Kentucky Farm Business Management
Archived Publications

KFBM Futuring Committee: Report and Recommendations Regarding the Kentucky Farm Business Management Program’s Future. . July, 2003. (Adobe Acrobat format.)
Report to Dr. Larry Turner, Associate Director of Cooperative Extension about the KFBM program.

Annual Summary

Annual Financial Summary

Kentucky Farm Business Management Program: Annual Summary Data - Central Kentucky Area Farms - 2010. Jonathan D. Shepherd. November, 2011. (Adobe Acrobat format.)
The Lincoln Trail Association expanded in 2010 with the merger of the Bluegrass Association. Post merger, the Lincoln Trail Association includes all counties east of Meade, Breckinridge, Grayson, Hart, Green, Adair, and Cumberland Counties. In 2010, there were 74 member cooperators in Lincoln Trail area, with 48 contributing to the KFBM annual summary. The large geographical region covered by the Lincoln Trail Association results in a diverse enterprise mix. This association currently has cooperator members engaged in the following enterprises: dairy, beef, hog, grain, tobacco, poultry, hay and forages, as well as value-added farm products.

Kentucky Farm Business Management Program: Annual Summary Data - Pennyroyal Area Farms - 2010. Rush H. Midkiff. June, 2011. (Adobe Acrobat format.)
The Pennyroyal area of Kentucky consists of 17 counties in south central Kentucky: Livingston, Crittenden, Lyon, Caldwell, Trigg, Christian, Todd, Muhlenberg, Butler, Logan, Simpson, Warren, Edmonson, Barren, Allen, Monroe, and Metcalfe. The Pennyroyal Farm Analysis Group, Inc. serviced 176 farms in this area during 2010. These farms consisted of mostly grain production (corn, wheat, and soybeans). Other farm types include contract broiler production, contract hog production, dairy, beef and tobacco farms. Due to current Kentucky Farm Business Management (KFBM) Program data standards, only 140 of these farms were included in the average data. Contract broiler and hog production farms are not included in the data, unless the farm also qualifies as a grain farm, where broiler and hog returns are represented as livestock returns above feed costs. Limited data numbers prevents there from being average farm data for only the Pennyroyal area for dairy and beef farms.

Kentucky Farm Business Management Program: Annual Summary Data - Purchase Area Farms - 2010. Jennifer L. Rogers. June, 2011. (Adobe Acrobat format.)
The Purchase area of Kentucky is considered to be the western most eight counties, including: Ballard, Calloway, Carlisle, Fulton, Graves, Hickman, Marshall, and McCracken. The Purchase Farm Analysis Group, Inc. serviced 28 farms in this area during 2010. These farms consisted of mostly grain production (corn, wheat, and soybeans). Other farm types include contract broiler production, contract hog production, dairy and beef cattle farms. Due to current Kentucky Farm Business Management (KFBM) Program data standards, only 17 of these farms were included in the average data. Contract broiler and hog production farms are not included in the data, unless the farm also qualifies as a grain farm, where broiler and hog returns are represented as livestock returns above feed costs. Limited data numbers prevents there from being average farm data for only the Purchase area for dairy and beef farms. Please see the Kentucky average summary for state-wide average information for these farm types.

Kentucky Farm Business Management Program:Annual Summary Data - 2010. Jonathan Shepherd, Lauren Omer, Suzy Martin, Bart Peters, Evan Conrad, Rush Midkiff, Michael Forsythe, Jennifer Rogers and Jerry P. June, 2011. (Adobe Acrobat format.)
This report presents the summarized 2010 performance data (financial and physical) on 255 Kentucky farm businesses. Some data are presented for previous years so that trends and changes can be studied. This is the 44th annual summary of records obtained from farmers participating in the Kentucky Farm Business Management Program. The program is a cooperative effort between the Department of Agricultural Economics of the University of Kentucky and four incorporated Farm Analysis Groups. This program was initiated to improve Kentucky farm management.

Kentucky Farm Business Management Program: Annual Summary Data - Kentucky Dairy Farms - 2010. Lauren E. Omer. June, 2011. (Adobe Acrobat format.)
For the purpose of the Kentucky Farm Business Management Program (KFBM), a dairy farm is a farming operation on which the value of feed fed was more than 40 percent of the crop returns and the dairy enterprise utilized more than one-third of the value of feed fed. In 2010, there were a total of 34 dairy farms included in the dairy farm analysis. These farms are scattered throughout the state, but are primarily in the central Kentucky area.

