advance report - university of illinois at … report this publication is prepared in the department...

Advance Report

FARMINCOME

PRODUCTIONCOSTS

• Production Costs

• Income

• Investments

forfor

20032003

AE-4566April 2004

Farm Income and Production Costs

for 2003:

Advance Report

This publication is prepared in the Department of Agricultural and Consumer Economics, College of Agricultural, Consumer and Environmental Sciences, University of Illinois at Urbana-Champaign by Dale H. Lattz, Extension Specialist, Farm Management; Dwight D. Raab, Extension Specialist, Farm Business Analysis; and Charles E. Cagley, State Coordinator, Illinois FBFM Association, for use by FBFM field staff at meetings held in March 2004 and distributed to University of Illinois Extension staff. All data is based on Illinois Farm Business Records kept in cooperation with the Illinois Farm Business Farm Management (FBFM) Association and this department. An update of this report will be published in the 79th Annual Summary of Illinois Farm Business Records for 2003.

The Illinois Farm Business Farm Management Association, in cooperation with University of Illinois Extension and the Department of Agricultural and Consumer Economics, has been providing farm recordkeeping and business analysis services to Illinois farm operators for over 75 years. Urbana, Illinois April 2004 Copyright 8 2004 by University of Illinois Board of Trustees. Authors and publishers have granted permission for copies of this work or parts of this work to be reproduced, provided that (1) copies are distributed at or below the cost of reproduction; (2) the author, the publication, and the University of Illinois College of Agricultural, Consumer and Environmental Sciences and the relevant division within the College are identified; and (3) proper notice of copyright is affixed to each copy. Issued in furtherance of Cooperative Extension Work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Dennis R. Campion, Director, University of Illinois Extension, University of Illinois at Urbana-Champaign. University of Illinois Extension provides equal opportunities in programs and employment.

ii

CONTENTS Definitions .................................................................................................................................................... iv Highlights for 2003 ....................................................................................................................................... v Illinois counties by record sampling areas .................................................................................................. vii FARM INCOME AND EARNINGS Average size, income, returns, and costs on Illinois FBFM record-keeping farms by type of farmC1999 to 2003 ................................................................................................................... 1 Summary of income, corn yields, crop and livestock returns by farm type and location, average per farmC2000 to 2003 .................................................................................................. 2 Net farm income and other selected factors, Illinois FBFM AssociationC2003 ......................................... 3 Operators= share of labor and management income per farmC2001, 2002, and 2003 ................................ 4 Net farm income per operator and estimated change in net worth after living expenses and taxesC2003........................................................................................................................................... 5 Capital debt repayment capacity (CDRC), Illinois farm operatorsC1999 to 2003 ..................................... 6 Operator=s net farm income, income before depreciation, and interest paidC1994 to 2003........................ 7 Selected financial factors, operator onlyC2003............................................................................................ 8 Selected FBFM factors, operator onlyC1994 to 2003 ................................................................................. 9 Financial characteristics of Illinois FBFM grain farms .............................................................................. 10 Financial characteristics of Illinois FBFM hog farms ................................................................................ 11 Financial characteristics of Illinois FBFM beef farms................................................................................ 12 Financial characteristics of Illinois FBFM dairy farms .............................................................................. 13 Illinois FBFM Association farms by interest paid as percent of gross farm returnsC1994 to 2003 ............................................................................................................................... 14 Operator=s net farm income by interest paid as a percent of gross farm returns ........................................ 15 Illinois FBFM management returns per tillable acre by farm type............................................................. 16 Summary of farm and family sources and uses of dollarsC1993 to 2003 ................................................. 17 Equivalent cash rent based on landlord=s crop-share dataC1980 to 2003 ................................................. 18 Landlord=s net rent per tillable acre on full tenant farms, crop-share leaseC1994 to 2003 ....................... 19 Central Illinois grain farmsCOperator=s share of labor and management earnings ................................... 20 Central Illinois grain farmsCValue of production per $1.00 of nonfeed cost............................................ 20

iii

Northern Illinois grain farmsCOperator=s share of labor and management earnings ................................ 21 Northern Illinois grain farmsCValue of production per $1.00 of nonfeed cost ......................................... 21 Southern Illinois grain farmsCOperator=s share of labor and management earnings ................................ 22 Southern Illinois grain farmsCValue of production per $1.00 of nonfeed cost ......................................... 22 Northern Illinois hog farmsCValue of production per $1.00 of nonfeed cost ........................................... 23 North and central Illinois beef farmsCValue of production per $1.00 of nonfeed cost............................. 23 Northern Illinois dairy farmsCValue of production per $1.00 of nonfeed cost ......................................... 24 Southern Illinois dairy farmsCValue of production per $1.00 of nonfeed cost ......................................... 24 COST OF PRODUCTIONCCORN AND SOYBEANS Cost per acre to grow corn and soybeansCNorthern Illinois grain farms (56-100 SPR) .......................... 25 Cost per acre to grow corn and soybeansCCentral Illinois grain farms (86-100 SPR) ............................. 26 Cost per acre to grow corn and soybeansCCentral Illinois grain farms (low soil rating of 56B85 SPR)........................................................................................................................................... 27 Cost per acre to grow corn and soybeansCSouthern Illinois grain farms .................................................. 28 Illinois cost to grow cornC1972 to date...................................................................................................... 29 Illinois cost to grow soybeansC1972 to date.............................................................................................. 30 Costs and returns per bushel of cornCCentral Illinois grain farms, 1994 to 2003 .................................... 31 Costs and returns per bushel of soybeansCCentral Illinois grain farms, 1994 to 2003 ............................ 31 Trends in selected operating costs per acreCCentral Illinois pure-grain farms, 1994 to 2003 ................. 32 COST OF PRODUCTIONCLIVESTOCK Livestock enterprise standards of performanceC2003............................................................................... 33 Livestock returns above cost of feed and purchased animalsC1999 to 2003 ............................................ 35 Cost to produce pork, farms under 350 littersC2000 to 2003 ................................................................... 36 Cost to produce pork, farms over 350 littersC2000 to 2003 ..................................................................... 37 Cost and returns per 100 pounds of pork, farms with over 350 littersC1994 to 2003.............................. 38 Returns per $100 of feed fed for hog farmsC1994 to 2003....................................................................... 38 Costs and returns for beef-feeding enterprisesC1999 to 2003 .................................................................. 39 Costs and returns per 100 pounds of milkC2000 to 2003 ......................................................................... 40

iv

DEFINITIONS Operator=s Share Net Farm IncomeCThe sum of operator=s share of gross sales plus net change in inventory and capital accounts less all expenses for items purchased, including interest paid and annual depreciation. This is the accrual earnings available to pay living expenses, pay income and social security taxes, and make principal payments on term debt. Operator=s Share Labor and Management IncomeCThe wage (salary) for the operator of this farm, whether tenant-, part-owner-, or owner-operated, earned for labor and management performed. It is net farm income reduced by a charge for unpaid family labor used (non-operators), and 5.5 percent interest on equity capital (2.40 percent on current value of bare land to reflect a normalized annual net rent). Crop ReturnsCThe sum of grain and feed sales, value of all feed fed, government farm program payments, and change in feed and grain inventories less value of purchased feed on the total farm. Return above Feed CostCThe sum of livestock and livestock products sold, change in inventories less value of livestock purchased, and market value (opportunity cost) for all feeds fed. Return per $1.00 of All CostCThe overall farm efficiency ratio (profit margin) showing total value of all farm production per $1.00 of all non-feed cost on the total farm. Grain FarmsCFarms on which the value of the feed fed to livestock was less than 40 percent of the crop returns. Hog or Beef FarmsCFarms on which the value of feed fed was more than 40 percent of the crop returns and either hog or beef cattle enterprises received more than half of the value of the feed fed. Dairy FarmsCFarms on which the value of feed fed was more than 40 percent of the crop returns and where dairy enterprises received more than a third of the value of feed fed.

v

HIGHLIGHTS FOR 2003

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. The average return to the operator's labor and management income in 2003 was $55,678. The 2003 returns were $42,702 above the 2002 average of $12,976 and $28,229 above the average for the last five years. Although the 2003 earnings figure is a substantial im-provement when compared to the last few years, the 1999 through 2003 five year average is a modest $27,449. A reasonable charge for the farm operator=s debt-free capital invested in machinery, equipment, land, and inventory averaged $14,962. Combining this amount with the return to the operator=s labor and management resulted in average operator net farm income of $70,640. Record breaking corn yields along with higher grain prices offset be-low average soybean yields. Improved live-stock returns also contributed to the better in-comes on farms producing livestock. A change in the method of calculating deprecia-tion also affected the earnings figure. As a result of the higher grain prices, for the second year in a row government farm program pay-ments were at levels considerably below farm program payments made during the 1998 through 2001 time period. Farm earnings were highest in the central and far southern areas of the state. Earnings were modestly lower as you moved farther north. Corn yields were at record high levels, 27 bushels per acre higher in 2003 compared to yields recorded in 2002 while soybean yields were 9 bushels per acre lower. The average corn yield on the 3,018 farms was 172 bushels per acre. Soybean yields averaged 38 bushels per acre. Corn and soybean yields were gen-erally highest in the central part of the state although many areas recorded high corn yields. Year-end inventory price for the 2003 corn crop of $2.35 per bushel was 5 cents higher per bushel than a year earlier. Soybeans were

inventoried at $7.50 per bushel, $2.00 higher than December 31, 2002. Average sales prices received for the 2002 corn and soybean crop sold in 2003 were above their inventory price resulting in a positive marketing margin. Crop returns averaged $382 per tillable acre, $45 per acre higher than the 2002 crop returns. Returns to all livestock enterprises were equal to or higher in 2003 compared to 2002. Higher market hog prices were the main factor for the higher hog returns. Although returns were better, farrow-to-finish hog producers were still about $1 to $2 per hundredweight below the breakeven level in covering total costs in 2003. Dairy producers experienced slightly better returns due to higher milk prices, $1,480 returns above feed per cow in 2003 compared to $1,370 in 2002. Milk prices were 4 percent higher compared to the year before. Feeder cattle enterprises were the big winners last year experienced significantly higher returns due to higher slaughter cattle prices. Slaughter cattle prices received were 22 percent higher while prices paid for re-placement feeder cattle were 10 percent higher. Returns above feed per cow increased for beef cow enterprises due to higher prices received for market animals. Returns were slightly above the last 5-year average. During the last number of years livestock producers have benefited from relatively low feed costs. Feed costs did increase again in 2003 for most livestock enterprises due to higher grain prices. Feed costs will also increase in 2004 as grain prices continued to increase. With rela-tively low grain stocks, livestock producers are hoping for at least average to above average yields to limit the increase in feed costs. Another factor contributing to the improved earnings was a change in the method of calcu-lating the depreciation deduction for machin-ery and buildings. As changes in the tax law allowed larger and larger write-offs in the year machinery and buildings were purchased, the depreciation method used for analysis was

