Q. 630.7 I^6c University of Illinois Library at Urbana-Champaign ACES Ly(j^ annual SUMMARY OF ILLINOIS FARM BUSINESS RECORDS &.^30> 7 COMMERCIAL FARMS: Production / Costs / Income / Investments UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN / COLLEGE OF AGRICULTURE / COOPERATIVE EXTENSION SERVICE CIRCUUR 1214 Digitized by the Internet Archive in 2011 with funding from University of Illinois Urbana-Champaign http://www.archive.org/details/summaryofillinoi1214wilk SOURCE OF DATA This report is based on data obtained from farm business records on 8,132 Illinois farms. It is the 58th in a series of annual summaries of such records obtained from farmers cooperating with the Univer- sity of Illinois Cooperative Extension Service, the Department of Agricultural Economics, and the Illi- nois Farm Business Farm Management (FBFM) As- sociation. At present about one out of every five commercial farms in Illinois of over 500 acres is enrolled in this service. The service has grown steadily. For 1983, there are 10 associations in 102 counties served by 70 full-time fieldmen. Participation in this farm-busi- ness analysis program is voluntary, and cooperating farmers pay a fee for the educational services. The program's development since 1940 is shown below. Counties Associa- partici- Fieldmen Farmers Year tions pating employed enrolled 1940 3 23 3 680 1950 8 59 15 2,760 1960 10 100 33 5,494 1970 10 102 42 6,553 1982 10 102 70 8,132 Estimates for 1982 indicate that 86 percent of the 8,132 farms covered in this report are larger than 240 acres. For the most part, this 86 percent falls within the size of business that includes farms selling $40,000 or more of farm products a year. In the 1978 Census of Agriculture, farms selling $40,000 or more accounted for 86 percent of all sales from Illinois farms. The segment of Illinois agriculture that includes farms with more than 180 acres is often referred to as "commercial farming." In 1978, there were 54,100 farms in Illinois with more than 1 80 acres. The figures that follow, taken from the 1978 Census of Agricul- ture, show that these farms represented 65 percent of the 82,905 farms larger than 50 acres and produced more than 97 percent of the agricultural products sold from Illinois farms. Percent Percent of Number of Acres of total census farms farms per farms over enrolled enrolled farm 50 acres in FBFM in FBFM 180-499 44.4 9.5 3,512 500-999 16.8 19.6 2,740 1,000-1,999 3.4 19.9 577 2,000+ 0.4 17.4 59 Although most of the 1982 record-keeping farms covered in this report are within the two smaller-size groups, the figures show that they are not distributed proportionately among the groups. There were 3,233 farms with more than 1,000 acres in 1978. About a fifth of these farms (19.6 percent) were enrolled in the Illinois FBFM Association. Of the 13,998 farms in the group having 500 to 999 acres, 19.6 percent also participated in the farm record program. Only about 5 percent of the farms enrolled had fewer than 160 acres. The average size of all farms enrolled in 1982 was 574 acres, compared with an average of 276 acres for all Illinois farms. The data presented in this report are group av- erages identified by size of business, type of farm, and quality of soil found on the farm. Where segments of Illinois agriculture are identified by these criteria, the data from record-keeping farms may be used with reasonable confidence, even though the record-keep- ing farms as a group do not represent a cross section of all commercial farms in the state. USES FOR THIS REPORT The management of a modern commercial farm involves decision making in the application of tech- nology, the choice of a proper combination of crop and livestock enterprises, and effective business administration of the farming operations. A basic analysis of a farm business involves a careful study of past performance to detect problems and strengths in the farming operation. Also involved is the process of planning and developing future operations to re- alize the full potential of the land, labor, and capital resources available and to improve the economic efficiency of the farm business. The farm-business summaries contained in this report are used by individual farmers to analyze their business operations and to develop plans for future farming operations. This report summarizes the in- formation so that specialists involved in agricultural extension, research, teaching, and agribusiness activ- ities may use the data to help them perform their duties effectively. The definition of terms and ac- counting measures on the following page will be of assistance in using the data. The first part of the report (Tables 2 to 7) sum- marizes recent changes in farm income on Illinois farms. It also identifies economic forces and factors that contribute to these changing trends. Some data used in the text are drawn from previous issues of this report. The second section (Tables 8 to 17) presents data on the livestock enterprise. The comprehensive and detailed information contained in this section is a valuable resource for anyone interested in livestock production. Because part of the feed grains and roughages produced on Illinois farms is marketed through livestock, the margins of income from live- stock enterprises are important in interpreting the economic results of some farming operations. The third section (Tables 18 to 26a) reports costs, returns, financial summaries, investments, land use, and crop yields for different sizes and types of farms in northern, central, and southern Illinois. It also reports on the 25 percent of grain farms that received the highest return to management and the 25 percent that received the lowest return, and on two-man (21 to 27 months of labor) and three-man (31 to 39 months of labor) hog and beef farms. DEFINITION OF TERMS AND ACCOUNTING METHODS Soil-productivity rating This is an average index representing the inherent productivity of all tillable land on the farm. Individual soil types on each farm are assigned an index ranging downward from 100. All ratings were revised in 1971 to reflect a basic level of management as outlined in Illinois Extension Circular 1156, Soil Productivity in Illinois. New land values were assigned in 1980. The change in land values represents an accounting ad- justment to bring land values to current market levels. Hay equivalents, tons To get the equivalents, we took the total of 1.0 X pounds of hay, 0.45 x pounds of hay silage, 0.33 X pounds of corn silage, and 24 x pasture-days per feed unit, times the total feed units per cow, divided by 2,000. Type of farm Sampling technique. Data from all records cer- tified for analysis by fieldmen were aggregated by size (acres or number of cows), type of organization, value of the feed fed, and soil-productivity rating. Electronic data-processing was used to summarize the data. Grain farms. Farms where the value of the feed fed was less than 40 percent of the crop returns and where value of feed fed to dairy or poultry was not more than a sixth of the crop returns. Since 1973, farms with livestock have been essentially excluded from the sample of grain farms in northern and central Illinois in Table 18; since 1978, from the grain-farm sample in Table 19; and since 1982 from the grain-farm sample in Table 4. Hog or beef farms. Farms on which the value of feed fed was more than 40 percent of the crop returns and either hog or beef-cattle enterprises received more than half of the value of the feed fed. Dairy or poultry farms. Farms where the value of feed fed was more than 40 percent of the crop returns and either the dairy or poultry enterprises received more than a third of the value of the feed fed. $2.43; oats, $1.89; and wheat, $3.24. Commercial feeds were priced at actual cost, hay and silage at farm values, and pasture at 35 cents per animal unit per pasture-day. A pasture-day represents an intake of approximately 20 to 25 pounds of dry matter, defined as 16 pounds of total digestible nutrients (TDN) from pasture. Cash operating expenses. Includes the annual cash outlays for these nondepreciable items: fertilizer; pesticides; seeds (including homegrown seeds); ma- chinery repairs; machine hire; fuel and oil; the farm share of electricity, telephone, and auto expenses; building repairs; drying and storage; hired labor; livestock expenses; taxes; insurance; and miscella- neous expenses. Does not include purchased feed and livestock because these have been deducted from gross receipts in computing the value of farm production. The interest paid is not included because an interest charge is made on the total farm investment. Machinery and equipment. Includes deprecia- tion, repairs, machine hire, fuel and oil, and the farm share of electricity, telephone, and auto. Labor. Includes hired labor plus family and op- erator's labor charged in 1982 at $1,075 a month. Interest on nonland capital. Covers the interest charged at 14 percent on the sum of one-half the average of the January 1 and December 31 inventory value of grain plus the average of the January 1 and December 31 inventory of remaining capital invest- ment in livestock, machinery and auto, buildings, and soil fertility plus one-half the cash operating expense, exclusive of interest paid. In Tables 4, 6, and 7 this charge is combined with the land charge-net rent and labeled interest charge on capital. The average interest paid per farm by farm operators was estimated to be about $ 1 9,000. Details on operator and landlord shares of expenses and income are published annually in research reports by the Department of Agricultural Economics. Land charge-net rent. The bare land priced at current land values x 2.8 percent to reflect landlord net rents received. Total nonfeed costs. Includes cash operating ex- penses, adjustments for accrued expenses and farm- produced inputs, depreciation, and charges for unpaid labor and interest including land charge. Purchased feeds and livestock are omitted. Value of land (current basis). A basic value on bare land is established for each farm according to the soil-productivity rating. This basic value is ad- justed