missouri fbma 2010 analysis and comparisons

Missouri FBMA2010 Analysis and

Comparisons

2010 FBMA Record Summary• 141 Farms Submitted Analysis

– 138 Included in Summary• 81 with enterprise analysis (71 in 2009)• 57 with whole farm only (63 in 2009)

– Not Included• 3 with less than 250 unpaid hours and/or small

gross income and/or non-typical operation• 8 1st –year balance sheets (3 in 2009)

2010 Distribution of Net Farm Income (Cost)(NFI from all farms are included in the Median and Average figures but 4 farms’ NFI is excluded

from the upper and 4 from the lower end because of range.)

NFI by Farm

Average NFI = $160,387

Median NFI = $105,443

-14,0006,000

26,00046,00066,00086,000

106,000126,000146,000166,000186,000206,000226,000246,000266,000286,000306,000326,000346,000366,000386,000406,000426,000446,000466,000486,000506,000

Farm Rank

NFI

Per

Far

m U

nit

NFI by Farm Avg NFI Median NFI

2003 2004 2005 2006 2007 2008 2009 201010,000

25,000

40,000

55,000

70,000

85,000

100,000

115,000

130,000

145,000

160,000

Net Farm IncomeData Source: Missouri Farm Business Management Anal-

ysis Program

Nom

inal

Dol

lars

2003 2004 2005 2006 2007 2008 2009 20102.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Rates of Return -- All FarmsAssets Valued at Adjusted Cost Basis

Data Source: Missouri Farm Business Management Analysis Program

2003 2004 2005 2006 2007 2008 2009 20100%

5%

10%

15%

20%

25%

30%

Farm Debt to Asset Ratio -- All FarmsData Source: Missouri Farm Business Management Anal-

ysis Program

2003 2004 2005 2006 2007 2008 2009 20100%

50%

100%

150%

200%

250%

300%

350%

400%

450%

500%

Term debt coverage ratio -- All FarmsData Source: Missouri Farm Business Management

Analysis Program

Note: ‘07-’10 Hogs not included in graph.

2003 2004 2005 2006 2007 2008 2009 2010

-150000

-50000

50000

150000

250000

350000

Net Farm Income by Type of FarmData Source: Missouri Farm Business Management Analysis Program

Dol

lars

2003 2004 2005 2006 2007 2008 2009 2010

-5

0

5

10

15

20

25

30

Return on Farm Assets by Type (Cost)Data Source: Missouri Farm Business Management Analysis Program

Perc

ent R

OA

Note: ‘07-’10 Hogs not included in graph.

<50 50-100 100-250 250-500 500-1000 1000+

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Net Farm Income by Farm Size 2006-2010FBMA Database, Missouri Average by Gross Farm Income ($1,000)

Data Source: Missouri Farm Business Management Analysis Program

<50 50-100 100-250 250-500 500-1000 1000+

-2.0%

3.0%

8.0%

13.0%

18.0%

Rate of Return on Asset by Farm Size (Cost)2006-2010

FBMA Database, MO Average by Gross Farm Income ($1000)Data Source: Missouri Farm Business Management Analysis Program

2010 Missouri FBMA Income Sources

2004 2005 2006 2007 2008 2009 20100

20

40

60

80

100

3946 47

55 56 56 58

53 44 47 37 36 31 32

8 10 6 8 8 13 10

Livestock/Crop Percent of Gross ReceiptsMissouri FBMA Program Data

Crop Receipts Livestock Receipts Other (including crop insurance income)

Perc

ent

2010 Missouri FBMA Expense Sources

Interest

Fuel & Oil

Repairs

Hired Labor

Land Rent

RE Tax/Pers Tax

Depr/Cap Adj

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Selected Operating Expenses by YearFBMA Database, Missouri Averages

Data Source: Missouri Farm Business Management Anal-ysis Program

2004 2005 2006 2007 2008 2009 20100

100

200

300

400

500

600

130 136 138 155228 234 243

80 91 85 87

96 106 11287 82 74

103

131166 162

Corn Cost Per Acre (cash rent)*Missouri FBMA Program Data

Seed, Fertilizer, Chemicals Land Rent Other Expenses

2004 2005 2006 2007 2008 2009 20100

50

100

150

200

250

300

350

400

57 63 59 6692 109 104

75 81 84 83

93104 110

79 71 6791

103

118 122

Soybean Cost Per Acre (cash rent)* Missouri FBMA Program Data

Seed, Fertilizer, Chemicals Land Rent Other Expenses

MO2005

MO 2006

MO2007

MO2008

MO2009

MO2010

(97 farms) (80 farms) (122 farms) (141 farms) (134 farms) (138 farms)

Gross Cash Farm $325,631 $394,389 $391,192 $405,230 $496,562 $567,187 IncomeTotal Cash Expense $273,566 $327,150 $315,503 $331,787 $411,290 $433,597

