Campaign circular 187 is about agriculture in Nebraska’s Economy

Lutz, Arlen

Horner, James

Muehlbeier, John

English

DigitalCommons@University of Nebraska

University of Nebraska - LincolnDigitalCommons@University of Nebraska - LincolnHistorical Materials from University of Nebraska-Lincoln Extension ExtensionMay 2014CC187 Agriculture in Nebraska's EconomyArlen LutzJames HornerJohn MuehlbeierFollow this and additional works at: http://digitalcommons.unl.edu/extensionhistThis Article is brought to you for free and open access by the Extension at DigitalCommons@University of Nebraska - Lincoln. It has been accepted forinclusion in Historical Materials from University of Nebraska-Lincoln Extension by an authorized administrator of DigitalCommons@University ofNebraska - Lincoln.Lutz, Arlen; Horner, James; and Muehlbeier, John, "CC187 Agriculture in Nebraska's Economy" (2014). Historical Materials fromUniversity of Nebraska-Lincoln Extension. 3196.http://digitalcommons.unl.edu/extensionhist/3196l)"'IVf.RSITY OF NEBR. Ll~.>r~A R l cl87 UN 1 7 1988 Agricu ture in Nebraska's Economy EXTENSION SERVICE UNIVERSITY OF NEBRASKA COLLEGE OF AGRICULTURE AND U 5 DEPARTMENT OF AGRICULTURE COOPERATING E F . FROLIK. DEAN E W .JANIKE. DIRECTOR About Nebraska Agriculture Did yo u kn ow that e 21 % of Nebraska people live on farms. e There are 90,223 farms and ranches in Nebraska. Average size is 529 acres. e Farmers spent nearl y a billion do ll ars for production expense in I 960. e Farmers received 12% of the personal in com e in the state. Agriculture is the state 's larges t busin ess . It employed 32 percent of the state's labor force in 1960. Annu al personal income of farmers, farm suppliers, and processors of farm products is $710 million-or about 23 percent of all personal in-com e in the state. Nebraska is on e of the nat ion's most import-an t sta tes in the production o( agricultural pro-ducts. It ranks: • Third in ca ttle • Third in corn • Third in winter wheat • Third in grain sorghum • Fifth in alfalfa • Seventh in hogs • Fifth in sugar beets • First in wild hay This circul a r was prepa red by Arlen Lutz, Dr. J a mes Ho rn er , .John Mueh iiJe ier. Dr. H owa rd Ottoson , Dr. .Jam es Sta llings, and R a lston .J. Graham. a ll of the Un ivers ity of Nebraska College of ,\ gr icultu re. NEBRASKA AGRIBUSINESS . It Earns One Dollar in Four In 1960, the sale of all farm products totaled l bil-lion 183 million dollars. Farmers spent nearly one billion dollars for pro-duction expense. After production costs were paid, farmers earned about 249 million dollars. After adding the value of farm produce consumed by the farm family, rental value of the farm house , changes in inventory, and government payments, total farm income in 1960 was 370 million dollars . The average Nebraska farmer had a net income of $4.272 in 1960. This includes the return to his labor, the labor of his fami ly, and to his capital in-vestment. Agribusiness , which includes farmers, processors, wholesalers , retailers and suppliers, accounts for 23 percent of all personal income in Nebraska. Sale of Farm Produds -1960 CROPS Mi ll ions Corn 200 Wheat 136 Grain Sorghum 36 Other Crops 64 LIVESTOCK Millions Cattle and Calves 495 Hogs 133 Dairy Products 52 Sheep and Lambs 19 Poultry, Eggs and Miscellaneous 48 74i Mi11ioo TOTAL SALES 11183 Million Produdion Expense -1960 {]XED COSTS cpreciation - -axes - - · · ntercst on Farm i\forl! et Rent to Landlord Livestock Purchases Fertilizer and Lime Repairs and Maintenar TOTAL PRODUCTION EX! Millions 139 71 tgages 17 69 296 MiUioo ISE Millions 151 171 15 33 111 18 76 638 Mi llion 249 M illion PENSE 934 MiWon Total Personal Income -1960 NON GOVERNMENT Millions W ages \Vho lesa ling, R e tai ling , Servi ce 276 M anufacturing 159 Transportation 144 Other 528 Operators 347 No n Farm Property Owners 345 Federal Military Civilian State and Local Social Security, Pensions, 1,799 Million 72 84 193 and Veterans Payments 129 TOTAL 478 Million Food Manufacturing 147 Food Retailing and Service 77 Farm L abor · 47 49 340 MilHon 22 99 249 370 Million 2,987 Million Benefits to Consumers Production efficiency on the farm has more than do ubled in the past 20 years. In 1940 one Farmer could produce eno ugh for himself and 12 others-in 1960 one far mer produced enough [or himself and 27 others. V\Tha t does this increased farm productivi ty mean to yo u as a consumer? It means your pay-check buys more food. e T he average weekly paycheck in 1960 bough t twice as much food as in 1930. e Eight ho urs' pay will buy this much more food than it did in 1947-49. 