each year according to the February index of land prices in Illinois as reported by the USDA. The land value index for 1982, using a base earning value of 1979 = 100. was 104. Cost items Value of feed fed. Includes on-the-farm grains with the following average prices per bushel: corn. Return items Crop returns. This is the sum of grain, seed and feed sales, value of homegrown seed used, the value of all feed fed (except milk), and the change in value for feed and grain inventories, less the value of feed purchased. Value of farm production. The total is for cash and accrued value of sales of products and services, less the cost of purchased feed and livestock, plus the change in inventory values for grain and livestock, plus the value of farm products used. Net farm income. Value of farm production, less total operating expenses and depreciation, plus gain or loss on machinery or buildings sold. This figure includes the return to the farm and family for unpaid labor, the interest on invested capital, and the returns to management. Before 1980, this item was identified as farm and family earnings or net farm earnings. Labor and management income per op>erator. We take total net farm income, less the value of family labor and the interest (including net rent) charged on capital invested. This figure as the residual return to all unpaid operator's labor and management efforts is then divided by months of unpaid operator labor and multiplied by 12 to reflect income for one op- erator on multiple-operator farms. Capital and management earnings. This is net farm income, less a charge for all unpaid labor. Management return. This is the residual surplus left after a charge for unpaid labor and the interest or land charge on capital are deducted from net farm income. Rate earned on investment. Capital and manage- ment earnings (interest on all capital and land charge plus management returns) per $100 of the total farm investment. RECENT CHANGES IN INCOME ON ILLINOIS FARMS Farm business trends in 1982 Illinois agriculture is based largely on crop pro- duction, especially corn and soybeans. In 1982, Illinois again ranked first in the nation in the production of soybeans and second in the production of corn. The total value of corn and soybeans produced on Illinois farms was 18 percent of the total U.S. production for these crops. In 1981, the total value was 64 percent of the total cash receipts in Illinois from all crops and livestock and 90 percent of the cash receipts from all crops sold by Illinois farmers. Crops. Year-to-year variations in net income are related to crop yields, grain prices, and acres in high cash-value crops. In 1982, the average corn yield for Illinois hit a record 134 bushels per acre, 6 bushels above the 1 98 1 yield. Record-keeping farms averaged 138 bushels per acre in 1982, compared with 132 bushels in 1981. Soybean yields were, on an average, 1 bushel higher in 1982 than in 1981. Crop yields on the 8,132 record-keeping farms covered in this report continue to average about 3 percent above the average for all Illinois farms as reported by the Illinois Crop Reporting Service. The prices received for all soybeans sold during the year averaged $1.11 to $1.28 per bushel below 1981 prices, depending on location in the state (Table 1). Corn prices received in 1982 averaged 23 to 51 cents less than those of 1981. Wheat sold for 27 to 38 cents less per bushel during the year. However, marketing margins on old-crop corn inventoried at the beginning of the year were positive. But year- end, new-crop corn and soybean inventory prices were 6 to 10 percent below the previous year's inventory prices. Both corn and soybean acreage increased 2 percent in 1982, whereas wheat acreage declined 16 percent. At 118 (using a new base of 1977 = 100), the Illinois all-crop production index was up 3 percent from that of 1981. Corn planting for the 1982 crop started slowly because of cool, wet weather in April but was com- pleted ahead of normal because of favorable weather in May. Ample moisture and mild temperatures dur- ing the growing season allowed the crop to develop ahead of normal. Warm, dry weather during the fall provided excellent harvesting conditions so that the corn harvest was completed ahead of normal. Soybean planting also started later than normal after the cool, wet spring delayed fieldwork. In spite of June rains delaying some planting, conditions that followed planting were nearly ideal. Mild temperatures and adequate moisture during the growing season fol- lowed by dry harvesttime weather resulted in the completion of harvest ahead of normal. Livestock. A second major determinant in farm income is the price farmers receive for livestock and livestock products. In 1982, the average market prices received by farm record-keepers in the Illinois FBFM Table 1. Average Prices Received and Paid by Farm Record Keepers 1982 Northern Illinois Southern Illinois Grain prices per bushel Purchased — corn $2.39 $2.39 Sold — corn ...... 2.50 2.46 soybeans 5.97 5.88 wheat 3.28 3.29 Livestock prices per cwt. Hogs, all weights $53.96 Fed cattle, all weights 61.94 Feeder cattle, all weights, prices paid 61.65 Dairy cattle, all weights 49.62 Sheep and wool, all weights 48.00 Milk per cwt 12.92 Eggs per dozen. . . .48 1981 Northern Illinois Southern Illinois $2.85 3.01 7.25 3.66 $2.99 2.97 6.99 3.56 $42.70 62.42 63.80 52.55 51.80 13.19 .49 Association were 1 to 1% lower for all livestock and livestock products except pork, which was 26 percent higher (Table 1). The prices paid for all weights of feeder cattle and feeder pigs purchased averaged 3 percent below the 1981 price for feeder cattle but 38 percent above the 1981 price for feeder pigs. The relatively steady prices of fed cattle, combined with lower feed and replacement cattle costs, resulted in fed-cattle enterprises yielding returns on the feed fed similar to those in 1978 and 1979. The increased hog prices, combined with an 1 8 percent drop in the price of corn fed, made returns from hog enterprises approximate the record high-return years of 1969, 1972, and 1978. Labor and management earnings The average operator's share of labor and man- agement earnings for 1978-1982 from all northern Illinois record-keeping farms (those north of a line from Kankakee to Moline) was $4,880. Operators on 1,910 grain and hog farms in central Illinois had 5- year average earnings of $9,463 (Table 2). Central Illinois occupies the area between the Kankakee- Moline line on the north and the Mattoon-Alton line on the south. Smaller farms and variable soil quality in northern Illinois result in smaller earnings from crops. The farms there typically average 5 to 10 percent lower crop yields than those in central Illinois. Table 2. Operator's Share of Labor and Management Earnings by Size and Type of Farm (1978-1982 Average) Number of acres per farm Under 340 340-649 650+ All Northern Illinois Acres of tillable land 222 431 836 459 Labor and management earnings by type of farm Grain $1,156 $6,953 $10,392 $6,828 Hog 4,559 9,864 3,839 6,408 Beef -7,228 -9,991 -5.578 -8,420 Dairy 6,758 9.918 ... 7,843 All 2,767 5,616 6,900 4,880 Central Illinois Acres of tillable land 243 447 836 536 Labor and management earnings by type of farm Grain" $5,194 $9,816 $17,593 $11,698 Grain^ 2,899 6,633 11.928 8,067 Hog 5,665 4,494 13.339 6,374 All 4,631 7.703 14.933 9.463 Southern Illinois Acres of tillable land 221 454 911 551 Labor and management earnings by type of farm Grain $2,506 $3,266 $6,415 $4,408 Hog 2.594 3,396 . . . 2,773 Dairy 15.909 17,898 ... 16.547 All 6.049 4.558 5.939 5,537 * Includes central Illinois. *> Highly productive soils with soll-productlvlty ratings of 86 to 100. '^ Heavy till and transltton soils witri soll-productlvlty ratings of 56 to 85. The record-keeping farms in northern Illinois aver- aged 459 tillable acres per farm, compared with 536 tillable acres on farms in central Illinois. The labor and management earnings vary considerably, depend- ing on the location and type of farm. For 1978-1982, operators in southern Illinois averaged $5,537 for labor and management. In all areas, operators of dairy farms and of grain farms larger than 650 acres had the highest 5-year average earnings. In 1982, the labor and management earnings for all areas of Illinois averaged $-1,751 per farm. This was a $10,731 increase per farm over 1981 due primarily to higher prices for beef cattle and hogs and lower interest charges on declining land values. For two years, the area along a line roughly from Mattoon to Jacksonville has had very high corn yields. This resulted in above-average earnings for this part of the state while the areas outside central Illinois were recovering from below-average earnings. The earnings (salary) of the farm operator — whether tenant or part-owner — covered the labor and management provided by the operator. The level of earnings received is a measure of overall farming efficiency and includes compensation for the risk involved. The earnings include the operator's gross sales and the net change in inventory, jeduced by operating expenses, depreciation, a charge for unpaid family labor, 14 percent interest on nonland assets, and a land-use charge equivalent to the average net rent received from 1977 to 1981 by landowners for crop-share leases. When these noncash charges are added to the labor and management earnings, the resulting average net farm income for all areas of the state is $20,243 per operator. This iucome is for living, income and social security taxes, savings, and nonfarm investments. It is estimated to be about $10,000 less than the average operator's spending level in 1979. Family living expenditures Total living expenditures for a sample of 195 central Illinois farm-operator families in 1982 aver- aged $24,644 (Table 3). This average was 5 percent less than that of 1981. The average farmer in this sample paid $22,644 in interest in 1982, up $6,000 from the year before. Interest paid has increased from 12 percent of total cash-operating expense in 1979 to 20 percent in 1982. The outstanding debt rose from $210,515 at the beginning of the year to $227,064 at the end of the year. In 1982, the average age of the operators in the sample was forty-two. On an average, there were 3.7 members per family, with the oldest child being 10 years old. Operators farmed 606 tillable acres, of which 122 acres (20 percent) were owner-operated. They kept records so that all sources of funds, both farm and nonfarm, balanced with all uses of funds in a complete, monthly cash- flow accounting system. The farms contained 76 more tillable acres than the average of all the record- Table 3. Operator Farm and Family Sources and Uses of Dollars on an Average per Family, 1979 to 1982, Central Illinois All records, average per farm 1982 1981 1980 Number in sample 195 132 178 Tillable acres farmed 606 590 602 Acres owned 122 106 120 Liabilities, January 1 $21 0,51 5 $1 70,376 $1 54,467 Liabilities, December 31 227,064 188,41 1 176,889 Sources of Dollars Nonfarm taxable income $ 11 ,552 $ 8,747 $ 6,620 Money borrowed 120,741 110,019 101,424 Farm receipts 149,695 136,447 140,892 Total Sources $281 ,988 $255,213 $248,936 Use of Dollars Interest paid $22,644 $16,619 $14,359 Cash operating expenses 90,769 80,284 83,684 Capital farm purchases 21 ,988 22,232 18,155 Payments on principal 104,192 91 ,983 79,002 Income and Social Security taxes... 