Evaluating the equitability of New York State's business and banking tax structures
An Assessment of the Equitability of Farm Program Payments Across Crops
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An Assessment of the Equitability of Farm Program Payments Across Crops. James W. Richardson Co-Director AFPC, Regents Professor and TAES Faculty Fellow Joe L. Outlaw Co-Director AFPC, Associate Professor and Extension Economist-Policy Lindsey Higgins Research Assistant. - PowerPoint PPT Presentation
Transcript of An Assessment of the Equitability of Farm Program Payments Across Crops
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An Assessment of the Equitability of Farm Program Payments Across CropsNational Public Policy Education ConferenceSt. Louis, MissouriSeptember 19-22, 2004James W. RichardsonCo-Director AFPC, Regents Professor and TAES Faculty FellowJoe L. OutlawCo-Director AFPC, Associate Professor and Extension Economist-PolicyLindsey HigginsResearch Assistant
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ObjectivesDetermine alternative methods of measuring equitability
Discuss the merits of each measure
Apply the measures to 9 major commodities for the period 1990 2002 marketing year basis
Preliminary results
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JustificationPotential Budget Reconciliation January 2005
Potential commodity versus commodity conflicts
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Definition of Government Support
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Definitions of Support CategoriesDeficiency PaymentsPayment rate = Target price max (loan rate, avg. market price)Producers Payment = Payment rate * base acres *program yield *.85
Production Flexibility Contract PaymentsPayments made under the 1996 Farm BillComparable to Direct Payments under the 2002 Farm Bill
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Definitions of Support CategoriesMarket Loss Assistance PaymentsPayments authorized by emergency legislation in 1998-2001Made to recipients of production flexibility contract paymentsAlso called double AMTA Payments
Loan Deficiency PaymentsPayments made when market prices (PCP or AWP) are lower than commodity loan ratesPayment Rate = Loan rate loan repayment rate
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Definitions of Support CategoriesDirect PaymentsNew to the 2002 Farm BillAnnual per unit payment rate
Counter-cyclical PaymentsNew to the 2002 Farm BillPayments to covered commodities whenever the effective price is less than the target priceProducers Payment = Payment Rate * Base Acres * CCP Yield * .85
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Definitions of Support CategoriesMarketing Loan GainsRealized when a loan is repaid at less than the loan principalMarketing loan gain rate = loan rate loan repayment rate
Producer Storage PaymentsPayments made to producers for farmer-owned reserves
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Definitions of Support CategoriesCertificate Exchange GainsPIK, Diversion and Deficiency certificate gains
Crop Insurance BenefitsIndemnities premiums + subsidies
Commodity Specific PaymentsUser Marketing Payments (Step 2), Oilseed payments, peanut payments, and quota compensation payments
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Measures of Equitability Support per AcreSupport per planted acre Total Annual Support divided by Total Annual Planted AcresUsed by Monke J. in a Congressional Research Service report
Support per base acre Total Annual Support divided by Annual Base AcreageModification of Monkes formula
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Measures of EquitabilitySupport per Yield Unit
Support per unit of Actual Production Total Annual Support divided by Actual Production units
Support per unit of Program Production Total Annual Support divided by Program ProductionProgram Production is program yield multiplied by base acres
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Measures of EquitabilitySupport Relative to CostsPer Acre Support Relative to Total Economic Costs Total Annual Support per planted acre divided by Total Economic Costs (includes depreciation, capital replacement, unpaid labor, etc.) per planted acre
Per Acre Support Relative to Total Variable CostsTotal Annual Support per planted acre divided by Total Variable Costs per planted acre
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Measures of EquitabilitySupport relative to valuePer Acre Support to Gross Value of Production Total Annual Support per planted acre divided by Gross Value of Production (excluding government payments) per planted acre
Support per Yield Unit Relative to Price Divides Support per Actual Production by Price per unit. Support per Actual Production is Total Annual Support divided by Actual Production
Total Annual Support/Total Value of Production Total Annual Support divided by Total Annual Value of Production as defined by NASS Used by Hart, C. in the Iowa Ag. Review
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Measures of EquitabilityPayment Provisions relative to costs Target Price to Total Economic Costs Annual Target Price per unit divided by Total Economic Costs per unit Economic Costs per unit calculated by taking Total Economic Costs per planted acre divided by yield per acre Used by Keough, et al. in AFPC working paper 89-4 and Miller, et al. in AFPC working paper 95-2
Target Price to Variable Costs Annual Target Price per unit divided by Variable Costs per unitVariable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield per acre Used by Keough, et al. in AFPC working paper 89-4 and Miller, et al. in AFPC working paper 95-2
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Measures of EquitabilityPayment Provisions relative to costsLoan Rate to Total Economic Costs Annual Loan Rate per unit divided by Total Economic Costs per unit Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield per acre Used by Keough, et al. AFPC working paper 89-4
Loan Rate to Variable Costs Annual Loan Rate per unit divided by Variable Costs per unitVariable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield per acre Used by Keough, et al. AFPC working paper 89-4
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Measures of EquitabilityPayment Provisions relative to ValueTarget Price relative to Price Annual Target Price divided by Price Used by Keough, et al. AFPC working paper 89-4
Loan Rate relative to Price Annual Loan Rate divided by Price Used by Keough, et al. AFPC working paper 89-4
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Measures of EquitabilityEffective benefits relative to effective costs
Effective Benefits/Effective Variable CostsEffective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments Effective variable costs include variable costs and ARP costsUpdated formula used originally by Used by Keough, et al. AFPC working paper 89-4
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Measures of EquitabilityEffective benefits relative to effective costs
Effective Benefits/Effective Fixed CostsEffective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments Effective total economic costs include fixed costs reduced by ARP percentage and ARP costsUpdated formula used originally by Used by Keough, et al. AFPC working paper 89-4
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Measures of EquitabilityEffective benefits relative to effective costs
Effective Benefits/Effective Costs Effective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments Effective costs include variable costs, fixed costs, and ARP costsUpdated formula used originally by Used by Keough, et al. AFPC working paper 89-4
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Results
Chart3
45.38598524131.165778953966.135752513725.7973022844
124.951024392277.648412458159.8688347958162.1054289843
277.1792295519227.2621495321308.3022885119333.5612927312
35.275300890521.389160444752.087264597726.4978311067
4.09901974322.07746821196.62062436052.5988604852
32.060032375222.499538887145.138488310321.506145034
27.235169807617.811481291939.821888752817.7460785193
12.22214169210.743166992224.49899795289.8284970101
118.136283061932.165412035646.9171388608589.7063287437
*Total Annual Support divided by Total Annual Planted Acres
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Planted acres obtained from National Agricultural Statistics Service, USDA.
Dollars per acre
Average
90-'95 Avg
96-'01 Avg
02-'03 Avg
Support per Planted acre*
Corn
Corn1985198619871988198919901991199219931994199519961997199819992000200120022003
SupportNet Budgetary Expenditures ($1000)
Deficiency Payments/ PFC Payments2,479,5006,195,3005,910,0002,162,7003,504,4003,014,4002,079,5003,624,3001,520,0003,199,10095,8001,745,0003,383,8003,940,1005,089,1004,891,800
Diversion Payments0.0132,6001,467,800562,1000.00.00.00.00.00.00.00.00.00.00.00.0
Production Flexibility Payments1,894,5831,743,670
Loan Deficiency Payments0.00.00.00.00.00.00.00.00.03,9330.00.011,001,7311,991,7122,352,1701,104,16417239,777
Marketing Loss Payments2,156,548
Counter-cyclical Payments0.00.0
Direct Payments386,7761,020,951
Producer Storage Payments204,700519,100479,900275,200154,800(1,800)0.00.07,90029,0000.00.00.00.00.00.0
Total2,684,2006,847,0007,857,7003,000,0003,659,2003,012,6002,079,5003,624,3001,527,9003,232,03395,8001,745,0003,383,8014,941,8317,080,8127,243,9705,155,2952,130,6181,060,728
Non-Cash Payments
Certificate Exchange Gains412,85531,0102,722150
Total0.00.00.00.00.00.00.00.00.00.00.00.00.0412,85531,0102,7221500.0
PIK
Total Non-Cash Payments0.00.00.00.00.00.00.00.00.00.00.00.00.0412,85531,0102,7221500.0
CCC Marketing Loan Write-0ffs0.00.00.00.00.00.00.00.00.00.00.00.097,900379,400409,400196,92282,59915,979247
Crop Insurance Benefits0.06,7060.0231,40243,9650.081,55412,233466,1930.0182,42726,9390.054,85784,2970.0192,473860,6540.0
Total All Support ($1000)2,684,2006,853,7067,857,7003,231,4023,703,1653,012,6002,161,0543,636,5331,994,0933,232,033278,2271,771,9393,481,7015,376,1297,577,3647,471,9025,433,0893,007,4011,060,975
Total All Support (Dollars)2,684,200,0006,853,705,7507,857,700,0003,231,401,9163,703,164,7933,012,600,0002,161,054,0483,636,533,4131,994,093,4693,232,033,000278,226,9241,771,939,4113,481,701,0005,376,128,6167,577,364,4317,471,902,0005,433,088,9043,007,400,6681,060,975,000
CostsU.S. corn production cash costs and returns (dollars per planted acre)
Gross value of production
(excluding direct Government payments):
Corn grain252.17167.03186.56217.20255.37257.33254.98274.33227.05296.32321.98366.46327.60259.76228.15244.26264.96310.88
Corn silage0.000.000.000.000.000.000.000.000.000.000.003.473.773.122.552.411.961.94
Total, gross value of production252.17167.03186.56217.20255.37257.33254.98274.33227.05296.32321.98369.93331.37262.88230.70246.67266.92312.82