Net Cash Farm $52,065 $67,239 $75,689 $73,443 $85,272 $133,590 IncomeInventory Changes $6,925 $31,317 $58,884 -$5,931 $28,059 $45,383

Depreciation -$6,510 -$11,894 -$11,878 -$15,018 -$21,817 -$26,125

Demographics

MO 2005

MO2006

MO2007

MO2008

MO2009

MO2010

(97 farms) (80 farms) (122 farms) (141 farms) (134 farms) (138 farms)

Net Farm Income $62,480 $86,662 $122,695 $52,507 $92,019 $160,387 (cash)Value of Farm $252,846 $335,070 $367,326 $314,900 $413,657 $495,231 ProductionTotal Labor 2,657 3,323 3,152 2,973 3,193 3,162 Hours/FarmNet Farm $39.33 $47.78 $70.91 $32.50 $59.72 $103.45 Income/Unpaid Hour

Demographics – (continued)

MO2005

MO2006

MO2007

MO2008

MO2009

MO2010

(97 farms) (80 farms) (122 farms) (141 farms) (134 farms) (138 farms)

Total Acres Owned 420 426 436 403 435 477 Total Crop Acres 686 830 739 692 829 827 Crop Acres Cash 222 260 236 253 326 327 Rented

Crop Acres Share 209 298 240 210 227 222 Rented

Demographics – Acres

MO2005

MO2006

MO2007

MO2008

MO2009

MO2010

(97 farms) (80 farms) (122 farms) (141 farms) (134 farms) (138 farms)

Average Age of 47.6 47.4 46.3 46.4 48.7 49.5 Operator

Average Number of 24.3 25.3 23.6 23.2 26.2 27.1 Years Farming

Demographics – Operators

Demographics – Crop YieldsMO Ag Statistical Service MO FBMA Farms

2006/Avg 2007/Avg 2008/Avg 2009/Avg 2010/Avg 2006/Avg 2007/Avg 2008/Avg 2009/Avg 2010/Avg

Corn (bu.) 138 142 144 153 123 128 137 131 149.2 109.8

Soybeans (bu.) 38 37 38 43.5 41.5 40 40 34 45.5 44.6

Winter Wheat (bu.) 54 43 48 47 45 47 48 52 41.3 41.4

Grain Sorghum (bu.) 85 96 97 86 78 79 89 81 - -

Hay (T.) Mixed(All

Hay) 2.07 1.96 2.3 2.3 2.6 2.24 2.8

Current Ratio

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Working Capital

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Farm Debt to Asset Ratio(MKT)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

15%

20%

25%

30%

35%

40%

45%

50%

Farm Equity to Asset Ratio(MKT)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

45%

50%

55%

60%

65%

70%

75%

80%

85%

Farm Debt to Equity Ratio(MKT)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

Rate of Return on Farm Assets(COST)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Rate of Returnon Farm Equity (COST)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Operating Profit Margin(COST)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Net Farm Income (COST)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

-$150,000

-$100,000

-$50,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Term Debt Coverage Ratio

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

-300%

-200%

-100%

0%

100%

200%

300%

400%

500%

600%

Capital ReplacementMargin

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

-$110,000

-$60,000

-$10,000

$40,000

$90,000

$140,000

$190,000

$240,000

$290,000

Asset Turnover Rate(Cost)

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Operating Expense Ratio

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

120.0%

Depreciation ExpenseRatio

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Interest Expense Ratio

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Net Farm Income Ratio

97 Farms 80 Farms 122 Farms 141 Farms 134 Farms 138 Farms2005 FBMA 2006 FBMA 2007 FBMA 2008 FBMA 2009 FBMA 2010 FBMA

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

What is the Economic Impact of an Average Farm in a Local Community?

Money Spent by the Average 2010 Missouri FBMA Farm in the Local Community &

Service Area

• With Other Farmers $41,168– (Brd/Non-Brd.-Livestock & Custom Work)

• With Other Landowners $38,437– (Cash Land Rent/Land Leases)

• For Labor $19,903• For Farm Utilities $6,255

Money Spent (continued)

• With Agribusiness Community $305,514– Crop Production Expenses $139,280– Livestock Production Expenses $93,838– Fuel & Repair Expenses $50,513– Other/Misc. Expenses $16,163– Farm Insurance $5,720

Money Spent (continued)

• With Lenders (Interest) $21,216• For Farm Equipment/Vehicles/Leases $72,249• For Farm Assets $73,833

– (Bldgs./Land/Impr. - Other Farm Assets)

• For Local Government $4,092– (Real Estate/Personal Prop Taxes)

• Family Living/Non-Farm Expenses* $75,225– (Inc. Taxes & Purch. Of Non-Farm Assets)

*Partially reported

Total Annual Spending Within the Community or Service Area by the Average Missouri FBMA Farm…........................ $657,892