ARMS 3 Heartland Workshop. Day 2 Wednesday January 31, 2018

Transcription

1 ARMS 3 Heartland Workshop Day 2 Wednesday January 31, 2018

2 Sections 23-28

3 Section 23: Organic Agriculture Census Year Section! This section will be used for follow on organic surveys. Please make sure to indicate the certifier for certified organic operations. Exempt farms should not have more than $5,000 in organic sales in Question 3.

4 Section 23: Organic Agriculture

5 Section 24: Practices Census Year Section! Most questions in this section are simple yes/no questions. Bureau of Reclamation projects are primarily in western states, and most respondents reporting yes to this question should also report irrigated land elsewhere in the questionnaire. Value-added products are produced from commodities originating from the operation, and include activities that increases the economic value of the agricultural commodity. Activities include processing, bottling, packaging in consumer size containers, etc. Examples of value-added products include jam, wine, cheese, meat, floral arrangements, etc. Internet Questions are in this section.

6 Section 24: Practices (1)

7 Section 24: Practices (2) Section 24 and 25 can be duplicated with Section 27 Question 5j.

8 Section 24: Practices (3)

9 Section 25: Food Marketing Practices Census Year Section! This section will be used to sample farms for a follow on from the Census, the Local Foods Survey. Only farms that produce agricultural commodities that can be food for people should report in this section. Farms with hay, floriculture, nursery products, Christmas trees should not report sales to consumers or retailers in this section (they may report in the value added question in Section 24.) A food hub is a centrally located facility with a business management structure facilitating the aggregation, storage, processing, distribution, and/or marketing of locally/regionally produced food products.

10 Section 25: Food Marketing Practices

11 Section 26: Fertilizers, Chemicals, & Soil Conditioners Applied Census Year Section! This section collects acres which are treated with fertilizers and chemicals. For fertilized acres, make sure that the number of acres for each of the components (cropland and pastureland) treated is less than or equal to the number of acres reported in Section 2 (Land Use). For certain major crops, application of fertilizers and/or chemicals is almost universal. For example, the vast majority of corn acres are treated.

12 Section 26: Fertilizers, Chemicals, & Soil Conditioners Applied (1)

13 Section 26: Fertilizers, Chemicals, & Soil Conditioners Applied (2)

14 Section 27: Government Payments & Other Income Census Additions! Questions 3 and 4 (NEW!!) Crop acres insured USDA National Appeals Division Other farm related income 5b. Rent received (cash or share)

15 USDA s farm program and crop insurance payments T o t a l P L C I n s u r a n c e A R C Source: Environmental Working Group,from USDA data,

16 Section 27: What to Remember! CCC Repaid will not be greater than received PLC and ARC payments received likely from 2016 crop, not 2017 Include for any year if received in 2017 EQIP payments don t necessarily need acres (but I need a note) Cash rent received moved to 5.b. Only include custom work income if not separate business Custom feeding is a contract, not custom work Pollination fees belong in 5.j. Fruits and Vegetables can have crop insurance!

17 Section 27: CCC Loans Not incredibly common

18 Section 27: Farm Program Payments

19 Section 27: Questions

20 Hey! Didn t this used to be in Section A last year? Section 27: Other Farm Income

21 Section 27: Other Sources of Income You know what I really like here? Notes. Especially for large amounts!

22 Section 27: Portion of Gross Value of Sales

23 Section 28: Landlord s Share of Crops & Livestock Hey wasn t this in Section A last year? Yes! What if they don t know? Get what percentage. Like 25%, a third, something anything

24 Questions?

25 SECTION 29: Operating & Capital Expenditures Goal Expenses to Produce Commodities

26 SECTION 29 Operating & Capital Expenditures No data in Section 29 = REFUSAL 26

27 Why? Goes to developing a complete picture of operators cost of doing business Helps track how costs are changing for different types of farms

28 Select Production Expenses by Type of Farm Business Source: USDA, Agricultural Resource Management Survey (ARMS), 2016

29 Trends in Selected Expenses Source: USDA, Economic Research Service, Farm Income and Wealth Statistics Data as of November 29,

30 Section 29: Operating Expenses Expenses paid during calendar year 2017 Exclude unrelated expenses Non-farm business expenses Custom work for others if a separate business Expense on land rented out to others Household and living expenses Production contract expenses

31 Farm Share Only farm share of expenses in Section 29 In some instances, an expense will be for both the farm business and the household. Enter Farm share on Section 29. Enter Household share on Section 37, item 2 Household Spending.

32 Column Format Operator, Landlord and Contractor Why are Landlord expenses included? Goal is to determine NET rent received by non-operators Contractor expenses can often be obtained from a settlement sheet. If unknown, leave blank.

