State Overview -- Trends in Missouri Agricultural Production, Expenses and Profits 1993-2003
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The production and sale of Missouri agricultural commodities fluctuated relatively little from 1993-2003. As shown in Table 1 cash receipts from sale of Missouri agricultural commodities averaged $4.97 billion per year from 1993-2003 with a low of $4.50 billion in 2002 to a high of $5.80 billion in 1997. Graph 1 displays the relative stability of cash receipts from marketing farm products over the 1993-2003 period. During that time, Missouri ranked about 15th among the states in marketing of agricultural commodities.
Differences in Livestock and Crop Production and Sales 1993-2003
Table 1 also shows that the sale of livestock and livestock products averaged $2.85 billion per year from 1993-2003 (57 percent of total agricultural cash receipts). In contrast the annual production and sale of crops averaged $2.11 billion (43 percent of total) during that period.
The table also shows relatively little fluctuation in the annual production and marketing of livestock and livestock products with the greatest production and sales occurring in 1997 with $3.16 billion marketed and the least ($2.61 billion) occurring in 2002. That shows a difference of only 21 percent between the lowest and highest years in dollar value of livestock and livestock products marketed.
In contrast, Table 1 shows much greater variation in annual crop production. The lowest dollar value of crop production and marketing occurred in 1999 ($1.76 billion) while the dollar value of crops produced and marketed in 1997 was $2.64 billion. The difference between those two years ($0.88 billion) is 50 percent – a much greater differential than the highest and lowest livestock production and marketing years.
Total Cash Receipts and Other Farm Income – 1993-2003
Table 1 (line 7) reports that total gross farm income (commodities sold, government payments and other) ranged from a low of $5.25 billion in 1994 to a high of $6.33 billion in 1997. The average gross income of farmers for the 1993-2003 period was $5.71 billion. Of the total gross income of farmers about 87 percent is derived from selling agricultural commodities – crops and livestock.
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However, another important source of farm income is federal government payments the principal purpose of which is to sustain prices for agricultural commodities. The government payments to farmers contribute to subsidizing farm income. Line 5 from Table 1 reports the annual amount of government subsidies to Missouri farmers. The average of government payments from 1993-2003 was $481 million with a low of $257 million in 1995 to a high of $869 million in 2000. Graph 2 shows that the peak period of government farm payments was from 1999-2001. Overall, government payments accounted for .084 percent of total farm revenues. Other miscellaneous farm income (line 6) accounted for .045 percent of total farm revenues.
Total Farm Production Expenses 1993-2003
Table 1 (line 8) shows the total amount of agricultural production expenses of farmers for each year from 1993-2003. Production expenses averaged $5.31 billion per year for the 11-year period. Production expenses ranged from a low of $4.79 billion in 1993 to a high of $5.93 billion in 2001. As Graph 3 shows there has been relatively little fluctuation in production expenses. Generally, production expenses increased by a relatively small amount each year from 1993-2000. However, in 2000 and 2001 production expenses increased by about $300 million each of those two years. Production expenses declined from 2001-2003.
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Missouri Realized Net Farm Income 1993-2003
Table 1 and Graph 4 show that farm income (the last line of Table 1) fluctuated significantly from year to year between 1993 and 2003. For the 11 year period average annual realized net farm income was $400 million which is only 7 percent of total case receipts and other income. There was one year (1997) when realized net farm income was 14.9 percent. In 2002 realized net farm income was -$356 million. However in 2003 realized net farm income increased to $831 million – 13.7 percent of total cash receipts and other income.
The realized net income reported in Table 1 is derived from subtracting production expenses (line 8) from total cash receipts and other income (line 7). It is the difference between those two that is reported as realized net income. An important factor affecting realized net farm income is that even though production expenses vary little from year to year the cash receipts from marketing and government payments fluctuate significantly from year to year. Therefore realized farm income is subject to significant fluctuation.
This file last modified Friday May 08, 2009, 14:28:11
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