Cash expenses:
Seed18.4819.2518.8618.9021.0220.5221.6122.122.4922.6723.9826.6528.7130.0230.2930.0232.3431.84
Fertilizer, lime and gypsum52.6540.7737.5045.3947.2142.5844.5943.1643.2646.0755.8547.0446.2141.4438.7539.0447.7235.49
Soil conditioners 2/0.160.160.160.170.160.120.12
Manure0.600.560.510.490.482.652.13
Chemicals19.5120.2720.1920.4921.5122.6422.4623.4624.2725.2226.3427.4226.8727.3628.4028.8226.4426.11
Custom operations 1/14.7614.8313.8510.9014.266.289.219.548.9710.059.6511.3011.3011.2911.3711.4810.9410.79
Fuel, lube, and electricity15.759.0110.6010.6311.8824.0018.9218.2918.0218.9617.9224.4324.5522.9623.0429.1220.8818.93
Repairs11.058.108.258.108.949.2813.3114.8313.9516.1315.9115.7816.1716.6517.1717.5513.7613.91
Hired labor4.027.877.837.878.298.617.377.747.557.548.032.833.073.193.283.362.923.06
Other variable cash expenses 2/0.580.310.310.320.310.300.410.40.430.440.450.300.320.310.310.310.220.22
Interest32.7220.9616.1114.9415.1316.6516.7914.7411.8615.9616.733.863.963.613.504.532.601.17
Total, variable cash expenses169.52141.37133.50137.54148.55150.86154.67154.26150.80163.04174.86160.37161.88157.50156.77164.87160.59143.77
Taxes and insurance17.4713.8114.6514.5914.8714.8517.9818.4118.1120.6820.016.987.007.056.967.135.495.42
General farm overhead10.9310.4210.1510.8110.4212.0610.3910.588.9813.4912.4610.3812.2111.4710.8811.1111.6711.91
Total, fixed cash expenses28.4024.2324.8025.4025.2926.9128.3728.9927.0934.1732.4717.3619.2118.5217.8418.2417.1617.33
Total Cash Expenses197.92165.60158.30162.94173.84177.77183.04183.25177.89197.21207.33177.73181.09176.02174.61183.11177.75161.10
Total Economic Costs277.01243.12244.57262.57284.89292.52292.55302.33287.1321.47333.42350.53360.29359.46361.3374.84343.9329.54
Gross Value of Production less Cash Expenses54.251.4328.2654.2681.5379.5671.9491.0849.1699.11114.65192.20150.2886.8656.0963.5689.17151.72
Gross Value of Production less Economic Costs-24.84-76.09-58.01-45.37-29.52-35.19-37.57-28.00-60.05-25.15-11.4419.40-28.92-96.58-130.60-128.17-76.98-16.72
Production Data
Planted Acres (1000 acres)83,39876,58066,20067,71772,32274,16675,95779,31173,23978,92171,47979,22979,53780,16577,38679,55175,70278,89478,736
Planted Acres83,398,00076,580,00066,200,00067,717,00072,322,00074,166,00075,957,00079,311,00073,239,00078,921,00071,479,00079,229,00079,537,00080,165,00077,386,00079,551,00075,702,00078,894,00078,736,000
Harvested Acres (1000 acres)75,20968,90759,50558,25064,78366,95268,82272,07762,93372,51465,21072,64472,67172,58970,48772,44068,76869,33071,139
Harvested Acres75,209,00068,907,00059,505,00058,250,00064,783,00066,952,00068,822,00072,077,00062,933,00072,514,00065,210,00072,644,00072,671,00072,589,00070,487,00072,440,00068,768,00069,330,00071,139,000
Yield (bushels)118119.4119.884.6116.3118.5108.6131.5100.7138.6113.5127.1126.7134.4133.8136.9138.2129.3142.2
Planted Acre Yield106107108731041079811987127104117116122122125126114128
Production (1000 bushels)8,875,4538,225,7647,131,3004,928,6817,531,9537,934,0287,474,7659,476,6986,337,73010,050,5207,400,0519,232,5579,206,8329,758,6859,430,6129,915,0519,502,5808,966,78710,113,887
Production (bushels)8,875,453,0008,225,764,0007,131,300,0004,928,681,0007,531,953,0007,934,028,0007,474,765,0009,476,698,0006,337,730,00010,050,520,0007,400,051,0009,232,557,0009,206,832,0009,758,685,0009,430,612,0009,915,051,0009,502,580,0008,966,787,00010,113,887,000
Price ($/bu)2.231.51.942.542.362.282.372.072.52.263.242.712.431.941.821.851.972.322.45
Value of Prod ($1000)19,518,76212,507,26314,107,70512,661,36217,912,89518,191,64317,860,94719,723,25816,035,51522,874,15424,202,23425,149,01322,351,50718,922,08417,103,99118,499,00218,888,38920,974,73424,803,566
Value of Production (dollars)19,518,762,00012,507,263,00014,107,705,00012,661,362,00017,912,895,00018,191,643,00017,860,947,00019,723,258,00016,035,515,00022,874,154,00024,202,234,00025,149,013,00022,351,507,00018,922,084,00017,103,991,00018,499,002,00018,888,389,00020,974,734,00024,803,566,000
Calculated Value of Production19,792,260,19012,338,646,00013,834,722,00012,518,849,74017,775,409,08018,089,583,84017,715,193,05019,616,764,86015,844,325,00022,714,175,20023,976,165,24025,020,229,47022,372,601,76018,931,848,90017,163,713,84018,342,844,35018,720,082,60020,802,945,84024,779,023,150
Difference in Value Production(273,498,190)168,617,000272,983,000142,512,260137,485,920102,059,160145,753,950106,493,140191,190,000159,978,800226,068,760128,783,530(21,094,760)(9,764,900)(59,722,840)156,157,650168,306,400171,788,16024,542,850
Number of Farms627,602503,935430,711348,590
Pay Provisions
Direct Payment ($/bu)0.481.111.090.360.580.510.410.730.280.5700.2510.4860.5640.7260.6970.580.280.28
Target Price ($/bu)3.033.033.032.932.842.752.752.752.752.752.75N/AN/AN/AN/AN/AN/A2.62.6
Loan Rate ($/bu)2.551.921.821.771.651.571.621.721.721.891.891.891.891.891.891.891.891.981.98
Base Acres (1000)58,06770,01373,75072,22465,73563,93463,28462,15666,50566,52662,16880,46880,46881,80081,50081,50081,90079,60086,900
Base Acres58,067,36970,013,16173,750,17972,223,58865,735,10063,934,37163,283,85062,156,46166,505,48466,525,82762,167,51780,467,70080,467,70081,800,00081,500,00081,500,00081,900,00079,600,00086,900,000
Program Yield (Bushels per Acre)106.0105.0104.0104.0104.6104.6104.9105.4105.2105.5106.2102.9102.8102.6102.6102.6102.7102.3102.4
Countercyclical Program Yield (Bushels per Acre)114.3114.4
Program Production6,155,141,1357,351,381,9057,670,018,6167,511,253,1526,875,891,4816,687,535,2486,638,475,8556,551,291,0326,996,376,8757,018,474,7496,602,190,3168,280,126,3308,272,079,5608,392,680,0008,361,900,0008,361,900,0008,411,130,0008,143,080,0008,898,560,000
Acerage Reduction Percentage0.10.1750.20.20.10.10.0750.10.10.00.1
RatiosCornCorn
1Support per Base acre ($/acre)*46.2397.89106.5444.7456.3347.1234.1558.5129.9848.584.4822.0243.2765.7292.9791.6866.3437.7812.21=C27/C83
Dollars per acre*Total Annual Support divided by Annual Base Acreage
**Source: CCC Expenditures obtained from Farm Service Agency. Base Acres obtained from FAPRI and Farm Service Agency.
2Support per Planted acre*32.1989.50118.7047.7251.2040.6228.4545.8527.2340.953.8922.3643.7767.0697.9293.9371.7738.1213.48=C27/C63
Dollars per acre*Total Annual Support divided by Total Annual Planted Acres
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Planted acres obtained from National Agricultural Statistics Service, USDA.
3Support per unit of Program Production*0.440.931.020.430.540.450.330.560.290.460.040.210.420.640.910.890.650.370.12=C27/C86
Dollars per unit*Total Annual Support divided by "Program Production". Program Production is program yield multiplied by base acres.
**Source: CCC Expenditures obtained from Farm Service Agency. Program yield and base acres obtained from FAPRI and Farm Service Agency.
4Support per unit of Actual Production*0.300.831.100.660.490.380.290.380.310.320.040.190.380.550.800.750.570.340.10=C27/C69
Dollars per unit*Total Annual Support divided by Actual Production units.
**Source: CCC Expenditures obtained from Farm Service Agency. Annual Production obtained from National Agricultural Statistics Service.
5Per Acre Support Relative to Total Economic Costs*0.120.370.490.180.180.140.100.150.090.130.010.060.120.190.270.250.210.12=C103/C56
Support Ratio*Total Annual Support per planted acre divided by Total Economic Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Economic Costs obtained from Economic Research Service, USDA.
6Per Acre Support Relative to Total Variable Costs*0.190.630.890.350.340.270.180.300.180.250.020.140.270.430.620.570.450.27=C103/C48
Support Ratio*Total Annual Support per planted acre divided by Total Variable Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Variable Costs obtained from Economic Research Service, USDA.
7Per Acre Support to Gross Value of Production*0.130.540.640.220.200.160.110.170.120.140.010.060.130.260.420.380.270.12=C103/C34
Support Ratio*Total Annual Support per planted acre divided by Gross Value of Production per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Gross Value of Production obtained from Economic Research Service, USDA.
8Support per Unit Relative to Price*0.140.560.570.260.210.170.120.190.130.140.010.070.160.280.440.410.290.140.04=C109/C71
Support Ratio*Divides Support per Actual Production by Price per unit. Support per Actual Production is Total Annual Support divided by Actual Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Price obtained from National Agricultural Statistics Service.
9Total Annual Support/Total Value of Production*0.140.550.560.260.210.170.120.180.120.140.010.070.160.280.440.400.290.140.04=C27/C73
Support Ratio*Total Annual Support divided by Total Annual Value of Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Value of Production obtained from National Agricultural Statistics Service.
10Program Yield relative to Actual Yield*0.900.880.871.230.900.880.970.801.040.760.940.810.810.760.770.750.740.790.72=C84/C66
Ratio*Program Yield divided by Actual Yield.
**Source: Program Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
11Countercyclical Payment Yield relative to Actual Yield*0.880.80=T85/T66
Ratio*For Years 2002 and 2003 only, Countercyclical Program Yield divided by Actual Yield.
**Source: CCP Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
12Target Price to Total Economic Costs*1.29071.48811.48420.94401.15941.11401.02091.19610.96461.18560.9361N/AN/AN/AN/AN/AN/A1.0201=C80/(C56/C66)
Ratio*Annual Target Price per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
13Target Price to Variable Costs*2.10912.55912.71911.80222.22342.16011.93092.34431.83642.33781.7850N/AN/AN/AN/AN/AN/A2.3383=C80/(C48/C66)
Ratio*Annual Target Price per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
14Loan Rate to Total Economic Costs*1.08620.94290.89150.57030.67360.63600.60140.74810.60330.81490.64340.68530.66460.70670.69990.69030.75950.7769=C81/(C56/C66)
Ratio*Annual Loan Rate per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
15Loan Rate to Variable Costs*1.77501.62161.63321.08871.29181.23321.13751.46621.14861.60671.22681.49791.47931.61281.61311.56941.62651.7807=C81/(C48/C66)
Ratio*Annual Loan Rate per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
16Target Price relative to Price*1.362.021.561.151.201.211.161.331.101.220.85N/AN/AN/AN/AN/AN/A1.121.06=C80/C71
Ratio*Annual Target Price divided by Price
**Source: Target Price obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
17Loan Rate relative to Price*1.141.280.940.700.700.690.680.830.690.840.580.700.780.971.041.020.960.850.81=C81/C71
Ratio*Annual Loan Rate divided by Price
**Source: Loan Rate obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
18Support per Farm*12520.207216.278083.618627.33=E27/E76
Dollars per Farm*Total Annual Support divided by number of farms.