1947 ·49 1960 Beef 15.2 lbs. 20 lbs. Bread 76.8 loaves 80.8 loaves Pork 17.6lbs. 28.8lbs. Milk 52 qts. 64.8 qts. Eggs 14.4 doz. 28.8 doz. Apples 87.2 lbs. I 00.8 lbs. Potatoes 192.0 lbs. 232.0 lbs. Peas 48.8 cans 79.2 cans \ !\Thy is food more expensive if farmers are more efficient? In 1959 consumers spent 58.2 billion dollars at grocery stores. 0£ this amount, 38.4 billion (66% ) went to processors, wholesalers and re-tailer s; 19.8 billion (34% ) went to farmers. But most of us don't think in billions. H ere's wha t increased marketing costs have meant to the average family food bill. In 1958, the average fa mily spent In 1946, th e average family spent Increased costs-'46- '58 Increased marketing costs Increased share to farmers $1,065 - 767 298 - 268 $ 30 Change and Many complex shifts are taking place in agri-culture. Since agribusiness is a major industry in the state, all of us have a stake in its future. A number of trends are discussed below. How will they affect oui· future? Fewer and Larger Farms In recent years, smaller farms have been added to neighboring units as operators retired or left agriculture. The greatest adjustment in farm size has taken place in the western half of the state, where climatic conditions are more restrictive than in the eastern half. Size and Number of Nebraska Farms N o . of Farms 1950 1960 o/o Change by size (Acres) Less than 100 17,07 5 12,094 - 29 100-219 33,920 22,799 -33 220-499 38,374 36,028 - 6 500-999 10,580 11,263 + 6 1000 or more 7,225 8,039 + ll Total farms 107,174 90,223 -16 Average Acreage 442 529 +20 Size of Farms by Location No. Average Acres Sandhills & Ranching 9,127 1,745 Panhandle 7,531 779 Central 13,845 438 East Central 16,315 256 South Central 11 ,405 462 Northeast 13,175 199 Southeast 35,776 206 Challenge ... Value of Sales Varies The average farm operator in Nebraska sold $I 3,292 worth of products in I 959. Over half of all farm operators in the state sold between $5,-000 and $20,000 worth of products. The table below shows the numbers of farms that sell vari-ous amounts of farm products. Value of Sales No. of Farms o/o of Farms $40,000 or more 3,758 4.7 20,000- 39,999 9,002 II.I 10,000- 19,999 22,8 17 28.2 5,000- 9,999 26,502 32.8 2,500- 4,999 15,258 18.9 Less than 2,500 3,513 4.3 80,850* 100.0 Average sales per farm $13,292 * Nebraska has 90,223 farms; 80,850 are classified as commercial farms. Farm Income Fluctuates Personal income of non-farm people has shown a steady increase since I 949. Farm income decreased from I 950 to I 955. Since then it has in-creased, but at a slower rate than non-farm in-come. Fluctuations have been due to extreme weather and price changes during the last ten years. The wide variation in income of farm peo-ple is reflected in the amount of money that they have to spend for consumer goods, education of their children, and other needs. ~;; :: ;.: Fewer Beginning Farmers Entry into farming has become more and more difficult. Increases in investment capital needed to farm, along with increasing operating costs have limited the number of beginners. This limited opportunity has decreased the number of farmers under age 25. In I 920 there were 7,218 farmers (5.7 percent) in this age group. Since then there h as been a continuous decrease in t,he number of young farmers. In I 960 there . were qnly 2,238 (2.5 per cent) farmers under age 25. . There is an opposite trend in the number of ;farmers over, ~ge 45. In 1920, 21 ,786 (1 8 percent) of N ebrask a farmers were over 45. By I 960 the number in thi;s older age group had increased to .. 42,145. They made up 47 percent of all Nebraska farm operators. More People to Feed Population of the U nited Sta tes reached 185 million in 1961. According to current es timates, our population may be 210 million in 197 0. U n-less our eating habits change in the next ten years, the following adjustments in food produc-tion will be needed to feed our growing popula-tion. T his predicted increase of 25 million people would require 58 percent more beef, 41 percent more pork, 40 percent more milk, 18 percent more poultry, and 35 percent more eggs. 

