annual report Southwestern Minnesota Farm Management Association COOPERATING AGENCIES:

Transcription

1 1974 annual report Southwestern Minnesota Farm Management Association COOPERATING AGENCIES: University of Minnesota, Institute of Agriculture County Extension Services of the 10 Southwestern Counties Southwestern Minnesota Farm Management Association Economic Report ER 75-3 Department of Agricultural and Applied Economics Institute of Agriculture, Forestry and Home Economics St. Paul, Minnesota May 1975

2 1974 ANNUAL REPORT OF THE SOUTHWESTERN MINNESOTA FARM MANAGEMENT ASSOCIATION Prepared by Barbara B. Miller, Janet B. Otis, and Truman R. Nodland* TABLE OF CONTENTS f Introduction Summary of Farm Inventories... Summary of Farm Earnings (Cash Statement)... Summary of Farm Earnings (Enterprise Statement)... Net Worth Statement Summary of Farm Earnings by Tenure... Household and Personal Expenses..... Family Living from the Farm... Cumulative Effect of Excelling in a Number of Management Measures of Farm Organization and Management Efficiency Thermometer Chart Distribution of Acres in Farm Crop Yields per Acre... Average Price of Feeds... Return above Listed Costs per Acre of Crops... 0 a Explanation of "Work Units" and "Animal Units" 0 0 Feed Costs and Returns from Dairy Cattle Feed Costs and Returns from Hogs... Feed Costs and Returns from Beef Breeding Herd. Feed Costs and Returns from Feeder Cattle... Feed Costs and Returns from a Farm Flock of Sheep Feed Costs and Returns from Chickens... Summary by Years, * * * * * * F * * * * * * e - e Page INTRODUCTION The Department of Agricultural and Applied Economics and the Agricultural Extension Service of the University of Minnesota, and the county extension services of several southwestern Minnesota counties are cooperating with the Southwestern Minnesota Farm Management Association in maintaining a farm management service. The Association was organized in the fall of 1939 by farmers in that part of the state for the purpose of studying the farm business through farm records. Each farmer pays an annual fee which covers a part of the cost. The balance of the cost is defrayed by the University of Minnesota. The analysis of the records and the preparation of the report are handled by the Department of Agricultural and Applied Economics under the direction of T. R. Nodland. Extension work in connection with the supervision of this project is handled by Arnold Sandager. Erlin Weness is the field agent for this project. -,.* The authors are indebted to Dorothy Spreck and Eileen Miley for their assistance in the preparation of this report. 800/5/75

3 ., 2 The following tabulation shows by counties the number of members in the Association and the number of records submitted, the officers of the Association, and the county agricultural extension agents who cooperated in Number Number County ~~~~~~~~~~~ _c,. County agricultural County of submit. Association officers extension agent members records Cottonwood Arnold Regier, President Paul Sandager Dennis Hempeck, Director Faribault Barron Weber, Director Henry C. Bollum Jackson Norman Pohlman, Director Roger A. Lind Walter Ulbricht, Director Martin Larry Krenz, Director Floyd Bellin, Jr. Murray Dennis Miller, Director Reuben Boxrud Carl Pierson, Director 'Nobles Rodney Langseth, Director Gary Carson Milton Fellows, Sec.-Treas. Gary Hibma, Director Jerry Taylor, Director Pipestone John Blankers, Vice-Pres. Michael C. Caskey Virgil Schuld, Director Jim Vander Lugt, Director Redwood Richard Van Hecke, Director Ernest Johnson Dennis Fultz, Director Rock 1 0 Watonwan Willard Stradtman, Director John Ankeny Total Of the 186 farms in the Southwestern Association, 165 submitted records. The data for 145 farms are shown in the tables on succeeding pages. Twenty farms were omitted from all of the averages in the tables because the records were not sufficiently complete for a full analysis or the records were not returned for analysis following completion of income tax schedules. Because the farmers included in this study are, in general, above the average in managerial ability and operate larger and more productive farm units, they have returns materially higher than the average for this section of the state. There was, nevertheless, wide variation in the methods and practices followed by these men. It is reasonable to assume that similar variation occurs among all farmers in the area. To the extent that this is true, this report would be of value to all farmers and to others interested in agriculture in that it illustrates how farm records may be used as a basis for making an analysis of a farm business and for improving the management of a farm.

