1965 and more than 100 acres larger than the 1961-65 average. Capital investment per farm unit in 1968 ($229,483) was about $60,000 larger than in 1965. Real estate investment, estimated at 75 to 80 per cent of 1968 values, averaged $168,081 per farm unit in 1968. Machinery and equipment, at depreciated values, averaged $20,743. The investment in feed, grain and supplies and in livestock, at market prices, averaged $19,275 and $20,839 respectively. Capital investment per man increased to $124,470 in 1968—an increase of $8,746 over 1967. The number of men per farm unit in 1968 was about the same as in 1967—1.84 compared with 1.90. Earnings Related to Size and Efficiency With relatively stable prices and generally favorable yields in 1968, average labor incomes increased as the size of farms increased. The only exception to this in 1968 was that the average labor income for the medium size farms in the southern area was less than for the small farm group (Table 2). One of the most significant facts obtained in the annual farm business summaries is the wide difference in average labor incomes between the most and least profitable groups of farms of similar size in each area (Table 2). For example, the average labor income of 72 large farms in central Indiana was $9,549. However, the average labor income for the 26 most profitable large farms was Table 1. Average investment, incomes, expenses and earnings of farm account cooperators in Indiana in 1968 compared with other years 1968 1967 1966 1965 1961-65 1955-59 1945-49 1935-39 Number of farms 341 437 470 481 Acres per farm unit 457 442 430 ^, ^ 398 Capital investment $229,483 $220,365 $202,748 $169,722 Cash income $ 63,920 $ 59,169 $ 61,485 $ 52,154 Cash expenses 47,983 46,889 45,391 37,950 Net cash income 15,937 12,280 16,094 4,204 Net inventory change 3,954 155 6,314 10,422 Net farm income* 19,410 12,060 21,937 24,209 Farm labor income** $ 7,935 $ 1,042 $11,799 $15,723 Rate earned on investment! 4.8% 1.9% 6.9% 9.5% 498 349 $133,511 $ 42,357 30,856 11,501 3,497 14,679 $ 8,004 6.4% 518 279 $87,494 $26,729 19,960 6,769 827 7,356 $ 3,001 4.3% 585 225 $42,092 $16,325 10,073 6,252 2,057 8,025 $ 5,921 15.1% 793 204 $19,973 $ 4,913 2,767 2,146 416 2,443 $ 1,445 9.7% * Net farm income is net cash income, plus (or minus) net inventory change, minus the value of unpaid family labor. ** Farm labor income is the return for labor and management tothe owner-operator or to the owner and operator on rented land. It is net farm income" minus 5 per cent interest on the total capital investment. t Rate earned on investment is net farm income, minus the labor charge for the operator ($320 per month in 1968), minus a management charge for both the operator and the landlord <8 per cent of their respective shares of the value of farm production), divided by the total capital investment. No charge was made for management prior to 1957.
Object Description
Title | Economic and Marketing Information for Indiana Farmers (May 31, 1969) |
Purdue Identification Number | UA14-13-econ196905 |
Date of Original | 1969 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 05/01/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ196905.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (May 31, 1969) |
Purdue Identification Number | UA14-13-econ196905 |
Transcript | Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana May 31, 1969 WHAT THE 1968 FARM RECORDS SHOW & by F. V. Smith, Agricultural Economics .VERAGE FARM LABOR income (net farm income minus 5 per cent interest on the capital investment) for 341 Indiana farm account cooperators was $7,935 in 1968 compared with $1,042 in 1967 (Table 1). The higher farm labor incomes in 1968, resulted mostly from an increase in volume of business and higher crop yields. The increase in net cash farm income accounted for about one-half of the increase in earnings in 1968 and the increase in inventories accounted for the other one-half. The index of the prices of Indiana farm products averaged about the same for the two years. Livestock prices averaged slightly higher in 1968 than in 1967, grain prices were lower, and prices paid by farmers for production items purchased were about 4 per cent higher. Yields per acre of corn, oats and soybeans in the northern and central areas were significantly higher in 1968 than in 1967. Corn yields in the southern area averaged 93 bushels per acre in 1968, 22 bushels less than the record high in 1967. Average labor income in the south ern area in 1968 ($7,698) was slightly lower than the $8,197 average in 1967. The 1968 averages for the northern and central areas were $8,805, and $7,555 compared with $210, and -$1470 for the two areas respectively in 1967. In 1967, drouth in these areas cut grain yields substantially. Cooperators' farm units average larger than the average for all farms in Indiana and are operated somewhat more efficiently. Although data from cooperators' farms reflect the trends in farm earnings in the state, they should not be considered representative of all farms in the State. Farms and Investments Larger Average size of cooperators' farm units (457 acres in 1968) was about 60 acres larger than in 1965 and more than 100 acres larger than the 1961-65 average. Capital investment per farm unit in 1968 ($229,483) was about $60,000 larger than in 1965. Real estate investment, estimated at 75 to 80 per cent of 1968 values, averaged $168,081 per farm unit in 1968. Machinery and equipment, at depreciated values, averaged $20,743. The investment in feed, grain and supplies and in livestock, at market prices, averaged $19,275 and $20,839 respectively. Capital investment per man increased to $124,470 in 1968—an increase of $8,746 over 1967. The number of men per farm unit in 1968 was about the same as in 1967—1.84 compared with 1.90. Earnings Related to Size and Efficiency With relatively stable prices and generally favorable yields in 1968, average labor incomes increased as the size of farms increased. The only exception to this in 1968 was that the average labor income for the medium size farms in the southern area was less than for the small farm group (Table 2). One of the most significant facts obtained in the annual farm business summaries is the wide difference in average labor incomes between the most and least profitable groups of farms of similar size in each area (Table 2). For example, the average labor income of 72 large farms in central Indiana was $9,549. However, the average labor income for the 26 most profitable large farms was Table 1. Average investment, incomes, expenses and earnings of farm account cooperators in Indiana in 1968 compared with other years 1968 1967 1966 1965 1961-65 1955-59 1945-49 1935-39 Number of farms 341 437 470 481 Acres per farm unit 457 442 430 ^, ^ 398 Capital investment $229,483 $220,365 $202,748 $169,722 Cash income $ 63,920 $ 59,169 $ 61,485 $ 52,154 Cash expenses 47,983 46,889 45,391 37,950 Net cash income 15,937 12,280 16,094 4,204 Net inventory change 3,954 155 6,314 10,422 Net farm income* 19,410 12,060 21,937 24,209 Farm labor income** $ 7,935 $ 1,042 $11,799 $15,723 Rate earned on investment! 4.8% 1.9% 6.9% 9.5% 498 349 $133,511 $ 42,357 30,856 11,501 3,497 14,679 $ 8,004 6.4% 518 279 $87,494 $26,729 19,960 6,769 827 7,356 $ 3,001 4.3% 585 225 $42,092 $16,325 10,073 6,252 2,057 8,025 $ 5,921 15.1% 793 204 $19,973 $ 4,913 2,767 2,146 416 2,443 $ 1,445 9.7% * Net farm income is net cash income, plus (or minus) net inventory change, minus the value of unpaid family labor. ** Farm labor income is the return for labor and management tothe owner-operator or to the owner and operator on rented land. It is net farm income" minus 5 per cent interest on the total capital investment. t Rate earned on investment is net farm income, minus the labor charge for the operator ($320 per month in 1968), minus a management charge for both the operator and the landlord <8 per cent of their respective shares of the value of farm production), divided by the total capital investment. No charge was made for management prior to 1957. |
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