4,802 6,008 6,130 Net new savings and investment. . . . 9,599 8,194 21,171 Nonfarm business expenses 3,350 3,981 3,003 Total living expenses 24,644 25.912 23,432 Total Uses $281 ,988 $255,21 3 $248,936 ' Records were sorted into high- and low-third categories according to total living expenses. 1979 Family of 3 to 5, 1982 High-third' Low-third 206 596 140 $164,604 204,714 $ 6,537 134,584 147,324 $288,445 $ 12,497 87,549 31 ,093 94,474 8,414 28,199 2,733 23,486 $288,445 47 686 123 $283,009 313,888 $ 16,858 163,301 172.591 $352,750 $ 33,447 101,034 32,974 132,047 4,782 1 1 ,046 2,687 34,733 $352,750 47 532 130 $186,856 202,196 $ 11,504 104,544 128,899 $244,947 $ 17,555 84,054 15,933 88,992 3,056 14,203 4.170 16,984 $244,947 keeping farms in the state. Management was also considered to be slightly above average. Considering these factors, it is estimated that the average total family living expenditures for all record-keeping fam- ilies would be about $20,000 to $22,000 — 10 to 15 percent below the average of these 195 farms. The most significant observation from a study of this sample was the apparent need for families to reduce expenditures wherever possible to compensate for the tremendous increase in interest cost. Although part of this higher interest cost was offset by higher nonfarm taxable income from returns on savings and money market funds plus lower income taxes paid in 1982, expenses still went up more than income. Families (in this sample) borrowed $26 more per tillable acre in 1982 than they were able to repay. They borrowed $199 for each tillable acre farmed and paid back $173 per acre. The 1982 records from families with 3 to 5 persons were sorted into high one-third and low one- third groups, according to the total of noncapital living expenses (see Table 3). The total living expenses for the high-third group averaged $34,733 compared with $16,984 for the low-third group. The high-third group farmed 1 54 more acres than the other group and owned 18 percent of the land farmed; the low- third group owned 24 percent of the land farmed. Consequently, the high-third group paid more income taxes and had higher living expenses, higher payments on debt principal, and twice the dollars for capital purchases. Income changes on Illinois farms Comparative costs and returns between years and among major types of farming operations in northern and central and southern Illinois are reported in Tables 4, 6, and 7. The separation of farms into northern and central, and southern Illinois is based on soil-type regions dividing the state approximately on an east-west line from Mattoon to Alton. The sample consisted of grain, hog, beef, and dairy farms that were between 340 and 499 acres and averaged 417 acres. Labor available on farms of this size averaged 14 months on grain farms, 20 months on hog farms, 17 months on beef farms, and 25 months on dairy farms. The data in the tables are presented as if the farms were all owner operated. For leased farms, the landlord and tenant shares of the business were combined. Between 55 and 75 percent of the land in Illinois is tenant operated, depending on the location, primarily under crop-share and livestock- share leases. Size of farm, type of farm, quality of soil, and managerial inputs have been held reasonably constant by the sampling procedure used in selecting farms within each category. Variations among figures for 1 98 1 , 1 982, and the 5-year average are due to changes in farm prices and to costs, weather, and internal farming adjustments. The data in Tables 4, 6, and 7 are particularly helpful for evaluating changes in farm costs and returns within a particular size and type of farm, and for making comparisons between types of farming. The data do not reflect overall farming adjustments resulting from the enlargement of farms or major changes in the use of resources. The figure for net farm income (formerly iden- tified as farm and family earnings) comprises returns to the farm family for all unpaid labor, interest on invested capital, and the managerial inputs used in farming. Changes in the value of farm inventories and that of farm products consumed are included as income. Net farm income is calculated by accounting methods generally comparable to the accrual method used to calculate taxable farm income for the federal income tax. Two important differences occur under the accrual method of income tax accounting — the provision for capital gains on livestock sales and the inclusion of interest paid as a farm expense. The net farm income figure is the amount avail- able from the farm business to pay for living costs, income and social security taxes, interest, debt re- payment, and new investments and to increase savings. New capital investments for the farm business have been included with total cash expenditures. Although the cash balance reflects the cash position of the farm business, the figure is influenced by the purchases and sales of feed and livestock and by the changes in liabilities and borrowed funds. The investment per farm is established as an average of the January 1 and December 31 invest- ments on the farm each year. Physical quantities of grain and livestock are valued at farm market prices. Machinery, buildings, and soil fertility are valued at the remaining capital cost (original cost less deprecia- tion as allowed for income tax deductions to date). Land is priced at current values. A base land value is established for each farm, on the basis of soil- Table 4. Average Selected Total Farm Items on 340- to 499-Acre Northern and Central Illinois Grain, Hog, and Beef Farms Grain farms^ 1982 1981 1978-82 average Hog farms 1982 1981 1978-82 average Beef farms 1982 1981 1978-82 average Number of farms 370 357 361 121 142 125 41 45 48 423 88 Total acres Soil-productivity rating" Cash operating income $ 131,658 Less purchased feed and livestock 654 Net cash operating income $ 131,004 Inventory change -3,445 Farm products used . . 226 Value of farm production $ 127,785 Total operating expenses Annual depreciation . . . 60,837 16,175 Unpaid labor charge Returns to capital and management . Interest charge on capital Management returns Total cash income'^ Total cash expenditures'^. . . Cash balance Capital purchases FARM INVESTMENT Livestock inventory Grain inventory .... Remaining capital cost in: Machinery and auto Buildings and fence Soil fertility Value of land (current basis) Total farm investment $1 Rate earned on investment, % 12,815 37,958 57,088 -19,130 132,720 73,605 $ $ 59.115 13,056 134 97,824 40.672 24,971 33 422 420 89 88 $ 127,422 $ 123,848 Net farm income $ 50,773 $ 598 614 $ 126,824 $ 123,234 -2,357 5,238 263 154 $ 124,730 $ 128,626 59,977 15,117 53,864 14,290 49,636 $ 12,937 36,698 61,310 60,472 1 1 ,980 48,492 55,280 $ -24,611 $ -6,788 127,984 124,568 76,069 69,402 $ 51,915 $ 16,313 $ 251 $ 101.824 55,166 d 165 95,048 42.539 40,709 24.294 23,085 35 34 1,302,028 1,439,460 1,235,975 465,662 2.59 $1,608,403 $1,395,016 2.28 3.48 411 413 82 81 $ 240,112 $ 206,868 66,549 59,445 412 81 $ 211,510 62,996 $ 173,563 $ 147,423 14,388 -10,733 634 660 $ 148,514 9,767 612 $ 188,585 $ 137,350 $ 158,893 78,939 25,852 73,440 23,232 69,425 23,214 $ 83,794 $ 16,072 67,722 69,914 40,678 15,989 24,689 71,417 $ 66,254 15,010 51 ,244 63,082 $ -2,192 $ -46,728 241,069 207,710 175,087 154,545 53,165 21,436 65,982 $ 29,492 73,541 $ 63,892 73.896 80,296 49,167 51,197 78,703 77,962 77 28 $ -11,838 212,214 162,766 $ 49,448 d $ 70,849 71.930 50,135 79,746 78 1,087,325 1,185,652 1,195,304 $1,362,709 $1,459,027 4.97 1.69 $1,468,042 3.49 409 416 410 ' 80 82 81 $ 315,536 $ 321,189 $ 307,695 186,536 150.229 173.598 $ 129,000 15,476 ,1,045 $ 170,960 $ 134,097 -57,284 3,880 1,124 1,015 $ 145,521 $ 114,800 $ 138,992 73,397 23,598 71,832 22,655 64,992 21.418 $ 48,526 14,342 34,184 76,536 $ -42,352 315,668 $ 20,313 $ 52,582 14,250 13,198 6,063 79.928 39.384 69,802 $ -73,865 $ -30,418 321,377 308.132 280.606 236,325 264,082 $ 35,062 20,709 $ 130,987 78,624 49,414 70,929 $ 85,052 $ 44,050 14,297 ..." $ 128,066 $ 135,282 89.484 77,589 54,397 65,216 49,975 70.842 1,082,198 1,193,913 1,028,950 $1,412,152 2.42 $1,531,076 $1,362,638 .40 2.89 * Sample now includes only farms where value of feed fed to livestock was less than 1 percent of crop returns ''Adjusted m 1979 See Illinois Circular 1156. Soil Productivity In Illinois '■ Includes sales or purchases of capital items " Data available only for period from 1980 to 1982 6 productivity rating that is adjusted to a current value each year by using the February index of land prices in Illinois. The procedure used for adjusting the land value is described in the definitions of soil productivity rating and value of land (current basis) on page 2. The annual change in land values represents an accounting adjustment to bring land values to current market levels. The