4 3 Table 1. Summary of Farm Inventories, 1975* tern -I Size of farm (acres) 511 Size of business (work units)** 542 Average of 145 farms Jan. 1 Dec. 31 Dairy cows $ 3395 $ 3214 Other dairy cattle Beef cattle (incl. feeders) Hogs Sheep (incl. feeders) Poultry (incl. turkeys) Productive livestock total $ $ Horses $ 27 $ 39 Crops, seed, and feed $ $ Autos and trucks (farm share) $ 3075 $ 3977 Tractors and crop machinery Livestock equipment Machinery and equipment total $ $ Land***- $ $ Buildings, fences, etc.*** Total farm capital managed $ $ Z ~~It~em ; 29 most profitable 29 least profitable Jan. 1 Dec. 31 Jan. 1 Dec. 31 Size of farm (acres) Size of business (work units)** Dairy cows $ 2240 $ 1958 $ 2031 $ 1544 Other dairy cattle Beef cattle (incl. feeders) Hogs Sheep (incl. feeders) Poultry (incl. turkeys) Productive livestock total $ $ $ $ Horses $ - $ - $ - $ 15 Crops, seed, and feed Autos and trucks (farm share) $ 3737 $ 5656 $ 2658 $ 2975 Tractors and crop machinery Livestock equipment Machinery and equipment total $ $ $ $ Land*** $ $ $ $ Buildings, fences, etc.*** Total farm capital managed $ $ $ $ * For the purpose of comparison, all the data shown in this report, with the exception of tables 4 and 5, are presented on a full-owner basis. The assets, expenses, and receipts of the landlord are included in the records from rented farms. ** See page 15 for an explanation of "work units." *** Real estate values are based on cost and thus do not reflect current market prices.

5 - 4 Table 2. Summary of Farm Earnings (Cash Statement), 1974 Average 29 most 29 least Item of 145 profitable profitable farms farms farms FARM RECEIPTS Dairy cattle sold Dairy products sold Beef cattle sold (incl. feeders) Hogs sold Sheep and wool sold (incl. feeders) Horses sold Poultry sold (incl. turkeys) Eggs sold Corn sold Soybeans sold Small grain sold Other crops sold Machinery & equipment sold & gas tax refund Income from work off the farm Miscellaneous farm income Total farm sales Increase in farm capital Family living from the farm Total farm receipts FARM EXPENSES Dairy cattle bought Beef cattle bought (incl. feeders) Hogs bought Sheep bought (incl. feeders) Horses bought Poultry bought (incl. turkeys) Miscellaneous livestock expense Feed bought Fertilizer bought Other crop expenses Custom work hired Gas, oil, and grease (farm share) Repair truck and auto (farm share) Repair and upkeep of farm real estate Repair & upkeep of tractors & crop machinery Repair & upkeep of livestock equipment Wages of hired labor Electricity expense (farm share) Real estate taxes Telephone and general farm expense Total cash operating expense Trucks and autos bought (farm share) Crop and power machinery bought Livestock equipment bought New real estate and improvements Total farm purchases Decrease in farm capital Interest on farm 7 percent Family labor above one operator* Board furnished hired labor Total farm expenses Labor & management earnings for one operator Net cash income * Includes labor earnings for partners above $ $ $ $ $ $ $ $ $ one full time $ $ $ $ $ $ $ $ $ individual. $ $ $ $ $ $ $ $ $ 54709!....