33 Use the NONE box Mark the NONE box as appropriate so the survey editors can tell that the question has been asked and answered instead of just skipped. None

34 Fuel Subcomponents are collected separately so we are able to track volatile energy costs Data is used to develop policies on agricultural fuel usage

35 Operator Total Landlord Total Contractor Total Remember to leave blank unknown landlord and contractor expenses.

36 Example

37 Fuel vs Electricity

38 Mystery Expense Operator tells you he had a $25,000 tractor transmission overhaul. Two possible places for this expense. Repair/ Maintenance Or Other Capital Expense

39 Repair/Maintenance Page 22 OR Other Capital Expense Page 25

40 Repair or Capital Expense? How do I decide? Short Answer: Ask the operator how he claimed it on his taxes and do the same thing.

41 Insurance for Farm Business Include casualty, hail, crop insurance, vehicle liability, and dwelling if owned by the operation EXCLUDE life and health insurance and other payroll insurance items which will be entered later in #26

42 House Repairs Owned by the Operation means: Recorded as an asset in farm record books Deeded as part of the farm 42

43 Crop Insurance How much was spent for insurance for the business? Pay attention to long list of items to include!

44 Crop Insurance How much of the amount in item 17 was for federal crop and livestock insurance? Do not omit the value in 17a from the total in 17.

45 Crop Insurance How much of the amount in item 17 was for dairy MPP? Do not omit the value in 17b from the total in 17.

46 Example

47 Property Taxes Item 19 is for property taxes paid. Even if the operator does not know the amount, make a NOTE as to who paid: operator, landlord or contractor Unknown Unknown

48 Property Taxes If this operator knows real estate tax paid by landlord on rented land, please record it here. 750

49 Property Taxes If this operator pays real estate tax on rented land make a NOTE! 1234

50 Wage Treatment for Individuals and Partnerships WHEN IN DOUBT RECORD and leave a note

51 Wages Items 24a to 24e must total to amount in Item

52 Wages Operator Spouse Other household Other Ops outside household Everyone else

53 Custom Work Hauling Labor & machinery hired as a unit Milk Hauling should be included on this line. Verify with operator that these fees are not deducted from milk sales: cash Section 11 #7 or contract Section 20. IM pg 127

54 Marketing Expense Almost all operations that sell commodities will have marketing expenses If operator does not know marketing charges and you cannot get from payment vouchers, make notes showing quantity and unit sold so regional office can estimate accurately

55 Capital Expenses Assets purchased during the calendar year for the farm business that are usable over two or more years Should be on the operation s asset page Usually on the depreciation list Examples: farm vehicles, tractors, self-propelled machinery, breeding stock

56 Vehicle Purchase Notice that with cars and trucks, there is a cell where you are asked to specify a percentage for farm use of the vehicle Exclude ATV s. These belong in Other Capital Expenditures #44.

57 Self Propelled Equipment Tractors go in #39 Other self-propelled items go in #40 (bulldozer, skid steer, etc.)

58 General or Other Expenses Item #32, #44, and #45 Use the given space to describe the expense

59 NOTES! Notes, notes, notes, notes, notes!

60 Capture expenses for Operator AND Landlord AND Contractor REMEMBER

61 Questions?

62 Section 30 Farm Assets

63 Market Value of Farm Assets

64 #1a Operator s Dwelling Owned by the Operation means: Recorded as an asset in farm record books Deeded as part of the farm

65 #1a If Dwelling is Owned by the Operation then Off-Farm Dwelling Info (Section 37) Must be BLANK

66 #1c Other Farm Buildings and Structures INCLUDE EXCLUDE barns, cribs, silos, equipment shops, grain bins, storage sheds, etc. processing facilities like gins, packing sheds, etc.

67 Questions 1e and 1f #1e,f #1e: Oil, gas and mineral rights value is requested as a separate line item. #1f: Value for all OWNED land INCLUDING land rented out.