land adjustment index for 1982 was 8.8 percent below that of 1981. Northern and central Illinois farms The net farm income for grain farms having no livestock in northern and central Illinois (340 to 499 acres) averaged $50,773 in 1982, with operator and landowner shares combined (Table 4). This income is $1,137 above that of 1981 but $9,699 below the 1978-1982 average. Because of two years of very low income, cash-operating expenses increased only 1 percent over the previous year, compared with the usual 9 to 1 1 percent annual increases since 1978. The allowance for depreciation increased 7 percent over 1981 while capital purchases declined 20 percent to $13,056 per farm or only $33 per tillable acre. This sample includes only farms that have essentially no livestock, whereas summaries in previous years included farms where the value of feed fed to livestock was less than 40 percent of the crop returns. Farms in this sample used 96 percent of the tillable land to grow corn and soybeans, with 54 percent of the acres in corn and 42 percent in soybeans. Table 5 compares the 1982 cost per acre of growing corn and soybeans in central Illinois with the 1981 costs on approximately the same farms. In 1982, the total cost averaged $395 per acre for corn and $313 for soybeans. From 1981 to 1982, the total cost decreased 1 percent for both corn and soybeans. The nonland interest cost is now one of the largest cost items apart from the charge for land. Nonland costs of $1.78 per bushel for corn and $4.22 for soybeans in 1982 are the most relevant costs for continuing production in the short run, especially where land is free of debt. The higher yields in 1982 reduced the cost per bushel. If the 1982 yields had been at the 1979-1982 average of 136 for corn and 44 for soybeans, the total of all costs per bushel would have increased to $2.90 for corn and $7.1 1 for soybeans. The cost of fertility for soybeans was allocated on the basis of P, K, and lime removals, with the residual allocated to corn. The total unpaid labor charge was based on the labor available. The nonland interest rate was 14 percent of one-half the average of the beginning- and end-of-year inventory value for the crops on hand plus one-half the cash operating ex- penses, excluding interest paid, plus the depreciated value of machinery and buildings. The adjusted net rent was the average net rent received by crop-share landlords as reported on record-keeping farms for 1979-1981. Hog farms. The net farm income for hog farms in northern and central Illinois (340 to 499 acres) in 1982 averaged $83,794, with operator and landlord shares combined (Table 4). This is more than double the record low net income in 1981. The 26 percent increase in the average selling price for hogs and the 9 percent decrease in feed costs allowed the average hog producer to recover about half the losses incurred during the previous 3 years. These farms have had substantial negative management returns in 3 of the past 5 years. Gross crop values dropped 3 percent because of slightly lower yields and lower selling prices. Each farm farrowed an average of 1 5 1 litters and produced 10 percent less pork than the peak year of 1979. The increase in the 1982 allowance for depreciation over 1981 results from the carry-over effect of large in- vestments in new equipment and facilities in 1978. The increase was also affected by attempts in 1982 to make capital improvements that were postponed in 1980 and 1981 because of very low incomes. Cash- operating expenses increased 7 percent from 1981 to 1982 compared with 1 1 percent in 1979, 5 percent in 1980, and 6 percent in 1981. Since 1978, annual operating expenses per farm have increased $3,889 or 6.5 percent per year. The year 1982 can be described as one in which the hog enterprise profits Table 5. Average Cost Per Tillable Acre to Grow Corn and Soybeans on Central Illinois Grain Farms with No Livestock Corn 1982 1981 Number of farms 547 503 Acres grown per farm . . . 302 301 Yield per acre, bu 155 146 Nonland costs Variable costs Soil fertility $ 57 $ 58 Pesticides 19 18 Seed 19 19 Drying and storage 15 11 Machinery repairs, fuel, and hire 31^ 32 Total, variable costs . . .$141 $138 Other nonland costs Labor $31 $ 31 Buildings and storage 9 9 Machinery depreciation 33 31 Nonland interest 51 52 Overhead V\_ 11^ Total, other costs $1 35 $1 34 Total, nonland costs . . .$276 $272 Land costs Taxes $22 $ 20 Adjusted net rent 97 105 Total land costs $119 $1 25 Total, all costs $395 $397 Nonland cost per bu $ 1.78 $ 1.86 Total, all costs per bu $ 2.55 $ 2.72 Avg. yield, past 4 years . . 136 130 Total, all costs per bu. . . .$ 2.90 $ 3.05 Soybeans 1982 1981 547 260 46 503 268 43 $ 17 17 13 4 $ 17 16 13 3 26 27 $ 77 $ 76 $ 28 5 $ 29 5 26 47 11 26 46 10 $117 $194 $116 $192 $ 22 97 $ 20 105 $119 $125 $313 $ 4.22 $ 6.80 $317 $ 4.47 $ 7.37 "44" $ 7.11 ■43" $ 7.37 subsidized the crop enterprise losses. This allowed the total farm approximately to break even by re- covering the costs of all inputs computed at market rates. Beef farms. The net farm income for beef farms in northern and central Illinois (340 to 499 acres) averaged $48,526 in 1982, with operator and land- lord shares combined (Table 4). This is $28,2 1 3 above 1 98 1 but $4,056 below the 1 978- 1 982 average. These farms produced 1,786 hundredweight of beef per farm, or weight-in-gain equivalent to 357 head at 500 pounds of gain per head. This is 4 percent more than the average weight produced for 1978-1982 period. For 4 consecutive years and for 6 of the last 7 years, these farms have earned little in relation to the cost, both cash and noncash, of resources used. Although beef farms improved their net income sub- stantially from 1981 to 1982, they still rank very low as income-producing farms when all resources used are charged at market prices. A recovery in year-end inventory values of crops and livestock, combined with lower feed costs and slightly lower replacement costs for feeders, contributed to the improved income in 1982. Historically, returns on beef farms have fluctuated between high- and low-profit years. Since 1974 there have been only 2 profit-making years — 1975 and 1978. Since 1979, steady cost increases, especially for interest, have continued to plague beef farms while average selling prices have decreased. Operators re- duced capital purchases for machinery, equipment, and buildings in 1981 to half of the purchases made in 1980, but increased 1982 purchases to about the 1980 level. The average rate earned on the invest- ment of 2.89 percent for the last 5 years is low enough to convince some Illinois beef farmers to consider changes in their present feeding program or in their choice of enterprise. The data indicate that most farms on which beef cattle are raised or fed continue to compete for resources in Illinois where nonmarketable resources or very high levels of management are available. Unless the corn-beef livestock feeding ratios improve considerably, we can expect to see this type of farm survive primarily where there are large amounts of debt-free capital that can be combined with very high levels of management. Dairy farms. The net farm income for dairy farms in northern and central Illinois (340 to 499 acres) averaged $45,326 in 1982, with operator and land- lord shares combined (Table 6). This figure dropped 15 percent below 1981 following a 25 percent drop from 1980 to 1981. The 1982 net is $19,234 below the 1978-82 5-year average, a drop of 30 percent. The average number of cows per farm held steady at 61 cows. The value of farm production increased 2 percent primarily from increased crop sales and miscellaneous receipts. Milk and cull cow sales remained about the same primarily because of higher milk production per cow. High levels of expenditures (for new ma- chinery, equipment, and buildings), triggered by high net incomes from 1978 to 1980, continued to increase depreciation in 1982. The recent 12 percent annual rate of increase in cash-operating expenses declined to 8 percent in 1982. These cost increases, combined with a 14 percent annual increase in interest charges since 1978, have caused management returns to de- cline from $12,007 in 1979 to $-42,584 in 1982. Interest is now one of the largest nonfeed costs in milk production (see Table 14). Net incomes are being squeezed by continued cost increases, with no increase in returns from milk or crop production. The 1978-82 average rate earned on the investment for this type of farm was 4.23 percent. This rate of return is higher than that earned on other farm types in northern and central Illinois. However, the contin- uation of present cost-price relationships will require Table 6. Average Selected Total Farm Items on 340- to 499-Acre Northern and Central Illinois Dairy Farms 1982 1981 1978-82 average Number of farms 58 52 47 Total acres r 407 Soil-productivity rating* ... 71 Cash operating income ... $ 185,321 Less purchased feed and livestock 31,100 401 71 $ 181,442 30,833 $ 150,609 1,825 1,088 $ 153,522 74,787 25,693 $ 53,042 19,660 33,382 68.701 $ -35,319 181.488 141.309 $ 40,179 35,756 $ 74,129 64,672 66,836 88,969 5 929,684 $1,224,295 2.73 399 70 $ 175,007 30,513 Net cash operating income $ 154,221 Inventory change 1 ,599 $ 144,494 11,878 Farm products used 1 ,006 Value of farm production $ 156,826 Total operating expenses 81 ,225 Annual depreciation 30,275 Net farm income $ 45,326 Unpaid labor charge 20,238 Returns to capital and management 25,088 Interest charge on capital 67,672 Management returns $ -42,584 Total cash income" 1 85,468 Total cash expenditures" 140,403 Cash balance $ 45,065 Capital purchases 28,358 FARM INVESTMENT Livestock inventory $ 76,508 Grain inventory 63,187 Remaining capital cost in: Machinery and auto 69,741 Buildings and fence — 85,126 Soil fertility 912 $ 157,284 68,971 23,843 $ 64,470 18,523 45,947 57,614 $ -11.667 175,443 136,041 $ 39,402 c $ 70,045 58,191 59,606 83,944 1 Value of land (current basis) 872,284 815,377 Total farm investment $1,166,846 Rate earned on investment. % 2.15 $1,087,164 4.23 • Acjjustod In 1979. See Illinois Circular 1 156. Soil Productivity in Illinois. " Includes sales or purcriases o( capital items. '^ Data available only (or period from 1980 to 1982. 