6 5 Table 3. Summary of Farm Earnings (Enterprise Statement), 1974* Average 29 most 29 least Item of 145 profitable profitable farms farms farms RETURNS AND NET INCREASES Dairy cows $ 8153 $ 5152 $ 5346 Other dairy cattle Beef breeding herd Feeder cattle Hogs Sheep - farm flock Sheep - feeders Chickens Turkeys All livestock $ $ $ Value of feed fed to livestock Return over feed from livestock $ $ 3064 $ Net value added by crops Income from labor off the farm Miscellaneous farm income Total returns and net increases $ $ $ EXPENSES AND NET DECREASES Horses $ 1 $ - $ - Truck Auto (farm share)' Electricity (farm share) Hired power Tractors and crop machinery Livestock equipment Buildings, fencing and tiling Miscellaneous livestock expense Labor** Real estate taxes General farm expense and telephone Interest on farm capital at 7 percent*** Total expenses and net decreases $ $ $ Labor and management earnings for one operator $ $ $ * Earnings statements, as shown'in table 2, stress purchases and sales; inventory adjustments are entered as one item--either an increase or decrease in farm capital. Likewise, family living from the farm is entered as a single item of income. On the enterprise basis, the value of livestock and livestock products includes sales, value used in the home, changes in inventories, and accounts for transfers between enterprises. Purchases of livestock are subtracted so the data represents value of livestock and livestock products added by the enterprise. Costs of operating each service enterprise (auto and trucks, tractors and crop machinery, etc.) are calculated in a similar manner. Credit is given to crops for feed raised on the farm and consumed by livestock. Thus, while earnings statements on the enterprise basis do not show purchases and sales, such a statement more truly shows the value produced for the productive enterprises and net expenses for each of the service enterprises. i * Includes labor earnings for partners above one full-time operator. i** Interest is calculated on the "book" value of capital managed. If current market prices were applied to real estate, the average interest on capital managed would be larger.

7 Table 4. Net Worth Statement for Those Farmers Who Kept a Assets and Liabilities (Operator's Share), _ L _ t Item... i Total acres in farm Owned Rented Total farm capital - operator's Stocks and bonds Life insurance cash value Notes and accounts receivable Shares in cooperative organizations Outside real estate Cash on hand and in bank Household furnishings and clothing Personal share of auto and truck Farm dwelling Total non-farm assets - operator's Total assets - operator's Mortgages on farm operated Mortgages on other real estate Chattel mortgages Notes payable Accounts payable Total liabilities - operator's Net worth Change in net worth 's I 53 Part-owners Item Jan. 1 Dec. 31 Total acres in farm 506 Owned 281 Rented 225 Total farm capital - operator's $ $ Stocks and bonds Life insurance cash value Notes and accounts receivable Shares in cooperative organizations Outside real estate Cash on hand and in bank Household furnishing and clothing Personal share of auto Farm dwelling Total non-farm assets - operator's $ $ Total assets - operator's $ $ Mortgages on farm operated Mortgages on other real estate Chattel mortgages Notes payable Accounts payable Total liabilities - operator's $ $ Net worth $ $ Change in net worth $ ' Complete Record of All 23 Owners Jan. 1 Dec $ $ $ $ $ $ $ $ $ $ $ Renters Jan. 1 Dec $ $ $ $ $ $ $ $ $ $ $ 10329

8 7 Table 5. Summary of Farm Earnings by Tenure (Operator's share), 1974 Item Part- 18 "Owners owners Renters FARM RECEIPTS Dairy cattle sold $ 2104 $ 2771 $ 1450 Dairy products sold Beef cattle sold (incl. feeders) Hogs sold Sheep and wool sold (incl. feeders) Horses sold 7 Poultry sold (incl. turkeys) Eggs sold Corn sold Soybeans sold Small grain sold Other crops sold Machinery and equipment sold and gas tax refunds Income from work off the farm Miscellaneous farm income (1) Total farm sales $ $ $ (2) Increase in farm capital 275 (3) Family living from the farm (4) Total farm receipts (1)+(2)+(3) $ $ $ FARM EXPENSES Dairy cattle bought $ 1265 $ 760 $ 102 Beef cattle bought (incl. feeders) Hogs bought, Sheep bought (incl. feeders) Horses bought Poultry bought (incl. turkeys) Miscellaneous livestock expenses Feed bought Fertilizers bought Other crop expenses Custom work hired Gas, oil and grease bought (farm share) Repair and upkeep of power and crop machinery Repair and upkeep of real estate Repair and upkeep of livestock equipment Wages of hired labor Electricity expense (farm share) Real estate taxes Cash rent Telephone and general farm expense Interest paid Total cash operating expense$ $ $ Trucks and autos bought (farm share) Crop and power machinery bought Livestock equipment bought Farm purchases and real estate improvements (5) Total farm purchases$ $ $ (6) Decrease in farm capital (7) Interest on operator's farm capital (7%) (8) Unpaid family labor (9) Board furnished hired labor (10) Total farm expense (5)+(6)+(7)+(8)+(9) $ $ $ (11) Labor earnings (4)-(10) $ $ $ (12) Ret. to cap. & family labor (7)+(8)+(11).~~~~~~~~~~~~~ $ $ $ $ 26477

