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RSS By: Paul Neiffer, Top Producer

Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.

Minnesota Farms See 63% Drop in Farm Income in 2009

Jul 07, 2010

Of the 2,401 Minnesota farms included in the "FINBIN" survey for 2009, the median farm saw a 63% decrease in net income from $91,242 to $33,417. Each year, the Center for Farm Financial Management performs a survey of Minnesota farmers. Their response for 2009 represented about 3% of overall farms and about 10% of the farms with total sales over $100,000.

A summary of the results for 2009 show the following:

  • Median farm income peaked in 2007 at about $105,000 and have declined in two years to about $33,000. The 2009 numbers are also the worst net income for any year in this decade other than 2001, when the median net income was about $24,000.
  • Incomes were down substantially for virtually every type and size of farm.
  • Livestock farms of all types, on average, did not provide enough income to support family living expenses.
  • While crop farms were more profitable than livestock farms, the median earnings of crop farms dropped 55% to about $60,000.
  • Dairy farm profits were down substantially, falling to an average of about $5,000 per farm. The average price for milk dropped from about $19 to $13 in one year.
  • Hog farms eked out a small profit as their income dropped about 87%.
  • The average return on assets dropped from 10.5% in 2008 to 3.1% in 2009.
  • The average farm's net worth increased by about $60,000. However, almost all of this increase was due to increasing land prices and not earned net worth growth.
  • The average farm spent $52,000 on living expenses and needed to generate $72,000 from farm and nonfarm income to cover family living, income taxes and other ongoing nonfarm expenses.
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COMMENTS (1 Comments)

Anonymous
But every market analyst feels 3.50 corn is super. And 4.50 dollar wheat is a windfall.
10:57 PM Jul 7th
 

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