overview
The ERS farm income and costs program measures, forecasts, and
explains indicators of economic performance for the U.S. farm
sector and major crop and livestock farm groups. The program's
analyses and data are used by USDA and other clients in both the
public and private sector to form a perspective about the financial
health of the U.S. agricultural economy. Distributional analyses
identify subsectors and business types that are performing well
relative to past trends and to other groups and types of farms.
Identification of these businesses enables analysts to examine
more closely factors contributing to differing levels of financial
performance, such as assessment of debt repayment difficulties
for specific farm types, industry subsectors, and regions of the
country. More overview...
contents
features
Assessing
Farm Household Well-being-Beyond Farmers and Farm IncomeThe
median farm household has higher income as well as higher wealth
than the median nonfarm household. However, the median nonfarm self-employed
household has a higher level of income than the median farm household,
and a roughly-similar level of wealth. Because farm policies are
often justified as correcting for differences in relative well-being,
these findings indicate that the ranking of the well-being of farm
households relative to nonfarm households depends not only on which
well-being indicator is used but also which reference population
is used.
Production
Costs Critical to Farming DecisionsWeather, breeding cycles,
world stocks, and consumption swings can all make for uncertain
farm income, but farmers make a host of production decisions that
can affect costs and predispose them to weathering out rough patches.
Analysts can evaluate such decisions to identify perennially high-cost
and low-cost producers and thereby anticipate industry trends. Based
on information from the annual Agricultural Resource Management
Survey (ARMS), this article examines the extent to which U.S. producers
are covering costs and why costs vary among farms.
Income, Wealth and the Economic
Well-Being of Farm HouseholdsThis report examines factors that
affect the economic well-being of farm operator households based
on USDA's ARMS survey data. The analysis uses a new concept of economic
well-being that captures farm household wealth and expenditures
in addition to more conventional income measures. The report examines
whether farm households are inherently disadvantaged and whether
they have lower incomes, lower wealth, and lower household expenditures
than nonfarm households. AER-812 (7/02)
recommended readings
Farmer Bankruptcies and Farm Exits
in the United States, 1899-2002This report presents an overview
of the role that bankruptcy has played in the overall decline in farm
numbers over the last 70 years. It finds that not all bankruptcies
result in farm exits, and most farm exits involve other factors. (March
2004)
Agricultural
Income and Finance Situation and OutlookThis periodical
provides historical estimates and forecasts of farm sector financial
information that gauge the financial health of the Nation's farmers
and ranchers. Common topics include trends in farm sector receipts,
expenses, debt, assets, and costs of producing crops and livestock.
Each issue concentrates on a particular area of the farm financial
picture.
Farm Payments:
Decoupled Payments Increase Households' Well-Being, Not ProductionTraditionally,
subsidies in the U.S. and elsewhere have linked payments to current
prices and production. Such subsidies distort, or alter, the signals
sent by market prices. In 1996, the U.S. revamped its farm support
and introduced a farm payment that breaks the links between the
amounts paid to farmers, their level of production, and market prices.
There is little evidence that these decoupled payments distort production.
Their primary consequence has been an improvement in the overall
well-being of recipient households that own base acres, where well-being
is defined broadly to encompass income, wealth, and consumption,
as well as how people choose to spend their time. Amber Waves (2/03).
Characteristics and Production CostsThis
series of reports examines how production costs vary among producers
of different commodities, including details and production practices
and input use levels (i.e., the technology set), farm operator and
structural characteristics. The reports also illustrate the degree
to which costs vary for producers of different commodities and indicate
possible reasons for the variation. Characteristics and production
costs are examined for low- and high-cost producers of each commodity,
and producers of varying size, region, and typology classification.
- Characteristics and Production Costs of U.S. Corn Farms (9/01).
- Characteristics and Production Costs of U.S. Cotton Farms (10/01).
- Characteristics and Production Costs of U.S. Cow-Calf Operations
(11/01).
- Characteristics and Production Costs of U.S. Soybean Farms (4/02).
- Characteristics and Production Costs of U.S. Wheat Farms (7/02).
- Characteristics and Production Costs of U.S. Dairy Operations
(2/04).