9 8 Table 6. Household and Personal Expenses for Those Farms Which Kept Complete Accounts of These Expenses, high 12 low Average tero in return in return Item of 60 to cap. and to cap. and farms fam. labor fam. labor Number of persons - family Number of adult equivalents - family other* EXPENSES Food and meals bought $ 2139 $ 2418 $ 2195 Operating expense and supplies Furnishings and equipment Clothing and clothing materials Personal care and spending Education Recreation Gifts and special events Medical and hospital insurance Church and welfare Personal share of auto expense Upkeep on dwelling Personal share of tel. & elec. expense Total cash living expense $ 9745 $11342 $ 7936 Personal share of new auto New dwelling Taxes** Life insurance Other savings and investments Total household & personal cash expense $17690 $18396 $16245 Family living from the farm Total cash expense and perquisites** $18225 $18810 $16798 RECEIPTS Return to capital and family labor $31055 $67135 $ -697 Income from outside investments Other personal income narrsaa lwurrpiuaronaor PrillP,-,,,,,, * Hired help or others boarded. ** All farmers did not report amount of state and federal income taxes.

10 9 Table 7. Family Living from the Farm, 1974 Average Average Item of 145 of 145 farms farms Number of adult equivalents - family other*.2 Whole milk 88 qts. $ 61 Cream Cattle 1096 lbs. 376 Hogs 275 lbs. 90 Sheep 3 lbs. ' 1 Poultry 16 lbs. 6 Eggs,.. 5 doz. 2 * Hired help or others boarded. $ 536 CUMULATIVE EFFECT OF EXCELLING IN A NUMBER OF MANAGEMENT FACTORS Studies of earnings of farmers in this area show that there are seven major management factors causing variations in earnings among farmers within a given year. These seven factors are (1) crop yields, (2) choice of crops, (3) returns from livestock, (4) amount of livestock, (5) size of business, (6) work accomplishments per worker, and (7) control of expenses. The combined or cumulative influence of these seven management factors on earnings is shown in Table 8. The farmer's earnings are determined to a considerable extent by his accomplishments in these seven factors. Table 8. Relation of Labor Earnings to the Number of Factors in Which the Farmer Excels, 1974 Number of factors in Number Your The length of the shaded linesaverage which farmer of farm is in proportion to the average labor excels farms operator's labor earnings earnings None or 1 19 _ XXXXXXXXXXXXXXXXXXXXXX $ or 3 66 XXXXXXXXXXXXXXXXXXXX or 5 51 XXXXXXXXXXXXXXXXXXXXXXXXXX or 7 9 XXXXXXXXXXXXXXXXXXXXXXXXXX The array in Table '8 indicates that it will be worthwhile for each cooperator to study carefully his ranking on pages 10 and 11, and learn his standing in respect to each of the above factors and the elements of strength and weakness in his farm business.

11 10 Table 9. Measures of Farm Organization and Management Efficiency, 1974 Average Average 29 most 29 least Measures used in chart on profitpage 11 profitof 145 prof able able farms farms farms farms Labor earnings $23137 $64248 $ Crop yields* Percent tillable land in high return crops** Return for $100 feed to productive livestock*** Productive livestock units per 100 acres*'** Size of business - work units Work units per worker All power, machinery, equipment and building expense per work unit $43.36 $47.59 $37.43 Items related to some of the above measures: Index of return for $100 of feed from: Dairy cattle (see pages 16 and 17) Beef cattle - breeding herd (see page 19) Beef cattle - feeders (see page 20) Hogs (see pages 18 and 19) Sheep - farm flock (see page 21) Sheep - feeders Turkeys Chickens (see page 22) Number of animal units Work units on crops Work units on productive livestock Other work units Number of family workers Number of hired workers Total number of workers Power and crop machinery expense per work unit $32.67 $37.22 $27.15 Livestock equipment expense per work unit Building and fencing expense per work unit Number of crop acres in farm Tractor and crop machinery expense per crop acre $25.94 $22.79 $23.74 Rate earned on capital managed ($9600 deducted for operator's labor) 11.4% 21.2% 0.0% * Given as a percentage of the average. ** Crops are marked in Table 10 as A, B, C, and D. All the acres of A crops, one-half of the acres in B crops, and one-fourth of the acres in C crops are used in calculating percent of tillable land in high return crops. *** An index weighted by the animal units of livestock. **** Acres in timber not pastured, roads, waste, and farmstead were not included.

