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Southeastern Minnesota Farm Business Management Association 2003 Annual Report

Author

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  • Nordquist, Dale W.
  • Westman, Lorin L.
  • Olson, Kent D.

Abstract

Average net farm income was $96,404 in 2003 for the 175 farms included in this annual report of the Southwestern Minnesota Farm Business Management Association. This is a 38% increase over the average income of $70,007 in 2002. In constant dollars, 2003 was the most profitable year for association members in the past 16 years. As in previous years, the actual profit levels experienced by individual farms vary greatly from the overall average profit. When the net farm incomes for the 175 farms in the report are ranked from lowest to highest, the resulting graph shows how much the incomes do vary. Seven percent of the farms experienced negative net farm income in 2003; 39% had incomes over $100,000. The median or middle income was $77,187. The high 20% of the farms had an average net farm income of $252,978, which is a 39% increase from 2002. The low 20% of the farms had an average loss of $-6,804 in 2003. Average gross cash farm income was $504,022, an 18% increase from 2002. Four sources of sales again dominated: corn, soybeans, beef finishing and hogs. Corn and soybean sales accounted for over $200,000 (or 41%) of sales. Total crop sales accounted for 42% while livestock sales and contracting income accounted for 43% of total cash receipts. Every major category of income increased over 2002 sales levels. Corn and soybean income increased by 11% and 19%, respectively, while hog income was up 21% and beef finishing income increased 15%. Government payments of all types averaged $25,855 in 2003, a 62% increase from the previous year. Government payments increased primarily due to the timing of receipts and not because of increased program benefits. Many members also accepted a counter-cyclical payment (CCP) for corn for the 2003 crop. In all likelihood, however, that CCP payment will have to be repaid in 2004 because of price rallies in the corn market since the fall of 2003. Government payments for the average farm were $15,927 in 2002, $48,208 in 2001, $50,567 in 2
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Suggested Citation

  • Nordquist, Dale W. & Westman, Lorin L. & Olson, Kent D., 2004. "Southeastern Minnesota Farm Business Management Association 2003 Annual Report," Staff Papers 14067, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:14067
    DOI: 10.22004/ag.econ.14067
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    Keywords

    Farm Management;

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