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Number of farms obtained from the US Census of Agriculture.
Costs of ARP1.673.183.753.751.671.671.220.791.670.001.22
Fixed Costs w/ ARP119.43123.33138.84156.29151.49157.40149.06155.86151.44158.43171.42190.16198.41201.96204.53209.97183.31185.77
$/ planted acre
CounterCylical Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00(0.13)
Positive CC Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.000.0
Effective Benefits2.922.752.742.922.802.662.712.572.752.633.242.882.772.312.362.332.342.512.53
Effective Costs / Actual Yield2.462.242.303.522.592.622.812.363.022.323.062.762.842.672.702.742.492.55
$/ unit
Effective Variable Costs1.451.211.151.671.291.291.441.181.511.181.551.261.281.171.171.201.161.11
19Effective Benefits/ Effective Costs*1.181.231.190.831.081.020.961.090.911.131.061.050.970.860.880.850.940.98=C166/C169
Support Ratio*Effective Benefits divided by Effective Costs. Effective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments. Effective costs include variable costs, fixed costs, and ARP costs.
**Source: Actual Yield and price obtained from NASS, USDA. Farm bill payment provisions obtained from Farm Service Agency, USDA.
20Effective Benefits/ Effective Variable Costs2.012.272.401.752.172.071.892.181.822.232.092.282.161.972.021.942.012.26*Effective Benefits divided by Effective Variable Costs. Effective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments. Effective variable costs include variable costs and ARP costs.
Support Ratio**Source: Actual Yield and price obtained from NASS, USDA. Farm bill payment provisions obtained from Farm Service Agency, USDA.
21Effective Benefits/ Effective Fixed Costs2.842.602.311.542.131.981.962.161.812.302.131.931.771.531.551.521.761.75
Support Ratio*Effective Benefits divided by Effective Costs. Effective benefits include direct payments, market price or loan rat, and for 2002, countercyclical payments. Effective total economic costs include fixed costs reduced by ARP percentage and ARP costs.
**Source: Actual Yield and price obtained from NASS, USDA. Farm bill payment provisions obtained from Farm Service Agency, USDA.
Cotton
Cotton1985198619871988198919901991199219931994199519961997199819992000200120022003
SupportNet Budgetary Expenditures ($1000)
Deficiency Payments/ PFC Payments864,1001,258,300953,1001,144,300652,800409,600552,3001,017,5001,053,300279,2006,500698,900597,000953,2001,227,0001,186,000
Diversion Payments197,4000.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Production Flexibility Payments473,531437,036
Loan Deficiency Payments0.0127,36436442,2010.018154,300267,800303,9570.00.00.02,753303,377684,725151,813745,185205,20213,190
Marketing Loss Payments523,824
Counter-cyclical Payments1,311,719323,500
Direct Payments180,449296,072
Producer Storage Payments
User Marketing Payments0.00.0140,293113,594148,63588,01434,1116,401416,260280,072445,294235,757176,963415,379
Total1,061,5001,385,664953,4641,186,501652,800409,618706,6001,425,5931,470,851427,83594,514733,011606,1541,672,8372,191,7971,783,1071,978,2972,311,3691,048,141
Non-Cash Payments
Certificate Exchange Gains10136,531360,3151,747,950657,834
Total0.00.00.00.00.00.00.00.00.00.00.00.00.010136,531360,3151,747,950657,8340.0
PIK
Total Non-Cash Payments0.00.00.00.00.00.00.00.00.00.00.00.00.010136,531360,3151,747,950657,8340.0
CCC Marketing Loan Write-0ffs1180,376120,845105,50710605322,219475,902241,6880.00.00.026,088230,272814,85050,02346,7018,5043,261
Crop Insurance Benefits0.046,9280.07,36289,61645,459116,544224,29235,6610.0205,578185,35566,645307,584316,943425,834472,293276,841104,390
Total Support ($1000)1,061,5011,612,9681,074,3091,299,370742,426455,6821,145,3632,125,7871,748,200427,835300,092918,366698,8872,210,7943,360,1212,619,2794,245,2413,254,5481,155,792
Total Support (dollars)1,061,501,0001,612,968,4631,074,309,0001,299,369,803742,425,564455,682,3881,145,363,4312,125,787,3301,748,199,912427,835,000300,092,164918,365,791698,886,5082,210,793,9633,360,121,1342,619,278,8224,245,240,7333,254,547,7111,155,792,301
CostsU.S. cotton production cash costs and returns
Gross value of production
(excluding direct Government payments):
Cotton329.09226.86445.03314.46362.87404.44338.85280.04274.80421.04339.85383.84477.48307.20274.48324.33222.60257.88
Cottonseed32.9729.7347.1358.5848.5759.2034.4243.1051.3156.3548.9470.7368.0748.9040.3250.8548.8049.95
Total, gross value of production362.06256.59492.16373.04411.44463.64373.27323.14326.11477.39388.79454.57545.55356.10314.80375.18271.40307.83
Cash expenses:
Seed8.756.238.168.658.449.1113.3013.6114.3114.7915.6716.7517.6317.8718.3530.1037.8247.99
Fertilizer, lime, and gypsum24.9723.6022.6526.3928.8326.4935.6234.9736.2838.1644.8946.5335.3131.7629.9131.3235.2630.56
Chemicals52.6044.2344.5145.7548.7151.1948.1949.6949.6349.8750.4350.9860.1958.5458.6058.3259.2556.80
Custom operations15.3711.9113.4413.1713.3114.4217.2917.1617.6719.5921.6920.9223.2713.0219.6719.9319.9919.25
Fuel, lube, and electricity34.0222.6031.5332.8734.2536.4934.6532.0133.0031.0338.3135.6731.6426.2926.6436.9736.4931.37
Repairs19.0519.7421.1323.2823.6424.8723.3421.6325.3725.6728.5929.1825.3927.3226.2827.1828.5329.10
Hired labor24.6037.6940.2141.0142.9643.8038.4339.7938.5639.4739.9141.8633.7233.9235.4836.9837.8938.16
Ginning58.5043.3765.3955.7750.6056.4750.4149.3851.2952.7453.1350.8462.7543.7853.0851.4657.1455.61
Other variable cash expenses, water7.648.479.129.039.308.675.315.315.405.635.796.058.716.896.126.555.055.01
Interest45.8844.0134.2231.2732.2035.3021.3317.7217.7717.6820.4819.606.575.405.617.554.712.31
Total, variable cash expenses291.38261.85290.36287.19292.24306.81287.87281.27289.28294.63318.89318.38305.18264.79279.74306.36322.13316.16
General farm overhead21.1621.2921.5923.4622.2925.8015.6714.8715.1117.0518.2016.5215.5514.2115.3515.8216.1115.97
Taxes and insurance10.5512.6614.1314.5815.0015.1419.9619.1420.0322.3523.3323.3114.9714.2015.0715.9316.6817.01
Total fixed cash expenses31.7133.9535.7238.0437.2940.9435.6334.0135.1439.4041.5339.8330.5228.4130.4231.7532.7932.98
Total Cash Expenses323.09295.80326.08325.23329.53347.75323.50315.28324.42334.03360.42358.21335.70293.20310.16338.11354.92349.14
Total Economic Costs404.50388.08467.75465.45480.03508.49436.65420.46441.02464.26502.07500.58516.27461.16488.07517.66530.52529.02
Gross value of production less cash expenses38.97-39.21166.0847.8181.91115.8949.777.861.69143.3628.3796.36209.8562.904.6437.07-83.52-41.31
Gross value of production less economic costs-42.44-131.4924.41-92.41-68.59-44.85-63.38-97.32-114.9113.13-113.28-46.0129.28-105.06-173.27-142.48-259.12-221.19
Production Data
Planted Acres (thousands)10,6019,93310,25912,32510,21012,11713,80212,97713,24813,55216,71714,39513,64813,06414,58415,34715,49913,71413,301
Planted Acres10,600,6009,933,10010,259,30012,325,20010,209,70012,116,80013,801,70012,976,60013,248,30013,551,60016,716,80014,394,50013,648,00013,064,30014,584,00015,347,00015,498,50013,714,00013,301,000
Harvested Acres (Thousands)10,1458,3579,89411,7599,16611,50512,71610,86312,59413,15615,79612,63213,15710,44913,13812,88413,56012,17411,826
Harvested Acres10,145,4008,357,3009,893,70011,759,1009,166,00011,504,50012,715,50010,863,10012,594,40013,155,90015,795,60012,632,20013,157,00010,448,80013,138,00012,884,00013,559,50012,174,00011,826,000
Yield (pound)628547702615602632650694601705533700666619595626694652723
Planted Acre Yield601460677587541600599581571684503614642495536525607579643
Production (1000 bales)13,2779,52514,47515,07711,50415,14717,21615,71015,76419,32417,53218,41418,24513,47616,29416,79919,60216,53017,823
Production (pounds)6,373,008,0004,572,096,0006,948,144,0007,237,104,0005,521,872,0007,270,512,0008,263,632,0007,540,896,0007,566,864,0009,275,664,0008,415,456,0008,838,480,0008,757,600,0006,468,432,0007,820,976,0008,063,616,0009,409,152,0007,934,544,0008,554,992,000
Production (bales)13,277,1009,525,20014,475,30015,077,30011,503,90015,146,90017,215,90015,710,20015,764,30019,324,30017,532,20018,413,50018,245,00013,475,90016,293,70016,799,20019,602,40016,530,30017,822,900
Price ($/lb)0.5680.5150.6370.5560.6360.6710.5680.5370.5810.720.7540.6930.6520.6020.450.4980.2980.4450.629
Value of Production ($1000)3,559,7182,360,2284,413,0344,000,7463,555,4804,894,2264,728,4984,081,6574,366,5346,630,5826,358,1846,136,5925,708,9403,923,8273,533,8254,073,1612,833,9133,497,1235,345,209
Value of Production3,559,718,0002,360,228,0004,413,034,0004,000,746,0003,555,480,0004,894,226,0004,728,498,0004,081,657,0004,366,534,0006,630,582,0006,358,184,0006,136,592,0005,708,940,0003,923,827,0003,533,825,0004,073,161,0002,833,913,0003,497,123,0005,345,209,000
Calculated Value of Production3,619,868,5442,354,629,4404,425,967,7284,023,829,8243,511,910,5924,878,513,5524,693,742,9764,049,461,1524,396,347,9846,678,478,0806,345,253,8246,125,066,6405,709,955,2003,893,996,0643,519,439,2004,015,680,7682,803,927,2963,530,872,0805,381,089,968
Difference in Value Production(60,150,544)5,598,560(12,933,728)(23,083,824)43,569,40815,712,44834,755,02432,195,848(29,813,984)(47,896,080)12,930,17611,525,360(1,015,200)29,830,93614,385,80057,480,23229,985,704(33,749,080)(35,880,968)
Number of Farms43,04634,81231,49324,805
Pay Provisions
Direct Payments ($/lb)0.2370.260.1570.1940.1310.06780.1010.2030.1860.04600.08820.076250.122370.15760.15210.1
Target Price ($/lb)0.810.810.7940.7590.7340.7290.7290.7290.7290.7290.729N/AN/AN/AN/AN/AN/A0.70.7
Loan Rate ($/lb)0.5730.550.52250.5180.50.50270.50770.52350.52350.50.51920.51920.51920.51920.51920.51920.51920.520.52
Base Acres (1000)13,01614,26413,47712,88812,89712,43612,17313,20613,70213,66012,24716,12816,21016,26016,44016,44016,49017,08018,420
Base Acres13,016,06914,263,62613,476,60112,887,77812,896,73312,435,67312,172,89213,206,07913,702,38213,660,27212,247,27716,128,03416,210,00016,260,00016,440,00016,440,00016,490,00017,080,00018,420,000
Program Yield (lbs/acre)549.0587.0593.0590.4592.0594.8588.5601.8604.5606.0600.1600600600600600605604.3603.7
Countercyclical Yield638.9638.4
Program Production7,145,821,6078,372,748,4627,991,624,3937,608,944,0137,634,865,6407,396,738,4797,163,747,0607,947,418,4638,283,089,7388,278,124,8327,349,590,9289,676,820,6409,726,000,0009,756,000,0009,864,000,0009,864,000,0009,976,450,00010,321,444,00011,120,154,000
Acerage Reduction Percentage0.20.250.250.1250.250.1250.050.10.0750.110
RatiosCottonCotton
1Support per Base acre ($/acre)*81.55113.0879.72100.8257.5736.6494.09160.97127.5831.3224.5056.9443.11135.97204.39159.32257.44190.5562.75=C27/C83