Kentucky Farm Business Management Program: Annual Summary Data- Kentucky Net Farm Income and Management Returns - 2010. Suzy L. Martin. June, 2011. (Adobe Acrobat format.)
Although not as outstanding as the prior two years, Kentucky had a very profitable year in 2010. Net Farm Income (NFI) was positive across all areas of the state (Table 1). In fact, all areas were well above their respective ten-year average. Lincoln Trail and Bluegrass were also above their five-year average, while the more grain producing areas were slightly below the five-year average. This was due to a hard hitting drought in 2010 in the grain producing areas.

Kentucky Farm Business Management Program: Annual Summary Data-Kentucky Grain Farms - 2010. D. Bart Peters. June, 2011. (Adobe Acrobat format.)
Average Net Farm Income (NFI) on 198 Kentucky grain farms was $314,375. This is 23% lower than 2009. Although net income was lower in 2010, it is the 3rd highest income recorded by Kentucky grain farms, behind 2008 and 2009, and just below the five-year average. However, it is significantly higher than the 10 year average. Management Returns were also lower in 2010 with the average grain farm reporting $146,777. Management Returns are calculated by subtracting a capital investment charge for the operator’s equity ($117,719) and a charge for operator’s labor ($48,008). Again, the 2010 Management Return is lower than 2009, but still the 3rd highest recorded by Kentucky farms.

Kentucky Farm Business Management Program: Annual Summary Data - Kentucky Beef Farms - 2010. Michael C. Forsythe. June, 2011. (Adobe Acrobat format.)
For the purpose of the Kentucky Farm Business Management (KFBM) Program, a beef farm is a farming operation on which the value of feed fed was more than 40 percent of the crop returns and the beef enterprise utilized more than one-half of the value of feed fed. In 2010, there were a total of 64 beef herds in KFBM, but only 14 farms that met the requirements to be considered a beef farm for the Economic Management Analysis. The other beef herds were a smaller portion of the total farming operation. All beef herds were used in calculating returns per cow, production, feed cost, average price and weight in Table 4.2, but only the 14 beef farms were used in calculating Net Farm Income (NFI), management returns, and financial efficiency ratios.

Kentucky Farm Business Management Program: Annual Summary Data - Ohio Valley Area Farms - 2010. Lauren E. Omer. June, 2011. (Adobe Acrobat format.)
The Ohio Valley area of Kentucky is in the western part of Kentucky with many counties bordering the Ohio River. Counties included in the Ohio Valley area are: Daviess, Hancock, Henderson, Hopkins, McLean, Ohio, Union, and Webster. The Ohio Valley Farm Analysis Group, Inc. served 75 farms in the area during 2010. Due to current KFBM data standards, only 54 farms were included in the average data. The majority of the farms were grain farms (corn, wheat, and soybeans). However, there were also tobacco, contract broiler production, contract hog production, and beef cattle farms. Ohio Valley averages were computed for grain farms. Limited data prevents the publication of Ohio Valley specific tobacco, contract broiler, contract hog, and beef cattle farms.

Kentucky Farm Business Management Program: Annual Summary Data 2009. KFBM Specialists. June, 2010. (Adobe Acrobat format.)
Kentucky commercial farmers experienced another excellent year as measured by Net Farm Income. Farms participating in the Kentucky Farm Business Management Program (KFBM) in all areas had Net Farm Incomes above the five-year and ten-year averages.

Kentucky Farm Business Management Program: Annual Summary Data, 2008. Jerry Pierce. June, 2009. (Adobe Acrobat format.)
The data for this study are drawn from the detailed financial and production records of producers cooperating with the Kentucky Farm Business Management Program. The data are not drawn from a random sample of farms in the state. However, these data are the most accurate and detailed farm financial data which are available to researchers and educators. Every attempt has been made to select a set of farms for these research studies which are “typical” operations and have complete financial information available for analysis. These data are carefully cross-checked by our farm management specialists before inclusion in this analysis. It should be noted that farms included in this study are representative of commercial farms producing major commodities and livestock, but not of all farms in Kentucky.

Kentucky Farm Business Management Program: Annual Summary Data, 2007. Jerry Pierce. September, 2008. (Adobe Acrobat format.)
The data for this study are drawn from the detailed financial and production records of producers cooperating with the Kentucky Farm Business Management Program. The data are not drawn from a random sample of farms in the state. However, these data are the most accurate and detailed farm financial data which are available to researchers and educators. Every attempt has been made to select a set of farms for these research studies which are “typical” operations and have complete financial information available for analysis. These data are carefully cross-checked by our farm management specialists before inclusion in this analysis. It should be noted that farms included in this study are representative of commercial farms producing major commodities and livestock, but not of all farms in Kentucky.