vi

changed from using tax depreciation to a method that more closely reflects the actual decline in the value of machinery and build-ings. The new method does not utilize the ad-ditional bonus depreciation or expense election write-off in the year of purchase, uses a slightly longer life and a lower rate than the IRS allowed methods for tax depreciation. It is estimated that the change to the new depre-ciation method resulted in $10,000 to $15,000 less in depreciation per farm in 2003 as com-pared to what would have been deducted if the tax depreciation figure was used. Estimates in net worth change can be made by adjusting net farm income for nonfarm income, withdrawals for family living, and income and social security tax paid. This amount would be a modified-cost-basis change in net worth, which excludes changes due to inflation. As seen on page 5, estimated changes in net worth showed increases in all areas of the state. Changes in net worth among individual farm operators could vary greatly due to differences in farm and nonfarm income and family living withdrawals. Average amount of interest paid per farm is shown on pages 3 and 6. Average operator interest paid in 2003 was $16,921, down $73 from 2002. On a per-acre basis, interest paid has decreased from a high of $38 in 1983 to $18 in 2003. Interest paid as a percentage of gross farm returns was 5.6 percent in 2003 compared to 6.7 percent in 2002. Some key financial factors, such as the current, debt-to-asset, and debt-to-equity ratios, can be found on pages 10 to 14 by type of farm. This type of information is useful in providing some benchmarks when evaluating the financial effi-ciency of a farm operation. Returns and costs for crops and livestock en-terprises can be seen on pages 25 to 31 and 33 to 40. Returns to farrow-to-finish hog produc-ers were higher than the year before. Total re-turns averaged $37.81 per hundredweight in 2003 compared to $31.81 the year before. Feed costs increased, averaging $22.56 per

hundredweight. The average price received per hundredweight for slaughter cattle and the price paid for replacement feeder cattle were both higher than the year before. Due to the higher prices for slaughter cattle, returns to the feeder cattle enterprise were at all time highs. Total economic costs per acre to produce corn and soybeans in 2003 decreased as compared to 2002 in all areas of the state. The main fac-tor for the decrease in per acre costs was due to lower machinery and building depreciation costs. Cost per bushel to produce corn de-creased significantly in all areas of the state due to high corn yields. Cost per bushel to raise soybeans increased in all areas of the state except for southern Illinois. Lower soy-bean yields were the main factor resulting in the increased costs per bushel. Total eco-nomic costs per acre to raise corn and soy-beans on these farms averaged $395 and $320 respectively. From a sample of pure grain farms in the state, the total economic costs per bushel of corn produced were $2.27 with an average yield of 174 bushels per acre. The total costs per bushel of soybeans were $8.42 with an average yield of 38 bushels per acre. This compared with costs per bushel of $2.76 and $6.79 for corn and soybeans respectively in 2002. This was the lowest cost per bushel to grow corn since 1994 and the highest for soybeans since 1988. The variation in yields and costs the past few years makes it important to analyze these costs over more than one year. The 1999-03 five-year average to produce corn and soybeans on these farms is $2.58 per bushel for corn and $7.24 per bushel for soy-beans. In summary, farm earnings were considerably higher in 2003 compared to 2002 and gener-ally at good levels across all geographic areas of the state. Record breaking corn yields along with higher grain prices offset below av-erage soybean yields. Improved livestock re-turns also contributed to the better incomes on farms producing livestock.

Jo Daviess Stephenson Winnebago Boone McHenry Lake

Carroll

158u r r

42

OgleDeKalb Kane Cook

Whiteside LeeDuPage

Rock Island

Henry Bureau LaSalleKendall Will

Stark PutnamMarshall Livingston

Grundy

KankakeeMercer

WarrenKnox

PeoriaWoodford

Iroquois

Hancock McDonoughFulton

TazewellMcLean

Ford

AdamsSchuyler

MasonLogan Dewitt

ChampaignVermilion

Menard

Pike Morgan Sangamon

BrownMacon

Douglas EdgarScott

Greene Macoupin

ChristianShelby

Coles

Jersey

Montgomery CumberlandClark

Madison Bond

Fayette Effingham Jasper Crawford

St. ClairClinton

MarionClay

Richland Lawrence

Randolph

JeffersonWayne Wabash

PerryFranklin

Hamilton White

JacksonWilliamson Saline Gallatin

Union Johnson Pope Hardin

Alex Pulaski Massac

Washington

62 28 r41 5

r147 r

45125

r

57

r 4 0

r201r 39

33 8194 213

35

44

50

61

33

5065

138

99 170

341

88

151

83 2719

247 399 58

81

10

60

74

206

61208

164

34 19

59

109

9286

8086

87

31

4

10

3

32

70

3421

2223

1964 40 34

24 120

2980

3629 26 39

38 16 20

147

35

391

28

3 33

2034 23

12

22 73

26 30

ur r r urr r

r

r

ur r

rr

rrr r

r r

rru r

rr

rr r

rrr †

r r

ILLINOIS FARM BUSINESS FARM MANAGEMENT ASSOCIATIONcooperating with nine local farm management associations and the

Department of Agricultural and Consumer Economics, College of Agricultural, Consumer and Environmental Sciences, University of Illinois at Urbana-Champaign

STATE TOTAL--6,356 cooperating farmers and 60 member field staff*July 1, 2003, distribution of cooperators by counties and associations

Associations and Field Staff Associations and Field Staff

24

rr u

59r

ru r

r

r

u

r

r

ru

r

r

rr

r

r u

r

BLACKHAWK 655

Kristian S. LauritzenAlan A. PetersohnJeffery L. JohnsonRodney B. GiesekeGarett PlumleyMark SturtevantDavid A. Goodell

WESTERN

723

Gary R. GoodwinRoberta BoarmanRobert RheaSusan M. SharonMiriam M. MockMichael J. BrokawBradley L. Zwilling

SANGAMON VALLEY

586Aaron LiesmanJames E. PhelanKevin E. CoultasJohn KloppenburgTodd F. Behrends

23

LINCOLN 839Michael E. SchmitzThomas J. NolteJohn E. WhiteDennis J. GradenLouis J. AldagDathel W. DavidsonDaniel A. DoanRandall J. HarmonMitchel W. Fickling

NORTHEASTERN 273David J. O’BrienMichael G. BossertCharles W. Brahmstedt

ILLINOIS VALLEY 688Danny L. StetsonJohn A. HudsonDale J. HeinkelBradley G. LenschowJames P. McCabeScott M. Newport

PIONEER

1,215Michael C. HeiserJerry CrumpMaurice E. SproutKent V. MeisterDarren L. BrayGary FreemanRichard SmithRodney G. RobensteinBrian J. PulleyNathan A. WaibelJeffrey A. Marquis

EAST CENTRAL 1,156James E. CullisonBruce E. BurkDonald E. BeckerMitchell A. FruhlingJeffrey D. LewisRobert DaggettRichard ThomasGary L. KnoblettBrandyn L. TraumChristopher A. Leman

SHAWNEE 221Robert D. KiesecomsDouglas E. Hileman

OFFICIAL ENROLLMENTJuly 1, 2003

( Numbers are Enrollment Totalsr Field Staff Office (Home)u District Record Processing Office † State Office

6010

r

r

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r Moultrie

Cass

agec77

vii

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by Type of Farm—1999 to 2003*

All Operators Livestock Net Mach.Tillable Net Farm Labor-Mgmt. Crop Ret. Above & Labor

Number Acres Income Income Returns/TA Feed/TA Cost/TA** Year of Farms (TA) $ $ $ $ $

All Farms2003 3,018 923 70,640 55,678 382 29 103 2002 3,165 895 27,204 12,976 337 20 113 2001 3,072 879 33,396 16,712 347 35 119 2000 3,143 850 53,541 33,707 368 33 1151999 3,195 833 36,119 18,172 333 31 110

Grain Farms2003 2,573 989 72,637 57,993 382 7 92 2002 2,677 959 29,619 15,677 337 4 102 2001 2,574 941 31,982 15,763 347 7 105 2000 2,659 915 53,450 34,157 369 9 1041999 2,622 901 35,363 17,941 334 8 98

Hog Farms2003 125 749 73,182 51,359 374 353 2302002 159 773 4,116 (15,839) 330 204 2052001 175 756 63,741 37,397 346 326 2212000 163 637 97,772 68,621 362 371 2191999 199 699 51,161 27,180 318 219 183

Dairy Farms2003 90 372 60,600 42,492 380 372 3282002 99 339 31,408 12,760 353 340 3572001 105 365 62,473 41,807 343 437 3422000 112 356 40,987 16,028 344 315 3291999 113 353 53,248 29,223 310 431 336

Beef Farms2003 62 482 72,456 51,200 353 181 1832002 59 500 10,576 (11,509) 316 59 1792001 54 514 8,469 (15,454) 336 77 1862000 48 448 17,374 (11,451) 355 104 2051999 76 448 34,574 8,869 304 126 176

*In 2003, 85% of the farms were classified as grain, 4% as hog, 3% as dairy, 2% as beef,and 6% as part-time or other types.

**This is net above custom work income.

Average Size, Income, Returns, and Costs on Illinois FBFM Record-Keeping Farms

Summary of Income, Corn Yields, Crop and Livestock Returns byFarm Type and Location, Average per Farm—2000 to 2003

Northern Illinois Central Illinois Southern Illinois

Grain Hog Beef Dairy All* Grain Grain Hog All* Grain Hog Beef Dairy All* SPR 86–00 SPR 56–85

Operator's Share of Net Farm Income2003 $58,217 $54,445 $83,210 $53,729 $59,042 $86,568 $62,459 $94,263 $78,063 $86,245 $91,087 $27,646 $93,891 $84,9112002 $25,380 ($8,960) $23,031 $32,506 $24,201 $44,263 $35,520 $17,314 $39,740 ($9,160) ($1,343) ($10,685) $28,213 ($6,765)2001 $18,009 $39,360 $12,248 $52,726 $21,654 $43,483 $29,854 $79,565 $40,596 $38,957 $64,973 ($1,506) $84,731 $41,5972000 $40,770 $65,009 $20,759 $33,128 $40,661 $61,156 $48,167 $116,109 $59,484 $69,145 $99,145 $7,798 $61,422 $68,911

Corn Yields2003 171 169 162 146 169 186 171 180 180 132 133 100 122 1302002 152 151 159 138 151 151 149 161 151 94 97 88 95 942001 156 155 157 132 154 167 154 165 162 147 148 143 133 1462000 154 155 152 142 153 164 153 158 160 143 142 130 130 142

Crop Returns per Tillable Acre2003 $379 $375 $379 $391 $379 $404 $367 $384 $389 $327 $334 $215 $370 $3262002 $352 $355 $367 $381 $355 $358 $339 $361 $351 $246 $257 $186 $302 $2462001 $344 $343 $354 $343 $345 $397 $337 $347 $372 $314 $313 $249 $328 $3122000 $352 $366 $369 $349 $353 $386 $355 $362 $374 $325 $327 $233 $338 $323

Livestock Returns above Feed Cost per Tillable Acre2003 $9 $273 $199 $407 $60 $4 $9 $339 $19 $4 $304 $62 $370 $402002 $4 $242 $79 $344 $45 $3 $4 $146 $10 $1 $134 $17 $438 $342001 $6 $417 $93 $471 $69 $5 $8 $403 $31 $5 $257 $35 $506 $472000 $10 $391 $107 $306 $57 $6 $10 $467 $32 $7 $295 $76 $461 $53

Return per $1.00 of All Costs2003 $1.01 $1.00 $1.08 $1.01 $1.01 $1.11 $1.04 $1.06 $1.08 $1.09 $1.09 $0.85 $1.06 $1.082002 $0.90 $0.80 $0.83 $0.92 $0.90 $0.97 $0.94 $0.88 $0.96 $0.78 $0.79 $0.63 $0.89 $0.782001 $0.88 $0.97 $0.82 $0.97 $0.89 $0.96 $0.92 $1.01 $0.95 $0.94 $1.01 $0.68 $1.04 $0.942000 $0.94 $1.04 $0.80 $0.90 $0.94 $1.02 $0.98 $1.11 $1.01 $1.02 $1.09 $0.71 $0.96 $1.02

* Average size of farm in 2003 is 819 tillable acres for northern Illinois, 1,002 for central, and 1,082 for southern.