68 #2-3 Value of Land Rented FROM and TO Note new location in the questionnaire. These questions were in Section A in previous versions of this survey. 68

69 #4 Machinery and Equipment Value Market value in $$$$$$ 69

70 Machinery and Equipment Quantity #5 Note new questions. Quantity, NOT $$. 70

71 Beginning of Year / End of Year #6 Values should not be the same. Quantities unlikely to be the same on Jan 1 and Dec 31 Market Values will differ January to December Livestock Weights will undoubtedly change Be sure to make notes

72 Asset Values #

73 Asset Values #6? ? ?

74 #6b,c Livestock: Breeding vs Non-Breeding

75 Liquid Assets #7 INCLUDE EXCLUDE cash money and cash equivalents treasury bills, money market accounts, other short-term investments personal debt owed to operation IM pg

76 76

77 Renewable Energy

78 NOTE: Wood Burning Stoves do not qualify.

79 Farm Debt AKA: What nobody wants to talk about

80

81 It is very rare for this to be a no.

82

83 Question 3 (Debt Table) Gather as much information as possible Verify columns 6 and 7 are consistent and refer to refinance year and term as applicable Column 8 is used to exclude non-farm debt from sector balance sheet (if this is a zero then it should be reported later in the form and not here) Loan type allows current debt (one year or less) to be compared to current liabilities

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85

86 Section 33: Personal Characteristics

87 Some Major Changes in 2017 How many? Persons, not operators Four columns on personal attributes

88 We Still Select a Principal Operator (ARMS, not Census) Allows us to link characteristics to Sections 34, 36, 37 ERS produces estimates of farm household income From ARMS Uses the principal operator s household 82% of respondents, representing 93% of farms and 70% of the value of production, report a single household.

89 Selecting the Principal Operator Most responsible for decisions Note that we want to get to a household, so we are not concerned with how you choose within a household Q5-11 refer to principal operator s spouse If spouse is an operator, we already collected information Follow skips to screen out no spouse, and spouse is operator

90 Section 33: Watch out for... Item 2n: why veteran status? Support USDA programs aimed at veterans

91 Section 33: Watch out for... Item 2o: note horizontal linkage If one household, only person 1 gets>0

92 Behind the changes: concerns that we are not effectively tracking women farmers in ARMS, Census From stakeholders & from policymakers Their concerns are well-founded So NASS convened an advisory panel National Institute of Statistical Sciences (NISS)......which made recommendations... NASS & ERS aim to implement in 2017

93 Some History Census tracked only principal operators until 2002, when it added 1-2 secondary operators While retaining a principal operator designation What does this general approach obscure? Forrester Farms: Husband runs crop side, wife runs cattle side Truly joint: Hubby only is counted in 2002 Paloma Dairy: father, three sons; mother handles business side Father only is counted in 2002; 3 family members in 2016 That is, we force (not very) complex operations into simple

94 Tracking Women Operators In 2012 census, there were 288,264 women principal operators (13.7% of total), and 681,408 women secondary operators (would not have been counted in 2002). 1,181,152 farms listed a single operator 785,531 listed two operators 142,620 listed three or more But, enumerators and other stakeholders argue that many operations don t list the wife as an operator, even when she is heavily involved in the business.

95 What are we trying to do in 2017? Item 1: Persons involved in decisions instead of operators Define by the activity, not the title Do not start with principal operator Adding a column up to 4 persons, from up to 3 Some operations getting more complex Item 3: a table of tasks performed How are management tasks divided in complex operations? Committee also sees listing of tasks as suggesting persons involved in decisions.

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97

98

99 Farm Labor and Management This year only 4 questions.

100 24x7=168 so you cannot put a number bigger than 168. But.people do need to sleep and eat, thus 168 is not a good answer either. A person who sleeps only 6 hours a night and only spends 1 hour a day eating and spends every other hour working on the farm would only have a 119 hours in these boxes, but even that is not very realistic.

101 QUESTION S

102 Sections Candi Probst

103 Please use your question cards Questions?

104 Section 35 Indian reservations

105

106 Section 35: Indian Reservations Are there any Bureau of Indian Affairs held land in Missouri or Illinois? No, but there are some in bordering states Does Section 35 require the operator to live on a reservation? No, they are not required to live on the reservation If operator answers no to Question 1, skip to Section 36 Questions 2-4 continue to ask about what was raised within the Reservation, Pueblo or Service Area. IM: 163

107 Section 36: TYPE OF ORGANIZATION

108 Did the Operator household or extended family own more than 50%? INCLUDE persons related by blood, marriage or adoption How many owners were there in 2017? EXCLUDE landlords, contractors, and lending institutions What percent of ownership did the operator and his/her household hold? IM: 163

109

110 Section 36: Type of Organization Question 3: LLC under state law? Yes or No Question 4: operation s legal status for tax purposes, only choose one Family or individual operation Legal partnership C-Corp S-Corp Other IM:

111 Family or Individual #4 Sole or family proprietorship No partners/shareholders Could be an LLC Reference: Interviewers Manual pg

112 Legal Partnership #4 Two or more people Not landlord-tenant

113 C-Corporation Most important aspect: limited liability #4 Generally business entity chartered under a State or Federal statute Could be single-owner LLC Income tax separate from owners

114 S-Corporation S-Corporation: small business corporation #4 Taxed as a partnership or sole-proprietor

115 Other Estates #4 Trusts Cooperatives Grazing Associations

116 Differences among farm types are illustrated in this report using 2016 data from the Agricultural Resource Management Survey (ARMS), an annual survey conducted by USDA s National Examples Agricultural of Statistics nonfamily farms Service include and ERS. The partnerships analysis in this of report unrelated is partners, based on closely a sample held of nonfamily approximately corporations, 18,500 farms. with a hired operator unrelated to the owners, and (relatively few) publicly held corporations.