8 adjustments on dairy farms so that unit production costs are lowered until surplus dairy supplies are reduced. Dairy farmers with high debt loads will be the first to feel the cash-flow crunch, and some may not be able to continue in business. The price received for beef from cull animals and vealers sold from the dairy herd can be an important factor in determining total returns. When beef prices were high, those sales accounted for as much as 20 percent of the total income from the dairy enterprise, as they did in 1978 and 1979. But when beef prices are low, as they were from 1975 to 1977 and again since 1980, this source of income has dropped to only 10 to 12 percent of the total. Southern Illinois farms Grain farms. The net farm income for grain farms in southern Illinois (340 to 499 acres) averaged $34,805, with operator and landlord shares combined (Table 7). This figure is only $762 above 1981 and is $7,329 or 17 percent below the 1978-1982 average. Much of the effect of the higher 1982 corn and soybeans yields was offset by lower selling prices and lower wheat yields. The effect of low incomes during the past 3 years is evident in spending patterns. To balance cash flows, farm operators reduced spending wherever possible. Although cash-operating expenses increased 7 per- cent in 1980 and 4 percent in 1981, they remained Table 7. Average Selected Total Farm Items on 340 - to 499-Acre Southern Illinois Grain, Hog, and Dairy Farms Grain farms Hog farms Da iry farms 1982 1981 1978-82 average 1982 1981 1978-82 average 1982 1981 1978-82 average Number of farms 143 139 155 65 62 56 42 34 40 Total acres Soil-productivity rating* 415 60 421 61 420 61 423 61 415 60 415 60 402 61 407 60 403 60 Cash operating income $109,345 8,369 $105,738 7,488 $104,947 8,746 $200,219 55,665 $184,802 64,844 $176,794 57,297 $195,212 33,896 $ 199,565 37,234 $181,545 Less purchased feed and livestock 31,401 Net cash operating income $100,976 -2,347 922 $ 98,250 -1,787 1,193 $ 96,201 3,029 750 $144,554 18.446 969 $119,958 -3,746 1,216 $119,497 8,530 800 $161,316 661 1.174 $ 162,331 3,530 1,620 $150,144 Inventory change Farm products used . . 12,993 1,193 Value of farm production $ 99.551 $ 97,656 $ 99.980 $163,969 $117,428 $128,827 $163,151 $ 167,481 $164,330 Total operating expenses Annual depreciation. . . 48,714 16.032 49,136 14,478 44.015 13.832 66,311 23,109 60,842 20,986 55,898 20,137 75.128 31 .436 77,264 27,402 67,627 25,254 Net farm income $ 34,805 $ 34,042 $ 42,133 $ 74,549 $ 35,600 $ 52,792 $ 56,587 $ 62,815 $ 71,449 Unpaid labor charge . . Returns to capital and management . . . Interest charge on capital 13,358 21 ,447 37,801 13,062 20,980 40,382 12,530 29.603 36.155 14,951 59,598 49,608 15,487 20,113 51.161 14,047 38,745 44,140 18.761 37.826 57.346 17,437 45,378 58,895 16,562 54,887 48,043 Management returns $-16,354 $-19,402 $ -6,552 $ 9,990 $-31,048 $ -5,395 $-19,520 $ -13,517 $ 6,844 Total cash income" Total cash expenditures" 109,507 69,511 106,693 72,361 $ 34,332 16,438 105.679 69.490 $ 36.189 c 201 ,082 142.899 $ 58.183 20,635 185.046 141.754 $ 43.292 16.752 177,229 138,576 $ 38,653 c 195.766 130,813 $ 64,953 22,289 $" 199,798 144,872 54,926 31,133 181,821 129,882 Cash balance $ 39,996 12,751 $ 51,939 Capital purchases'^ c FARM INVESTMENT Livestock inventory . . . Grain inventory $ 11,396 56,110 $ 11,632 56,773 $ 11.719 53.866 $ 55,646 55,962 $ 53.393 57.443 $ 52,210 53,587 $ 75,103 56,164 $ 78.896 55.408 $ 67,000 53,543 Remaining capital cost in: Machinery and auto Buildings and fence Soil fertility 41,971 13,845 39 44.837 15,441 186 42.165 15.823 90 47,760 44,200 446 46.860 47.569 351 48,588 48,181 327 70,896 54,262 14 67,192 58,022 23 64,362 50,276 27 Value of land (current basis) 742,792 811.136 716.951 713.030 783,327 671,350 703,976 742.757 648,408 Total farm investment $866,153 $940,005 $840,614 $917,044 $988,943 $874,243 $960,415 $1,002,298 $883,616 Rate earned on investment, % 2.48 2.23 3.52 6.50 2.03 4.43 3.94 4.53 6.21 * Adjusted in 1979. See Illinois Circular 1156. Soil Productivity in lliinois. ° Includes sales or purchases of capital itenns. "^ Data available only for period from 1980 to 1982. 9 the same in 1982. Depreciation charges increased 10 percent in 1982 primarily because of the accelerated cost-recovery system of depreciation authorized by changes in the 1981 income tax law. Capital purchases actually declined from $16,438 per farm in 1981 to only $12,751 or $33 per tillable acre in 1982. The 0.25 increase in rate earned on the investment was due primarily to the decline in total investment re- sulting from a 9 percent drop in land values. Man- agement returns for this size and type of farm have been very low during the past 2 years, but the return has been negative in only 4 of the past 16 years. Hog farms. The net farm income for hog farms in southern Illinois (340 to 499 acres) averaged $74,549 in 1982, with landlord and operator shares combined (Table 7). This figure is more than double that of 1981 and 41 percent above the 1978-82 average. The higher selling price of 26 percent for hogs combined with a 9 percent lower feed cost and a 10 bushel higher corn yield helped boost 1982 incomes well above the record low 1981 level. Esti- mates indicate that the higher 1982 incomes allowed these farms to recover about half the losses they incurred during the previous 3 years. The 1982 management returns of $9,990 were well above the 5-year average of $-5,393. When funds are available, capital purchases for new facilities generally follow. From 1972 to 1979 producers invested heavily in new facilities. But in 1980 and 1981, purchases were reduced to the bare minimum because incomes dropped. In 1982 these purchases per farm increased from $16,752 (in 1981) to $20,635. This resulted in a 10 percent increase in the depreciation charge for 1982. A reduction in the number of litters raised per farm from 201 in 1979 to 151 in 1982 has helped increase profit margins after 3 years of losses. The returns from producing hogs averaged $4 to $8 less per 100 pounds produced than the amount needed to cover all costs from 1979 to 1981 (Table 1 1). The 1982 returns averaged $9 to $11 per 100 pounds produced above all costs. Total operating expenses on southern Illinois hog farms increased by 9 percent in 1982. These expenses have increased at the rate of 8.8 percent a year since 1978. Even though the rate earned on the investment for 1980 and 1981 was unusually low, the 1978-1982 rate earned, 4.43 percent, was still higher than that for any other type of farm in this size range in Illinois except for the southern Illinois dairy farm. In 1982 the profits from the hog enterprise tended to supple- ment the low income from grain production on these farms. Dairy farms. The net farm income for dairy farms in southern Illinois (340 to 499 acres) in 1982 aver- aged $56,587 with operator and landlord shares combined (Table 7). This figure is 10 percent below 1981 income and 21 percent below the 1978-1982 average. Lower crop, milk, and beef prices combined with continued cost increases further reduced the net income. These factors more than offset corn yields that were 6 bushels per acre higher The 13 percent average annual increase in cash- operating expenses from 1978 to 1981 came to a halt in 1982 when these expenses actually declined 2 percent. In 1982 the squeeze on net incomes reduced capital purchases for new machinery, equipment, and buildings by 28 percent from the 1981 level. The annual charge for depreciation increased 15 percent in 1982 compared with annual increases of 12 percent from 1978 to 1981. Farmers claimed some of these charges as income tax deductions during the high income years, namely, from 1978 to 1980. In 1981 and 1982 the accelerated cost-recovery depreciation program for income tax helped to increase the de- preciation deductions. These larger deductions, which are a result qf large capital investments made since 1980, may spell trouble for farms that have very high debt loads with little equity capital. The average number of milk cows per farm in 1982 was 69 compared with an average of 73 for 1978-1982. This average of 69 milk cows per farm in 1982 is 8 more than on farms of a similar size and type in northern Illinois. Even though these southern Illinois farms had 8 more milk cows per farm than in northern Illinois, the time spent as labor was lessened by 1 month. Interest charges are among the highest cost items apart from feed in the production of milk (see Table 14). Interest on capital invested increased 18 percent per year from 1978 to 1981 but finally declined 3 percent from 1981 to 1982. If milk prices are ex- pected to decline because there is a surplus of dairy products in relation to demand, costs will need to decrease. Otherwise net incomes will decline. For each $1.00 drop in the average price received per hundredweight of milk, net income could decline about $9,660 per farm. Each 5 percent decrease in nonfeed costs could increase net income about $9, 1 34 per farm. Adjustments required to meet changes of this kind include improving efficiency, reducing cost, diverting resources to produce income from other uses, or being willing to accept lower returns for equity capital investment and unpaid family labor The rate earned on investment for 1978-1982 averaged 6.21 percent, compared with 4.23 on similar farm investments in northern Illinois. These averages indicate that for the investment involved, the average dairy farm (of the size under discussion) in southern Illinois has been more profitable than any other farm type listed in Tables 4, 6. and 7. During 1978-1982, the average value for bare land on these southern Illinois dairy farms was $1,609 per acre, compared with $2,044 on northern Illinois dairy farms; building investments averaged $85 less per acre. 10 LIVESTOCK ENTERPRISES Table 8 shows the return (per $ 1 00 of feed fed) from various livestock enterprises and the price of corn during each of the past 1 5 years. Averages for 15 years and 5 years