Kentucky Farm Business Management Program: Annual Summary Data - 2006. David Heisterberg. September, 2007. (Adobe Acrobat format.)
The data for this study are drawn from the detailed financial and production records of producers cooperating with the Kentucky Farm Business Management Program. It should be noted that farms included in this study are representative of commercial farms producing major commodities and livestock, but not of all farms in Kentucky.

Kentucky Farm Business Management Program: 2005 Annual Summary. David Heisterberg. September, 2006. (Adobe Acrobat format.)
Farm Business Management Groups were organized byinterested farmers in 5 Extension areas in Kentucky. Through the joint efforts of farmer members and the University of Kentucky Cooperative Extension Service, these farmers receive a business analysis of their individual ooperations and a comparative analysis with similar type farms. Findings from these groups reveal problems and opportunities in agriculture by area of the state, by type of farm operation, and by farm enterprise.

Kentucky Farm Business Management Program: 2004 Annual Summary. David Heisterberg. September, 2006. (Adobe Acrobat (62 pages) format.)
Kentucky commercial farmers experienced another excellent year as measured by Net Farm Income.

Kentucky Farm Business Management Program: 2003 Annual Summary. David L Heisterberg. February, 2004. (Adobe Acrobat format.)
Kentucky commercial farmers experienced a dramatic increase in net income for 2003 as compared to the major decrease in profitability for the 2002 production year. As measured by Net Farm Income, profitability of farms participating in the Kentucky Farm Business Management Program (KFBM) increased 312% from the prior year. The data in Table 11 helps to give a perspective of net farm income and net management returns to Kentucky farm operators in KFBM from 1989 through 2003. It is important to note that management returns and net farm income for any farm, are highly variable from year to year. However, on average, net returns were significantly above the five and ten year averages.

Kentucky Farm Business Management Program: 2002 Annual Summary. David L Heisterberg. August, 2003. (Adobe Acrobat format.)
Kentucky commercial farmers suffered a major decrease in profitability for the 2002 production year compared to 2001. As measured by Net Farm Income, profitability of farms participating in the Kentucky Farm Business Management Program (KFBM) decreased significantly (down 56.9%) from the prior year.

Kentucky Farm Business Management Program: 1999 Annual Financial Summary. Gregg Ibendahl, Russell D. Morgan and David Heisterberg. September, 2000. (Acrobat format.)
Kentucky commercial farmers enjoyed an increase in profitability for the 1999 production year compared to 1998. As measured by Management Returns, profitability of farms participating in the Kentucky Farm Business Management Program (KFBM) rose significantly (up to 78.4%) from the prior year. However, it is important to note that 1998 management returns for KFBM farms, on average, were at their lowest levels in over 10 years.

Kentucky Farm Business Management Program: 1998 Annual Financial Summary. Gregg Ibendahl and Russell D. Morgan. November, 1999. (Adobe Acrobat (83 pages) format.)
Kentucky’s commercial farmers suffered a significant drop in profitability during 1998 compared to 1997. As measured by Management Returns, profitability of farms participating in the Kentucky Farm Business Management Program (KFBM) fell to its lowest level in over 10 years. Weather and low prices were a significant cause of the drop in profitability.

Sole Proprietor

Kentucky Farm Business Management Program: 2000 Sole Proprietor Financial Summary. Gregg Ibendahl. December, 2001. (Acrobat format.)
This report presents the summarized 2000 performance data (financial and physical) on 146 sole proprietor Kentucky farm businesses. The farms in this study were sole proprietors and had both usable income and balance sheets.

Enterprise Study - Crops

Kentucky Farm Business Management Program: 2005 Enterprise Analysis Snapshots of Selected Crops. Jennifer Rogers and Craig Gibson. May, 2007. (Adobe Acrobat format.)
The data for this study are drawn from the detailed financial records of producers cooperating with the University of Kentucky - Kentucky Farm Business Management Program. The data are not drawn from a random sample of farms in the state. . . . It should be noted that farms included in this study are representative of commercial farms producing major commodities and livestock, not all farms in Kentucky.