CC187  Agriculture in Nebraska\u27s Economy

UNL | Libraries

University of Nebraska - Lincoln
DigitalCommons@University of Nebraska - Lincoln
Historical Materials from University of Nebraska-
Lincoln Extension Extension
May 2014
CC187 Agriculture in Nebraska's Economy
Arlen Lutz
James Horner
John Muehlbeier
Follow this and additional works at: http://digitalcommons.unl.edu/extensionhist
This Article is brought to you for free and open access by the Extension at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for
inclusion in Historical Materials from University of Nebraska-Lincoln Extension by an authorized administrator of DigitalCommons@University of
Nebraska - Lincoln.
Lutz, Arlen; Horner, James; and Muehlbeier, John, "CC187 Agriculture in Nebraska's Economy" (2014). Historical Materials from
University of Nebraska-Lincoln Extension. 3196.
http://digitalcommons.unl.edu/extensionhist/3196
l)"'IVf.RSITY OF NEBR. 
Ll~.>r~A R l cl87 
UN 1 7 1988 
Agricu ture 
in Nebraska's 
Economy 
EXTENSION SERVICE 
UNIVERSITY OF NEBRASKA COLLEGE OF AGRICULTURE 
AND U 5 DEPARTMENT OF AGRICULTURE 
COOPERATING 
E F . FROLIK. DEAN E W .JANIKE. DIRECTOR 
About Nebraska Agriculture 
Did yo u kn ow that 
e 21 % of Nebraska people live on farms. 
e There are 90,223 farms and ranches in 
Nebraska. Average size is 529 acres. 
e Farmers spent nearl y a billion do ll ars for 
production expense in I 960. 
e Farmers received 12% of the personal 
in com e in the state. 
Agriculture is the state 's larges t busin ess . It 
employed 32 percent of the state's labor force in 
1960. Annu al personal income of farmers, farm 
suppliers, and processors of farm products is $710 
million-or about 23 percent of all personal in-
com e in the state. 
Nebraska is on e of the nat ion's most import-
an t sta tes in the production o( agricultural pro-
ducts. It ranks: 
• Third in ca ttle 
• Third in corn 
• 
Third in winter wheat 
• Third in grain sorghum 
• Fifth in alfalfa 
• Seventh in hogs 
• Fifth in sugar beets 
• First in wild hay 
This circul a r was prepa red by Arlen Lutz, Dr. J a mes 
Ho rn er , .John Mueh iiJe ier. Dr. H owa rd Ottoson , Dr. .Jam es 
Sta llings, and R a lston .J. Graham. a ll of the Un ivers ity of 
Nebraska College of ,\ gr icultu re. 
NEBRASKA AGRIBUSINESS . 
It Earns One Dollar in Four 
In 1960, the sale of all farm products totaled l bil-
lion 183 million dollars. 
Farmers spent nearly one billion dollars for pro-
duction expense. After production costs were paid, 
farmers earned about 249 million dollars. 
After adding the value of farm produce consumed 
by the farm family, rental value of the farm house , 
changes in inventory, and government payments, 
total farm income in 1960 was 370 million dollars . 
The average Nebraska farmer had a net income 
of $4.272 in 1960. This includes the return to his 
labor, the labor of his fami ly, and to his capital in-
vestment. 
Agribusiness , which includes farmers, processors, 
wholesalers , retailers and suppliers, accounts for 23 