are also shown. The difference between the average return figure and $100 feed cost represents the margin available for labor, depre- ciation on equipment, cash expenses other than feed, and interest on investment and for profit. The margin needed to cover nonfeed costs varies with the kind of livestock and depends on the pro- portion of total production costs represented by feed. The 15-year averages (1968-1982) represent the ap- proximate level of return at which farmers have been willing to maintain livestock production. The average may not represent a break-even return on all farms because some farmers may discount market prices for some of the resources used in producing livestock. If a farmer already has facilities for livestock, he only needs to cover direct operating costs in order to continue production. However, when he views live- stock production as a new or a long-run enterprise, he hopes to cover all costs — fixed and variable. Oth- erwise he may not undertake the enterprise. As individual farmers try to increase profits, they tend to curtail livestock production when the return per $100 of feed fed is below the 15-year average. This tendency on the part of producers causes supplies of livestock products to fluctuate. The returns from feeder cattle vary greatly from year to year. The long-run averages, shown in Table 9, indicate that the cattle-feeding business is not paying average market rates for all the nonfeed cost resources used, even though record returns were earned in 1978 and 1979. Above-average skills are needed in buying, selling, and feeding to meet the competition from other uses for time and money on farms with feeder cattle. It is difficult to identify cyclical income movements over a 15-year period in the beef-cattle industry because it is more complex and adjusts more slowly than other livestock enter- prises. For the beef-herd enterprise, the average returns above cost of feed for 1978-1982 are below the margin needed to cover all nonfeed costs (Table 9). The implication is that the beef enterprise competes most favorably on farms where labor, capital, and management resources are plentiful and where these resources have few alternate uses. The beef-cow en- terprise had record returns of $246 and $240 per cow above the cost of feed in 1978 and 1979, com- pared with $134 in the past 5 years. During the past 5 years, the dairy enterprise has had a return of $1,030 per cow above the cost of feed. This figure is $62 above the $968 average for nonfeed costs during the same period. In farrow-to-finish hog production, returns tend to follow a noticeably cyclical pattern (Table 9). They Table 8. Returns per $100 Feed Fed to Different Classes of Livestock Year Farrow- to-finish hogs Feeder pigs Feeder cattle bought Dairy Beef cow cow herds herds Poultry Native sheep raised Yearly price of corn 1968 170 1969 212 1970 142 1971 150 1972 214 1973 192 1974 121 1975 191 1976 152 1977 170 1978 208 1979 136 1980 138 1981 138 1982 213 Averages 1968-82. . . 170 1968-72. . . 178 1973-77. . . 165 1978-82. . . 167 134 171 104 122 171 161 108 158 118 134 151 106 122 115 165 136 140 136 132 142 152 118 156 161 120 64 134 93 116 170 149 111 107 147 129 146 105 137 Dollars 210 156 205 199 200 212 177 138 146 168 181 217 220 207 200 205 162 150 180 208 184 41 95 91 107 199 183 144 100 115 192 141 205 171 162 104 210 148 167 203 186 135 134 151 125 138 146 124 141 131 118 121 119 143 165 137 126 133 146 128 122 134 123 94 101 105 144 159 148 131 84 83 122 133 113 121 1.02 1.14 1.26 1.27 1.16 2.00 3.00 2.73 2.55 2.07 2.13 2.44 2.80 2.98 2.43 2.07 1.17 2.47 2.56 Table 9. Variation in Returns to Livestock Enterprise Units, 1978-1982 Farrow- Feeder- to-finish pig Feeder Poultry hogs finishing cattle Dairy Beef laying (per (per (per cattle herd flock Year cwt.) cwt.) cwt.) (cow) (cow)' (hen) Returns above cost of feed and purchased animals 1978 $25.60 $11.25 $26.27 $ 933 $246 $2.30 1979 9.50 1.57 20.27 1,068 240 1.99 1980 11.12 5.96 4.77 1,072 137 1.23 1981 11.45 4.29 3.41 1,035 1 1.48 1982 30.43 16.40 19.65 1,043 47^ 1.90 5-year avg. $17.62 $7.89 $14.87 $1,030 $134 $1.78 Nonfeed costs, 1978-1982 Direct cash" 4.80 3.30 8.15 171 27 .66 Other costs'^ 12.50 6.10 10.56 797 163 2.38 TOTAL $17.30 $ 9.40 $18.71 $ 968 $190 $3.04 Nonfeed cost for future production Direct cash 6.00 4.85 12.24 225 31 .80 Other costs 19.00 7.50 13.00 890 190 2.70 TOTAL $25.00 $12.35 $25.24 $1,115 $221 $3.50 ^ The feed cost for beef herds includes up to $42 of hay equivalent from salvage roughage. ° Includes veterinary costs, utilities, fuel, equipment repair costs, and other direct cash expenses, including interest on feeder cattle, from Table 6, Farm Management Manuals, 1978-1982. ^ Estimates of annual nonfeed costs are based on enterprise cost studies of operative units in 1978-1982. tend to exceed the 5-year average for 1 or 2 years and then drop below the average for 1 or 2 years. Returns have been below the 5-year average for 3 of the past 5 years. Raising livestock is becoming more competitive. Average profit margins are narrow. Nonetheless, large numbers of farmers are willing to stay in business as long as their return covers direct operating costs. Plans for expansion that require large investments for new facilities should be based on an estimated return that is high enough to cover all costs. Fluc- tuations in livestock returns can involve a risk in low- return years. The estimated nonfeed cost for future livestock production is shown in Table 9. 11 Hog enterprises The information on farrow-to-finish enterprises in Table 10 is based on a sample of 876 farms farrowing 10 litters or more per year. Farms were omitted from the sample if the number of hogs purchased exceeded 10 percent of the pigs weaned. This eliminated from the sample those farms with combined farrowing and feeder-pig operations. (In- formation on feeder-pig finishing enterprises is given in Table 12.) The average size of farrow-to-finish enterprises on all record-keeping farms has been increasing at a rate of about 5 litters per year, from 91 litters per farm in 1970 to 151 litters in 1982. The 1982 records summarized here for the "all farms" group show that the return above feed costs per 100 pounds of pork produced increased from $11.45 in 1981 to a record high $30.43 in 1982 (Table 9). The 5-year average for returns above feed costs per 100 pounds produced is $17.62 (Table 9). This figure is $12.81 below the 1982 return. Detailed cost records show that an average farmer with existing facilities would have needed a return (above feed costs) of $17.30 per 100 pounds to pay for all nonfeed costs during the past 5 years. The result was a margin of 32 cents for management and profit during this 5-year period. The farrow-to-finish enterprise records for 1982 reported in Table 1 were also sorted by the number of litters produced. One group farrowing 200 or more litters averaged 349 litters. The feed cost per 100 pounds of pork produced was 78 cents lower for the 349-litter group compared with the average for all farms. The large producers paid about $12 less per ton for commercial feed, whereas feed conversion was 7 pounds lower. The prices received (net at the farm) for hogs sold by large producers were 1 3 cents higher than those received by all producers. A summary of the feeder-pig production enter- prises is also reported in Table 10. In 1982, the average enterprise in this group produced 215 litters with a return of $237 per $100 of feed fed. On an average, 7.5 pigs per litter were weaned and sold at 49 pounds per head. The 1982 average price received per 100 pounds of feeder pigs sold was $102.23 or $50.09 per head. The average feed cost per 100 pounds of pork produced (pigs and breeding stock) was $36.72 for 483 pounds of concentrate. A substantial profit margin is required to com- pensate for the risk and detailed management in- volved in hog production, compared with the risk and management involved in other uses of the same resources. Large-scale hog production in modern confinement facilities requires high capital invest- ments. The future recovery of this specialized capital investment is uncertain, and the salvage value of confinement hog facilities is low. In addition, acquir- ing the managerial skills necessary for the large-scale production of hogs in confinement may discourage any rapid expansion of large hog-producing units. The data on hog enterprises in Table 1 1 show a detailed breakdown of costs and returns from a group Table 10. Hog Enterprises, 1982 Farrow to finish 200 or more Feeder- litters pig All farms per farm production Number of farms 876 202 32 Average per farm Pork produced, lb 251,539 566,957 108,905 Pork produced per litter, lb 1,665 1,624 506 Total returns $143,796 $323,540 $94,942 Value of feed fed 67,238 147,144 39,986 Returns per $100 of feed fed $ 213 $ 219 $ 237 No. of litters farrowed 151 349 215 Pigs farrowed per litter 9.21 9.23 9.16 Pigs weaned per litter 7.26 7.28 7,46 Litters farrowed per female year 1.69 1.80 1.76 Pigs weaned per female year 1 2.45 1 3.32 1 2.98 No. of pigs weaned. . . 1,096 2,541 1,604 Death loss, percent of pounds produced. . . 1.8 1.8 2.6 Weight per hog sold, lb 237 233 49* Per 100 lb. produced: Price received $ 53.96 $ 54.09 $ 102.23' Total return $ 57.16 $ 57.06 $ 87.17 Feed cost $ 26.73 $ 25.95 $ 36.72 Return above feed $ 30.43 $ 31.11 $ 50.45 Farm grains, lb 326 318 339 Commercial feed, lb J6 _87 144 Total concen- trates, lb 413 406 483 Cost per 100 pounds of commercial feed $ 14.41 $ 13.82 $ 15.17 Cost per 100 pounds of concentrates .... $ 6.46 $ 6.39 $ 7.58 * The average weight sold and price received for the feeder-pig production enterprise is for the feeder pigs only. of specialized commercial hog farms for 1979-1982. The value of the feed fed to hogs was more than 75 percent of the crop returns produced on these farms. This degree of livestock intensity indicates a com- mitment of major resources to the hog enterprise. The producers in this group probably exercise a higher level of management and use more confine- ment production facilities than the average hog pro- ducer in Illinois. The hog enterprise records summarized in Table 1 1 were sorted by the number of litters produced. The group farrowing less than 250 litters averaged 156 litters from 1979 to 1982; the group farrowing 250 or more litters averaged 420 litters during the same period. The most significant cost difference between the two groups of farms was the feed cost. The average feed cost for 1979-1982 per 100 pounds of pork produced for the large enterprises was $1.57 lower than for the small enterprises. Differences in the amount of feed used per 100 pounds of pork pro- duced and the price paid for commercial feeds caused the difference in feed costs. 