12 11 Using your figures from p!age 10, locate your standing with respect to the various measures of farm organization and management efficiency.. The average for the 145 farms included in this summary are located between the dotted lines across the center of this page. Labor - Labor Crogh High Return Pr.lvstk. Work Pow.,mach. earn rop earnn from return units Work units eq.& bldg. ings yields prod. per units per exp. per inrgs ',J crops. ", 1 I _ I A " ;;...~~~~~~~~.- I 17CZr k'- M -T. I L j~-v '3L, - -VV t-i* OLKeE T. C r K Init $71, ' $19 65, L%.%- 59, II , , I , I , ai.. 29, I , I, I, & , I , , * , , , I- : , i -25,

13 12 Table 10. Distribution of Acres in Farm, 1974 Number Average Crop Item growing of 145 ratings- this crop farming this crop farms Ave. per farm Canning peas B Wheat C Oats for silage C Oats for grain D Flax C Other small grain D - - Total small grain and peas Corn grain A Soybeans for grain B Sweet corn B Corn silage B Other cultivated crops * Total cultivated crops Alfalfa hay B Other legume hay C - - Other tame hay D Annual hay D Total tillable land in hay Alfalfa pasture B Other tillable pasture D Total tillable land in pasture Tillable land not cropped D Total tillable land Wild hay Non-tillable pasture Timber not pastured Roads and waste 17.3 Farmstead 13.2 Total acres in farm Percent land tillable 88.5 Percent tillable land in high return crops 70.7 * A, B, C, and D refer to ranking used in calculating percent of tillable land in high return crops. Ranking of crops is based on average return received from various crops during the past few years. ** Includes sugar beets and seed corn, which are ranked as A crops, and milo, which is ranked as a D crop.

14 13 Table 11. Crop Yields per Acre, 1974 Item I i ; _ Average of farms prmarwinsz peach crnn _ W'JLL, %-L%,L - ---I'E,,.%t Canning peas, dollars Wheat, bu. Oats for silage, tons Oats for grain, bu. Corn grain, bu. Soybeans, bu. Sweet corn, tons Corn silgage, tons Alfalfa hay, tons Annual hay, tons Wild hay, tons $ l ' , 1.6 Table 12. Average Price of Feeds, 1974 Item Value Item Value Ear corn, per bu. $2'.75 Alfalfa hay, per ton $40.00 Oats, per bu. " 1.40 Corn silage, per ton Pasture, per month per cow 6.00

15 I I I 14 Table 13. Item Returns Above Listed Costs per Acre of Item g- Corn grain Crops, 1974 Corn silage So- Soybeans Number of farms reporting 143 Yield per acre 67.8 bu. Price per unit* $3.00 Total return $ Fertilizer $ Seeds, herbicides, etc Total listed costs $ Return above listed costs $ tons $16.00 $ $ $ $ bu. $7.00 $ $ $ $ Item Wheat AlfalfaOats hay Number of farms reporting Yield per acre 36.3 bu. 3.6 tons 73.0 bu. Price per unit* $4.70 $50.00 $1.60 Total return $ $ $ Fertilizer $ 9.82 $ 7.57 $ 6.46 Seeds, herbicides, etc Total listed costs $ $ $ Return above listed costs $ $ $ * Market prices reported at the end of December 1974.

16 15 EXPLANATION OF "WORK UNITS" AND "ANIMAL UNITS" The total "work units" for any one farm is a measure of the size of that farm business. A work unit, as used in this report, is the average accomplishment of a farm worker in a ten-hour day, working on crops and productive livestock at average efficiency, or ten hours of work off the farm for pay. The number of work units for each class of livestock and each acre of crop are presented in Table 14. Table 14. im,.item Number of Work Units for Each Class of Livestock and Each Acre of Crop Number of Number of Item Item,work units I work units Dairy cow.0 per cow Small grain.3 per acre Other dairy cattle 1.2 per head Sugar beets 1.8 per acre Beef breeding herd 1.5 per cow Sweet corn.7 per acre Feeder cattle.12 per 100 lbs. Corn husked.6 per acre Sheep--farm flock.6 per ewe Corn silage.8 per acre Sheep--feeder.3 per 100 lbs. Corn fodder 1.0 per acre Hogs.12 per 100 lbs. Alfalfa hay.6 per acre Turkeys.1 per 100 lbs. Soybean hay.6 per acre Hens 5.0 per 100 hens Other hay crops.4 per acre Canning peas.3 per acre Labor off the farm 1.0 per $30 Soybeans for grain.5 per acre An animal unit represents one dairy cow or bull, two other dairy cattle, 1 beef cows or bulls, 1 feeder steer or heifer, 3 1/3 other beef cattle, 7 sheep, 14 lambs, 2½ hogs, 5 pigs, 50 hens, or 1100 pounds of turkeys produced.