Enterprise Study - Corn

Kentucky Yellow Corn Production: 1999-2003. Craig Gibson. November, 2004. (Adobe Acrobat format.)
Yellow corn production in Kentucky utilizes about 45 percent of Kentucky’s crop land, excluding hay lands. Thus, the profitability of Kentucky grain farmers weighs heavily upon the level of profitability in annual corn production. But, of course, “profit” is defined in many different ways. For our purpose, “management return” is our measure of profitability.

Kentucky Farm Business Management Program: Yellow Corn Enterprises 1999 Costs and Returns. Terry W. Moss and Steven K. Riggins. August, 2001. (Adobe Acrobat (19 pages) format.)
For 1999 Kentucky ranked 14th among the fifty states in corn produced for grain, producing 123.9 million bushels on 1.18 million acres. The corn crop (for grain) in Kentucky was valued at $266.385 million. This makes corn the third highest value crop in the state behind tobacco and hay. Corn yield was 105 bushels per acre and was valued at 2.15 per bushel

Kentucky Farm Business Management Program: 1998 Yellow Corn Costs and Returns. Terry Moss, Gregg Ibendahl and Steve Riggins. February, 2000. (Adobe Acrobat (12 pages) format.)
For 1998 Kentucky ranked 14th among the fifty states in corn produced for grain, producing 135.7 million bushels on 1.18 million acres. The corn crop (for grain) in Kentucky was valued at $284.97 million. This makes corn the third highest value crop in the state behind tobacco and hay. Corn yield was 115 bushels per acre and was valued at 2.10 per bushel.

Enterprise Study - Soybean

Full Season Soybean Enterprise: 1999-2003. Craig Gibson. November, 2004. (Adobe Acrobat format.)
In 2004, soybean production in Kentucky utilized about 44 percent of Kentucky's cropland, excluding hay lands. This paper looks at full season soybean enterprise for 1999 - 2003.

Kentucky Farm Business Management Program: 1998 Double Crop Soybean Costs and Returns. Waylon Ramming, Carl Dillon and Gregg Ibendahl. March, 2000. (Adobe Acrobat (10 pages) format.)
Kentucky ranked 16th among the fifty states in 1998 in soybeans, producing 36 million bushels on 1.2 million acres. The soybean crop in Kentucky was valued at 201.6 million dollars, the fourth highest value crop in the state behind tobacco, hay and corn. The statewide soybean yield (including full season and double crop) was 30 bushels per acre and was valued at $5.60 per bushel.

Kentucky Farm Business Management Program: Full Season Soybeans Enterprise 1998 Costs and Returns. Waylon Ramming, Carl Dillon and Gregg Ibendahl. March, 2000. (Adobe Acrobat (11 pages) format.)
Kentucky ranked 16th among the fifty states in 1998 in soybeans, producing 36 million bushels on 1.2 million acres. The soybean crop in Kentucky was valued at 201.6 million dollars, the fourth highest value crop in the state behind tobacco, hay and corn. The statewide soybean yield (including full season and double crop) was 30 bushels per acre and was valued at $5.60 per bushel.

Enterprise Study - Tobacco

Kentucky Farm Business Management Program: 2008 Tobacco Enterprise Analysis. Evan M. Conrad. December, 2009. (Adobe Acrobat format.)
The aim of this study is to show the financial returns for the different types of tobacco producers in the KFBM program in 2008. Producers can use this study to potentially identify strengths and/or weaknesses in their own operations.

Enterprise Study - Wheat

Wheat and Double-Crop Soybeans: 1990-2003. Craig Gibson. November, 2004. (Adobe Acrobat format.)
Wheat and double crop soybean production in Kentucky utilizes about 21 percent of Kentucky=s crop land, excluding hay lands. About 51 percent of the production is from counties located in the Purchase and Pennyroyal Farm Analysis Program areas. For some, profitability weighs heavily upon the level of profitability in annual wheat and double crop soybean production. But, of course, "profit" is defined in many different ways. For our purpose, "management return" is our measure of profitability.

Kentucky Farm Business Management Program: Wheat Enterprises 1999 Costs and Returns. David L. Heisterberg and Richard L. Trimble. July, 2001. (Adobe Acrobat (16 pages) format.)
For 1999 Kentucky ranked 19th among the fifty states in wheat production, producing 24.6 million bushels on 410,000 acres. The wheat crop in Kentucky was valued at $52.89 million. This makes wheat the fifth highest value crop in the state. Wheat yield was 60 bushels per acre and was valued at 2.15 per bushel.