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Net Farm Income and Other Selected FactorsIllinois FBFM Association—20031

Black- East Illinois North- hawk Central Valley Lincoln eastern Pioneer

Number of Farms 391 521 473 275 128 518 Tillable Acres 714 980 848 921 837 851 Corn Yield 170 173 175 133 160 182 Soybean Yield 33 40 36 38 34 35 Crop Returns/TA $381 $384 $392 $333 $356 $382

Income before Depreciation $74,489 $87,903 $78,387 $94,599 $72,720 $82,928Depreciation 19,467 18,024 20,131 21,180 18,667 16,793Net Farm Income 55,022 69,879 58,256 73,419 54,053 66,135

Capital Purchases $35,074 $32,147 $34,213 $38,326 $26,112 $29,817Interest Paid 21,286 12,911 17,344 16,281 13,080 12,277

2003 2002Sangamon State State

Valley Shawnee Western Average Average

Number of Farms 260 74 378 3,018 3,165 Tillable Acres 1,209 1,522 968 923 895 Corn Yield 195 128 176 172 145 Soybean Yield 45 41 39 38 47 Crop Returns/TA $431 $347 $386 382 337

Income before Depreciation $146,071 $151,842 $98,300 $91,668 $57,963Depreciation 27,127 34,793 27,505 21,028 30,759 Net Farm Income 118,944 117,049 70,795 70,640 27,204

Capital Purchases $45,138 $38,721 $46,768 $35,869 $31,092Interest Paid 18,582 22,250 23,345 16,921 16,994

¹ Sum of all operators per farm.

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Illinois FBFM Association

Operators’ Share of Labor and Management Income per Farm—2001, 2002, and 2003(Sum of All Operators/Farm )

Blackhawk

Farms 391Tillable Acres 714

Western


Sangamon Valley

Farms 260Tillable Acres 1,209

Lincoln


Shawnee

Farms 74Tillable Acres 1,522

1992 Avg. . . . . . . . . . . 37,965

1993 Avg. . . . . . . . . . .34,7251994 Avg. . . . . . . . . . . .22,315

1995 Avg. . . . . . . . . . .26,828

1996 Avg. . . . . . . . . . .42,6391997 Avg. . . . . . . . . . .28,446

1998 Avg. . . . . . . . . . .(8,461)1999 Avg. . . . . . . . . . .18,172

2000 Avg. . . . . . . . . . .33,707

2001 Avg. . . . . . . . . . .16,7122002 Avg. . . . . . . . . . .12,976

2003 Avg. . . . . . . . . . . 55,678

No. of Farms (2003) . . . 3,018Tillable Acres (2003) . . . 923

(Sum of All Operators/Farm)

Illinois Valley


Pioneer


East Central


Northeastern


Northeastern

LEGEND

Association2003 Average2002 Average2001 Average

$39,931($8,825 )

($4,069)

Blackhawk$41,825$16,292$7,737

$51,333$23,942$11,391

Western

Illinois Valley

Pioneer

$52,551$24,238$21,693

$43,983$8,998$7,112

$99,000$24,236$18,424

SangamonValley

EastCentral$58,073$23,719$30,325

Lincoln

$59,742($11,978)$24,125

Shawnee

$90,785($66,528)$25,321

-5-

Illinois FBFM Association

Net Farm Income per Operator andEstimated Change in Net Worth After Living Expenses and Taxes—2003

Northeastern

$44,842$16,000

Blackhawk

$49,215$20,500

$58,631$30,000

Western

Illinois Valley

Pioneer$60,025$31,500

$52,897$24,000

$100,374$71,500

SangamonValley

EastCentral

Lincoln

$61,916$33,000

Shawnee

$98,932$70,000

Average Net Farm Incomeper Operator

$62,357$33,500

Top figures are net farm income per operator.Bottom figures are the estimated change in net worth.

$66,198$37,500

Net Draw Against Net Worth Increases

Living Cost $47,750

Taxes (Income & Social Security) 7,000

Net Nonfarm Income -26,000

TOTAL $28,750

All figures are cost basis.

Capital Debt Repayment Capacity (CDRC), Illinois Farm Operators—1999 to 2003

1999 2000 2001 2002 2003

Net Farm Income . . . . . . . . . . . . . . . . . . . . . . . . . .$36,119 $53,541 $33,396 $27,204 $70,640

+ Net Nonfarm Income ¹ . . . . . . . . . . . . . . . . . .19,170 22,424 23,374 24,716 25,919

- Family Living ² . . . . . . . . . . . . . . . . . . . . . . . .(40,703) (42,772) (43,288) (43,970) (47,619)

- Income & Social Security Taxes ². . . . . . . . . . . . . . . . . . .(9,941) (9,898) (10,328) (8,880) (6,814)

Change in Net Worth ³ . . . . . . . . . . . . . . . . . . . . .$4,645 $23,295 $3,154 ($930) $42,126

+ Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . .$27,905 $29,760 $31,474 $30,759 $21,028

Funds Available for Debt Repayment . . . . . . . . . . .$32,550 $53,055 $34,628 $29,829 $63,154

Capital Purchases . . . . . . . . . . . . . . . . . . . . . . .$25,576 $31,879 $34,702 $31,092 $35,869Cash Interest Paid . . . . . . . . . . . . . . . . . . . . . . . .$18,774 $19,416 $19,491 $16,994 $16,921

¹ Actual net nonfarm income received.

² Actual amounts less 10 percent used.

³ Cost basis—no change in land value included.

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Operator's Net Farm Income, Income before Depreciation and Interest Paid

0

20

40

60

80

100

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Th

ou

san

ds

of

Do

llars

Net Farm Income Interest Paid Income Before Depreciation

agec77

Selected Financial Factors, Operator Only—2003

Farm TypeItem Grain Hog Dairy Beef All

Number of Farms .................................................. 2,573 125 90 62 3,018

Tillable Acres ........................................................ 989 749 372 482 923

Gross Farm Returns/Operator Acre ...................... $401 $745 $766 $554 $423

Total Nonfeed Costs/Operator Acre ..................... $368 $721 $754 $512 $390

Management Returns/Operator Acre .................... $37 $26 $14 $45 $36

Net Farm Income per Operator ............................. $64,936 $54,872 $51,203 $60,420 $62,357

Labor & Management Income per Operator ......... $51,825 $42,015 $37,269 $41,946 $49,359

Capital Purchases ................................................ $36,483 $44,285 $34,776 $34,326 $35,869

Farm Production per Man Year ............................ $295,885 $229,586 $141,204 $188,519 $278,162

Production per $1.00 Nonfeed Costs ................... $1.09 $1.03 $1.02 $1.08 $1.08

Percent of Farm Production

Cash Operating Expenses ............................ 70.8 77.5 71.0 63.4 71.1

Depreciation ................................................. 5.5 6.4 6.8 6.6 5.7

Operator Income ........................................... 23.7 16.1 22.2 30.0 23.2

-8-

Selected FBFM Factors, Operator Only—1994 to 2003

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Number of Farms 3,691 3,553 3,628 3,287 3,126 3,195 3,143 3,072 3,165 3,018

Total Acres 799 824 839 840 857 885 902 934 947 974Tillable Acres 744 766 786 790 805 833 850 879 895 923

Corn Yield 162 120 143 137 150 150 156 159 145 172Soybean Yield 50 42 43 48 49 47 47 48 47 38Wheat Yield 62 53 39 62 51 62 62 64 52 69

% Tillable Land in Corn/Corn Silage 52 47 48 49 48 49 49 49 49 50

Total Cash Operating Income $224,773 $251,373 $254,870 $266,383 $252,431 $263,153 $277,733 $296,275 $276,889 $316,260Crop and Livestock Inventory Change 1,703 2,700 19,587 4,722 (22,658) (3,603) 14,988 (529) 3,569 22,837Misc. Income and Change in Acct. Rec. 8,388 (224) 8,704 8,637 1,505 929 316 (1,632) 1,562 (1,915)Less: Purchased Feed and PIK Certs. (19,400) (20,348) (24,615) (21,304) (15,046) (13,347) (14,838) (15,421) (14,730) (16,709) Purchased Livestock (13,975) (12,590) (9,990) (12,821) (10,966) (11,919) (14,238) (15,795) (13,753) (15,250)Gross Farm Returns $201,489 $220,911 $248,556 $245,617 $205,266 $235,213 $263,961 $262,898 $253,537 $305,223

Total Operating Expense $138,243 $149,105 $161,557 $166,876 $167,915 $172,515 $182,254 $199,804 $197,181 $215,539Income before Depreciation 63,246 71,806 86,999 78,741 37,351 62,698 81,707 63,094 56,356 89,684Less Depreciation (Plus Capital Acct. Adj.) 23,048 25,029 26,065 27,674 26,301 26,579 28,166 29,698 29,152 19,044Net Farm Income $40,198 $46,777 $60,934 $51,067 $11,050 $36,119 $53,541 $33,396 $27,204 $70,640Net Farm Income as % GFR 20.0 21.2 24.5 20.8 5.4 15.4 20.3 12.7 10.7 23.1

Operator's Labor and Mgmt. Income $23,955 $26,508 $41,345 $28,452 ($8,461) $18,172 $33,707 $16,712 $12,976 $55,678

Interest Expense $13,522 $16,436 $16,461 $17,007 $18,123 $18,774 $19,416 $19,491 $16,994 $16,921Interest Expense as % of GFR 6.7 7.4 6.6 6.9 8.8 8.0 7.4 7.4 6.7 5.5

Gross Farm Returns/Tillable Acre $271 $288 $316 $311 $255 $282 $311 $299 $283 $331Total Operating Expense/Tillable Acre $186 $195 $206 $211 $209 $207 $214 $227 $220 $234Depreciation/Tillable Acre $31 $33 $33 $35 $33 $32 $33 $34 $33 $21Net farm Income/Tillable Acre $54 $61 $78 $65 $14 $43 $63 $38 $30 $77

Total Investment Crops and Feed $133,796 $141,762 $156,863 $160,286 $144,940 $133,190 $135,015 $143,355 $143,976 $155,083 Livestock (Market & Breeding Stock) 32,208 32,353 32,867 29,923 25,634 24,086 26,820 30,224 27,521 27,223 Machinery (Book Value) 49,193 52,989 56,458 57,326 53,991 54,146 54,210 56,272 54,580 61,487 Buildings (Book Value) 20,800 22,044 23,140 22,768 21,655 22,111 22,253 23,038 23,259 26,135 Land 297,085 345,117 398,622 444,478 464,708 475,183 483,148 511,097 544,009 564,278Total $533,082 $594,265 $667,950 $714,781 $710,928 $708,716 $721,446 $763,986 $793,345 $834,206

-9-

-10-

Financial Characteristics of Illinois FBFM Grain Farms

4-Year My2003 2002 2001 2000 Average Farm

Number of Farms 2,279 2,211 2,129 2,147 2,192

Liquidity

Working Capital $111,027 $85,660 $93,394 $100,365 $97,612 _________Current Ratio

Upper Quartile NA 3.39 3.5 3.75 3.55 _________Median 1.56 1.44 1.49 1.63 1.53

Solvency

Net Worth (Market) $898,938 $836,499 $820,022 $809,830 $841,322 _________Debt/Equity Ratio (%)


Debt/Total Asset Ratio (%)Upper Quartile NA 14.3 14.5 14.3 14.4 _________Median 28.6 30.7 30.4 29.5 29.8

Profitability

Net Farm Income $60,982 $29,825 $29,633 $46,720 $41,790 _________Return on Farm Assets (%)


Return on Farm Equity (%)Upper Quartile NA 4.2 3.7 8.6 5.5 _________Median 4.5 -0.1 -0.3 2.8 1.7

Repayment Capacity

Debt/Farm Operating Income 5.69 9.63 10.17 5.82 7.83 _________

Financial Efficiency (as a % of Gross Farm Returns)

Interest Expense RatioUpper Quartile NA 2.5 3.1 3.0 2.9 _________Median 4.5 5.6 6.6 6.5 5.8

Operating Expense RatioUpper Quartile NA 58.7 57.7 52.4 56.3 _________Median 63.6 67.5 66.3 60.5 64.5

Depreciation Expense RatioUpper Quartile NA 6.2 7.0 6.8 6.7 _________Median 6.2 11.2 11.8 11.4 10.2

Farm Operating Income RatioUpper Quartile NA 24.1 23.1 30.0 25.7 _________Median 23.8 14.4 13.5 20.6 18.1

Asset Turnover RatioUpper Quartile NA 0.43 0.43 0.46 0.44 _________Median 0.31 0.28 0.29 0.31 0.30

NA = not available yet.Preliminary data for 2003.

