File
C1-10
| Updated November, 2007 |
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File
C1-10 |
http://www.extension.iastate.edu/agdm/wholefarm/html/c1-10.html
2006 Farm Costs and Returns
Darnell Smith,
extension associate, and William Edwards, extension economist,
515-294-8122, darnell@iastate.edu
The farm record data used in this report were obtained from the Iowa Farm Business Associations. The average of all farms in each table represents a weighted average of the values for each size group listed. Weighting factors are based on the number of farms in each size group in the economic area, as computed from the most recent Census of Agriculture. Only farms with sales of $40,000 or more were counted in making the weighting. Thus, overall averages should be representative of full-time Iowa farms.
All records were kept on the accrual, or inventory, basis. On rented farms, only operator income and expenses were recorded. Data for ending assets and liabilities represent those of the operator only, and do not include the value of rented land.
A summary of Farm Costs and Returns is presented in the accompanying "pdf" file that you can access by clicking here or on the icon above.
Information File 2006 Farm Business Summary - Northwest Iowa -- C1-11
Information File 2006 Farm Business Summary - Southwest Iowa -- C1-12
Information File 2006 Farm Business Summary - North Central Iowa -- C1-13
Information File 2006 Farm Business Summary - South Central Iowa -- C1-14
Information File 2006 Farm Business Summary - Northeast Iowa -- C1-15
Information File 2006 Farm Business Summary - Southeast Iowa -- C1-16
Definitions of Terms Used
Net farm income, cash - total sales and other cash income minus cash expenses, including purchases of livestock and feed. Does not include principal borrowed or repaid, sales and purchases of capital assets, or nonfarm income and expenses.Net farm income, accrual - cash net income adjusted for inventory changes and accrued expenses.
Net farm income, accrual - cash net income adjusted for inventory changes and accrued expenses. Represents a return to unpaid labor, net worth (equity), management, and profit.
Value of farm production - value of crops produced (at market price), livestock production (net of feed and purchased livestock), inventory value gain or loss, and miscellaneous income. This measures the total production per farm.
Management return - accrual net farm income less six percent interest on value of equity (net worth), and wages for operator and family labor. The wage rate used for operator labor was $1,700 per month. For family labor, the rate was $850 per month.
Inventory value gain or loss - change in value of crops or livestock sold due to differences in opening inventory price and final sale price.
Livestock returns per $100 feed fed - value of livestock production minus livestock purchases, divided by value of feed fed, multiplied by 100.
Machinery cost per crop acre - total of machinery repairs, fuel, custom machine hire, utilities, machinery depreciation and auto expense, less 75 percent of all custom hire income received, divided by crop acres. Depreciation is estimated at 10 percent of current value of the machinery.
Return to owned assets - net farm income, plus interest expense, minus value of operator and family labor, divided by total farm assets owned.Return to equity - net farm income minus value of operator and family labor, divided by net worth.
Asset turnover ratio - value of farm production divided by total farm assets.
Operating profit margin ratio - net farm income, plus interest expense, minus value of operator and family labor, divided by value of farm production.
The data for this report were collected by Iowa Farm Business Association consultants, and compiled by Iowa State University Extension, with assistance from the Iowa Agricultural Experiment Station, project number 0111.