Kentucky Farm Business Management Program: 1998 Wheat Costs and Returns. Bart Peters, Carl Dillon, Gregg Ibendahl and Richard L. Trimble. March, 2000. (Adobe Acrobat (10 pages) format.)
Kentucky ranked 18th among the fifty states in 1998 in wheat produced for grain, producing 24.7 million bushels on about 550,000 acres. The wheat crop (for grain) in Kentucky was valued at $54.5 million, the fifth highest-value crop in the state behind tobacco, hay, corn, and soybeans. Wheat yield was 45 bushels per acre and was valued at $2.20 per bushel.

Enterprise Study - Family Living

Enterprise Study - Family Living

Kentucky Farm Business Management Program: Family Living 2010 Sources and Uses Summary. Jennifer Rogers, Suzy Martin, and Jerry Pierce, Jr.. September, 2011. (Adobe Acrobat format.)
Family Living Expenses can have a direct impact on the sustainability of the family farm. Just ike labor expenses can impact the bottom-line of any business, the amount of money that farm amilies spend for personal purposes can determine the farm’s ability to remain viable. The Kentucky Farm Business Management (KFBM) program collected data from 163 farms families during 2010. This data is summarized based on the average farm, family size, age of the oldest child, and the size of the farm.

Kentucky Farm Business Management Program: Family Living - 2009 Sources and Uses Summary. Jennifer Rogers, Lauren Omer, and Jerry Pierce, Jr.. August, 2010. (Adobe Acrobat format.)
Family Living Expenses can be of vital importance to the farm. Family Living does not impact the profitability of the farming operation, but can determine its ability to cash flow. Thus it is important for farm families to measure money leaving the farm and budget accordingly. The Kentucky Farm Business Management Program collected data on Family Living Sources and Uses for 103 farm families during 2009. Family Living Sources and Uses were studied based on the average per farm, size of the family, age of the oldest child, and size of the farm.

Kentucky Farm Business Management Program: Family Living 2008 Sources and Uses Summary. Jerry S. Pierce, Jennifer L. Rogers and Jonathan D.Shepherd. July, 2009. (Adobe Acrobat format.)
A depressed economy in 2008 did not depress the level of family living expenses among farm families. According to data collected on 88 farms participating in the Kentucky Farm Business Management Program, family living expenses continued to increase, as did net farm incomes during 2008.

Kentucky Farm Business Management Program: Family Living 2007 Sources and Uses Summary. Jerry S. Pierce, Jennifer L. Rogers, and Curtis L. Mahnken. September, 2008. (Adobe Acrobat format.)
The level of family living can be dependent on several factors including family size, age and available funds. In an effort to account for these differences family living expenses will be examined by looking at the average per farm in Kentucky, family size, age of children, and the size of farm.

Kentucky Farm Business Management Program: Family Living 2006 Sources and Uses Summary. David Heisterberg, Jennifer Rogers, and Michael Forsythe. July, 2007. (Adobe Acrobat format.)
This study is based on data from the Kentucky Farm Business Management Program and includes financial information obtained from the records of the farmer-members who participate in the KFBM program and track family living expenses. Average family living expenses will be analyzed based on trends from 2002-2006, size of family, age of children, size of farm, and age of operator.

Kentucky Farm Business Management Program: Family Living - 2005 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
Summary tables of income and expenses.

Kentucky Farm Business Management Program: Family Living - 2004 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
Summary tables of income and expenses.

Kentucky Farm Business Management Program: Family Living - 2003 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
Summary tables of income and expenses.

Kentucky Farm Business Management Program: Family Living - 2002 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
Summary tables of income and expenses.

Kentucky Farm Business Management Program: Family Living - 2001 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
Summary tables of income and expenses.

Kentucky Farm Business Management Program: Family Living - 2000 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
Summary tables of expenses and income.

Kentucky Farm Business Management Program: Family Living - 1999 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
Tables of farm and family income and spending.

Kentucky Farm Business Management Program: Family Living - 1998 Sources and Uses Summary. David Heisterberg and Jennifer Rogers. July, 2006. (Adobe Acrobat format.)
This publication contains summary tables.

Enterprise Study - Livestock

Enterprise Study - Cattle

Kentucky Farm Business Management Program: 2008 Beef Enterprise Analysis. Jonathan Shepherd and Rick Costin. October, 2009. (Adobe Acrobat format.)
The aim of this study is to show the financial and production situation of like-type producers. Producers can use this study to potentially identify strengths and/or weaknesses in their own operations based on a set of good records. This may allow producers to make changes to their current operation to move toward or achieve a profitable scenario.