Dollars per acre*Total Annual Support divided by Annual Base Acreage
**Source: CCC Expenditures obtained from Farm Service Agency. Base Acres obtained from FAPRI and Farm Service Agency.
2Support per Planted acre*100.14162.38104.72105.4272.7237.6182.99163.82131.9631.5717.9563.8051.21169.22230.40170.67273.91237.3286.90=C27/C63
Dollars per acre*Total Annual Support divided by Total Annual Planted Acres
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Planted acres obtained from National Agricultural Statistics Service, USDA.
3Support per unit of Program Production*0.150.190.130.170.100.060.160.270.210.050.040.090.070.230.340.270.430.320.10=C27/C86
Dollars per unit*Total Annual Support divided by "Program Production". Program Production is program yield multiplied by base acres.
**Source: CCC Expenditures obtained from Farm Service Agency. Program yield and base acres obtained from FAPRI and Farm Service Agency.
4Support per unit of Actual Production*0.170.350.150.180.130.060.140.280.230.050.040.100.080.340.430.320.450.410.14=C27/C69
Dollars per unit*Total Annual Support divided by Actual Production units.
**Source: CCC Expenditures obtained from Farm Service Agency. Annual Production obtained from National Agricultural Statistics Service.
5Per Acre Support Relative to Total Economic Costs*0.250.420.220.230.150.070.190.390.300.070.040.130.100.370.470.330.520.45=C103/C56
Support Ratio*Total Annual Support per planted acre divided by Total Economic Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Economic Costs obtained from Economic Research Service, USDA.
6Per Acre Support Relative to Total Variable Costs*0.340.620.360.370.250.120.290.580.460.110.060.200.170.640.820.560.850.75=C103/C48
Support Ratio*Total Annual Support per planted acre divided by Total Variable Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Variable Costs obtained from Economic Research Service, USDA.
7Per Acre Support to Gross Value of Production*0.280.630.210.280.180.080.220.510.400.070.050.140.090.480.730.451.010.77=C103/C34
Support Ratio*Total Annual Support per planted acre divided by Gross Value of Production per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Gross Value of Production obtained from Economic Research Service, USDA.
8Support per Unit Relative to Price*0.290.690.240.320.210.090.240.520.400.060.050.150.120.570.950.651.510.920.21=C109/C71
Support Ratio*Divides Support per Actual Production by Price per unit. Support per Actual Production is Total Annual Support divided by Actual Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Price obtained from National Agricultural Statistics Service.
9Total Annual Support/Total Value of Production*0.300.680.240.320.210.090.240.520.400.060.050.150.120.560.950.641.500.930.22=C27/C73
Support Ratio*Total Annual Support divided by Total Annual Value of Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Value of Production obtained from National Agricultural Statistics Service.
10Program Yield relative to Actual Yield*0.871.070.840.960.980.940.910.871.010.861.130.860.900.971.010.960.870.930.83=C84/C66
Ratio*Program Yield divided by Actual Yield.
**Source: Program Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
11Countercyclical Payment Yield relative to Actual Yield*0.980.88=T85/T66
Ratio*For Years 2002 and 2003 only, Countercyclical Program Yield divided by Actual Yield.
**Source: CCP Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
12Target Price to Total Economic Costs*1.25761.14171.19161.00290.92050.90611.08521.20330.99341.10700.7739N/AN/AN/AN/AN/AN/A0.8923=C80/(C56/C66)
Ratio*Annual Target Price per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
13Target Price to Variable Costs*1.74581.69211.91961.62541.51201.50171.64611.79871.51451.74441.2185N/AN/AN/AN/AN/AN/A1.4931=C80/(C48/C66)
Ratio*Annual Target Price per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
14Loan Rate to Total Economic Costs*0.88960.77520.78420.68440.62700.62480.75580.86410.71340.75930.55120.72600.66980.69690.63300.62790.67920.6409=C81/(C56/C66)
Ratio*Annual Loan Rate per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
15Loan Rate to Variable Costs*1.23501.14891.26321.10931.03001.03551.14641.29171.08761.19640.86781.14151.13311.21371.10431.06091.11861.0724=C81/(C48/C66)
Ratio*Annual Loan Rate per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
16Target Price relative to Price*1.431.571.251.371.151.091.281.361.251.010.97N/AN/AN/AN/AN/AN/A1.631.15=C80/C71
Ratio*Annual Target Price divided by Price
**Source: Target Price obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
17Loan Rate relative to Price*1.011.070.820.930.790.750.890.970.900.690.690.750.800.861.151.041.741.170.83=C81/C71
Ratio*Annual Loan Rate divided by Price
**Source: Loan Rate obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
18Support per Farm*24957.2361064.7922191.80131205.31=E27/E76
Dollars per Farm*Total Annual Support divided by number of farms.
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Number of farms obtained from the US Census of Agriculture.
Costs of ARP3.755.005.002.145.002.140.791.671.221.850.00
Fixed Costs w/ ARP141.40168.31236.52203.73250.39230.49156.61154.66164.04190.60183.18182.20211.09196.37208.33211.30208.39212.86
$/ planted acre
CounterCylical Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.200.03
Positive CC Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.200.03
Effective Benefits0.750.790.750.710.750.730.650.690.740.750.750.760.710.700.650.640.520.690.70
Effective Costs / Actual Yield0.700.800.760.800.910.850.690.630.760.690.940.720.780.750.820.830.760.81
$/ unit
Effective Variable Costs0.470.490.420.470.490.490.440.410.480.420.600.450.460.430.470.490.460.48
19Effective Benefits/ Effective Costs*1.080.990.990.890.820.850.941.090.981.090.801.060.920.940.800.780.680.85=C166/C169
*Effective Benefits divided by Effective Costs. Effective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments. Effective costs include variable costs, fixed costs, and ARP costs.
**Source: Actual Yield and price obtained from NASS, USDA. Farm bill payment provisions obtained from Farm Service Agency, USDA.