-11-

Financial Characteristics of Illinois FBFM Hog Farms


Number of Farms 103 128 132 108 118

Liquidity



Solvency

Net Worth (Market) $1,004,283 $866,820 $879,364 $825,049 $893,879 _________Debt/Equity Ratio


Debt/Total Asset RatioUpper Quartile NA 18.0 16.2 15.3 16.5 _________Median 36.4 40.9 40.4 33.3 37.8

Profitability

Net Farm Income $51,633 -$5,677 $44,384 $83,731 $43,518 _________Return on Farm Assets

Upper Quartile NA 1.7 7.1 11.5 6.8 _________Median 3.6 -0.9 2.3 6.9 3.0

Return on Farm EquityUpper Quartile NA 0.6 6.8 14.9 7.4 _________Median 3.1 -5.8 0.2 6.2 0.9

Repayment Capacity









-12-

Financial Characteristics of Illinois FBFM Beef Farms


Number of Farms 36 34 30 30 33

Liquidity



Solvency

Net Worth (Market) $930,104 $822,846 $745,408 $738,400 $809,190 _________Debt/Equity Ratio



Profitability

Net Farm Income $77,074 $7,767 $12,952 $18,938 $29,183 _________Return on Farm Assets

Upper Quartile NA 1.8 3.2 2.8 2.6 _________Median 4.7 -2.1 0.0 0.9 0.9

Return on Farm EquityUpper Quartile NA -1.4 1.8 1.3 0.6 _________Median 2.9 -5.5 -3.4 -1.6 -1.9

Repayment Capacity


Financial Efficiency (as a % of Gross Farm Returns)Interest Expense Ratio







-13-

Financial Characteristics of Illinois FBFM Dairy Farms


Number of Farms 62 60 71 84 69

Liquidity

Working Capital $28,006 $15,859 $18,945 $28,764 $22,894 _________

Current RatioUpper Quartile NA 2.97 3.09 3.79 3.28 _________Median 1.38 1.19 1.16 1.52 1.31

Solvency

Net Worth (Market) $550,256 $573,170 $582,794 $648,372 $588,648 _________

Debt/Equity RatioUpper Quartile NA 12.1 16.6 12.6 13.8 _________Median 57.0 45.9 42.6 39.7 46.3


Profitability

Net Farm Income $52,881 $19,408 $46,376 $37,262 $38,982 _________

Return on Farm AssetsUpper Quartile NA 5.8 9.4 6.1 7.1 _________Median 4.7 2.4 4.3 2.5 3.5

Return on Farm EquityUpper Quartile NA 6.0 10.7 5.0 7.2 _________Median 4.2 0.7 2.0 0.0 1.7

Repayment Capacity








NA = not available yet.

Preliminary data for 2003.

Illinois FBFM Association Farms by Interest Paid as Percent of Gross Farm Returns—1994 to 2003¹

Operator Interest Paid as % of Gross Farm Returns

Year Under 10 10–14.9 15–19.9 20–24.9 25–29.9 30–34.9 35+ All

Number of farms . . . . . . . . .1994 2,807 507 205 86 44 20 22 3,6911995 2,956 628 264 159 34 25 23 4,0891996 2,960 559 213 102 37 17 23 3,9111997 3,022 573 266 101 39 20 25 4,0461998 2,357 609 332 162 88 48 63 3,6591999 2,577 651 296 122 58 39 35 3,7782000 2,724 565 241 118 51 21 32 3,7522001 2,664 551 255 121 58 21 43 3,7132002 2,856 499 207 94 50 18 32 3,7562003 3,204 395 139 50 30 9 23 3,850

Percent of farms . . . . . . . . 1994 76 14 5 2 1 1 1 1001995 72 15 6 4 1 1 1 1001996 76 14 5 3 1 1 1 1001997 75 14 6 2 1 1 1 1001998 65 17 9 4 2 1 2 1001999 68 17 8 3 2 1 1 1002000 73 15 6 3 1 1 1 1002001 72 15 7 3 2 1 1 1002002 76 13 6 2 1 * * 1002003 83 10 4 1 * * * 100

Net Farm Income . . . . . . . 1994 46,980 28,256 16,971 3,094 (8,605) (16,565) (39,203) 40,1981995 55,009 30,487 25,315 8,765 7,433 (2,183) (13,028) 46,4001996 70,977 40,839 24,901 12,459 6,723 (9,778) (27,047) 61,0981997 58,785 35,742 19,643 8,021 (1,242) (6,655) (36,958) 50,2021998 26,200 7,000 (2,229) (21,893) (45,224) (35,417) (65,547) 14,1901999 46,212 28,518 13,029 1,309 (6,174) (18,065) (22,223) 37,0112000 61,020 38,050 27,035 13,931 (2,156) 276 (38,549) 51,8492001 42,043 21,789 4,684 1,367 (2,528) (38,957) (44,147) 32,9942002 35,763 14,420 3,265 (15,283) (25,645) (29,582) (55,756) 27,9492003 73,740 40,994 25,607 12,051 (3,753) 23,173 (5,018) 66,649

Average Operator Interest Paid and Interest Paid as % of Gross Farm Returns - All Farms

1994—$13,522 6.7% 1996—$15,572 6.6% 1998—$17,247 8.6% 2000—$18,432 7.6% 2002—$16,356 6.7%1995—$15,070 7.3% 1997—$16,077 6.9% 1999—$17,796 8.2% 2001—$18,200 7.4% 2003—$15,618 5.5%

¹1994 operator interest paid and operator net farm income for total farm, 1995 to 2003 interest paid and net farm income by operator.* Less than 1%.

-14-

Operator's Net Farm Income by Interest Paid as a Percent of Gross Farm Returns

-$40,000

-$20,000

$0

$20,000

$40,000

$60,000

$80,000

Under 10% 10-14.9% 15-19.9% 20-24.9% 25-29.9% 30-34.9% 35%+

Interest Paid as % of Gross Farm Returns

Op

erat

or

Net

Far

m In

com

e

2003 1999-2003 Avg.

Illinois FBFM Management Returns per Tillable Acre by Farm Type¹

Dairy Beef Hog Grain Dairy Beef Hog Grain

1961–65 4 8 20 12 14 11 22 13

1966–70 5 (5) 12 3 17 3 17 6

1971–75 4 9 76 51 21 19 51 29

1976–80 (4) (74) (11) (17) 40 (56) (4) 5

1981–85 (107) (101) (58) (16) (65) (111) (48) (32)

1986–90 (5) (23) 17 5 46 (31) 38 15

1991–95 (22) (44) 6 25 26 (54) 7 26

1996–00 (34) (47) (10) 8 (14) (112) (29) (10)

1996 (23) (18) 87 44 (17) (81) 23 6

1997 (44) (59) (20) 21 (33) (117) (38) 4

1998 (6) (140) (204) (30) (6) (201) (184) (59)

1999 (20) 5 0 (3) 9 (114) (33) (34)

2000 (72) (72) 72 9 (16) (94) 61 21

2001 5 (80) 8 (14) 56 (117) 17 (9)

2002 (62) (59) (80) (6) (82) (132) (110) (59)

2003 ² 2 68 31 32 60 (53) 53 43

¹ 1995 and later, data is operator's management returns per operator tillable acre. Prior to 1995, data is total farm management returns per total farm tillable acre.

² Estimated from preliminary data.

Northern and Central Illinois Southern Illinois

-16-

Summary of Farm and Family Sources and Uses of Dollars—1993 to 2003

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Number of Families 467 540 697 699 924 912 938 1,087 1,175 1,216 1,102Tillable Acres 746 772 NA NA NA NA NA NA NA NA NAAcres Owned 125 130 NA NA NA NA NA NA NA NA NATotal Tillable Operator Acres NA NA 544 515 564 554 581 591 596 623 668Farm Assets, Jan. 1 $432,768 $489,103 NA NA NA NA NA NA NA NA NAFarm Assets, Dec. 31 450,325 503,589 NA NA NA NA NA NA NA NA NALiabilities, Jan. 1 220,410 219,667 NA NA NA NA NA NA NA NA NALiabilities, Dec. 31 223,353 247,748 NA NA NA NA NA NA NA NA NANet Farm Income 55,731 41,242 $43,156 $62,203 $48,205 $10,292 $38,091 $49,960 $29,678 $32,168 $66,290

SOURCES OF DOLLARS Nontaxable Receipts $23,638 $23,361 $31,506 $36,931 $35,229 $33,527 $34,025 $42,542 $39,162 $38,503 $38,042 Net Nonfarm Income 13,122 13,566 13,790 15,349 16,368 17,992 19,170 22,424 23,374 24,716 25,919 Money Borrowed 135,712 165,931 149,510 149,545 165,118 181,966 185,424 172,889 194,479 198,884 240,363 Total Farm Receipts 220,045 217,181 239,597 231,331 253,842 236,394 249,956 260,066 266,422 257,579 305,957TOTAL SOURCE ALL DOLLARS $392,517 $420,039 $434,403 $433,156 $470,557 $469,879 $488,575 $497,921 $523,437 $519,682 $610,281

USES OF DOLLARS—FARM Interest Paid $14,121 $13,004 $16,225 $15,169 $16,203 $17,782 $19,585 $19,213 $19,297 $17,194 $17,713 Other Farm Expenses 139,570 146,795 153,474 150,041 168,498 158,153 166,255 174,594 185,154 182,720 218,726 Mach. & Bldg. Purchases 26,946 30,301 27,866 29,887 36,458 31,073 23,232 29,877 30,557 29,699 35,291TOTAL FARM EXPENDITURES $180,637 $190,100 $197,565 $195,097 $221,159 $207,008 $209,072 $223,684 $235,008 $229,613 $271,730

