Kansas net farm income continued to slide in 2013
Yields on irrigated farms typically don’t vary that much, Ibendahl said, so last year’s lower grain prices and inventory values weighed them down.
“That will be a factor in this coming year,” he added. “With crops in some of the bigger producing states -- Iowa, Illinois, Indiana and Ohio – we’re on track to have pretty good U.S. production next year. We were looking at pretty good grain prices for a few years but will probably be lower next year.”
Livestock a bright spot
Last year’s lower grain prices meant trouble for grain growers, but gave livestock producers a boost.
“Anything to do with livestock did pretty well, compared with the year before,” Ibendahl said, noting higher meat prices and lower grain prices. “Those in the cattle background feeding and finishing went way up. They had a really good year.”
The 2013 average net income for backgrounding-finishing operations was $162,459, well above $46,193 a year earlier, but below $397,138 two years earlier.
Net income for farms in the “Crop – Sow & Litter” category averaged $206,724, up from $166,809.
Overall, the report showed the average value of livestock produced in 2013 at $92,241, compared with $88,507 a year earlier and $106,280 two years earlier.
Family living expenses
Total family living expenses rose to an average of $71,377, up from $70,242 in 2012. Family living expenses have increased every year since the 2009 average of $54,981.
“If you look at our family living expenses and the fact that they were higher, even though net income fell, there’s a two- to three-year lag before families are able to make the adjustment after income has been up,” Ibendahl said. “When you have money, you’ll tend to spend more of it. With the potential for lower grain prices this coming year, farm families will need to monitor their family living to avoid eating into their net worth.”
Source: Kansas State Research and Extension
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