Effective Benefits/ Effective Variable Costs1.591.611.781.521.511.481.451.681.531.791.261.661.551.641.391.311.121.42
3.242.482.182.131.761.972.673.052.692.762.192.912.242.221.871.911.732.11
Rice
Rice1985198619871988198919901991199219931994199519961997199819992000200120022003
SupportNet Budgetary Expenditures ($1000)
Deficiency Payments/ PFC Payments374,800494,800544,800555,300456,400555,200458,300613,400570,100557,900471,400455,200448,300715,600930,000896,200
Diversion Payments92,8000.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Production Flexibility Payments351,593322,379
Loan Deficiency Payments26,1880.00.00.01,1228,21925,69453,746214,74556,42210.00.01,008160,685277,675308,779260,323282,049
Marketing Loss Payments397,639
Counter-cyclical Payments322,792
Direct Payments98,958296,072
Producer Storage Payments
Total493,788494,800544,800555,300457,522563,419483,994667,146784,845614,322471,401455,200448,300716,6081,090,6851,173,8751,058,0111,004,452578,121
Non-Cash Payments
Certificate Exchange Gains1557,020169,339205,099309,799
Total0.00.00.00.00.00.00.00.00.00.00.00.00.01557,020169,339205,099309,7990.0
PIK
Total Non-Cash Payments0.00.00.00.00.00.00.00.00.00.00.00.00.01557,020169,339205,099309,799
CCC Marketing Loan Write-0ffs233,316423,627199,49962,47692,930173,22457,647206,81526,35360,4740.00.00.013,086182,913150,328199,117135,41474,055
Crop Insurance Benefits2,1092,0933,3805,6186,0119,17518,7087,40210,1710.02,3140.04,5629,38741,6913,5247,5128,2304,066
Total Support ($1000)729,213920,520747,679623,394556,463745,818560,349881,363821,369674,796473,715455,200452,862739,0961,372,3091,497,0661,469,7391,457,895656,242
Total Support (dollars)729,212,958920,520,477747,679,051623,393,943556,462,749745,817,660560,349,096881,362,558821,369,214674,796,000473,714,501455,200,000452,862,375739,095,6331,372,309,3511,497,066,2371,469,738,8381,457,895,023656,242,367
CostsU.S. rice production cash costs and returns
Gross value of production
(excluding direct Government payments):
Rice430.78218.20264.06366.85415.64319.42407.88370.79322.16402.56488.66592.70591.36525.75373.84368.77328.67280.56
Total, gross value of production430.78218.20264.06366.85415.64319.42407.88370.79322.16402.56488.66592.70591.36525.75373.84368.77328.67280.56
Cash expenses:
Seed24.2119.8921.0121.2221.4321.5120.4220.7619.4928.1419.2322.3824.1525.1524.3423.3121.2120.32
Fertilizer34.0635.3430.9635.4538.4335.5934.2642.0843.1845.7254.9656.1052.5946.4143.9346.6559.1143.46
Soil conditioners0.010.010.01
Chemicals5.6942.0639.0839.2140.6042.5946.9952.3355.6758.3365.1167.8668.3268.3268.7849.2549.4455.40
Custom operations 1/53.1237.8137.5132.6234.7135.5337.1941.8544.6645.7145.1545.5745.8045.3245.4568.6965.5967.58
Fuel, lube, and electricity44.5637.5347.1055.1958.1164.2368.9164.8060.2862.2957.4273.0368.1458.2561.3957.8469.2560.66
Repairs28.7222.2423.3426.7828.3230.0131.1325.2626.0627.9028.5128.6928.8329.1030.0319.1619.9020.44
Hired labor26.0939.3439.0934.7035.9238.5540.1232.4433.7333.3332.5235.8138.0137.6039.7426.2826.1327.67
Drying 2/34.6743.3239.0839.0240.8040.2041.8027.1027.9430.4628.3730.1429.7227.8729.35
Other variable cash expenses 3/20.299.688.768.078.488.339.499.4510.8611.0811.4012.0312.2312.0312.5211.129.6410.46
Interest52.4035.1026.0524.7125.7527.8126.7222.6123.5923.4226.7726.4226.5727.9926.607.774.962.34
Total, variable cash expenses323.81322.31311.98316.97332.55344.35357.03338.68345.46366.38369.44398.03394.36378.04382.13310.08325.24308.34
General farm overhead26.0820.7720.2821.6020.9723.9622.2120.1026.7228.3629.9128.0032.9031.0326.6022.1122.7323.32
Taxes and insurance13.2111.2412.0212.0112.4312.5712.6518.8925.4829.0229.3031.8830.5538.5425.5015.6915.8715.88
Total, fixed cash expenses39.2932.0132.3033.6133.4036.5334.8638.9952.2057.3859.2159.8863.4569.5752.1037.8038.6039.20
Total cash expenses363.10354.32344.28350.58365.95380.88391.89377.67397.66423.76428.65457.91457.81447.61434.23347.88363.84347.54
Total, economic costs472.22421.36433.94478.99513.24506.73539.23537.24551.80605.70630.17672.34684.75676.08671.04578.89594.12586.32
Gross value of production less cash expenses67.68-136.12-80.2216.2749.69-61.4615.99-6.88-75.50-21.2060.01134.79133.5578.14-60.3920.89-35.17-66.98
Gross value of production less economic costs-41.44-203.16-169.88-112.14-97.60-187.31-131.35-166.45-229.64-203.14-141.51-79.64-93.40-150.33-297.20-210.12-265.45-305.76
Production Data
Planted Acres (thousands)2,5122,3812,3562,9332,7312,8972,8843,1762,9203,3533,1212,8243,1253,2853,5313,0603,3343,2403,022
Planted Acres2,512,0002,381,0002,356,0002,933,0002,731,0002,897,0002,884,0003,176,0002,920,0003,353,0003,121,0002,824,0003,125,0003,285,0003,531,0003,060,0003,334,0003,240,0003,022,000
Harvested Acres (Thousands)2,4922,3602,3332,9002,6872,8232,7813,1322,8333,3163,0932,8043,1033,2573,5123,0393,3143,2072,997
Harvested Acres2,492,0002,360,0002,333,0002,900,0002,687,0002,823,0002,781,0003,132,0002,833,0003,316,0003,093,0002,804,0003,103,0003,257,0003,512,0003,039,0003,314,0003,207,0002,997,000
Yield (pounds)5414565155555514574955295731573655105964562161205897566358666281649665786645
Planted Acre Yield5,3715,6015,5015,4525,6575,3885,5265,6575,3465,8995,5716,0765,8565,6155,8356,2386,4576,5116,590
Production (1000 cwt)134,913133,356129,603159,897154,487156,088159,367179,658156,110197,779173,871171,599182,992184,443206,027190,872215,270210,960199,157
Production (lbs)13,491,300,00013,335,600,00012,960,300,00015,989,700,00015,448,700,00015,608,800,00015,936,700,00017,965,800,00015,611,000,00019,777,900,00017,387,100,00017,159,900,00018,299,200,00018,444,300,00020,602,700,00019,087,200,00021,527,000,00021,096,000,00019,915,700,000
Price (dols/cwt)6.533.757.276.837.356.77.585.897.986.789.159.969.78.895.935.614.254.497.25
Price ($/lb)0.06530.03750.07270.06830.07350.06700.07580.05890.07980.06780.09150.09960.09700.08890.05930.05610.04250.04490.0725
Value of Production ($1000)893,377495,505971,1671,091,8171,134,0391,047,2421,213,3301,057,2721,246,8751,336,5701,587,2361,690,2701,756,1361,654,1571,231,2071,049,961925,055979,6281,485,031
Value of Production893,377,000495,505,000971,167,0001,091,817,0001,134,039,0001,047,242,0001,213,330,0001,057,272,0001,246,875,0001,336,570,0001,587,236,0001,690,270,0001,756,136,0001,654,157,0001,231,207,0001,049,961,000925,055,000979,628,0001,485,031,000
Calculated Value of Production880,981,890500,085,000942,213,8101,092,096,5101,135,479,4501,045,789,6001,208,001,8601,058,185,6201,245,757,8001,340,941,6201,590,919,6501,709,126,0401,775,022,4001,639,698,2701,221,740,1101,070,791,920914,897,500947,210,4001,443,888,250
Difference in Value Production12,395,110(4,580,000)28,953,190(279,510)(1,440,450)1,452,4005,328,140(913,620)1,117,200(4,371,620)(3,683,650)(18,856,040)(18,886,400)14,458,7309,466,890(20,830,920)10,157,50032,417,60041,142,750
Number of Farms9,6278,046
Pay. Provisions
Direct Payment ($/lb)0.0390.0470.04820.04310.03560.04160.03070.04210.03980.03790.03220.027660.02710.043740.05640.05420.04490.02350.0235
Target Price ($/lb)0.1190.1190.11660.11150.1080.10710.10710.10710.10710.10710.1071N/AN/AN/AN/AN/AN/A0.1050.105
Loan Rate ($/lb)0.080.0720.06840.06630.0650.0650.0650.0650.0650.0650.0650.0650.0650.0650.0650.0650.0650.0650.065
Base Acres (1000)3,8153,9783,9983,9103,9063,8903,9473,9894,0003,9693,9624,1584,1574,1664,1534,1514,1414,1804,490
Base Acres3,814,5213,977,7043,998,3173,910,0693,905,8403,890,0593,947,4403,989,1423,999,9183,969,0673,962,0254,157,9004,157,2004,165,8004,152,5004,151,1004,141,4004,180,0004,490,000
Program Yield (lbs/acre)4,992.04,713.04,680.04,858.74,863.94,848.94,848.54,842.84,851.64,863.44,859.504,8274,8174,8174,8154,8154,8154,816.404,812.30
Countercyclical Yield5,123.605,119.70
Program Production (lbs)19,042,086,33618,746,918,95218,712,123,56018,997,851,76418,997,613,23018,862,508,05519,139,161,87019,318,615,42519,406,000,22819,303,160,44819,253,462,43120,070,183,30020,025,232,40020,066,658,60019,994,287,50019,987,546,50019,940,841,00020,132,552,00021,607,227,000
Acerage Reduction Percentage0.2000.3500.3500.2500.2500.2000.0500.00.0500.00.050
Direct Payments (/cwt)3.94.74.824.313.564.163.074.213.983.793.222.7662.714.3745.645.424.492.352.35
Target Price ($/cwt)11.911.911.6611.1510.810.7110.7110.7110.7110.7110.71N/AN/AN/AN/AN/AN/A10.510.5
Loan Rate ($/cwt)87.26.846.636.56.56.56.56.56.56.56.56.56.56.56.56.56.56.5
RatiosRiceRice
1Support per Base acre ($/acre)*191.17231.42187.00159.43142.47191.72141.95220.94205.35170.01119.56109.48108.93177.42330.48360.64354.89348.78146.16=C27/C83
Dollars per acre*Total Annual Support divided by Annual Base Acreage
**Source: CCC Expenditures obtained from Farm Service Agency. Base Acres obtained from FAPRI and Farm Service Agency.
2Support per Planted acre*290.29386.61317.35212.54203.76257.44194.30277.51281.29201.25151.78161.19144.92224.99388.65489.24440.83449.97217.15=C27/C63
Dollars per acre*Total Annual Support divided by Total Annual Planted Acres
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Planted acres obtained from National Agricultural Statistics Service, USDA.
3Support per unit of Program Production*0.040.050.040.030.030.040.030.050.040.030.020.020.020.040.070.070.070.070.03=C27/C86
Dollars per unit*Total Annual Support divided by "Program Production". Program Production is program yield multiplied by base acres.
**Source: CCC Expenditures obtained from Farm Service Agency. Program yield and base acres obtained from FAPRI and Farm Service Agency.
4Support per unit of Actual Production*0.050.070.060.040.040.050.040.050.050.030.030.030.020.040.070.080.070.070.03=C27/C69
Dollars per unit*Total Annual Support divided by Actual Production units.
**Source: CCC Expenditures obtained from Farm Service Agency. Annual Production obtained from National Agricultural Statistics Service.
5Per Acre Support Relative to Total Economic Costs*0.610.920.730.440.400.510.360.520.510.330.240.240.210.330.580.850.740.77=C103/C56
Support Ratio*Total Annual Support per planted acre divided by Total Economic Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Economic Costs obtained from Economic Research Service, USDA.
6Per Acre Support Relative to Total Variable Costs*0.901.201.020.670.610.750.540.820.810.550.410.400.370.601.021.581.361.46=C103/C48
Support Ratio*Total Annual Support per planted acre divided by Total Variable Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Variable Costs obtained from Economic Research Service, USDA.
7Per Acre Support to Gross Value of Production*0.671.771.200.580.490.810.480.750.870.500.310.270.250.431.041.331.341.60=C103/C34
Support Ratio*Total Annual Support per planted acre divided by Gross Value of Production per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Gross Value of Production obtained from Economic Research Service, USDA.
8Support per Unit Relative to Price*0.831.840.790.570.490.710.460.830.660.500.300.270.260.451.121.401.611.540.45=C109/C71
Support Ratio*Divides Support per Actual Production by Price per unit. Support per Actual Production is Total Annual Support divided by Actual Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Price obtained from National Agricultural Statistics Service.
9Total Annual Support/Total Value of Production*0.821.860.770.570.490.710.460.830.660.500.300.270.260.451.111.431.591.490.44=C27/C73
Support Ratio*Total Annual Support divided by Total Annual Value of Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Value of Production obtained from National Agricultural Statistics Service.
10Program Yield relative to Actual Yield*0.920.830.840.880.850.880.850.840.880.820.860.790.820.850.820.770.740.730.72=C84/C66
Ratio*Program Yield divided by Actual Yield.
**Source: Program Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
11Countercyclical Payment Yield relative to Actual Yield*0.780.77=T85/T66
Ratio*For Years 2002 and 2003 only, Countercyclical Program Yield divided by Actual Yield.
