How's Business Down on the Farm?

Missouri FBMA reports net farm income down in 2005.

Published on: Dec 27, 2006

The average net farm income of 97 farms included in the 2005 annual report of the Missouri Farm Business Management Analysis program was $62,480. This is a decrease from 2004, when the average of 91 FBMA farms was $91,231, reports Norman Rohrbach, Missouri FBMA coordinator.

Net farm income as reported by FBMA reflects the net cash income for the year, +/- inventory change, minus depreciation. There was a wide range in income, with the lower 25% of farms having an average net farm income of -$3,982, while the top 25% averaged $192,570 for the year.

The 97 farms in the FBMA summary were classified by type on the basis of having at least 70% of gross sales in each category. There were 33 crop, six hog, 19 beef and 15 crop and beef operations. Twenty-one of the farms didn't have a single source or pair of sources of income more than 70%.

With assets valued at modified book value, the average rate of return on assets and equity was 6.4% and 7.0%, respectively. The 97 farms ended the 2005 year with an average farm net worth of $497,969, Rohrbach says.

At least 53 of the farming operators were considered "full-time" by virtue of having reported at least 2,000 hours of operator/manager labor. The remaining 44 farmers reported an average of 830 hours per farm as part-time operators.

Government payments averaged $30,315 per farm, representing approximately 49% of net farm income. That figure was up from 16% in 2004.

The farms are participants of the Missouri FBMA program, an adult education program offered as a component of agricultural education in public schools throughout the state.

FYI
The FBMA record summaries for 2003-05 may be accessed at the Missouri Adult Agriculture Education Web site, www.adultaged.missouri.edu.

For more information, contact Norman Rohrbach at (573) 882-7379, or e-mail at rohrbachn@missouri.edu.