Principal Payments $135,090 $137,948 $148,666 $134,754 $144,677 $156,891 $182,933 $166,890 $179,988 $183,423 $225,968Income & Social Security Taxes 10,504 12,487 9,975 11,263 11,724 13,859 11,046 10,998 11,475 9,867 7,571Savings & Investment 26,063 38,274 36,906 48,112 48,440 47,327 40,252 48,826 48,866 47,915 52,076

LIVING EXPENSES Contributions $1,290 $1,410 $1,328 $1,383 $1,507 $1,489 $1,448 $1,597 $1,567 $1,454 $1,583 Medical 5,357 5,064 5,144 5,119 5,170 5,392 5,613 5,561 5,710 6,335 6,581 Life Insurance 2,413 2,536 2,555 2,555 2,427 2,544 2,575 2,701 2,660 2,590 2,681 Expendables 26,165 27,069 27,594 29,443 30,200 30,651 31,218 32,685 33,275 34,096 37,314 Total Noncapital $35,225 $36,079 $36,621 $38,500 $39,304 $40,076 $40,854 $42,544 $43,212 $44,475 $48,159 Capital 4,996 5,143 4,633 5,457 5,283 4,714 4,371 4,982 4,885 4,380 4,749TOTAL LIVING EXPENSE $40,221 $41,222 $41,254 $43,957 $44,587 $44,790 $45,225 $47,526 $48,097 $48,855 $52,908

TOTAL USE ALL DOLLARS $392,515 $420,031 $434,366 $433,183 $470,587 $469,875 $488,528 $497,924 $523,434 $519,673 $610,253

Debt/Asset Dec. 31 (farm) 0.50 0.49 NA NA NA NA NA NA NA NA NAInterest as % of Farm Receipts 6.4 6.0 6.8 6.6 6.4 7.5 7.8 7.4 7.2 6.7 5.8Total Family Living/TA (Opr. TA) $54 $53 $76 $85 $79 $81 $78 $80 $81 $78 $79Nonfarm Income/TA (Opr. TA) 18 18 25 30 29 32 33 38 39 40 39Net Family Living/TA (Opr. TA) $36 $36 $50 $56 $50 $48 $45 $42 $41 $39 $40Net Farm Cash/TA (Opr. TA) 39 19 59 48 37 28 51 43 33 29 40Cash Surplus (Deficit)/TA (Opr. TA) $2 ($17) $8 ($7) ($13) ($20) $7 $0 ($8) ($10) ($0)

NA = not available.Beginning in 1995, last five lines were divided by operator tillable acres instead of total tillable acres.

-17-

-18-

Taxes, Bldg., EquivalentGross Net & Misc. Gross

Returns Expenses Rents Expenses Cash Rents¹

1980 . . . . . . . . $165.20 $58.98 $106.22 $25.88 $132.101981 . . . . . . . . 153.51 61.18 92.33 27.00 119.321982 . . . . . . . . 155.27 62.69 92.58 28.04 120.621983 . . . . . . . . 162.41 59.02 102.39 29.67 132.061984 . . . . . . . . 156.45 67.47 88.98 30.31 119.291985 . . . . . . . . 179.40 69.19 110.20 29.64 139.841987 . . . . . . . . 147.66 57.85 89.81 27.38 117.191988 . . . . . . . . 122.49 61.33 61.16 27.14 88.301989 . . . . . . . . 160.32 65.07 95.25 27.41 122.661990 . . . . . . . . 161.19 64.97 96.22 27.00 123.221991 . . . . . . . . 146.53 65.74 80.79 25.71 106.501992 . . . . . . . . 173.68 65.84 107.84 25.64 133.481993 . . . . . . . . 187.86 66.11 121.75 25.85 147.601994 . . . . . . . . 177.45 67.67 109.78 26.04 135.821995 . . . . . . . . 183.44 78.93 104.51 33.94 138.451996 . . . . . . . . 211.41 85.18 126.23 36.76 162.991997 . . . . . . . . 202.03 87.42 114.61 37.33 151.941998 . . . . . . . . 168.45 88.08 80.37 37.54 117.911999 . . . . . . . . 183.90 86.99 96.91 40.24 137.152000 . . . . . . . . 195.55 88.18 107.37 41.21 148.582001 . . . . . . . . 181.81 90.58 91.23 42.04 133.272002 . . . . . . . . 179.81 89.26 90.55 39.92 130.472003 . . . . . . . . 203.30 87.45 115.85 36.36 152.21

1980 . . . . . . . . $157.11 $57.90 $99.21 $29.17 $128.381981 . . . . . . . . 143.67 61.32 82.34 26.63 108.981982 . . . . . . . . 148.91 64.60 84.31 27.20 111.511983 . . . . . . . . 138.81 59.59 79.22 28.76 107.981984 . . . . . . . . 135.45 63.33 72.12 28.47 100.591985 . . . . . . . . 158.69 65.75 92.94 29.82 122.761986 . . . . . . . . 127.56 60.48 67.08 27.99 95.071987 . . . . . . . . 133.53 55.88 77.65 26.36 104.011988 . . . . . . . . 102.06 57.38 44.68 24.23 68.911989 . . . . . . . . 146.12 56.93 89.19 24.60 113.791990 . . . . . . . . 146.95 61.33 85.62 23.86 109.481991 . . . . . . . . 114.58 55.30 59.28 22.53 81.811992 . . . . . . . . 155.86 55.33 100.53 21.29 121.821993 . . . . . . . . 158.87 58.25 100.62 25.13 125.751994 . . . . . . . . 161.54 61.33 100.21 21.13 121.341995 . . . . . . . . 167.26 70.21 97.05 27.97 125.021996 . . . . . . . . 182.63 77.27 105.36 30.45 135.811997 . . . . . . . . 186.20 81.33 104.87 32.32 137.191998 . . . . . . . . 154.75 81.76 72.99 32.31 105.301999 . . . . . . . . 164.00 79.00 85.00 34.41 119.412000 . . . . . . . . 178.64 81.65 96.99 36.71 133.702001 . . . . . . . . 171.43 86.19 85.24 37.93 123.172002 . . . . . . . . 171.89 83.23 88.66 35.09 123.752003 . . . . . . . . 186.27 84.22 102.05 32.13 134.18

¹ Net rents plus taxes, building repairs, depreciation, and miscellaneous expenses.

Source:

(per tillable acre)86–100 SPR

Equivalent Cash Rent Based on Landlord’s Crop-Share Data—1980 to 2003

56–85 SPR

Landlord Shares and Farm Returns reports AE-4693; AE-4657; AERR 205, 203, 199, 197, 190, 187; and unpublished data, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign. For years 1995 and after, landlord's income and expenses estimated from operator data from FBFM record summaries.

Prepared by Dale H. Lattz and R. A. Hinton, Extension Specialists, Farm Management, Department of Agricultural and Consumer Economics, College of Agricultural, Consumer and Environmental Sciences, University of Illinois at Urbana-Champaign.

Landlord's Net Rent per Tillable Acre on Full Tenant Farms, Crop-Share Lease

1994 to 2003

$40

$60

$80

$100

$120

$140

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Per

Till

able

Acr

e

Southern 36-85 North/Central 56-85 North/Central 86-100

Central Illinois Grain Farms Operator's Share of Labor and

Management Earnings

$10

$20

$30

$40

$50

$60

$70

$80

$90

250 500 750 1000 1250 1500

Tillable Acres

Th

ou

san

ds

of

Do

llars

2003 average 1999-2003 average 2003 all farms

Central Illinois Grain Farms Value of Production per $1.00 of Nonfeed Cost

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

$1.20

250 500 750 1000 1250 1500

Tillable Acres

Do

llars

per

$1

NF

C


Northern Illinois Grain Farms Operator's Share of Labor and

Management Earnings

$0

$15

$30

$45

$60

$75

$90

200 400 600 800 1000 1200 1400 1600

Tillable Acres

Th

ou

san

ds

of

Do

llars


Northern Illinois Grain Farms Value of Production per $1.00 of Nonfeed Cost

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

200 400 600 800 1000 1200 1400 1600

Tillable Acres

Do

llars

per

$1

NF

C


Southern Illinois Grain Farms Operator's Share of Labor and

Management Earnings

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

300 500 700 900 1100 1300 1500

Tillable Acres

Th

ou

san

ds

of

Do

llars


Southern Illinois Grain Farms Value of Production per $1.00 of Nonfeed Cost

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

$1.20

300 500 700 900 1100 1300 1500

Tillable Acres

Do

llars

per

$1

NF

C


Northern Illinois Hog Farms Value of Production per $1.00 of Nonfeed Cost

$0.90

$0.95

$1.00

$1.05

$1.10

150 300 450 600 750 900 1050 1200

Tillable Acres

Do

llars

per

$1

NF

C


North and Central Illinois Beef Farms Value of Production per $1.00 of Nonfeed Cost

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

200 400 600 800 1000 1200

Tillable Acres

Do

llars

per

$1

NF

C


North & Central Illinois Dairy Farms Value of Production per $1.00 of Nonfeed Cost

$0.94

$0.96

$0.98

$1.00

$1.02

$1.04

100 200 300 400 500 600 700 800

Tillable Acres

Do

llars

per

$1

NF

C


Southern Illinois Dairy Farms Value of Production per $1.00 of Nonfeed Cost

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

0 150 300 450 600 750 900

Tillable Acres

Do

llars

per

$1

NF

C


Northern Illinois Grain Farms—No Livestock (56–100 SPR)

Corn Projected 2004 Soybeans Projected 2004Average My Average My

2002 2003 Farm Farm 2002 2003 Farm Farm

Number of Farms ........................................534 543 534 543 Acres of Crop ..............................................472 523 373 389 % Land in Crop ...........................................54.3 56.2 42.9 41.6 NONLAND COSTS Variable Costs Soil Fertility ............................................$51 $53 $55 $18 $19 $20 Pesticides .............................................. 34 37 38 30 33 34 Seed .......................................................35 37 38 24 26 27 Drying .......................................................10 11 11 3 3 3 Machinery Repair, Fuel & Hire ......... 35 36 37 30 30 31 Total Variable .....................................$165 $174 $179 $105 $111 $115 % Change ...........................................-2% 5% 3% 2% 6% 4%Other Nonland Costs Labor ...........................................................$35 $33 $33 $34 $32 $33 Building ......................................................12 9 10 8 5 6 Storage ...................................................... 4 3 3 2 2 2 Machinery Depreciation ....................... 29 18 20 25 15 17 Nonland Interest .......................................23 22 23 20 19 20 Overhead ..................................................22 24 24 22 24 24 Total Other ...........................................$125 $109 $113 $111 $97 $102

Total Nonland Costs ..........................$290 $283 $292 $216 $208 $217 % Change ..............................................-4% -2% 3% -2% -4% 4%

LAND COSTS Taxes ...........................................................$27 $26 $25 $27 $26 $25 Adjusted Net Rent ......................................94 96 100 94 96 100 Total Land Costs ................................$121 $122 $125 $121 $122 $125

TOTAL—ALL COSTS ................................................"$411 $405 $417 $337 $330 $342% Change .....................................................-4% -1% 3% -3% -2% 4%Yield per Acre, Bushel ................................154 174 47 35 Nonland Costs per Bushel ...........................$1.88 $1.63 $4.60 $5.94All Costs per Bushel ....................................$2.67 $2.33 $7.17 $9.43