percent of all personal income in Nebraska. 
Sale of Farm Produds -1960 
CROPS Mi ll ions 
Corn 200 
Wheat 136 
Grain Sorghum 36 
Other Crops 64 
LIVESTOCK Millions 
Cattle and Calves 495 
Hogs 133 
Dairy Products 52 
Sheep and Lambs 19 
Poultry, Eggs and 
Miscellaneous 48 
74i Mi11ioo 
TOTAL SALES 11183 Million 
Produdion Expense -1960 
{]
XED COSTS 
cpreciation - -
axes - - · · 
ntercst on Farm i\forl! 
et Rent to Landlord 
Livestock Purchases 
Fertilizer and Lime 
Repairs and Maintenar 
TOTAL PRODUCTION EX! 
Millions 
139 
71 
tgages 17 
69 
296 MiUioo 
ISE Millions 
151 
171 
15 
33 
111 
18 
76 
638 Mi llion 
249 M illion 
PENSE 934 MiWon 
Total Personal Income -1960 
NON GOVERNMENT Millions 
W ages 
\Vho lesa ling, R e tai ling , 
Servi ce 276 
M anufacturing 159 
Transportation 144 
Other 528 
Operators 347 
No n Farm Property Owners 345 
Federal 
Military 
Civilian 
State and Local 
Social Security, Pensions, 
1,799 Million 
72 
84 
193 
and Veterans Payments 129 
TOTAL 
478 Million 
Food Manufacturing 147 
Food Retailing and Service 77 
Farm L abor · 47 
49 
340 MilHon 
22 
99 
249 
370 Million 
2,987 Million 
Benefits to Consumers 
Production efficiency on the farm has more 
than do ubled in the past 20 years. In 1940 one 
Farmer could produce eno ugh for himself and 
12 others-in 1960 one far mer produced enough 
[or himself and 27 others. 
V\Tha t does this increased farm productivi ty 
mean to yo u as a consumer? It means your pay-
check buys more food. 
e T he average weekly paycheck in 1960 
bough t twice as much food as in 1930. 
e Eight ho urs' pay will buy this much more 
food than it did in 1947-49. 
1947 ·49 1960 
Beef 15.2 lbs. 20 lbs. 
Bread 76.8 loaves 80.8 loaves 
Pork 17.6lbs. 28.8lbs. 
Milk 52 qts. 64.8 qts. 
Eggs 14.4 doz. 28.8 doz. 
Apples 87.2 lbs. I 00.8 lbs. 
Potatoes 192.0 lbs. 232.0 lbs. 
Peas 48.8 cans 79.2 cans 
\ !\Thy is food more expensive if farmers are 
more efficient? 
In 1959 consumers spent 58.2 billion dollars 
at grocery stores. 0£ this amount, 38.4 billion 
(66% ) went to processors, wholesalers and re-
tailer s; 19.8 billion (34% ) went to farmers. 
But most of us don't think in billions. H ere's 
wha t increased marketing costs have meant to 
the average family food bill. 
In 1958, the average fa mily spent 
In 1946, th e average family spent 
Increased costs-'46- '58 
Increased marketing costs 
Increased share to farmers 
$1,065 
- 767 
298 
- 268 
$ 30 
Change and 
Many complex shifts are taking place in agri-
culture. Since agribusiness is a major industry in 
the state, all of us have a stake in its future. A 
number of trends are discussed below. How will 
they affect oui· future? 
Fewer and Larger Farms 
In recent years, smaller farms have been 
added to neighboring units as operators retired 
or left agriculture. The greatest adjustment in 
farm size has taken place in the western half of 
the state, where climatic conditions are more 
restrictive than in the eastern half. 
