Duvick, Richard D.

Hoorman, James J.

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ESO No. 1327 SUMMARY REPORT ON FINANCIAL, SIZE AND PERFORMANCE DATA FOR 128 CASH GRAIN FARMS OHIO, 1985 by James J. Hoorman and Richard D. Ouvick Department of Aqricultural Economics and Rural Socioloqy Ohio Cooperative Extension Service The Ohio State University in cooperation with Economic Research Service, USDA MARCH, 1987 SUMMARY REPORT ON FINANCIAL, SIZE AND PERFORMANCE DATA FOR 12A · CASH GRAIN FARMS, OHIO, 1985 Paqe fl Introduction Hiqhliqhts: rrlsh Grain Farms by Size of Farm ClAsses Overview of Farms Summarized Table 1: Number of Farms, Crop Yields, and Measures of Size for 128 Cash Grain Farms by Acres of Cropland, flhio, 19R5 Measures of Earnings Table 2: Income, Expense and Measures of Earninqs for 128 1 1 1 2 Cash Grain Farms by Acres of Cropland, Ohio, 1985 4 Table 3: Income Statement for 12R Cash Grain Farms by Acres of Cropland, Ohio, 1985 Balance Sheet Data Table 4: Ralance Sheet Data on 12A Cash Grain Farms by Acres of Cropland, Ohio, 1985 Measures of Financial Efficiency Table 5: Measures of Financial Efficiency on 128 5 6 7 Cash Grain Farms by Acres of Cropland, Ohio, 19A5 R Table 6: Efficiency Measures and Cost per Tillable Acre on 12R Cash Grain Farms by Acres of Cropland, nH, 19P5 9 Efficiency and Cost Measures per Tillable Acre 1r Hiqhliqhts: Cash Grain Farms by Debt to Asset Ratio Classes 11 Table 7: Number of Farms, Crop Yields, and Measures of Size for 128 Cash Grain Farms by Debt to Asset Ratios, Ohio, 1q85 11 T a b 1 e 8 : I n c o m e , E x p e n s e a n d ~1 e a s u r e s o f E a r n i n q s f o r 1 2 P. Cash Grain Farms by Debt to Asset Ratios, nH, 19n5 12 Table 9: Income Statement for 128 Cash Crain Farms by Debt to Asset Ratios, nhio, 1985 Table 1Q: Balance Sheet Data on 128 Cash Grain Farms by Debt to Asset Ratios, Ohio, 19R5 Table 11: Measures of Financial Efficiency on 12R Cash 1 3 Grain Farms by Debt to Asset Ratios, nhio, 19R5 15 Table 12: Efficiency Measures and Cost per Tillable Acre on 128 rash Grain Farms by Debt to Asset RRtios, Ohio, 1985 1(> Highlights: Cash Grain Farms by Net Farm Earnings 17 Overview of farms Summarized 17 Table 13: Number of Farms, Crop Yields, anrl Measures or Size for 128 Cash Grain Farms by Net Farm E~rninqs, Ohio, 1985 17 Measure of Earnings 1R Table 14: Income, Expense and Measures of Earninqs for 128 Cash Grain Farms by Net Farm Earninga, Ohio, 1qr5 1R Table 15: Income Statement for 128 Cash Grain Farms by Net Farm Earnings, Ohio, 1q95 1~ Financial Performance Measures 20 Table 16: Balance Sheet Data on 12R Cash Grain Farms by Net Farm Earninqs, Ohio, 1985 20 Measures of financial Efficiency 21 Table 17: Measures of Financial Efficiency on 12A Cash Grain Farms by Net farm Earnings, Ohio, 19A5 21 Efficiency and Cost Hea$ures per Tillable Acre 21 Table 18: Efficiency Measures and Cost per Tillable Acre on 12R Cash Grnin Farms by Net Farm Earninqs, Ohio, 1985 2? Distribution of farms by Size, Debt to Asset Ratio and Net Farm Earnings 23 Table 19: Distribution of 12R Cash Grain Farms Ry TillAble Acres and Oebt to Asset Ratios, Ohio, 19nS ?3 Table 20: Distribution of 128 Cash G;rain farms by ifillAhle Acres and Net Farm Farninqs, Ohio, 19R5 24 Table 21: Distribution of 12A Cash Grain Farms by Deht to Asset Ratios and Net Farm Earnings, Dhio, 19R5 24 Glossary ?~ Summary Report On Financial, Size and Performance Data For 128 Cash Grain Farms, Ohio, 1985 I N T !W [) lJ C T I 0 N This summary is compiled from 19R5 records of a sample of 12R Ohio cash grain farms particioatinq in the Aqrifnx fnrm records program. Aqrifax is operated through the Federal Land Rank and Federal Intermediate Credit Bank of Louisville, District IV, which include the states of Indiana, Kentucky, Tennessee and Ohio. Data on Ohio farms were made available to The Ohio State llniversity for rPsearch purnoses, with the unrlerstandinq that no individual farm data would be idr.ntified by name or location. Farms in the sample were defined as cash grain farms if at least sn% of the Value of Farm Production was from the saJe of crops. These farms are not necessarily