12 Table 11. Costs and Returns for Farrow-to-Finish Hog Enterprises by Size of Enterprise, 1979-1982 Under 250 litters 250 litters or more 1982 1981 1980 1979 1982 1981 1980 1979 Number of farms 79 98 79 91 70 76 70 57 Average per farm Tillable acres 205 246 213 194 Number of litters 141 154 158 169 Per 100 pounds of pork produced Total returns $57.34 $40.79 $39.85 $37.51 Feed costs 27.70 30.69 29.98 27.40 Return above feed cost $29.64 $10.10 $9.87 $10.11 Nonfeed costs Buildings $ 3.25 $ 2.78 $ 2.49 $ 2.42 Machinery and equipment 4.53 3.73 3.44 3.69 Labor 3.78 3.67 3.70 3.81 Livestock expenses 1 .89 1 .78 1 .54 1 .66 Taxes .25 .26 .22 .20 Interest charge on all capital 5.90 5.78 4.68 4.10 Insurance and overhead .65 .65 .65 .57 Total nonfeed costs $20.25 $18.65 $16.72 $16.45 Total all costs $47.95 $49.34 $46.70 $43.85 Returns above all costs $ 9.39 $-8.55 $-6.85 $-6.34 368 425 388 430 379 409 360 416 Per 100 pounds of pork produced $56.72 $42.05 $40.30 $36.72 25.89 29.37 27.85 26.35 $30.83 $12.68 $12.45 $10.37 $ 3.59 $ 3.20 $ 2.77 $ 2.65 4.45 3.71 3.53 3.45 3.45 3.24 3.42 3.71 1.90 1.62 1.48 1.52 .28 .31 .25 .25 5.62 5.56 4.49 3.86 .65 .65 .70 .60 $19.94 $45.83 $10.89 $18.29 $47.66 $-5.61 $16.64 $44.49 $-4.19 $16.04 $42.39 $-5.67 From 1979 to 1982, the average total nonfeed costs for the small-enterprise group increased 23 percent and for the large-enterprise group 24 percent. The total costs for buildings, machinery, equipment, and labor in 1 982 were essentially the same for both enterprise groups. From 1979 to 1982, the returns above all costs averaged $-3.09 per 100 pounds of pork produced for the small enterprises and $-1.14 for the large enterprises, a difference of $1.95. Management prac- tices such as the choice of building systems, method of transporting hogs to market, type of market used, and on-farm versus off-farm systems for feed-pro- cessing affect the individual cost items reported in Table 1 1 . However, the return above all costs should accurately reflect the relative efficiency of the two groups of hog enterprises. Feeder-cattle and feeder-pig finishing enterprises Data for 1982 on the feeder-cattle and feeder-pig finishing enterprises are presented in Table 12. These enterprise summaries include weights and values on partly finished animals purchased in previous years and on animals purchased during the current year. The average for pork produced per farm from feeder-pig enterprises was 145,252 pounds in 1982 (Table 12). At 175 pounds of gain per head, this amounted to 830 head fed per farm in 1982, com- pared with 869 in 1981. The return above the cost of feed and purchased animals for 1978-1982 averaged $7.89 per 100 pounds of gain. This compares with an estimated return of $9.40 required to cover all nonfeed costs for the past 5 years and $12.35 required to consider future pro- duction (Table 9). Assuming that a 500-pound unit of gain equals one head of feeder cattle, the average of 132,135 pounds of beef produced per farm in 1982 (Table 12) equals 264 head of feeder cattle per farm. That is an increase of 85 above the average of 179 head fed per farm in 1971. The return per $100 of feed for feeder-cattle enterprises was $147 in 1982, com- pared with $107 in 1981 and a 15-year average of $129 (Table 8). The price paid for feeders was $2.15 per 100 pounds less in 1982 than in 1981; the price received for cattle sold in 1982 was 48 cents lower than in 1981. The average weight of animals purchased and sold remained steady at 582 and 1,049 pounds, Table 12. Feeder-Cattle and Feeder-Pig Finishing Enter- prises, 1982 Feeder Feeder-pig Items cattle finishing Number of farms 329 1 59 Average per farm Total pounds produced 132,135 Total returns $80,185 Value of feed fed $54,215 Returns per $1 00 feed fed $ 1 47 Death loss, percent of lb. produced 2.4 Average weight purchased 582 Price paid per 100 pounds $ 61.65 Price received per 100 pounds. . . $ 61.94 Average weight sold 1 ,049 Per 100 pounds produced Total return $ 60.68 Feed cost $ 41.03 Return above feed $ 19.65 Farm grains, lb 542 Commercial feeds, lb 49 Total concentrates, lb 592 404 Hay, lb 59 Corn silage, lb 774 Other silage, lb 166 Hay equivalent, lb 391 145.252 $60,120 $36,298 $ 165 $ $ 2.7 48 112.19 54.94 230 $ $ $ 41.39 24.99 16.40 329 74 13 respectively. Feed cost was $41.03 per 100 pounds produced in 1982, compared with $45.66 in 1981. Each 100 pounds of beef produced required 592 pounds of concentrates and 59 pounds of hay. The amount of corn silage used in 1982 averaged 774 pounds; other silage averaged 166 pounds, making a total of 940 pounds. Silage utilization by the feeder- cattle enterprise has remained relatively constant since 1971, with a 10-year average (1973-1982) of 986 pounds per 100 pounds of beef produced. The use of 940 pounds in 1982 was double the amount fed in 1960. The end result of this shift has been greater production and utilization of crops from a fixed land resource. The mechanization of the silage-feeding operation has also reduced the labor input per unit of production. These data do not show the wide variation in profits among cattle-feeding programs. The data in Tables 8,9, and 1 2 on Illinois feeder-cattle enterprises reflect the composite results of all qualities and ages of cattle fed. The data are heavily weighted, with good-to-choice calves and yearlings as the predomi- nant cattle-feeding system. Most farmers now feed more than one drove of cattle each year to better utilize their fixed investments in mechanized feedlots. The return above the costs of feed and purchased animals averaged $14.87 per 100 pounds of beef produced for 1978-1982 (Table 9). During this pe- riod, returns ranged from $3.41 in 1981 to $26.27 in 1978. In 3 of the past 5 years, the returns above feed costs were above the estimated $18.71 per hundredweight required to pay for all nonfeed costs for the average cattle feeder. Excluding feed, the direct cash costs associated with cattle feeding average about $8.15 per hun- dredweight. The return above feed costs has exceeded the direct cash costs per hundredweight in 3 of the past 5 years. A large but declining number of cattle feeders in Illinois apparently will feed cattle if their return covers feed and cash costs but is short of paying average market rates for some fixed and farm overhead costs. Farmers' values, goals, and attitudes have been important in maintaining production; but the dictates of the market, technological changes, and shifts in basic supply and demand factors are causing changes. The return reflected in this average of all feeder- cattle enterprises suggests that for cattle feeding to be profitable farmers must produce the kind of beef the consumer wants at the lowest possible cost. Farm- ers considering an expansion of the cattle-feeding enterprise on farms where there are no nonmarket- able feeds, unemployed labor, or fixed capital invest- ments should budget carefully before they make new investments. Dairy enterprises The minimum size for a herd included in this analysis was 10 milk cows. The averge herd size on record-keeping farms has increased an average of 1 .8 cows per year from 42 in 1970 to 63 in 1982. The return per $100 of feed fed to dairy cattle in 1982 was $205. The average for 1978-1982 was $210 (Table 8). In 1982, milk prices per hundred- weight decreased 2 percent. This compares with an average annual increase of 6 percent since 1976 and 10 and 14 percent increases in 1978 and 1979. Beef prices for all weights sold dropped $2.93 per hundred pounds, and feed costs declined $2.64 per unit of milk or beef produced from 1981 to 1982. Dairy farmers have reduced the amount of pasture and dry hay and have increased the amounts of grain and silage fed over the past two decades. Pasture days per animal unit dropped from 145 in 1960 to 50 in 1970 to only 20 in 1978. Since 1978, they have remained at about 20, indicating that this shift is now accepted on nearly all dairy farms in this sample. The dairy herds in Table 1 3 were subdivided into two groups according to their efficiency as measured by returns above the cost of feed per cow. The high Table 13. Dairy Cattle Enterprises, 1982 ^11 Efficiency farms High^ Low" Number of farms 289 93 110 Average per farm Number of cows 62.8 68.8 56.5 Milk cows dry, % 14.3 13.3 15.2 Animal units in herd . . 116 132 101 Total returns $127,692 $165,557 $ 94,849 Value of feed fed $62,139 $70,553 $54,801 Returns per $100 of feed fed $ 205 $ 234 $ 173 Returns above feed per cow $ 1 ,043 $ 1 ,380 $ 708 Total milk produced, 100 1b 8,621 10.520 6,834 Pounds of milk per cow 13,727 15,290 12,095 Pounds of butterfat per cow 507 565 447 Total beef pro- duced, lb 39,860 53,024 29,920 Pounds of beef per cow 634 770 529 Death loss, percent of pounds produced. . . 11.3 7.7 17.9 Price received for: 100 pounds of milk $ 12.92 $ 13.02 $ 12.78 100 pounds of beef $ 49.62 $ 56.27 $ 44.44 Per unit of milk and beef:'= Feed cost $ 49.28 $ 44.59 $ 55.77 Grain, lb 349 307 420 Protein and minerals, lb _95 _89 _97 Total concen- trates, lb 445 397 517 Hay and dry roughage, lb 266 209 337 Corn silage, lb 669 600 795 Other silage, lb 445 461 455 Pasture (pasture- days) 2 ... 4 Pasture-days per animal unit 21 9 40 Hay equivalent per cow, tons 7.3 7.2 7.8 Concentrates per cow, lb 8,910 9,104 8,988 • High one-third dairy (arms had returns above feed per cow that exceeded $1,180. '' Low one-third dairy (arms had returns above (eed per cow that were below $920 "^ 1 ,000 pounds o( milk or 1 00 pounds o( b6e(. 