Average Yield Past 4 Years ...................... 156 161 161 48 44 44 All Costs per Bushel ...................................$2.63 $2.52 $2.59 $7.02 $7.50 $7.77

-25-

Per Acre Cost to Grow Corn and SoybeansCentral Illinois Grain Farms—No Livestock (86–100 SPR)



Number of Farms .................................................737 738 737 738Acres of Crop ....................................................509 525 470 481% Land in Crop .................................................50.9 51.2 47.0 46.9NONLAND COSTS Variable Costs Soil Fertility ..................................................$55 $57 $59 $20 $20 $21 Pesticides ................................................... 34 35 36 31 32 33 Seed ............................................................34 36 37 24 25 26 Drying ........................................................... 9 9 9 2 3 2 Machinery Repair, Fuel & Hire ............ 30 30 31 26 26 27 Total Variable .......................................$162 $167 $172 $103 $106 $109 % Change ............................................... -1% 3% 3% -2% 3% 3%Other Nonland Costs Labor ..............................................................$37 $36 $36 $35 $34 $34 Building ............................................................10 7 8 6 4 5 Storage ........................................................... 7 5 6 3 2 3 Machinery Depreciation ........................... 28 18 20 25 16 18 Nonland Interest ........................................... 22 23 24 20 21 22 Overhead ..................................................... 20 21 21 19 20 20 Total Other ..............................................$124 $110 $115 $108 $97 $102

Total Nonland Costs .......................... $286 $277 $287 $211 $203 $211 % Change ............................................... -2% -3% 4% -1% -4% 4%

LAND COSTS Taxes ..............................................................$27 $25 $24 $27 $25 $24 Adjusted Net Rent .........................................103 105 109 103 105 109 Total Land Costs ....................................$130 $130 $133 $130 $130 $133

TOTAL—ALL COSTS ...............................…$416 $407 $420 $341 $333 $344% Change ............................................................-3% -2% 3% -3% -2% 3%Yield per Acre, Bushel ................................. 152 186 52 41 Nonland Costs per Bushel ...........................$1.88 $1.49 $4.06 $4.95All Costs per Bushel ......................................$2.74 $2.19 $6.56 $8.12

Average Yield Past 4 Years ...................... 163 168 168 51 48 48 All costs per bushel ........................................$2.55 $2.42 $2.50 $6.69 $6.94 $7.17

-26-

Per Acre Cost to Grow Corn and SoybeansCentral Illinois Grain Farms—No Livestock (Low Soil Rating of 56–85 SPR)



Number of Farms ...........................................389 383 389 383Acres of Crop ..................................................480 552 465 478% Land in Crop ...............................................49.0 51.7 47.5 44.8 NONLAND COSTS Variable Costs Soil Fertility ................................................ $56 $59 $60 $19 $20 $21 Pesticides .................................................... 33 36 37 30 33 34 Seed ............................................................ 34 36 37 24 25 26 Drying ........................................................... 8 8 8 2 2 2 Machinery Repair, Fuel & Hire ............ 31 32 33 26 27 28 Total Variable .........................................$162 $171 $175 $101 $107 $111 % Change ..................................................-4% 6% 2% 0% 6% 4%Other Nonland Costs Labor ................................................................$37 $35 $35 $35 $33 $33 Building ............................................................12 8 9 7 5 6 Storage .......................................................... 5 4 5 2 2 2 Machinery Depreciation .......................... 29 19 21 25 16 18 Nonland Interest .......................................... 21 21 22 18 18 19 Overhead ........................................................20 20 20 19 19 19 Total Other ..............................................$124 $107 $112 $106 $93 $97

Total Nonland Costs .............................$286 $278 $287 $207 $200 $208 % Change ..................................................-3% -3% 3% -2% -3% 4%

LAND COSTS Taxes ...............................................................$22 $21 $20 $22 $21 $20 Adjusted Net Rent ........................................ 83 84 88 83 84 88 Total Land Costs .....................................$105 $105 $108 $105 $105 $108

TOTAL—ALL COSTS ............................................................. $391 $383 $395 $312 $305 $316% Change .................................................................-6% -2% 3% -5% -2% 4%Yield per Acre, Bushel .................................... 151 173 50 36Nonland Costs per Bushel ...........................$1.89 $1.61 $4.14 $5.56All Costs per Bushel .......................................$2.59 $2.21 $6.24 $8.47

Average Yield Past 4 Years ........................ 153 159 159 47 45 45 All Costs per Bushel ......................................$2.56 $2.41 $2.48 $6.64 $6.78 $7.02

-27-

Per Acre Cost to Grow Corn and SoybeansSouthern Illinois Grain Farms—No Livestock



Number of Farms .......................................... 239 212 239 212Acres of Crop ................................................. 505 503 605 576% Land in Crop ..............................................40.5 40.4 48.5 46.2NONLAND COSTS Variable Costs Soil Fertility .............................................. $54 $58 $59 $20 $22 $22 Pesticides ................................................ 31 31 33 27 26 26 Seed ........................................................... 35 37 38 23 24 24 Drying ....................................................... 3 5 5 1 2 2 Machinery Repair, Fuel & Hire ............ 35 33 35 31 32 34 Total Variable .......................................$158 $164 $170 $102 $106 $108 % Change .............................................. -7% 4% 4% -6% 4% 2%Other Nonland Costs Labor ............................................................ $40 $41 $41 $38 $39 $39 Building .......................................................... 12 7 8 6 3 4 Storage ......................................................... 3 2 2 1 1 2 Machinery Depreciation .......................... 29 18 20 24 16 18 Nonland Interest ........................................... 19 16 17 16 13 14 Overhead ....................................................... 19 22 22 18 20 20 Total Other ..............................................$122 $106 $110 $103 $92 $97

Total Nonland Costs ........................... $280 $270 $280 $205 $198 $205 % Change ............................................... -6% -4% 4% -6% -3% 4%

LAND COSTS Taxes ..............................................................$14 $13 $12 $14 $13 $12 Adjusted Net Rent ...................................... 56 62 66 56 62 66 Total Land Costs ................................... $70 $75 $78 $70 $75 $78

TOTAL—ALL COSTS ....................................…$350 $345 $358 $275 $273 $283% Change .........................................................-6% -1% 4% -6% -1% 4%Yield per Acre, Bushel ................................. 97 134 34 39Nonland Costs per Bushel ...........................$2.89 $2.01 $6.03 $5.08All Costs per Bushel ......................................$3.61 $2.57 $8.09 $7.00

Average Yield Past 4 Years ..................... 128 133 133 40 41 41All Costs per Bushel ......................................$2.73 $2.59 $2.69 $6.88 $6.66 $6.90

-28-

-29-

IllinoisCost to Grow Corn—1972 to Date

IllinoisTotal Cost per Annual Management

Year Yield Cost/A Bushel Avg. Price* Margin

1972 . . . . . 133 $149 $1.12 $1.59 $0.471973 . . . . . 130 167 1.28 2.64 1.361974 . . . . . 103 218 2.11 3.02 0.911975 . . . . . 148 254 1.72 2.56 0.841976 . . . . . 143 288 2.01 2.14 0.13

1977 . . . . . 121 300 2.48 2.09 -0.391978 . . . . . 132 308 2.33 2.30 -0.031979 . . . . . 148 349 2.36 2.57 0.211980 . . . . . 94 385 4.09 3.14 -0.951981 . . . . . 138 390 2.83 2.53 -0.30

1982 . . . . . 145 380 2.62 2.66 0.041983 . . . . . 86 374 4.35 3.26 -1.091984 . . . . . 129 364 2.83 2.65 -0.181985 . . . . . 153 356 2.33 2.27 -0.061986 . . . . . 149 341 2.29 1.54 -0.75

1987 . . . . . 145 329 2.28 1.96 -0.321988 . . . . . 78 324 4.15 2.59 -1.561989 . . . . . 140 322 2.30 2.40 0.101990 . . . . . 137 332 2.42 2.36 -0.061991 . . . . . 113 320 2.83 2.46 -0.37

1992 . . . . . 163 321 1.97 2.11 0.141993 . . . . . 138 345 2.50 2.57 0.071994 . . . . . 170 360 2.12 2.27 0.151995 . . . . . 122 395 3.24 3.30 0.061996 . . . . . 146 414 2.84 2.79 -0.05

1997 . . . . . 138 432 3.13 2.53 -0.601998 . . . . . 149 427 2.87 2.04 -0.831999 . . . . . 152 407 2.68 1.91 -0.772000 . . . . . 158 416 2.63 1.91 -0.722001 . . . . . 161 420 2.61 2.05 -0.56

2002 . . . . . 145 401 2.76 2.35 -0.412003 . . . . . 174 395 2.27 2.45 ** 0.18

1999–2003 Avg. 158 408 2.58 2.13 -0.451994–2003 Avg. 152 407 2.68 2.36 -0.32

* Seasonal average annual price for corresponding crop year.** Estimated

1994 to 2003 average cost per bushel to grow soybeans was 2.66 times the cost per bushel to grow corn in the same period.

-30-

IllinoisCost to Grow Soybeans—1972 to Date

IllinoisTotal Cost per Annual Management

Year Yield Cost/A Bushel Avg. Price* Margin

1972 . . . . . 45 $129 $2.87 $4.47 $1.601973 . . . . . 40 141 3.52 5.84 2.321974 . . . . . 31 178 5.74 6.49 0.751975 . . . . . 45 205 4.56 5.11 0.551976 . . . . . 42 231 5.50 7.05 1.55

1977 . . . . . 46 248 5.39 6.01 0.621978 . . . . . 43 255 5.93 6.75 0.821979 . . . . . 45 283 6.29 6.46 0.171980 . . . . . 40 310 7.75 7.62 -0.131981 . . . . . 42 308 7.33 6.15 -1.18

1982 . . . . . 43 297 6.91 5.89 -1.021983 . . . . . 35 296 8.46 7.94 -0.521984 . . . . . 37 289 7.80 5.85 -1.951985 . . . . . 49 276 5.63 5.17 -0.461986 . . . . . 45 264 5.87 4.91 -0.96

1987 . . . . . 44 260 5.92 6.00 0.081988 . . . . . 28 261 9.32 7.45 -1.871989 . . . . . 46 257 5.59 5.76 0.171990 . . . . . 45 265 5.89 5.85 -0.041991 . . . . . 41 258 6.29 5.70 -0.59

1992 . . . . . 47 255 5.43 5.69 0.261993 . . . . . 46 280 6.09 6.49 0.401994 . . . . . 50 291 5.82 5.61 -0.211995 . . . . . 43 317 7.37 6.88 -0.491996 . . . . . 44 334 7.59 7.55 -0.04

1997 . . . . . 48 351 7.31 6.56 -0.751998 . . . . . 48 347 7.22 5.01 -2.211999 . . . . . 48 333 6.94 4.75 -2.192000 . . . . . 47 341 7.29 4.62 -2.672001 . . . . . 48 338 6.99 4.50 -2.49

2002 . . . . . 48 326 6.79 5.66 -1.132003 . . . . . 38 320 8.42 7.35 ** -1.07

1999–2003 Avg. 46 332 7.24 5.38 -1.861994–2003 Avg. 46 330 7.14 5.85 -1.29

* Seasonal average annual price for corresponding crop year.** Estimated

1994 to 2003 average cost per bushel to grow soybeans was 2.66 times the cost per bushel togrow corn in the same period.