17 16 Table 15. Factors of Costs and Returns from Dairy Cows, farms 17 farms Average highest in lowest in I tern of I33 t e m butterfat butterfat armsper cow per cow. per cow per cow Pounds of milk per cow Percent of butterfat in milk Pounds of butterfat per cow Price received per pound of butterfat sold $2.11 $2.14 $2.08 Price received per cwt. of milk sold Value of produce per cow: Dairy product sales $ $ $ Dairy produce used in home Milk fed to livestock Net increase in value of cows TOTAL VALUE PRODUCED $ $ $ Feed cost per cow: Concentrates $ $ $ Roughages Pasture TOTAL FEED COST $ $ $ RETURN ABOVE FEED COST PER COW $ $ $ RETURN FOR $100 OF FEED $160 $178 $142 Feeds per cow, pounds: Corn Small grain Commercial feeds Total concentrates Total hay Silage Feed cost per pound of butterfat $1.41 $1.23 $1.59 Feed cost per cwt. of milk produced Number of cows* * All dairy cows which have at some time in the past freshened are included in the dairy herd and affect the average number of cows used in computing this table. There is some variation in the number of months of dry period per cow; however, this variation is small for the majority of farms.

18 17 Table 16. Item Feed Costs and Returns from Other Dairy Cattle, Average of 33 farms farms highest in butterfat 'per cow farms lowest in butterfat per cow NET INCREASE IN VALUE OF OTHER DAIRY CATTLE $ $ $ TOTAL FEED COST PER HEAD $ $ $ RETURN ABOVE FEED COST PER HEAD $ $ $ RETURN FOR $100 OF FEED $ 83 $ 62 $ 86 Feed per head, pounds: Concentrates Hay Silage Whole milk Number of head of other dairy Table 17. Feed Costs and Returns from All Dairy Cattle, farms 17 farms Average Item ~~~~Item of "~va33 highest ~o~f in lowest in butterfat butterfat farms-. _per cow per cow Value of produce per cow: Dairy products $ $ $ Net increase in value of dairy cattle TOTAL VALUE PRODUCED $ $ $ TOTAL FEED COST PER COW $ $ $ RETURN ABOVE FEED COST PER COW $ $ $ RETURN FOR $100 OF FEED $133 $142 $124 Feed per cow, pounds: Concentrates Hay Silage Miscellaneous expenses per cow $69.54 $62.35 $77.45

19 00 Tables 18a and 18b. Feed Costs and Returns from Hogs, 1974 ~~~...- ". -o80 farms with breeding stock11 f 11 farms Average 16 farms 16 farms. Item of 91 Averae highest in lowest in purhed of 80 purchased farmsf s returns returns farms above feed feeder pigs above feed above feed Pounds of hogs produced NET INCREASE IN VALUE PER CWT. PRODUCED $32.72 $33.48 $36.90 $29.86 $27.22 FEED COST PER CWT. PRODUCED RETURN ABOVE FEED COST PER CWT. PRODUCED $ 7.28 $ 7.76 $16.36 $-3.49 $ 3.80 RETURN FOR $100 OF FEED $135 $136 $185 $ 91 $122 Price received per cwt. sold $34.56 $34.56 $35.32 $33.52 $34.62 Weight per hog sold, pounds Miscellaneous costs per cwt. produced $.78 $.82 $.94 $.67 $.43 Feed per cwt. hogs produced, pounds: Corn * Small grain Commercial feeds* Total concentrates Total number of litters raised Number of pigs born per litter Number of pigs weaned per litter Number of feeder pigs bought Total weight of feeder pigs bought Price paid per feeder pig $25.49 $24.51 $24.64 $23.17 $26.65 * This includes purchased complete hog feeds which protein feeds. have not been divided between corn, small grain and