14 efficiency group, when compared with the low group, had more cows in the herd, fewer dry cows, and about double the returns above feed per cow, $1,380 compared with $708. The most significant factors were as follows: 26 percent higher milk production per cow, an average of 15,290 compared with 12,095 pounds, and a 20 percent lower feed cost per unit of milk and beef produced. The average return above feed costs per cow for all dairy herds was $1,043 in 1982 (Table 13). This compares with the 5-year average of $1,030 per cow (Table 9). The 5-year average return above feed cost required to pay market prices for all nonfeed costs is estimated to be about $968 per cow. The estimated return above feed costs currently required to attract new investments for dairy herds is about $1,115 per cow. The high returns above feed costs per cow during the past 4 years have allowed many dairymen to expand or replace their less efficient facilities. As dairy herds have decreased in number and as their size and efficiency have increased, they have, in the past 4 years, become more competitive for available resources. The data in Table 14 on dairy enterprises show a detailed breakdown for 1979 through 1982 on milk production costs and returns for dairy farms, by the number of cows in the herd. The farms included had no other livestock. All total costs were accounted for either in crops or in the dairy enterprise. The total costs for the dairy enterprise were reduced by the amount of income derived from sales or from an inventory increase in the pounds of beef produced, which was valued at the average price received for all weights of dairy animals sold in 1978-1982. The residual costs, amounting to 86 percent of the total enterprise costs, were then considered as the net cost of producing milk. The most significant differences between the herds containing 40 to 79 cows and those with more than 79 for 1978-1982 were the averages for pounds of milk produced and labor and feed costs per 100 pounds of milk produced. The large herds produced a 4-year average of 603 more pounds of milk per cow. They also averaged a 31 cent lower feed cost and a 24 cent lower labor cost per 100 pounds of milk produced in this period. In 1982, the total of all costs finally declined by 5 percent for the large herds. Milk prices have stopped increasing, with the result that dairy farmers have become more cost conscious. Nonfeed costs in 1982 increased only 1 to 4 percent compared with an average annual increase of 13 percent from 1979 to 1981. Lower feed costs more than offset any increase in nonfeed costs in 1982. Increased interest charges, which leveled off in 1982, are the second highest cost next to feed cost for producing milk. Feed now averages 44 percent of total cost compared with about 50 percent in 1979. Returns for management since 1980 have been negative. But the large herd group has averaged 0.43 cents more returns above all costs per 100 pounds of milk produced for this period than the small herd group. Beef-cow herds The minimum size for a beef-cow herd included in Table 1 5 was 1 cows. Farms combining cow herds and purchased feeder cattle were not included. In addition to all farms, Table 15 gives an analysis of cow herds in which calves were sold at weaning time, comparing them with those in which calves were finished to slaughter weights. For 1956-1969, the average size of the herd on all farms ranged from 25 to 30 cows. From 1969 to 1973, the average grew to about 40 cows per herd and remained stable through 1979. Since 1979, herd size has varied from 43 to 45 cows. Most Illinois farmers who maintain a beef-cow herd do so as a supplemental enterprise to market nonsalable feeds and labor. Table 14. Milk Production Costs and Returns by Size of Herd, 1979-1982 40 to 79 cows in herd 80 or more cows in herd 1982 1981 1980 1979 1982 1981 1980 1979 Number of farms 134 142 129 118 48 59 45 42 Average per farm Tillable acres 266 266 2.59 237 Number of cows 59.7 59.6 58.4 58.9 Milk per cow, lb 13,639 13,810 14,018 13,420 per 100 pounds of milk produced Price received $13.01 $13.19 $12.29 $11.68 Feed costs 6.15 6.55 6.24 5.95 Returns above feed costs $ 6.86 $ 6.64 $ 6.05 $ 5.73 Nonfeed costs Buildings $ .65 $ .68 $ .55 $ .45 Machinery and equipment 1.76 1.67 1.53 1.35 Labor 2.00 1.89 1.77 1.68 Livestock expenses .78 .74 .74 .64 Taxes 12 .11 .10 .10 Interest charge on all capital 2.40 2.33 1.72 1.21 Insurance and overhead .14 .15 .14 .12 Total nonfeed costs $ 7.85 $ 7.57 $ 6.55 $ 5.55 Total all costs $14.00 $14.12 $12.79 $11.50 Returns above all costs $- .99 $- .93 $- .50 $ .18 409 401 413 412 104.7 105.1 104.5 105.3 14,477 13,987 14,247 14,590 per 100 pounds of milk produced $13.00 $13.34 $12.42 $11.65 5.77 6.60 5.98 5.28 $ 7.23 $ 6.74 $ 6.44 $ 6.37 .70 1.61 1.76 .84 .07 2.39 .17 $ 7.54 $13.31 $- .31 .64 1.64 1.72 .84 .07 2.40 .16 .60 1.55 1.54 .76 .06 1.87 .14 $ 7.47 $14.07 $- .73 $ 6.52 $12.50 $- .08 .50 1.20 1.40 .67 .06 1.32 .13 $ 5.28 $10.56 $ 1.09 15 Table 15. Beef-Cow Enterprises, 1982 All farms Calves sold Calves fed out Number of farms 522 234 204 Average per farm Number of cows in herd 43 Animal units in herd .... 67 Total pounds produced 28,472 Beef per cow in herd, lb 662 Total returns $1 5,232 Value of feed fed $13,206 Returns per $100 of feed fed $ 115 Returns above feed per cow $ 47 Death loss, lb 1,854 Percent of pounds produced 6.5 Price received per 100 lb. sold $ 55.52 Per 100 pounds produced: Feed cost $ 46.38 Grain, lb 259 Protein and minerals, lb 38 Total concentrates, lb 298 Hay and dry roughage, lb 604 Corn silage, lb 421 Other silage, lb 161 Pasture-days 32 Pasture-days per animal unit 138 Hay equivalent per cow, tons 5.2 44 64 43 70 22.425 36,015 509 837 $12,243 $10,412 $19,278 $16,244 $ 117 $ 118 $ 41 1,656 $ 70 2,059 7.3 5.7 $ 54.03 $ 56.49 $ 46.43 150 $ 45.10 324 30 40 180 365 740 401 115 40 516 422 , 233 26 140 134 4.8 5.8 The return per $100 of feed fed to beef-cow herds in 1982 averaged $115, compared with $100 in 1981 and $144 in 1980. The return from 1978- 1982 averaged $148, which is near the 15-year (1968- 1982) average (Table 8). Beef prices received in 1982 averaged $55.52 per hundredweight, compared with $59.54 in 1981. Feed costs decreased from $47.13 to $46.38 per 100 pounds of beef produced. The added return above feed costs for feeding- out calves over selling calves at weaning averaged $25 per cow for 1978-1982. The additional return is for the added costs of labor, buildings, and the capital required to feed-out calves. The 1982 return above feed costs for feeding calves to market weight was $29 more per cow than for selling calves at weaning. Poultry enterprises The minimum size of the flock included in Table 16 is 2,000 hens. The flocks averaged 10,138 hens. Poultry in Illinois is rapidly being concentrated in fewer but larger and more industrialized operations. These relatively large commercial flocks used 4.6 pounds of feed concentrates per dozen eggs produced or per 1.5 pounds of weight produced. For 1982, the feed cost per dozen eggs was 31 cents. Egg prices averaged 48 cents per dozen in 1982. In 1982, the return above feed costs per hen was $1.90, compared with the 5-year average of $1.78 (Table 9). About a third of these farms sold a major share of their eggs through retail outlets. Sheep enterprises Sheep production is a minor enterprise on Illinois record-keeping farms. The minimum size of enter- prise in Table 17 is three animal units. One animal unit of sheep is defined as 750 pounds, liveweight. The return per $100 of feed fed in 1982 was $83 for native flocks. The pounds of wool and mutton produced per farm have remained fairly constant for the past 10 years. The price received for sheep decreased from $51.80 per hundredweight in 1981 to $48.00 in 1982. Most Illinois farmers who keep sheep do so as a supplemental enterprise in order to market nonsafable feeds and labor. Table 16. Poultry Enterprises, 1982 Number of hens per farm 2,000 and over Number of farms 11 Average per farm Poultry produced, lb 5,315 Total returns from poultry $84,190 Total value of feed fed $64,91 1 Returns per $100 of feed fed $ 130 Returns above feed fed per hen $ 1 .90 Average number of hens 10,138 Eggs produced per hen 245 Percent production 67 Feed units^ 210,323 Feed cost per unit" $ .31 Concentrates per feed unit, lb 4.6 Cost per 100 pounds of concentrates $ 6.78 Price per dozen eggs sold $ .48 ° One dozen eggs or 1 .5 pounds of weight produced. Table 17. Sheep Enterprises, 1982 Native flocks Number of farms 59 Average per farm Wool and mutton produced, lb 4,596 Total returns $1 ,747 Value of feed fed $2,081 Returns per $1 00 of feed fed $ 83 Percent lamb crop 121 Death loss, lb 574 Percent of pounds produced 12.5 Per 100 pounds produced: Price received $ 48.00 Feed cost $ 45.28 Concentrates, lb 333 Hay, lb 609 Corn silage, lb Pasture (pasture days) 29 Hay equivalent, lb 1 ,330 16 Costs, returns, financial summaries, investments, land use, and crop yields for different sizes and types of farms in northern and central Illinois and southern Illinois are reported in Tables 18 to 26a. 17 o V) CM E CQ C (0 •a c (0 N 0) >• CB w o o CO E E a (A 75 .-^ 0.2 c o «o c c = ■o 5 § c o c E E 3 oc o 2 c > CD < OC o .CO OP CO vo rH T m in rH O O 00 ov in (N TT Ov ro T fi 00 CN ro ro T in o 00 VD o 00 ro VD T O T T og T 00 VD ro ro ro o c^ ro 00 1 1/1 ro m rvi -i i-{ C^ t~-l VD (JN ro O vo r- T o in 00 r~ f— 1 ro CTv T ro rH O VD as (N 00 CN CM ^ in in «» (N 00 1 in VD O OV 00 i^ocMinomoo rH T 0~, CO CM T m ro CM 00 ro ro rH • • 00 T rH o in r- {-- in o o 00 VD VD rvi ro rvi in r- 00 in VD ro rH vo vo in in r- ro 1— T rH ro rM o r~ in m £i "O' 00 rH 1X> VD CM ro OI o o rH OI CO o in 00 T rH • in ^ c^ c^ e*^ yxi f-l CM vo in CM ro ro CM CO O T ro 00 r- in VO in ro X. in vo CN T rH OI CM CM O T T CO o rH VD rH 1 r-l ro T r-l vo r- o r- vo CN o in VD ro ro r-{ ,-1 (NT 00 rH ro VD 1 VD t~ r- CO (N vo 1 rH rH .H ' f-l r-l r-l ON ID OOTinCOrHrHO m r~- VD VD en MM Z ►"* Eh 0. < Q iJ O • • <« J Q Eh m •-I ^ z en w CJ t-H • z m o:: W D S H u z z Eh a. i/> O Z U M 3- u b. 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