**Source: CCP Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
12Target Price to Total Economic Costs*1.36431.59591.49261.28361.20971.16861.13831.14351.06941.05460.9553N/AN/AN/AN/AN/AN/A1.1780=C80/(C56/C66)
Ratio*Annual Target Price per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
13Target Price to Variable Costs*1.98962.08642.07611.93971.86711.71961.71921.81391.70821.74341.6295N/AN/AN/AN/AN/AN/A2.2400=C80/(C48/C66)
Ratio*Annual Target Price per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
14Loan Rate to Total Economic Costs*0.91720.96560.87560.76320.72810.70920.69080.69400.64910.64000.57980.59170.55980.54450.56820.70530.71070.7292=C81/(C56/C66)
Ratio*Annual Loan Rate per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
15Loan Rate to Variable Costs*1.33761.26241.21791.15341.12371.04371.04341.10091.03671.05810.98900.99940.97200.97370.99781.31661.29821.3867=C81/(C48/C66)
Ratio*Annual Loan Rate per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
16Target Price relative to Price*1.823.171.601.631.471.601.411.821.341.581.17N/AN/AN/AN/AN/AN/A2.341.45=C80/C71
Ratio*Annual Target Price divided by Price
**Source: Target Price obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
17Loan Rate relative to Price*1.231.920.940.970.880.970.861.100.810.960.710.650.670.731.101.161.531.450.90=C81/C71
Ratio*Annual Loan Rate divided by Price
**Source: Loan Rate obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
18Support per Farm*0.000.0047040.86181195.01=E27/E76
Dollars per Farm*Total Annual Support divided by number of farms.
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Number of farms obtained from the US Census of Agriculture.
Costs of ARP3.758.088.085.005.003.750.790.000.790.000.79
Fixed Costs w/ ARP185.51152.38187.63216.03240.92202.98191.79198.56217.20239.32274.45274.31290.39298.04288.91268.81268.88277.98
$/ planted acre
CounterCylical Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.020.01
Positive CC Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.020.01
Effective Benefits0.110.110.110.100.100.100.100.100.110.090.120.120.120.120.100.100.090.090.09
Effective Costs / Actual Yield0.090.090.090.100.100.100.100.090.100.100.110.110.120.120.110.090.090.09
$/ unit
Effective Variable Costs0.060.060.060.060.060.060.060.060.060.060.070.070.070.070.070.050.050.05
19Effective Benefits/ Effective Costs1.171.231.171.030.980.981.021.021.070.931.001.081.001.010.911.091.021.02=C166/C169
*Effective Benefits divided by Effective Costs. Effective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments. Effective costs include variable costs, fixed costs, and ARP costs.
**Source: Actual Yield and price obtained from NASS, USDA. Farm bill payment provisions obtained from Farm Service Agency, USDA.
Effective Benefits/ Effective Variable Costs1.831.801.861.721.691.561.571.611.741.531.751.821.731.811.602.031.861.93
3.163.713.042.512.322.622.912.752.772.342.352.642.352.292.122.342.252.14
Sorghum
Sorghum1985198619871988198919901991199219931994199519961997199819992000200120022003
SupportNet Budgetary Expenditures ($1000)
Deficiency Payments/ PFC Payments227,300556,700575,500266,000390,000317,300174,600328,200153,400292,50026,700200,800338,200428,100553,600532,200
Diversion Payments0.013,300132,80059,2000.00.00.00.00.00.00.00.00.00.00.00.0
Production Flexibility Payments209,192167,523
Loan Deficiency Payments0.00.00.00.00.00.00.00.00.0110.00.00.056,947148,65380,8855,0112,25312,510
Marketing Loss Payments235,790
Counter-cyclical Payments0.00.0
Direct Payments34,50695,164
Producer Storage Payments20,90032,20028,00011,2005,1000.00.00.03001,0000.00.00.00.00.00.0
Total248,200602,200736,300336,400395,100317,300174,600328,200153,700293,51126,700200,800338,200485,047702,253613,085449,993204,282107,674
Non-Cash Payments
Certificate Exchange Gains64947929
Total0.00.00.00.00.00.00.00.00.00.00.00.00.00.0649479290.0
PIK
Total Non-Cash Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.0649479290.0
CCC Marketing Loan Write-0ffs0.00.00.00.00.00.00.00.00.00.00.00.01,1004,1003,9008422182376
Crop Insurance Benefits12,48915,6424,2206,58044,07819,97917,7672,57816,1720.036,00733,1330.066,09411,97664,26383,106190,5353,419
Total Support ($1000)260,689617,842740,520342,980439,178337,279192,367330,778169,872293,51162,707233,933339,300555,241718,193679,137533,326395,083111,099
Total Support (dollars)260,688,630617,841,866740,519,644342,980,062439,177,662337,279,214192,367,013330,777,686169,872,483293,511,00062,707,261233,933,172339,300,000555,241,083718,192,903679,136,707533,326,093395,082,968111,099,255
CostsU.S. grain sorghum production cash costs and returns
Gross value of production
(excluding direct Government payments):
Sorghum125.1991.6796.07141.77105.24117.49124.90127.67113.27127.16143.00170.10153.4396.6696.6688.6293.8695.37
Total, gross value of production125.1991.6796.07141.77105.24117.49124.90127.67113.27127.16143.00170.10153.4396.6696.6688.6293.8695.37
Cash expenses:
Seed3.813.804.743.595.225.435.525.705.996.435.426.006.576.726.726.336.356.63
Fertilizer, lime, and gypsum20.3417.6515.3317.1920.1517.7118.4218.8218.8020.2819.1917.9917.6213.8913.8914.3421.5315.10
Chemicals9.719.739.8710.229.6110.1110.9711.1813.7114.2612.6312.2911.6911.2011.2011.1511.3111.22
Custom operations 1/3.964.004.023.954.194.344.464.884.484.465.076.236.916.786.785.485.274.38
Fuel, lube, and electricity14.5210.0311.2311.0113.5714.8015.5114.7914.3613.3014.1317.1017.3721.9221.9226.0929.9924.92
Repairs7.757.627.727.9510.7910.7111.5412.7012.4213.1312.8913.8114.2514.7014.7015.2916.2817.48
Hired labor2.392.542.472.497.427.457.848.597.848.124.985.415.686.366.366.577.067.45
Other variable cash expenses 2/0.130.130.110.100.380.390.410.410.430.41
Interest13.7111.4611.3212.998.098.798.108.418.6911.491.911.851.901.771.772.271.530.67
Total, variable cash expenses76.3266.9666.8169.4979.4279.7382.7785.4886.7291.8876.2280.6881.9983.3483.3487.5299.3287.85
General farm overhead5.676.016.839.406.325.284.645.888.399.253.683.763.843.973.974.084.234.39
Taxes and insurance7.517.928.328.7213.1510.028.9010.3511.4813.385.064.985.024.904.905.075.15.04
Total, fixed cash expenses13.1813.9315.1518.1219.4715.3013.5416.2319.8722.638.748.748.868.878.879.159.339.43
Total, cash expenses89.5080.8981.9687.6198.8995.0396.31101.71106.59114.5184.9689.4290.8592.2192.2196.67108.6597.28
Total, economic costs147.98133.66135.77153.09176.30164.15169.85179.29178.16191.88187.05200.69201.57191.91191.91195.19208.83202.66
Gross Value of Production less Cash Expenses35.6910.7814.1154.166.3522.4628.5925.966.6812.6558.0480.6862.584.454.45-8.05-14.79-1.91
Gross Value of Production less Economic Costs-22.79-41.99-39.70-11.32-71.06-46.66-44.95-51.62-64.89-64.72-44.05-30.59-48.14-95.25-95.25-106.57-114.97-107.29
Production Data
Planted Acres (thousands)18,28515,33911,75610,34312,64210,53511,06413,1779,8829,7879,42913,09710,0529,6269,2889,19510,2489,5899,420
Planted Acres18,285,00015,339,00011,756,00010,343,00012,642,00010,535,00011,064,00013,177,0009,882,0009,787,0009,429,00013,097,00010,052,0009,626,0009,288,0009,195,00010,248,0009,589,0009,420,000
Harvested Acres (Thousands)16,78213,86210,5319,04211,1039,0899,87012,0508,9168,8828,25311,8119,1587,7238,5447,7268,5797,1257,798
Harvested Acres16,782,00013,862,00010,531,0009,042,00011,103,0009,089,0009,870,00012,050,0008,916,0008,882,0008,253,00011,811,0009,158,0007,723,0008,544,0007,726,0008,579,0007,125,0007,798,000
Yield (bushel)66.867.769.463.855.463.159.372.659.972.755.667.369.267.369.760.959.950.652.7
Planted Acre Yield61616256495453665466496163546451503844
Production (1000 bushels)1,120,271938,869730,809576,686615,420573,303584,860875,022534,172645,741458,648795,274633,545519,933595,166470,526514,040360,713411,237
Production1,120,271,000938,869,000730,809,000576,686,000615,420,000573,303,000584,860,000875,022,000534,172,000645,741,000458,648,000795,274,000633,545,000519,933,000595,166,000470,526,000514,040,000360,713,000411,237,000
Price (dols/cwt)3.452.453.044.053.753.794.013.384.133.85.694.173.952.972.83.373.464.144.4
Price ($/bu)1.931.371.702.262.092.122.241.892.312.123.182.332.211.661.561.881.932.312.46
Value of Production ($1000)2,243,4501,323,4411,179,4441,337,4241,287,7391,220,5011,331,3021,667,1941,234,5001,317,1491,389,7721,986,3161,408,909905,468937,406847,075979,794876,471965,822
Value of Production2,243,450,0001,323,441,0001,179,444,0001,337,424,0001,287,739,0001,220,501,0001,331,302,0001,667,194,0001,234,500,0001,317,149,0001,389,772,0001,986,316,0001,408,909,000905,468,000937,406,000847,075,000979,794,000876,471,000965,822,000
Calculated Value of Production2,159,181,5361,285,044,1621,241,150,4801,304,792,3461,289,287,7091,213,865,0111,310,217,0951,652,276,1791,232,475,0611,370,846,8161,457,936,9391,852,677,4191,398,046,229862,682,128930,985,922885,850,626993,619,218834,274,7601,010,861,899
Difference in Value Production84,268,46438,396,838(61,706,480)32,631,654(1,548,709)6,635,98921,084,90514,917,8212,024,939(53,697,816)(68,164,939)133,638,58110,862,77142,785,8726,420,078(38,775,626)(13,825,218)42,196,240(45,039,899)
Number of Farms50,86033,172
Bushels/ cwt1.79
Pay Provisions
Direct Payment0.481.061.140.4800.6590.5590.3690.7210.2510.5870.0000.3220.5420.6750.8680.8330.6930.3520.352
Target Price ($/bu)2.8722.8722.8722.7712.6932.6032.6032.6032.6032.6032.603N/AN/AN/AN/AN/AN/A2.53632.5363
Loan Rate ($/bu)2.411.821.741.681.561.491.541.631.631.791.791.801.751.741.741.701.701.981.98
Base Acres (1000 acres)10,67214,09614,85413,80711,49110,82110,39810,67310,98810,92710,25013,00913,10013,50013,60013,60013,80012,00011,940
Base Acres10,672,32614,095,62214,853,60213,806,74011,491,02110,820,96510,398,34310,672,62110,988,28910,927,00810,249,72913,008,73213,100,00013,500,00013,600,00013,600,00013,800,00012,000,00011,940,000
Program Yield (Bushels per Acre)60.060.059.058.058.357.758.059.159.059.259.257.357.356.956.856.85756.456.5
Countercyclical Program Yield (Bushels per Acre)5858.1
Program Production640,339,548845,737,320876,362,518800,790,920669,926,524624,369,692603,103,911630,751,913648,309,057646,878,874606,783,963745,400,321750,630,000768,150,000772,480,000772,480,000786,600,000676,800,000674,610,000
Acerage Reduction Percentage0.10.1750.20.20.10.10.0750.050.0500.00.0
Direct Payment ($/cwt)0.861.1810.661.290.451.0500.5770.9711.2091.5541.4911.240.630.63
Target Price ($/cwt)5.145.145.144.964.824.664.664.664.664.664.66N/AN/AN/AN/AN/AN/A4.544.54
Loan Rate ($/cwt)4.323.253.1132.82.662.752.912.913.213.213.233.143.113.113.053.053.543.54
RatiosSorghumSorghum
1Support per Base acre ($/acre)*24.4343.8349.8524.8438.2231.1718.5030.9915.4626.866.1217.9825.9041.1352.8149.9438.6532.929.30=C27/C83