117 Legal Status Is this Operation a C-Corporation? Filed as a C- Corporation? Yes = answer 6a. Dividends in dollars No = answer 6b. Net income is percent #6 $ %

118 Section 37: Principal Operator Household Income, Assets, & Debt Who is the Principal Operator? The person who is most responsible for decisions on this operation. IM: 159

119 Why collect household information? To inform policy design and implement better laws regarding farmers and farm households Farm household information used to make informed program changes To meet Congressional and executive mandates: USDA Release No , May 1993 Secretary requires household income be reported concurrent with farm income. USC, Title 7, Chap 55, Sec 2266 Family Farm Report: The Secretary [of Agriculture]...shall submit to Congress each year a written report containing current information on trends in family farm operations To support a robust research agenda Are farm households well-off? How volatile is the household income of farmers? How much is a dollar of farm income worth? How will new tax policies affect farming households?

120

121 Value Codes Table

122 Off-Farm Income Sources #1 Off-Farm Income: another job, farm or ranch, business, rent from other farmland Interest / Dividend Income Sales Income: capital asset sale (household share) If a truck was 50% farm use and it sold for $10k, $5K would go in section 27 and the other $5K would go here. Pension / Disability Federal Benefit: social security, veterans, or military retirement

123 Household Spending #2 Food Rent Utilities Transportation Health Insurance / Out-of-Pocket Medical Misc. Payments / Contributions Mortgage Interest (if not owned by operation) Property Tax (if not owned by operation) General Living Expenses

124 Off-Farm Assets #3 What is the total value of assets owned by the Operator s Household? EXCLUDE - assets owned by this operation (Section 30) INCLUDE - non-retirement financial assets - retirement accounts - operator dwelling (if not owned by operation) - other real estate - other businesses - vehicles - other assets

125 Off-Farm Debt What is the total value of each of the following off-farm debt(s)? #4-5 INCLUDE -mortgages (not owned by operation) -equity loans -lines of credit -auto loans -business loans (not for this operation) -personal loans -off-farm debt secured by farm assets (not reported) Purpose of the asset must NOT be for the farm business.

126 2016 Income & Expenses #6-8 What were the total farm sales last year? What was the net operating income last year? What was the total off-farm income last year?

127 Section 38 CONCLUSION

128 Possible Duplication Census Year Questions: Could someone else be reporting this operation?

129 Additional Operations? Does the operator have additional operations accounted for and not accounted for in this survey? These may not have been previously known to NASS Record the operation name and answer a and b accordingly

130 Date & Time What s the date? How long did it take? Use Ending Time if you used Beginning Time on page 1. Recorded in hours & minutes. OR Use Time in Hours which is a total of hours to the tenth (Beginning Time must be blank on page 1)

131 Time in tenths Minutes Time

132 Get Credit Fill out 9901, 9902, 9903 & 9998 accurately & legibly Must be a 5 digit code. 132

133 QUESTIONS? 133

134 Wheat Questionnaire Version: Additional Questions to Estimate Commodity Overhead and Crop Drying Costs

135 Wheat Expense Broken out in Seed Fertilizer Chemicals Fuel Electricity Purchased Water Repairs Labor Custom Work Section 29

136 Wheat Expenses

137 Section 38: Wheat Drying Wheat is either Custom dried Dried by the operation (using farm drying facilities) Not dried (dried in the field) Production should match Section 7 If wheat was custom dried, be sure to get the cost of custom drying

138 Wheat Drying

139 Wheat Drying by Operation If any wheat was dried by this operation report: drying fuel wheat moisture at harvest drying labor use drying facilities Hours of Drying include: Unloading Filling/emptying dryers Overseeing the drying

140 Wheat Drying

141 Types of Drying Facilities Farm drying facilities are Bins Continuous Flow Dryers Batch Dryers Continuous flow & Batch drying can be done inside of a bin, but the facility should be reported as a bin Only report continuous flow & batch drying if outside the bin Holding capacity of continuous flow & batch dryers will be lower than bin dryers

142 Drying Facilities

143 Questions?