- Characteristics and Production Costs of U.S. Rice Farms (03/04).
See all recommended readings...
recommended data products
Farm Income provides farm income
forecasts, updated regularly, and farm income estimates, released
once a year. Forecasts are developed using an economic accounting
model that generates forecasts of value-added and farm income, plus
component accounts of cash receipts and production expenditures,
for the national farm sector. Estimates are derived from survey
data gathered by USDA's National Agricultural Statistics Service
and other national institutions over the course of the year.
Farm Balance Sheet accounts
include assets, debt, and equity, where equity equals assets minus
debt, and are used to assess wealth in the farm sector. Both operators'
and landlords' shares of the assets and debt for the farming operation
are included. The financial ratios presented provide useful indicators
of the farm sector's financial performance.
Commodity Costs and Returns
have been estimated for major field crop and livestock enterprises
each year since 1975. Cost and return estimates are reported for
the United States and major production regions for corn, soybeans,
wheat, cotton, grain sorghum, rice, peanuts, oats, barley, sugar
beets, tobacco, milk, hogs, and cow-calf. These cost and return
accounts are "historical" accounts based on the actual
costs incurred by producers during each year.
Farm Financial Management DataUpdates
ARMS data previously available on farm business financial management
and the ERS farm typology to 2001. Standard financial statements
(income statement, balance sheet) and financial ratios are summarized
for various classifications of farms such as farm type, economic
class, region, and operator age. The typology tables include standard
financial statements as well as structural characteristics for all
farms in both a three-category typology (rural residence, intermediate,
and commercial farms) and the full eight-category typology. In addition,
selected financial information is provided for farm operator households
and family farms.
recent research developments
Ongoing and planned research is organized in four projects:
Farm
Savings Accounts WorkshopERS held a 1-day workshop on farm
savings accounts and their potential to assist farmers in managing
their variability in farm income at the ERS headquarters on June
2, 2003. The workshop provided an opportunity to learn about the
experiences of other countries that already utilize such accounts
and to interact with those currently conducting research on the
potential role in the U.S. of farm savings accounts as part of the
farm safety net. The workshop was cosponsored with the Risk Management
Agency and the Farm Foundation. Download summaries
of the sessions.
related briefing rooms
Farm financial management
Farm risk management
Farm structure
Farm and commodity policy
Agricultural Resource Management Survey
(ARMS)
related links
Farm Service Agency
AAEA Task Force
on Commodity Costs and Returns
glossary
Check the glossary for explanations
of the economic concepts used throughout farm income and costs.
for more information, contact:
Roger Strickland, or William
McBride.
web administration: webadmin@ers.usda.gov
page updated: August
17, 2004
|
Also at ERS... |
|
latest publications
The Conservation Reserve Program: Economic Implications for Rural America
DatelinERS Newsletter, September 2004
Amber Waves, September 2004
latest data products
Farm and Farm-related Employment
Agricultural Outlook Statistical Indicators
Agricultural Exchange Rate Data Set
research emphases
A competitive agricultural system
related topics
Agricultural Market/Trade Projections>Long-term Baseline Projections
Crops>Farm Structure, Income, & Performance
Farm Financial & Risk Management
Farm Financial & Risk Management>Farm Financial Management
Farm Structure, Income, & Performance
Farm Structure, Income, & Performance>Costs of Production
Farm Structure, Income, & Performance>Farm Financial Performance
Farm Structure, Income, & Performance>Farm Income Estimates
Farm Structure, Income, & Performance>Farm Income Forecasts
Farm Structure, Income, & Performance>Small Farms
Farm/Rural Finance & Tax>Farm Bankruptcies
Livestock, Dairy, Poultry, Aquaculture>Farm Structure, Income, & Performance
Policy Topics>Farm & Commodity Policy
Policy Topics>Farm Income Policy
Policy Topics>Risk Management policy
Policy Topics>Rural Policy
Rural America>Small Farms
U.S./State Facts>Farm Financial Indicators
resources
Contact an ERS Expert
Calendar of Releases
services
Receive E-mail Updates
E-mail This Page
Translate This Page
|
|
|
|