Kentucky Farm Business Management Program Beef Cow Enterprises 2003 Costs and Returns Summary. Craig D. Gibson, Jennifer L. Rogers, Suzy L. Martin. July, 2004. (Adobe Acrobat format.)
Cattle producers in Kentucky saw an increase in gross returns and net returns in 2004. Even though this was an improvement over the previous year, net returns over all costs were still negative; therefore the operations were not making enough to cover both their cash and non-cash costs.

Kentucky Farm Business Management Program: Beef Cow Enterprises 2000 Costs and Returns Summary. Rick Costin. September, 2002. (Acrobat format.)
Beef producers in 2000 continued the trend of the nineties of increasing net returns. Both the beef calves sold and calves backgrounded realized higher net returns or less loss on the average. Price received for the calves sold category increased substantially from 1999 ($9.43 per cwt.). Price received for selling backgrounded cattle went up $14.95 per cwt. from 1999. Cattle prices received in 2000 were the highest prices received in the past ten years for backgrounded calves, and all but one of those years for the calves sold group.

Kentucky Farm Business Management Program: Beef Cow Enterprises 1999 Costs and Returns Summary. Rick Costin. August, 2001. (Acrobat format.)
Beef producers in 1999 saw an increase in net returns from 1998 in both the beef calves sold and calves backgrounded. Price received for the calves sold category increased substantially from 1998 ($8.63 per hundred weight). Price received for selling backgrounded cattle came down $2.78 /cwt from 1998. While the general trend was for cattle prices to be higher in 1999 over 1998, there were a couple of dips in prices that could explain why the average price received was a little lower in 1999.

Enterprise Study - Dairy

KFBM: Comparisons of 2010 Economic Management, Production Factors, and Financial Condition of Kentucky Dairy Farms. Jerry S. Pierce, Jr. and Amanda R. Jenkins. September, 2011. (Adobe Acrobat format.)
This report presents the summarized 2010 performance data (financial and physical) on 34 Kentucky dairy farms. Some data are presented for previous years so that trends and changes can be studied.

Economic Management Analysis: Average Kentucky Dairy Farm for Year Ending December 31, 2009. Jerry Pierce. April, 2010. (MS Excel 2003 format.)
It compares income and returns for the KY average and three different sizes of dairy.

Kentucky Farm Business Management Program: 2008 Dairy Enterprise Analysis-Summary. Curtis Mahnken. December, 2009. (Adobe Acrobat format.)
Because of this increased volatility in the milk price (as well as the current dairy economy) it is vital for the producer to keep good records to improve the operation. The results of the enterprise study follow and examine the links between management returns and other variables.

Kentucky Farm Business Management Program: 2008 Dairy Enterprise Analysis. Curtis Mahnken. December, 2009. (Adobe Acrobat format.)
The data for this study are drawn from the detailed financial and production records of producers cooperating with the Kentucky Farm Business Management program. The data are not drawn from a random sample of farms in the state. However, these data are the most accurate and detailed farm financial information available and represent the closest approximation to “real world” farm financial data that are available to researchers and educators. Every attempt has been made to select farms for these research studies that are “typical” and have complete financial information available for analysis. These data are carefully cross-checked by our farm management specialists before inclusion in this analysis. It should be noted that farms included in this study are representative of commercial farms producing major commodities and livestock, but not of all farms in Kentucky.

Kentucky Farm Business Management Program: Dairy Cow Enterprise - 2003 Costs and Returns Summary. Colby Blair and Craig Gibson. August, 2004. (Adobe Acrobat format.)
In 1979, the Kentucky Agricultural Experiment Station initiated a study to determine how well Kentucky dairy farmers compete with other dairy farmers in this region. Physical and financial records of dairy enterprises on farms in the Kentucky Farm Business Management (KFBM) program for 1979 through 2003 have been collected and analyzed. This report focuses on the 2003 results of 30 dairy enterprise records, and compares these to findings for the past several years so that changes during this period can be examined.

Kentucky Farm Business Management Program: 2001 Dairy Enterprise Analysis. Colby A. Blair. January, 2003. (Acrobat format.)
Based on results from this admittedly small sample of 33 enterprises, Kentucky dairy enterprises, on average, were able to cover all costs in 2001. Milk production was higher probably due to low feed prices, mainly the price of grain. Although total costs per cow were higher in 2001 versus 2000, higher milk prices kept average net returns over all costs positive. From 1993 to 2001 only four years (1995, 1996, 1997 and 2000) showed negative average net returns over all costs per cow.