representative of all Ohio cash grain farms, but they do provide an indication of results for Ohio's cash grAin rnoducers. Similar data is also available for a sample of 114 Ohio dairy farms and 32 Ohio swine farms for 1985, and are reported in separate publications. These farms were summarized for various characteristics including financial performance, deht, farm size, and economic efficiency. In addition, the farms were sorted into subgroups by farm size, hy deht to asset ratio, and net farm earninqs. The 5 farm size qroups, measured by tillable acres, were: Uo to 250, 251-500, 501-750, 751-1000, and Over 1000 acres. There were 3 categories measured by debt to asset (D/A) ratio: !Jp to .40, .41-.70, and Over .70. The net farm earninqs were divided evenly into three groups: top 1/3, middle 1/3, and bottom 1/3. Various tables show the results of summarizing the data by these categor-ies. The rPsults by size of farm are presented first, followed ~y 0/A Rntio results and then net farm earnings. HIGHLIGHTS -- CASH GRAIN FARMS BY SI7.1=: fJF FARM CLASSES Overview of Farms Summarized The 12A cash qrain farms Averaged 769 tillable acres, and h~d annual sales as measured by Value of Farm Production of ~19A,3R9 (Table 1). On average, the Balance Sheet showed ~771,000 in assets, $375,700 in liabilities, and $395,300 of equity. Thus their averaqe debt to asset r2tio (D/A) was jufot u n d e r 5 n ?(, • 0 f t h e t o t A1 o f 7 fl 9 a c r e s o f t i 11 a b l e l and o r e r a t e d , 2 2 2 a c r e s 1v e r e o w n e d , 3 8 3 A c r e s c a s h r e n t e d R n rl 1 6 l~ a c r e s w a s shAre rented. This works out to be 29% owned, 50% cash rented, and 21% share rented. The averaqe farm put out 118 acres of corn, 298 acres of soybeans, and 75 acres of wheat. Crop yielrls received were slightly ahove state averaqes for 19R5 at 132 bushels per acre for corn, 41 for soybeans, and 59 for wheat. Market prices received by farmers for these commodities averaqed $2.43 per bushel of corn, $5.25 per bushel of soybeans, and ~2.85 per hust1el of wheat. 1 Table 1: Nunber of farms, Crop Yields, and Measures of Size for 128 Cash Grain farms Sy Acres of Cropland, Ohio, 1985. fARM SIZE IN ACRES Of CROPLAND -----------------------------------------------------------Size Characteristics Unit Up To 250 251-500 501-750 751-1,000 Over 1000 All farms ------------------------ ----------------------- ---------------------------NUMBER Of fARMS Nl.lllber 19 25 35 17 32 128 TILLABLE ACRES fARMED Acres 165 373 607 857 1566 769 VALUE Of fARM PRODUCTION $ $42,581 $98,855 $160,547 $222,062 $397,477 $198,389 BALANCE SHEET DATA Tota,l Assets $1,000 $339.3 $411.1 $699.7 $822.5 $1359.2 $771.0 Total Liabilities $1 ,ooo 194.0 230.0 276.7 406.4 689.3 375.7 Total Equity $1,000 145.3 181.1 423.0 416.1 669.9 395.3 TILLABLE ACRES BY TENURE Total Owned Acres 116 121 217 281 500 263 Tillable Owned Acres 89 106 180 251 4.24 222 Tillable Cash Rented Acres 48 218 257 1453 811 383 Tillable Share Rent Acres 28 so 170 153 331 164 TOTAL TILLABLE Acres 165 374 607 857 1566 769 PERCENT Of TILLABLE ACRES Owned Percent 54 28 30 29 27 29 Cash Rented Percent 29 59 42 53 52 50 Share Rented Percent 17 13 28 18 21 21 CROP ACRES Corn acres Acres 54 142 187 346 584 31R Soybean acres Acres 51 139 225 341 50fl 298 Wheat acres Acres 51 37 61~ 72 132 75 CROP YIELDS Corn Bu./A. 125 129 138 T26 132 132 Soybeans Bu./A. 46 40 43 42 41 41 ¥.'heat Bu./A. 58 5·2 65 66 55 59 CROP PRICES RECEIVED Corn ** $/Bu. $1.75 $2.16 $2.32 $2.30 $2.55 $2.43 Soybean $/Bu. $4.93 $5.13 $5.15 $5.05 $5.40 $5.25 l'lhcat $/Bu. $2.85 $3.00 $3.01 $2:.96 $2.69 $2.85 --------------------------------·-----------------------------------------------------------**" Corn Prices Received were calculated by dividing total corn sales by total corn production nnrl do not re fleet corn fed on the farm. 2 

Summary Report on Financial, Size and Performance Date for 128 Cash Grain Farms, Ohio, 1985

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Summary Report on Financial, Size and Performance Date for 128 Cash Grain Farms, Ohio, 1985

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