20 19 Table 18c. Feed Costs and Returns from Hogs, Feeder Pig Production, 1974 Average Item of 4 farms Number of litters raised 82 Pounds of hogs produced NET INCREASE IN VALUE PER LITTER $ FEED COST PER LITTER RETURN ABOVE FEED COST PER LITTER $ RETURN FOR $100 OF FEED $144 Number of feeder pigs sold 558 Price received per feeder pig sold $23.91 Weight per feeder pig sold, pounds 44 Miscellaneous costs per litter raised $26.58 Feed per litter, pounds: Corn 984 Small grain 648 Commercial feeds 554 Total concentrates 2186 Number of pigs born per litter 9.2 Number of pigs weaned per litter 7.0 Table 19. Feed Costs and Returns from Beef Breeding Herd, 1974 Average Item of 19 farms TOTAL VALUE PRODUCED PER COW $ Feed cost per cow: Concentrates $ Roughages Pasture TOTAL FEED COST $ RETURN ABOVE FEED COST PER COW $ RETURN FOR $100 OF FEED $ 26 Miscellaneous costs per cow $11.74 Feeds per cow, pounds: Concentrates 753 Hay 2164 Silage 5170 Pounds of beef produced Number of cows 61.9 Number of other beef cattle 41.7

21 20 Table 20. Feed Costs and Returns from Feeder Cattle, 1974 Average Item of 78 farms Pounds of beef produced NET INCREASE IN VALUE OF FEEDERS PER CWT. OF BEEF PRODUCED $24.93 Feed cost per cwt. of beef produced: Concentrates $36.24 Roughages 9.50 Pasture.35 TOTAL FEED COSTS $46.09 RETURNS ABOVE FEED COST PER CWT, BEEF PRODUCED $ RETURN FOR $100 OF FEED $ 58 Miscellaneous costs per cwt. of beef produced $.95 Feeds per cwt. of beef produced, pounds: Corn 643 Small grain 7 Commercial feeds 47 Total concentrates 697 Total hay 182 Silage 849 Price paid per cwt. for beef bought $37.76 Price received per cwt. of feeder cattle sold $40.44 Number of animal units C I I

22 21 Table 21. Feed Costs and Returns from a Farm Flock of Sheep, 1974 Average Item of 7... : farms Value of produce per ewe: Wool $ 2.98 Net increase in value of sheep TOTAL VALUE PRODUCED PER EWE $26.74 Feed costs per ewe: Concentrates $11.98 Roughages Pasture 4.69 TOTAL FEED COSTS PER EWE $28.37 RETURN ABOVE FEED COST PER EWE $-1.63 RETURN FOR $100 OF FEED $109 Miscellaneous expenses per ewe $1.37 Feeds per ewe, pounds: Concentrates 242 Hay 499 Silage 246 Price per cwt. of lambs sold $35.49 Price per pound of wool sold.41 Pounds of wool per sheep sheared 7.7 Percent lamb crop* 102 Percent death loss* 9.4 Pounds of sheep produced: 3442 Number of head of ewes 46 * Lambs which die during month of birth are not included.

23 22 Table 22. Feed Costs and Returns from Chickens, 1974* Average Item of 4 farms Value of produce per hen: Eggs sold and used in home $ 7.69 Net increase in value of chickens -.54 TOTAL VALUE PRODUCED $ 7.14 TOTAL FEED COST PER HEN $ 4.32 RETURN ABOVE FEED COST PER HEN $ 2.82 RETURN FOR $100 OF FEED $178 Miscellaneous expenses per hen $.10 Feed per hen, pounds: Grain 33 Commercial feed 25 Total concentrates 58 Price received per dozen of eggs sold $.42 Eggs laid per hen 221 Feed costs per dozen of eggs produced $.23 Average number of hens on farm during the year 5132 Percent death loss of hens 7.7 Number of chicks bought 88 Number of hens bought sl P- I- I C * Includes feeds and returns from laying and rearing flocks.