Kentucky Farm Business Management Program: 2000 Dairy Enterprise Analysis. Colby A. Blair, Darwin V. Foley and Jack McAllister. October, 2001. (Acrobat format.)
Based on results from this admittedly small sample of 31 enterprises, Kentucky dairy enterprises, on average, were unable to cover all costs in 2000. Milk production was higher probably due to low feed prices, mainly the price of grain. Although total costs per cow were lower in 2000 versus 1999, lower milk prices kept average net returns over all costs negative. From 1993 to 2000 only three years (1993, 1994, and 1999) showed positive average net returns over all costs per cow.

Kentucky Farm Business Management Program: 1999 Dairy Enterprise Analysis. Colby A. Blair, Jack McAllister and Rush H. Midkiff. January, 2001. (Acrobat format.)
Based on results from this admittedly small sample of 28 enterprises, Kentucky dairy enterprises, on average, were profitable in 1999. Milk production was higher probably due to low feed prices, mainly the price of grain. Non-feed costs and high milk prices kept average net returns over all costs positive. From 1993 to 1997 only two years (1993 and 1994) showed positive average net returns over all costs per cow.

Kentucky Farm Business Management Program: 1998 Dairy Enterprise Analysis. Rush Midkiff, Darwin Foley, Bart Peters and Craig Infanger. February, 2000. (Adobe Acrobat (19 pages) format.)
Based on results from this group of 28 farms, Kentucky dairy farms on average were profitable in 1998. Milk production per cow was basically the same as 1997.

Enterprise Study - Hog

Kentucky Farm Business Management Program: Hog Enterprises 2005 Costs and Returns Summary. Craig Gibson, Rush Midkiff, Suzy Martin. October, 2006. (Adobe Acrobat format.)
The data for this study are drawn from the detailed financial records of producers cooperating with the Kentucky Farm Business Management Program. The data are not drawn from a random sample of farms in the state.

Kentucky Farm Business Management Program: Farrow-to-Finish Hog Enterprise -- 2003 Costs and Returns Summary. Ross M. Key, Craig D. Gibson, and Jennifer L. Rogers. July, 2004. (Adobe Acrobat format.)
Gross returns from 2003 Kentucky farrow-to-finish operations were larger than 2002 returns, but lower than 2001 and 2000 gross returns. When comparing 2003 and 2002 net returns, it is apparent that the $5.41 higher gross returns in 2003 helped reduce the loss in net returns. Total cost of production for 2003 was the highest of the most recent five years. Even though the average hog producer lost money in 2003, when measured by management returns, the more efficient producers realized a profit.

Kentucky Farm Business Management Program: 2000 Hog Enterprise Summary. Suzy Martin, Rick Costin and Richard Coffey. August, 2002. (Acrobat format.)
Hog production in 2000 saw an increase in net returns from 1999. On a total return basis, producers averaged $73,886 in net returns in 2000 compared to $21,032 in the previous year. On a per hundredweight (cwt) basis, producers in 2000 earned net returns over all cash and non-cash costs of $6.47. In 1999, producers net return over all costs was $0.71 cwt. On a per litter basis, the net returns for 2000 were $143, while in 1999 the net returns per litter were only $23.

Kentucky Farm Business Management Program: 1999 Hog Enterprise Summary. Rick Costin, Gregg Ibendahl and Richard Coffey. March, 2001. (Acrobat format.)
Hog producers in 1999 saw a strong increase in net returns from 1998. On a total return basis, producers averaged $21,032 in net returns for 1999 compared to an average loss of - $121,504 in 1998. On a per CWT basis, producers in 1999 earned net returns over all cash and non-cash costs of $0.71 per CWT. In 1998, producers’ net returns over all costs was -$10.80. On a per litter basis, the $23 net return over all costs for 1999 compares favorably to 1998’s value of -$225.

Kentucky Farm Business Management Program: 1990-98 Hog Enterprise Summary. Gregg Ibendahl, Rick Costin, Richard Coffey and Ron Fleming. February, 2000. (Adobe Acrobat (43 pages) format.)
Hog producers have seen wide fluctuations in their net income over the past nine years. The year 1998 was especially bad for most producers due to very low prices. Based on average total net return per farm, producers have lost money in three of the last five years. Producers lost more per farm in 1998 than in all the other years combined. From a per hundred weight (CWT) of pork produced perspective, producers have lost money in five of the last nine years. Losses in 1998 were the largest ever at -$10.80 per CWT. This loss is 33 percent greater than the $8.13 loss per CWT in 1994.