Dollars per acre*Total Annual Support divided by Annual Base Acreage
**Source: CCC Expenditures obtained from Farm Service Agency. Base Acres obtained from FAPRI and Farm Service Agency.
2Support per Planted acre*14.2640.2862.9933.1634.7432.0217.3925.1017.1929.996.6517.8633.7557.6877.3273.8652.0441.2011.79=C27/C63
Dollars per acre*Total Annual Support divided by Total Annual Planted Acres
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Planted acres obtained from National Agricultural Statistics Service, USDA.
3Support per unit of Program Production*0.410.730.840.430.660.540.320.520.260.450.100.310.450.720.930.880.680.580.16=C27/C86
Dollars per unit*Total Annual Support divided by "Program Production". Program Production is program yield multiplied by base acres.
**Source: CCC Expenditures obtained from Farm Service Agency. Program yield and base acres obtained from FAPRI and Farm Service Agency.
4Support per unit of Actual Production*0.230.661.010.590.710.590.330.380.320.450.140.290.541.071.211.441.041.100.27=C27/C69
Dollars per unit*Total Annual Support divided by Actual Production units.
**Source: CCC Expenditures obtained from Farm Service Agency. Annual Production obtained from National Agricultural Statistics Service.
5Per Acre Support Relative to Total Economic Costs*0.100.300.460.220.200.200.100.140.100.160.040.090.170.300.400.380.250.20=C103/C56
Support Ratio*Total Annual Support per planted acre divided by Total Economic Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Economic Costs obtained from Economic Research Service, USDA.
6Per Acre Support Relative to Total Variable Costs*0.190.600.940.480.440.400.210.290.200.330.090.220.410.690.930.840.520.47=C103/C48
Support Ratio*Total Annual Support per planted acre divided by Total Variable Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Variable Costs obtained from Economic Research Service, USDA.
7Per Acre Support to Gross Value of Production*0.110.440.660.230.330.270.140.200.150.240.050.110.220.600.800.830.550.43=C103/C34
Support Ratio*Total Annual Support per planted acre divided by Gross Value of Production per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Gross Value of Production obtained from Economic Research Service, USDA.
8Support per Unit Relative to Price*0.120.480.600.260.340.280.150.200.140.210.040.130.240.640.770.770.540.470.11=C109/C71
Support Ratio*Divides Support per Actual Production by Price per unit. Support per Actual Production is Total Annual Support divided by Actual Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Price obtained from National Agricultural Statistics Service.
9Total Annual Support/Total Value of Production*0.120.470.630.260.340.280.140.200.140.220.050.120.240.610.770.800.540.450.12=C27/C73
Support Ratio*Total Annual Support divided by Total Annual Value of Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Value of Production obtained from National Agricultural Statistics Service.
10Program Yield relative to Actual Yield*0.900.890.850.911.050.910.980.810.980.811.060.850.830.850.810.930.951.111.07=C84/C66
Ratio*Program Yield divided by Actual Yield.
**Source: Program Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
11Countercyclical Payment Yield relative to Actual Yield*1.151.10=T85/T66
Ratio*For Years 2002 and 2003 only, Countercyclical Program Yield divided by Actual Yield.
**Source: CCP Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
12Target Price to Total Economic Costs*1.29622.60352.62742.06711.51461.79131.62701.88701.56681.76561.3852N/AN/AN/AN/AN/AN/A1.1335=C80/(C56/C66)
Ratio*Annual Target Price per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
13Target Price to Variable Costs*2.51335.19685.33934.55393.36223.68803.33863.95783.21883.68723.3993N/AN/AN/AN/AN/AN/A2.6150=C80/(C48/C66)
Ratio*Annual Target Price per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
14Loan Rate to Total Economic Costs*1.08940.91960.88810.69850.49150.57120.53640.65830.54660.67940.53310.60510.60220.60930.63100.53160.48870.4938=C81/(C56/C66)
Ratio*Annual Loan Rate per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
15Loan Rate to Variable Costs*2.11241.83571.80481.53871.09121.17611.10071.38071.12291.41891.30821.50521.48051.40301.45311.18571.02761.1391=C81/(C48/C66)
Ratio*Annual Loan Rate per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
16Target Price relative to Price*1.493.763.032.192.302.202.082.472.022.201.47N/AN/AN/AN/AN/AN/A1.961.85=C80/C71
Ratio*Annual Target Price divided by Price
**Source: Target Price obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
17Loan Rate relative to Price*1.251.331.020.740.750.700.690.860.700.840.560.770.791.051.110.910.880.860.80=C81/C71
Ratio*Annual Loan Rate divided by Price
**Source: Loan Rate obtained from FAPRI. Price obtained from National Agricultural Statistics Service, USDA.
18Support per Farm*0.000.006671.2511910.13=E27/E76
Dollars per Farm*Total Annual Support divided by number of farms.
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Number of farms obtained from the US Census of Agriculture.
Costs of ARP1.673.183.753.751.671.671.220.790.790.000.00
Fixed Costs w/ ARP79.6280.8586.20104.50107.6493.8094.1498.7596.25100.00110.83120.01119.58108.57108.57107.67109.51114.81
$/ planted acre
CounterCylical Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0(0.13)(0.27)
Positive CC Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Effective Benefits2.782.612.562.632.682.552.552.392.522.533.182.562.592.222.342.542.492.522.52
Effective Costs / Actual Yield2.362.232.262.793.412.783.002.553.072.643.362.982.912.852.753.213.494.01
$/ unit
Effective Variable Costs1.171.041.021.151.461.291.421.191.461.261.371.201.181.241.201.441.661.74
19Effective Benefits/ Effective Costs1.181.171.130.950.790.920.850.940.820.960.940.860.890.780.850.790.720.63=C166/C169
*Effective Benefits divided by Effective Costs. Effective benefits include direct payments, market price or loan rate, and for 2002, countercyclical payments. Effective costs include variable costs, fixed costs, and ARP costs.
**Source: Actual Yield and price obtained from NASS, USDA. Farm bill payment provisions obtained from Farm Service Agency, USDA.
Effective Benefits/ Effective Variable Costs2.382.522.522.291.831.981.802.011.722.002.322.142.181.801.961.771.501.45
2.282.111.981.551.361.691.581.741.551.841.591.441.501.381.501.441.361.11
Oats
Oats1985198619871988198919901991199219931994199519961997199819992000200120022003
SupportNet Budgetary Expenditures
Deficiency Payments/ PFC Payments7,80030,30018,5004,2000.07,60030,30015,40011,70016,2002,9008,6008,10012,80016,70016,100
Diversion Payments0.01,6007,7000.00.00.00.00.00.00.00.00.00.00.00.00.0
Production Flexibility Payments6,0612,358
Loan Deficiency Payments0.00.00.00.00.00.00.00.00.020.00.0119,09628,18344,2353,890132,950
Marketing Loss Payments6,881
Counter-cyclical Payments0.00.0
Direct Payments8301,279
Producer Storage Payments600800700(100)0.00.00.00.00.00.00.00.00.00.00.00.0
Total8,40032,70026,9004,1000.07,60030,30015,40011,70016,2022,9008,6008,10131,89644,88360,33516,8323,2014,229
Non-Cash Payments
Certificate Exchange Gains0.027
Total0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0270.00.00.0
PIK
Total Non-Cash Payments0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0270.00.00.0
CCC Marketing Loan Write-0ffs0.00.00.00.00.00.00.00.00.00.00.00.0704932852691613
Crop Insurance Benefits9917454348,53616,8515,9553,0160.01,1960.05,2501,8292,8948582,9531,7961,78016,3951,617
Total Support ($1000)9,39133,44527,33412,63616,85113,55533,31615,40012,89616,2028,15010,42911,06533,24748,12162,42718,61319,6025,859
Total Support (dollars)9,390,93033,445,00927,333,62412,635,58616,850,62913,554,86533,316,01415,400,00012,896,30716,202,0008,150,36010,429,27611,064,52633,247,29048,120,50762,426,54618,613,29219,601,5445,859,318
CostsU.S. oats production cash costs and returns (dollars per planted acre)
Gross value of production
(excluding direct Government payments):
Oats55.5248.8370.6794.5481.6866.6661.0283.5670.6368.0672.87128.26107.1466.7562.1770.1086.47101.84
Oats straw23.8220.2610.7317.7415.6314.0215.5618.3721.0332.0327.5132.0336.1432.0332.8533.6734.9035.34
Total, gross value of production79.3469.0981.40112.2897.3280.6876.58101.9391.66100.09100.38160.29143.2898.7895.02103.77121.37137.18
Cash expenses:
Seed8.475.496.778.389.568.587.588.578.628.197.468.819.117.897.477.257.477.43
Fertilizer, lime, and gypsum11.4310.9312.9414.8613.8212.5512.4012.1711.7314.9515.7617.0516.6815.6314.714.8817.8514.97
Chemicals1.231.351.011.061.101.101.051.141.061.591.721.821.831.831.821.811.831.84
Custom operations 2/3.072.554.394.556.396.965.906.075.274.844.304.334.304.314.324.334.364.34
Fuel, lube, and electricity8.766.785.605.666.817.608.256.956.736.846.387.417.996.716.349.109.307.44
Repairs6.427.595.285.636.786.907.367.507.1510.9610.319.6311.4010.849.959.699.8810.00
Hired labor1.511.893.814.104.544.954.895.315.151.911.761.932.022.132.232.442.432.58
Other variable cash expenses 3/0.970.610.000.000.000.000.000.000.001.191.021.191.341.191.221.251.301.31
Interest11.699.244.303.353.443.743.413.973.824.955.575.495.525.825.495.805.905.39
Total, variable cash expenses53.5546.4344.1047.5952.4452.3850.8451.6849.5355.4254.2857.6660.1956.3553.5456.5560.3255.30
General farm overhead3.904.673.323.333.133.643.114.264.665.415.655.296.215.865.946.096.296.44