24 Table 23. Summary by Years Average Average Average Average Average Item C 1 f 1 B. - 1 rs 1 f ~ ~~~~~- / C Number of farms U $ $ Total farm capital managed $40590 $57692 $75246 $99907 $ $ $ $ $ $ Monthly charge for: Unpaid family labor* Second operator* % Board for hired labor* FARM EXPENSES Dairy cattle bought Beef cattle bought Hogs bought Sheep bought (incl. feeders) Poultry bought (incl. turkeys) Horses bought Miscellaneous livestock expense Fertilizers bought Miscellaneous crop expenses Feed bought Custom work hired Power & crop machinery (new) Power & crop machinery (upkeep) Livestock equipment (new) Livestock equipment (upkeep) Buildings and fencing (new) Buildings and fencing (upkeep) Hired labor Taxes General farm expense Total farm purchases Decrease in farm capital Interest on farm capital*** Unpaid family labor Board furnished hired labor Total farm expense $ ** $13464 $ ** $18784 $ $25557 $ $33160 $ $45523 $ $58805 $ $65861 $ $74690 $ $ $ $ $ $15978 $22118 $29790 $38733 $53631 $70214 $77908 $88623 $ ~ ~ ~ ~~~. * These adjustments should be considered in comparing 1974 with previous years. ** Includes fertilizer. *** Interest was calculated at the rate of 5% on capital managed from 1940 to 1966, at 5.5% from 1967 to 1969, at 6% in , and at 7% in **** Labor earnings were divided between the various partners.

25 b.o Table 23. Summary by Years (continued) Average Average Average Average Average Item FARM RECEIPTS Dairy cattle sold Dairy products sold Beef cattle sold Hogs sold Sheep and wool sold Poultry (incl. turkeys) sold Eggs sold Horses sold Corn sold Soybeans sold Small grain sold Other crops sold* Machinery & equipment sold and gas tax refund Agricultural adjustment payment Income from work off the farm Miscellaneous farm income Total farm sales Increase in farm capital Family living from the farm Total farm receipts Total farm expenses Labor earnings $ $ $ $ 6791 $ $ $ $ 4941 $ $ $ $ 3121 $ $ $ $ 5004 $ $ $ $10779 ' ' ' :' $ $ $ $10303 $ $ $ $ 9457 $ $ $ $ $ $ $ $ $ $ $ $ MEASURES OF FARM ORGANIZATION AND Percent land in high ret. crops** Livestock units per 100 acres**j Work units'*** Work units per worker**** Expenses per work unit**** MANAGEMENT EFFICIENCY $6.23 $9.49 $ $ $ $ $ $ $ $43.36 * Includes soybeans ** The crop ratings used in calculating the percentage of the tillable land in high return crops were consi derably changed in *** The basis for computing animal units was revised in **** The basis for computing work units was revised in 1953, 1967 and 1970.

26 Table 24. Summary of Miscellaneous Items by Years - Itern Average Average Average Average Average RETURN ABOVE FEED COST PER Dairy cow Animal unit in beef herd 100 lbs. feeder cattle prod. Ewe 100 lbs. hogs produced Hen $ $ $ N $ $ $ $ $ $ $ FEED COST PER Dairy cow Animal unit in beef herd 100 lbs. feeder cattle prod. Ewe 100 lbs. hogs produced Hen $ $ $ $ * $ $ $ $ $ $ MISCELLANEOUS LIVESTOCK INFORMATION Number of dairy cows 5.3 Head in beef breeding herd 9.4 Pounds of feeder cattle prod Litters of pigs L9.5 Pounds of hogs produced 3/ , Number of hens Pounds of butterfat per dairy cow Pigs weaned per litter Percent lamb crop Eggs per hen * Information not available.

27 Table 24. Summary of Miscellaneous Items by Years (continued) ON ^I~~ t e m Average Average Average Average Average PRICE RECEIVED PER Pound of butterfat in milk $.98 $.94 $.91 $.94 $ 1.19 $ 1.42 $ 1.44 $ 1.45 $ pounds of fat cattle Pound of wool Dozen of eggs pounds of hogs sold PRICE OF FEED Corn, bu Oats, bu Barley, bu Alfalfa hay, ton Timothy hay Corn silage, ton $ ACRES PER FARM Small grains Cultivated crops Tillable land in hay Tillable land in pasture Tillable land not cropped * 44.1* 49.7* 40.9* 67.7* 9.8 Total tillable land Non-tillable land Total acres per farm * YIELD PER ACRE Flax, bu Oats, bu Corn grain, bu Corn silage, tons Soybeans, bu Alfalfa hay, tons * Including feed grain program.