Size and Number of Nebraska Farms 
N o . of Farms 1950 1960 o/o Change 
by size (Acres) 
Less than 100 17,07 5 12,094 - 29 
100-219 33,920 22,799 -33 
220-499 38,374 36,028 - 6 
500-999 10,580 11,263 + 6 
1000 or more 7,225 8,039 + ll 
Total farms 107,174 90,223 -16 
Average Acreage 442 529 +20 
Size of Farms by Location 
No. Average Acres 
Sandhills & Ranching 9,127 1,745 
Panhandle 7,531 779 
Central 13,845 438 
East Central 16,315 256 
South Central 11 ,405 462 
Northeast 13,175 199 
Southeast 35,776 206 
Challenge ... 
Value of Sales Varies 
The average farm operator in Nebraska sold 
$I 3,292 worth of products in I 959. Over half of 
all farm operators in the state sold between $5,-
000 and $20,000 worth of products. The table 
below shows the numbers of farms that sell vari-
ous amounts of farm products. 
Value of Sales No. of Farms o/o of Farms 
$40,000 or more 3,758 4.7 
20,000- 39,999 9,002 II.I 
10,000- 19,999 22,8 17 28.2 
5,000- 9,999 26,502 32.8 
2,500- 4,999 15,258 18.9 
Less than 2,500 3,513 4.3 
80,850* 100.0 
Average sales per farm $13,292 
* Nebraska has 90,223 farms; 80,850 are classified as 
commercial farms. 
Farm Income Fluctuates 
Personal income of non-farm people has 
shown a steady increase since I 949. Farm income 
decreased from I 950 to I 955. Since then it has in-
creased, but at a slower rate than non-farm in-
come. Fluctuations have been due to extreme 
weather and price changes during the last ten 
years. The wide variation in income of farm peo-
ple is reflected in the amount of money that they 
have to spend for consumer goods, education of 
their children, and other needs. 
~;; :: ;.: 
Fewer Beginning Farmers 
Entry into farming has become more and 
more difficult. Increases in investment capital 
needed to farm, along with increasing operating 
costs have limited the number of beginners. 
This limited opportunity has decreased the 
number of farmers under age 25. In I 920 there 
were 7,218 farmers (5.7 percent) in this age group. 
Since then there h as been a continuous decrease 
in t,he number of young farmers. In I 960 there 
. were qnly 2,238 (2.5 per cent) farmers under age 
25. 
. There is an opposite trend in the number of 
;farmers over, ~ge 45. In 1920, 21 ,786 (1 8 percent) 
of N ebrask a farmers were over 45. By I 960 the 
number in thi;s older age group had increased to 
.. 42,145. They made up 47 percent of all Nebraska 
farm operators. 
More People to Feed 
Population of the U nited Sta tes reached 185 
million in 1961. According to current es timates, 
our population may be 210 million in 197 0. U n-
less our eating habits change in the next ten 
years, the following adjustments in food produc-
tion will be needed to feed our growing popula-
tion. 
T his predicted increase of 25 million people 
would require 58 percent more beef, 41 percent 
more pork, 40 percent more milk, 18 percent 
more poultry, and 35 percent more eggs. 


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