Taxes and insurance13.5315.8812.3512.7213.2313.5111.9217.3118.7813.9513.8814.8514.8514.2014.8515.6015.8815.72
Total, fixed cash expenses17.4320.5515.6716.0516.3617.1515.0321.5723.4419.3619.5320.1421.0620.0620.7921.6922.1722.16
Total, cash expenses70.9866.9859.7763.6468.8069.5365.8773.2572.9774.7873.8177.8081.2576.4174.3378.2482.4977.46
Total, economic costs112.04120.27114.72130.06141.04139.59139.18147.57150.55146.24139.97145.36154.55147.60144.32147.76153.07149.94
Gross value of production less cash expenses8.362.1121.6348.6428.5211.1510.7128.6818.6925.3126.5782.4962.0322.3720.6925.5338.8859.72
Gross Value of Production less Economic Costs-32.70-51.18-33.32-17.78-43.72-58.91-62.60-45.64-58.89-46.15-39.6014.93-11.27-48.82-49.30-43.99-31.70-12.76
Production Data
Planted Acres (thousands)13,23514,67117,90713,90712,08510,4238,6537,9437,9376,6376,2254,6385,0684,8914,6684,4734,4014,9954,601
Planted Acres13,235,00014,671,00017,907,00013,907,00012,085,00010,423,0008,653,0007,943,0007,937,0006,637,0006,225,0004,638,0005,068,0004,891,0004,668,0004,473,0004,401,0004,995,0004,601,000
Harvested Acres (Thousands)8,1476,8406,8885,5306,8825,9474,8164,4963,8034,0082,9522,6552,8132,7522,4452,3251,9112,0582,224
Harvested Acres8,147,0006,840,0006,888,0005,530,0006,882,0005,947,0004,816,0004,496,0003,803,0004,008,0002,952,0002,655,0002,813,0002,752,0002,445,0002,325,0001,911,0002,058,0002,224,000
Yield (bushel)63.656.354.339.354.360.150.665.454.457.154.657.759.560.259.664.261.556.465
Planted Acre Yield39262116313428372634263333343133272331
Production (1000 bushels)518,490384,996373,713217,375373,587357,654243,851294,229206,731228,844161,094153,245167,246165,768145,628149,165117,602116,002144,649
Production518,490,000384,996,000373,713,000217,375,000373,587,000357,654,000243,851,000294,229,000206,731,000228,844,000161,094,000153,245,000167,246,000165,768,000145,628,000149,165,000117,602,000116,002,000144,649,000
Price ($/bu)1.231.211.562.611.491.141.211.321.361.221.671.961.61.11.121.11.591.811.45
Value of Production ($1000)642,247469,061605,599532,238548,938417,762309,735399,595290,948299,627278,941313,910273,284199,748175,172175,797195,711216,127217,962
Value of Production642,247,000469,061,000605,599,000532,238,000548,938,000417,762,000309,735,000399,595,000290,948,000299,627,000278,941,000313,910,000273,284,000199,748,000175,172,000175,797,000195,711,000216,127,000217,962,000
Calculated Value of Production637,742,700465,845,160582,992,280567,348,750556,644,630407,725,560295,059,710388,382,280281,154,160279,189,680269,026,980300,360,200267,593,600182,344,800163,103,360164,081,500186,987,180209,963,620209,741,050
Difference in Value Production4,504,3003,215,84022,606,720(35,110,750)(7,706,630)10,036,44014,675,29011,212,7209,793,84020,437,3209,914,02013,549,8005,690,40017,403,20012,068,64011,715,5008,723,8206,163,3808,220,950
Number of Farms94,81163,763
Pay Provisions
Direct Payments ($/bu)0.290.390.2000.320.350.170.110.1900.0330.0310.0470.060.0580.050.020.02
Target Price ($/bu)1.61.61.61.551.51.451.451.451.451.451.45N/AN/AN/AN/AN/AN/A1.41.4
Loan Rate ($/bu)1.310.990.940.90.850.810.830.880.880.970.971.031.111.111.131.161.211.351.35
Base Acres (1000 acres)1,3213,4873,7712,3561,3996932,7672,9293,2282,7172,8776,1486,1906,7006,7006,7006,6005,3003,100
Base Acres1,321,2433,486,5423,770,8982,356,4091,398,847693,3772,766,9222,928,5733,228,2892,717,1602,877,0886,148,4516,190,0006,700,0006,700,0006,700,0006,600,0005,300,0003,100,000
Program Yield (Bushels per Acre)49.050.050.047.045.043.648.748.648.748.647.850.850.850.750.650.650.648.348.5
Countercyclical Program Yield (Bushels per Acre)49.850
Program Production64,740,922174,327,100188,544,900110,751,21462,948,10230,231,250134,749,121142,328,658157,217,674132,053,976137,524,783312,341,316314,452,000339,690,000339,020,000339,020,000333,960,000255,990,000150,350,000
Acerage Reduction Percentage0.10.1750.20.050.050.050.00.00.00.00.0
RatiosOatsOats
1Support per Base acre ($/acre)*7.119.597.255.3612.0519.5512.045.263.995.962.831.701.794.967.189.322.823.701.89=C27/C83
Dollars per acre*Total Annual Support divided by Annual Base Acreage
**Source: CCC Expenditures obtained from Farm Service Agency. Base Acres obtained from FAPRI and Farm Service Agency.
2Support per Planted acre*0.712.281.530.911.391.303.851.941.622.441.312.252.186.8010.3113.964.233.921.27=C27/C63
Dollars per acre*Total Annual Support divided by Total Annual Planted Acres
**Source: CCC Expenditures obtained from Farm Service Agency, USDA. Planted acres obtained from National Agricultural Statistics Service, USDA.
3Support per unit of Program Production*0.14510.19190.14500.11410.26770.44840.24720.10820.08200.12270.05930.03340.03520.09790.14190.18410.05570.07660.0390=C27/C86
Dollars per unit*Total Annual Support divided by "Program Production". Program Production is program yield multiplied by base acres.
**Source: CCC Expenditures obtained from Farm Service Agency. Program yield and base acres obtained from FAPRI and Farm Service Agency.
4Support per unit of Actual Production*0.01810.08690.07310.05810.04510.03790.13660.05230.06240.07080.05060.06810.06620.20060.33040.41850.15830.16900.0405=C27/C69
Dollars per unit*Total Annual Support divided by Actual Production units.
**Source: CCC Expenditures obtained from Farm Service Agency. Annual Production obtained from National Agricultural Statistics Service.
5Per Acre Support Relative to Total Economic Costs*0.00630.01900.01330.00700.00990.00930.02770.01310.01080.01670.00940.01550.01410.04610.07140.09450.02760.0262=C103/C56
Support Ratio*Total Annual Support per planted acre divided by Total Economic Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Economic Costs obtained from Economic Research Service, USDA.
6Per Acre Support Relative to Total Variable Costs*0.01330.04910.03460.01910.02660.02480.07570.03750.03280.04400.02410.03900.03630.12060.19250.24680.07010.0710=C103/C48
Support Ratio*Total Annual Support per planted acre divided by Total Variable Costs per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Variable Costs obtained from Economic Research Service, USDA.
7Per Acre Support to Gross Value of Production*0.00890.03300.01880.00810.01430.01610.05030.01900.01770.02440.01300.01400.01520.06880.10850.13450.03480.0286=C103/C34
Support Ratio*Total Annual Support per planted acre divided by Gross Value of Production per planted acre.
**Source: CCC Expenditures obtained from Farm Service Agency. Gross Value of Production obtained from Economic Research Service, USDA.
8Support per Unit Relative to Price*0.01470.07180.04690.02230.03030.03320.11290.03970.04590.05800.03030.03470.04130.18230.29500.38050.09950.09340.0279=C109/C71
Support Ratio*Divides Support per Actual Production by Price per unit. Support per Actual Production is Total Annual Support divided by Actual Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Price obtained from National Agricultural Statistics Service.
9Total Annual Support/Total Value of Production*0.01460.07130.04510.02370.03070.03240.10760.03850.04430.05410.02920.03320.04050.16640.27470.35510.09510.09070.0269=C27/C73
Support Ratio*Total Annual Support divided by Total Annual Value of Production.
**Source: CCC Expenditures obtained from Farm Service Agency. Total Value of Production obtained from National Agricultural Statistics Service.
10Program Yield relative to Actual Yield*0.770.890.921.200.830.730.960.740.900.850.880.880.850.840.850.790.820.860.75=C84/C66
Ratio*Program Yield divided by Actual Yield.
**Source: Program Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
11Countercyclical Payment Yield relative to Actual Yield*0.880.77=T85/T66
Ratio*For Years 2002 and 2003 only, Countercyclical Program Yield divided by Actual Yield.
**Source: CCP Yield obtained from FAPRI. Actual Yield obtained from National Agricultural Statistics Service, USDA.
12Target Price to Total Economic Costs*0.90820.74900.75730.46840.57750.62430.52720.64260.52390.56620.5656N/AN/AN/AN/AN/AN/A0.5266=C80/(C56/C66)
Ratio*Annual Target Price per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
13Target Price to Variable Costs*1.90031.94011.97011.28001.55321.66371.44321.83491.59261.49401.4585N/AN/AN/AN/AN/AN/A1.4278=C80/(C48/C66)
Ratio*Annual Target Price per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
**Source: Target Price obtained from FAPRI. Total Variable Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
14Loan Rate to Total Economic Costs*0.74360.46340.44490.27200.32720.34870.30180.39000.31800.37870.37840.40890.42730.45270.46670.50400.48620.5078=C81/(C56/C66)
Ratio*Annual Loan Rate per unit divided by Total Economic Costs per unit. Economic costs per unit calculated by taking Total Economic Costs per planted acre divided by yield in units per acre.
**Source: Loan Rate obtained from FAPRI. Total Economic Costs obtained from Economic Research Service, USDA. Actual Yield obtained from National Agricultural Statistics Service, USDA.
15Loan Rate to Variable Costs*1.55591.20051.15740.74320.88010.92940.82611.11360.96650.99940.97571.03071.09731.18581.25791.31691.23371.3769=C81/(C48/C66)
Ratio*Annual Loan Rate per unit divided by Variable Costs per unit. Variable costs per unit calculated by taking Total Variable Costs per planted acre divided by yield in units per acre.