Costs and Returns per Bushel of Corn, Central Illinois Grain Farms

1994 to 2003

1.00

1.50

2.00

2.50

3.00

3.50

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Do

llars

per

B

ush

el

Total nonland costs Total costs Price received

Costs and Returns per Bushel of Soybeans, Central Illinois Grain Farms

1994 to 2003

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Do

llars

per

Bu

shel

Total nonland costs Total costs Price received

Trends in Selected Operating Costs per Acre, Central Illinois Pure-Grain Farms

1994 to 2003

$20

$25

$30

$35

$40

$45

$50

$55

$60

$65

$70

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Per

Till

able

Acr

e

Machinery Fertilizer Seed and Pesticides Labor

-33-

Average High 1/3 Litters AverageFarm Return Farrowed Farm

10-149 150-349 350+Number of Farms 129 43 51 43 32 Number of Farms 11Pounds of Pork Produced 676,638 1,009,941 215,995 502,466 1,704,302 Pounds of Pork Produced 936,455Pounds of Pork per Litter 2,191 2,227 2,398 2,221 2,138 Pounds of Pork per Litter 231Total Returns 255,805 395,203 76,778 192,456 648,964 Total Returns 1,133,298Value of Feed Fed 152,640 206,459 53,596 116,611 372,501 Value of Feed Fed 361,189Returns per $100 Feed Fed 168 191 143 165 174 Returns per $100 Feed Fed 314Returns above Feed per Litter 334 416 257 335 347 Returns above Feed per Litter 190Number of Litters Farrowed 309 453 90 226 797 Number of Litters Farrowed 4,062Pigs Farrowed per Litter 10.11 10.38 9.87 9.96 10.21 Pigs Farrowed per Litter 10.32Pigs Weaned per Litter 8.77 9.05 8.39 8.60 8.91 Pigs Weaned per Litter 9.42Weaning Survival Rate % 87 87 85 86 87 Weaning Survival Rate % 91Litters Farrowed per Female Year 1.95 1.98 1.62 1.73 2.14 Litters Farrowed per Female Year 2.08Pigs Weaned per Female Year 17.11 17.52 13.60 15.09 19.01 Pigs Weaned per Female Year 19.56Number of Crates 36 44 21 30 66 Number of Crates 153Pigs Weaned per Crate 79.5 94.5 35.0 69.4 105.4 Pigs Weaned per Crate 133.9Death Loss Total—% of Pounds Produced 2.7 2.7 2.5 2.2 3.0 Death Loss Total—% of Pounds Produced 8.5Weight per Market Hog Sold 256 256 261 257 255 Weight per Feeder Pig Sold 11Weight per Breeding Hog Sold 478 487 491 473 476 Price Received/100 Pounds—Market 39.70 40.51 37.79 39.46 40.22Price Received/100 Pounds—Breeding 26.34 26.99 27.05 27.21 26.75 Price Received per 100 Pounds 280.01Total Return per 100 Pounds Produced 37.81 39.13 35.55 38.30 38.08 Total Return per 100 Pounds Produced 121.02Feed Cost per 100 Pounds Produced 22.56 20.44 24.81 23.21 21.86 Feed Cost per 100 Pounds Produced 38.57Pounds of Feed per 100 Pounds Produced Pounds of Feed per 100 Pounds Produced

Farm Grains 253 230 304 240 249 Farm Grains 421Supplement 82 82 77 94 78 Supplement 158

Total Concentrates 335 312 382 334 326 Total Concentrates 579Cost per 100 Pounds of Supplement 14.80 13.39 15.85 14.04 14.96 Cost per 100 Pounds of Supplement 13.47Cost per 100 Pounds of Concentrates 6.73 6.55 6.49 6.93 6.70 Cost per 100 Pounds of Concentrates 6.66

Average High 1/3 Purchase WeightFarm Return

0-500 500-749 750+ <20 35+Number of Farms 162 53 33 95 26 Number of Farms 71 26Total Pounds Produced 135,130 168,166 89,054 143,877 196,840 Total Pounds Produced 943,754 390,205Total Returns 102,315 136,134 64,610 107,597 156,300 Total Returns 272,083 114,954Value of Feed Fed 51,209 51,773 36,750 53,087 75,745 Value of Feed Fed 182,859 87,303Returns per $100 Feed Fed 200 263 176 203 206 Returns per $100 Feed Fed 149 132Average Weight Purchased 652 697 401 625 828 Average Weight Purchased 12 55Price Paid per 100 Pounds 89.57 89.66 95.85 92.39 83.31 Price Paid per 100 Pounds 263.26 83.15Average Weight Sold 1,241 1,258 1,197 1,218 1,301 Average Weight Sold 259 250Price Received per 100 Pounds 80.92 82.91 79.36 81.41 80.35 Price Received per 100 Pounds 40.46 42.44Total Return per 100 Pounds 75.72 80.95 72.55 74.78 79.40 Total Return per 100 Pounds 28.83 29.46Feed Cost per 100 Pounds 37.90 30.79 41.27 36.90 38.48 Feed Cost per 100 Pounds 19.38 22.37Death Loss Numbers 5 4 8 4 5 Death Loss Numbers 240 129

Pounds 2,960 2,592 2,379 2,877 4,783 Pounds 17,721 11,522% of Pounds Produced 2.2 1.5 2.7 2.0 2.4 % of Pounds Produced 1.9 3.0

Pounds of Feed per 100 Pounds Produced Pounds of Feed per 100 Pounds Grain 576 519 483 559 676 Produced Grain 198 201Supplement 48 38 56 51 38 Supplement 87 131

Total Concentrates 624 557 539 610 713 Total Concentrates 285 332Hay & Dry Roughage 61 45 116 53 50 Cost per 100 Pounds of Supplement 12.99 10.77Corn Silage 306 274 79 351 310 Cost per 100 Pounds of Concentrates 6.80 6.74Other Silage 61 62 8 69 66Hay Equivalent—Tons 0.10 0.08 0.08 0.11 0.09

Cost per 100 Pounds of Supplement 12.99 12.91 17.13 11.83 13.55Cost per 100 Pounds of Concentrates 4.88 4.62 6.64 4.77 4.38

(table continues on p. 34)

Feeder Cattle Enterprise

Livestock Enterprise Standards of Performance—2003Farrow-to-FinishHog Enterprise Feeder Pig Producing Enterprise

Feeder Pig Feeding EnterprisePurchase Weight

-34-

High Average AverageReturn All Farm

<600 600-900 900+ <600 FarmsNumber of Farms 85 80 45 28 206 Number of Farms 15Number of Cows in Herd 60 53 63 75 55 Number of Ewes in Flock 43Number of Calves Born 51 50 58 67 50 Number of Lambs Born 66Calving % 85 95 92 90 91 % Lamb Crop 153Total Pounds Produced 30,087 38,753 69,371 42,253 39,797 Total Pounds Produced 8,518Total Returns 24,348 29,753 51,316 38,409 30,835 Total Returns 6,273Value of Feed Fed 18,237 20,251 31,981 20,630 20,773 Value of Feed Fed 3,812Returns per $100 Feed Fed 134 147 160 186 148 Returns per $100 Feed Fed 165Returns above Feed per Cow 102 181 306 238 182 Returns above Feed per Ewe 57Pounds of Beef per Cow in Herd 503 738 1,096 566 720 Pounds Produced per Ewe in Flock 198Death Loss Total— % of Pounds Produced 6.7 5.5 2.5 3.6 5.0 Death Loss Total— % of Pounds Produced 8.1Market Survival Rate % 91.7 93.1 95.9 93.2 93.4 Market Survival Rate %Breeding Survival Rate % 97.9 97.6 98.3 99.0 97.8 Breeding Survival Rate % 93.8Weight per Market Animal Sold 564 680 1,033 585 703 Weight per Market Animal Sold 120Price Received/100 Pounds Sold—Market 85.56 86.15 81.13 87.58 84.72 Price Received/100 Pounds Sold—Market 93.39Price Received/100 Pounds Sold—Breeding 44.58 53.34 49.38 45.45 49.52 Price Received/100 Pounds Sold—Breeding 48.77Feed Cost per 100 Pounds Produced 60.61 52.26 46.10 48.82 52.20 Feed Cost per 100 Pounds Produced 44.75Pounds of Feed per 100 Pounds Produced Pounds of Feed per 100 Pounds Produced

Grain 144 225 276 105 218 Grain 251Supplement 37 45 43 37 43 Supplement 83

Total Concentrates 181 270 319 142 261 Total Concentrates 334Hay & Dry Roughage 862 607 494 663 650 Hay & Dry Roughage 468Corn Silage 500 361 323 339 360 Other Silage 0Other Silage 126 45 103 150 69 Pasture Days 10Pasture Days 38 25 15 30 26 Hay Equivalent 0.38

Pasture Days per Animal Unit 141 134 124 127 139 Pasture Days per Animal Unit 49Hay Equivalent per Cow—Tons 5.0 5.0 5.5 4.4 5.1 Hay Equivalent per Ewe—Tons 0.7Cost per 100 Pounds of Concentrates 7.24 6.54 5.90 7.96 6.45 Cost per 100 Pounds of Concentrates 7.54

Average Number of Cows High 1/3Farm 40-80 80+

40-80 80+ Cows CowsNumber of Farms 108 47 46 16 15Number of Cows 81.3 55.9 123.6 56.5 125.5% of Cows Dry 13.1 12.8 13.1 12.1 12.2Animal Units in Herd 145 98 221 91 224Total Cwt. of Milk Produced 15,310 10,546 23,452 10,962 23,523Pounds of Beef Produced 48,430 37,632 68,068 37,602 68,759 Enterprise smaller than following not included:Total Returns 238,453 170,070 358,101 181,966 359,598 Hogs..........................10 LittersValue of Feed 118,146 85,792 174,793 72,152 146,859 Beef & Dairy............10 cowsReturns per $100 Feed Fed 202 198 205 252 245 Feeder Cattle........... 10,000 Pounds producedReturns above Feed per Cow 1,480 1,508 1,483 1,943 1,695Pounds of Beef per Cow 596 673 551 665 548 Value of Feed Fed Average Grain Prices:Pounds of Milk per Cow 18,833 18,873 18,968 19,390 18,738 Corn...................................... $2.30Pounds of Butterfat per Cow 707 709 712 740 685 Oats....................................... $1.75Death Loss Total—% of Pounds Produced 18.3 15.0 20.5 13.9 19.3 Wheat.................................... $3.35Feed Cost Per Cwt. Milk Equivalent * 6.92 6.93 6.88 5.49 5.62Price Received for 100 Pounds Milk 12.52 12.43 12.59 12.46 12.17 Commercial feeds priced at actual cost.Price Received for 100 Pounds Beef—Market 82.20 81.74 82.90 87.26 99.83 Hay and silage priced at farm value.Pounds of Feed Per Cwt. Milk Equivalent * Pasture charged at $0.40 per animal unit pasture day.

Grain 31 35 28 31 24Supplement 17 13 20 10 18 *Milk equivalent equals value of beef produced divided

Total Concentrates 48 48 49 42 42 by average price received per cwt. milk, plus cwt. of milkHay & Dry Roughage 23 29 19 21 16 produced.Corn Silage 85 65 96 59 68Other Silage 46 55 41 46 46

Pasture Days per Animal Unit 8 5 8 1 21Hay Equivalent per Cow—Tons 7.7 8.4 7.2 7.2 6.6Cost per 100 Pounds of Supplement 13.46 15.06 12.86 15.31 11.36Cost per 100 Pounds of Concentrates 7.68 7.11 7.96 7.04 7.40Dairy Patronage 24,610 16,058 37,765 18,032 41,407

Sheep EnterpriseBeef Cow Enterprise

Dairy Cattle Enterprise

Livestock Enterprise Standards of Performance—2003 (cont.) Pounds of Beef

Produced per Cow

Livestock Returns above Cost of Feed and Purchased Animals—1999 to 2003

Feeder Feeder Beef Herd

Hogs Pigs Cattle Dairy Calves Sold

Year (per cwt.) (per cwt.) (per cwt.) (per cow) (per cow)

1999 .................................... 16.00 9.21 21.97 1,759 116

2000 .................................... 22.59 11.12 16.87 1,239 78

2001 .................................... 21.36 14.31 10.21 1,845 104

2002 .................................... 10.68 5.61 10.85 1,370 58

2003 .................................... 15.25 9.45 37.82 1,480 102

5-Yr. Average ..................... 17.18 9.94 19.54 1,539 92

Nonfeed Costs, 1998–2002

-35-

Direct Cash .................... 7.00 3.60 14.00 680 30

Other Costs ................... 9.35 5.60 6.00 725 155

TOTAL ...................... 16.35 9.20 20.00 1,405 185

Nonfeed Costs—For Future Expansion

Direct Cash .................... 8.00 4.00 13.00 700 30

Other Costs ................... 10.00 7.00 7.50 750 175

TOTAL ...................... 18.00 11.00 20.50 1,450 205

Cost to Produce Pork, Farms Under 350 Litters—2000 to 2003¹

Items 2000 2001 2002 2003 est.

Number of Farms ............................................. 11 13 17 Tillable Acres ................................................ 341 358 449 Number of Litters .......................................... 192 160 277

Total Returns ................................................... $41.55 $41.31 $31.67 $37.25Cash Costs Feed ............................................................. $21.52 $21.69 $23.31 $23.75 Operating Expenses ...................................... Maintenance and Power ² .......................... $3.02 $3.73 $3.94 Livestock Expense ..................................... 2.15 3.12 2.55 Insurance, Taxes, and Overhead .............. 0.94 1.04 0.87 Total Operating Expenses ...................... $6.11 $7.89 $7.36 $7.50 Total Cash Costs .................................... $27.63 $29.58 $30.67 $31.25Other Costs Depreciation ³ ............................................... $2.43 $3.28 $2.10 Labor ............................................................ 3.69 5.97 4.10 Interest Charge on All Capital ....................... 2.47 2.63 1.89 Total Other Costs ....................................... $8.59 $11.88 $8.09 $8.25

Total Nonfeed Costs ........................................ $14.70 $19.77 $15.45 $15.75Total All Costs .................................................. $36.22 $41.46 $38.76 $39.50Return above All Costs .................................... $5.33 ($0.15) ($7.09) ($2.25)

¹ Special Summary of Illinois Farm Business Records.² Includes utilities, machinery, equipment and building repairs, machine hire, and fuel.³ Includes machinery, equipment, and building depreciation.

-36-

Cost to Produce Pork, Farms Over 350 Litters—2000 to 2003¹

Items 2000 2001 2002 2003 est.

Number of Farms ............................................. 19 27 18 Tillable Acres ................................................ 541 678 614 Number of Litters .......................................... 973 783 1070

Total Returns ................................................... $43.28 $43.13 $32.80 $38.25Cash Costs Feed ............................................................. $19.06 $19.73 $19.61 $22.00 Operating Expenses Maintenance and Power ² .......................... 3.09 3.50 4.53 Livestock Expense ..................................... 2.84 2.98 3.02 Insurance, Taxes, and Overhead .............. 0.84 1.10 0.94 Total Operating Expenses ...................... $6.77 $7.58 $8.49 $8.50 Total Cash Costs .................................... $25.83 $27.31 $28.10 $30.50Other Costs Depreciation ³ ............................................... 3.98 4.21 2.87 Labor ............................................................ 3.76 4.97 4.19 Interest Charge on All Capital ....................... 3.14 2.76 1.76 Total Other Costs ....................................... $10.88 $11.94 $8.82 $8.75

Total Nonfeed Costs ........................................ $17.65 $19.52 $17.31 $17.25Total All Costs .................................................. $36.71 $39.25 $36.92 $39.25Return above All Costs .................................... $6.57 $3.88 ($4.12) ($1.00)

¹ Special Summary of Illinois Farm Business Records.² Includes utilities, machinery, equipment and building repairs, machine hire, and fuel.³ Includes machinery, equipment, and building depreciation.

-37-

Cost and Returns per 100 Pounds of Pork, on Farms Over 350 Litters

1994 to 2003

$15

$25

$35

$45

$55

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Per

h

un

dre

dw

eig

ht

Feed cost Total cash cost Total cost Total returns

Returns per $100 of Feed Fed for Hog Farms

1994 to 2003

$75

$100

$125

$150

$175

$200

$225

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

Ret

urn

s p

er

$100

Fee

d F

ed

Farrow-to-finish Feeder pig finishing

Cost and Returns for Beef-Feeding Enterprises—1999 to 2003¹

Items 1999 2000 2001 2002 2003 est.

Number of Farms ....................................... 19 13 8 10

Average per Farm Tillable Acres ........................................... 600 566 544 537 Hundredweight Beef Produced ............... 4,487 3,901 4,724 3,754

-----Per 100 Pounds Produced-----Cash Costs Feed ........................................................ $33.54 $33.91 $34.22 $37.73 $38.00 Operating Expenses Maintenance and Power ² ................... $3.32 $3.75 $4.80 $5.00 Livestock Expense .............................. 2.52 3.92 3.91 4.81 Insurance, Taxes, and Overhead ........ 1.27 1.07 1.22 1.33 Interest on Cattle ................................. 5.46 6.82 6.00 4.23 Total Operating Expenses ................ $12.57 $15.56 $15.93 $15.37 $15.50 Total Cash Costs .............................. $46.11 $49.47 $50.15 $53.10 $53.50

Other Costs Depreciation ³ ......................................... $2.13 $3.11 $1.92 $1.98 Labor ...................................................... 2.79 3.22 3.03 2.57 Interest on Other Capital ........................ 0.62 0.70 0.77 1.52 Total Other Costs ................................ $5.54 $7.03 $5.72 $6.07 $6.25

Total All Costs ........................................... $51.65 $56.50 $55.87 $59.17 $59.75Total Returns ............................................. $58.60 $50.95 $47.39 $51.20 $75.00

Return above All Costs ............................. $6.95 ($5.55) ($8.48) ($7.97) $15.25

¹ Special Summary of Illinois Farm Business Records, Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign.

² Includes utilities, machinery, equipment and building repairs, machine hire, and fuel.

³ Includes machinery, equipment, and building depreciation.

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Cost and Returns per 100 Pounds of Milk—2000 to 2003¹

40–79 Cows 80+ CowsItems 2000 2001 2002 2003 est. 2000 2001 2002 2003 est.

Number of Farms ..................................... 40 27 28 41 30 29Tillable Acres ............................................ 282 223 224 397 412 421Number of Cows ...................................... 55.7 59.0 58.6 127.3 123.5 128.2Pounds Milk per Cow ............................... 18,102 20,422 19,794 20,090 20,540 20,734

Price Received ² ....................................... $11.79 $14.89 $12.21 $12.45 $11.91 $14.92 $12.22 $12.60

Cash Costs Feed ...................................................... $6.29 $6.27 $6.88 $7.00 $6.17 $6.23 $6.11 $6.80 Operating Expenses ³ ........................... 1.56 1.54 1.68 1.54 1.61 1.57

Livestock Expense ................................ 1.42 1.51 1.62 1.68 2.03 1.94

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Insurance, Taxes, and Overhead .......... 0.33 0.26 0.28 0.34 0.29 0.31 Total Operating Expenses .................. $3.31 $3.31 $3.58 $3.60 $3.56 $3.93 $3.82 $3.85 Total Operating and Feed .................. $9.60 $9.58 $10.46 $10.60 $9.73 $10.16 $9.93 $10.65

Other Costs Depreciation 4 ....................................... $0.74 $0.79 $0.67 $0.71 $0.75 $0.77 Labor ..................................................... 2.33 2.05 2.36 1.80 2.04 2.11 Interest on All Capital ............................ $1.07 $0.73 $0.64 1.14 0.97 0.81 Total Other Costs .............................. $4.14 $3.57 $3.67 $3.70 $3.65 $3.76 $3.69 $3.75

Total Nonfeed Costs ................................. $7.45 $6.88 $7.25 $7.30 $7.21 $7.69 $7.51 $7.60 Total All Costs .......................................... $13.74 $13.15 $14.13 $14.30 $13.38 $13.92 $13.62 $14.40Return above All Costs ............................ ($1.95) $1.74 ($1.92) ($1.85) ($1.47) $1.00 ($1.40) ($1.80)

¹ Special Summary of Illinois Farm Business Records, Department of Agricultural and Consumer Economics, University of Illinois, Urbana-Champaign.

² FSA and patronage payments not included. They may have added $1.50/cwt. of milk in 2002.

³ Includes utilities, machinery, equipment and building repairs, machine hire, and fuel.

4 Includes machinery, equipment, and building depreciation.

-----Per 100 Pounds of Milk Produced-----

Illinois Farm Business Farm Management Association

FBFM is a cooperative educational-service program designed to assist farmers with management decision making. It is available to all farm operators in Illinois. There are nine local not-for-profit associations organized to provide services throughout the state. The FBFM program provides:

# Financial and production business analysis reports.

# Experienced Farm Analysis Specialist to help interpret analysis reports and counsel on management problems.

# Computer-assisted record-processing options—on-farm or service center.

# Assistance with business and family records.

# Assistance with income tax management.

To find out more about FBFM, contact the Illinois FBFM Association state office or one of the local associations listed below.

Kris Lauritzen Blackhawk FBFM 14361 N. Brethren Rd. Lanark, IL 61046 815-493-2498

Jim Cullison East Central FBFM 900 S. Washington St., Ste. B Tuscola, IL 61953 217-253-5227

Danny Stetson Illinois Valley FBFM 4201 N. Columbus St. Ottawa, IL 61350 815-433-1635

Mike Schmitz Lincoln FBFM 801 S. West St. Olney, IL 62450 618-392-3510

Mike Bossert Northeastern FBFM 1650 Commerce Dr. Bourbonnais, IL 60914 815-933-8337

Mike Heiser Pioneer FBFM 300 East Locust St. Fairbury, IL 61739 815-692-3906

Aaron Liesman Sangamon Valley FBFM 2765 W. Jefferson, Ste. E Springfield, IL 62702 217-546-3350

Robert Kiesecoms Shawnee FBFM 7 Valley Forge Dr. Harrisburg, IL 62946 618-252-0421

Gary Goodwin Western FBFM 101 East Main, Box 489 Toulon, IL 61483 309-286-2811

State office: Illinois FBFM Association, 1301 W. Gregory Dr., Urbana, IL 61801 Chuck Cagley—217-333-5511 Dale Lattz—217-333-0754 Email: [email protected]

Visit our Web site at http://www.fbfm.org

***** For U of I farm management information see

http://www.farmdoc.uiuc.edu

Cooperating with University of Illinois Extension and the University of Illinois

Department of Agricultural and Consumer Economics

FBFM

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