Enterprise Study - Hog and Cattle

Kentucky Farm Business Management Program: 2001 Hog and Cattle Enterprise Summaries`. Craig Gibson, Suzy Martin and Rick Costin. November, 2002. (Acrobat format.)
Hog producers in 2001 saw positive net returns while cattle producers (both backgrounding and calves sold operations) saw negative net returns. Although the net returns for farrow-to-finish operations were positive, they were not as high as in 2000. In fact, net returns over all costs for farrow-to-finish operations on a per litter and per CWT basis were down 67.10% and 65.35%, respectively. The calves sold and backgrounding operations also saw a decrease from 2000 to 2001. The calves sold decreased $44.00 per cow and $7.48 per CWT. The backgrounding decreased $36.00 per cow and $0.65 per CWT.

Management

Farm Size and Returns. Bart Peters. November, 2010. (Adobe Acrobat format.)
Handouts from a Powerpoint presentation given at the Pennyroyal Farm Analysis Annual Meeting in November 2010. Topics include farm size, profit, net income, crop returns per acre, management returns, hi and lo returns, and land values.

KFBM Tax Update. Rush Midkiff. November, 2010. (Adobe Acrobat format.)
Handouts from a Powerpoint presentation given at the Pennyroyal Farm Analysis Annual Meeting in November 2010. Topics include the "Creating Small Business Jobs Act of 2010", I.R.C. 168(k), Section 179, health insurance, making work pay credit, education expenses and credits, and "Restore Employment Act (HIRE).

Pennyroyal Farm Analysis Group: Acre Program. Evan Conrad, Bart Peters and Cory G. Walters. August, 2009. (Adobe Acrobat format.)
The optional Average Crop Revenue Election (ACRE) program offers producers revenue protection (price multiplied by yield) as an alternative to only price protection from the counter-cyclical program. ACRE protects producers from declines in state yields and/or national price. The purpose of this newsletter is to provide knowledge to potential ACRE participants how the program works.

Are Farm Business Profit Margins Enough?. Craig Gibson. November, 2005. (Adobe Acrobat format.)
Based on average data, it is doubtful that farm profit margins are sufficient to maintain spending patterns found during 1998 to 2004. It is necessary for sole proprietors to begin serious examination of their individual situations. The intent here is not to be an alarmist. The intent is to stimulate examination of future spending. Certain expenditures are a matter of choice.

Decision Aids

2011 Crop Budgets. Evan Conrad. November, 2011. (Adobe Acrobat format.)
Handouts from a Powerpoint presentation given at the Pennyroyal Farm Analysis Annual Meeting in November 2010. Looks at corn and soybean profitability in 2011 through four scenarios: 1) baseline commodity prices, 2) high fertilizer prices, 3) high commodity prices, and 4) low commodity prices.

Corn Production after Sod Planning Budget and Guide for 2007. Greg Halich, Chad Lee, Kenny Burdine, J.D. Green, and Ric Bessin. April, 2007. (Adobe Acrobat format.)
High grain prices in 2007 are providing new opportunities for Kentucky farmers. One of these opportunities is the production of corn on ground that has primarily been used for hay or pasture. This publication is designed to help these producers evaluate if planting corn on sod ground would prove profitable in 2007.

Other

Brochure

Kentucky Farm Business Management Program (Brochure). Suzy Martin and Jennifer Rogers. 2007. (Adobe Acrobat (2 pages) format.)
A brochure about the Kentucky Farm Business Management Program.

Preliminary Reports

Economic Management Analysis - KFBM Cooperators 2010 Preliminary Analysis. KFBM Specialists. April, 2011. (Adobe Acrobat format.)
2010 Preliminary Analysis of Farm Profitability of KFBM Cooperators

Economic Management Analysis: KFBM Cooperators - 2009 Preliminary Analysis. Jerry Pierce. May, 2010. (Adobe Acrobat format.)
Table summarizing costs and returns of the KFBM cooperators by Farm Analysis Group.

Economic Management Analysis: KFBM Cooperators - 2009 Preliminary Analysis: Totals. Jerry Pierce. May, 2010. (Adobe Acrobat format.)
Table showing the total cost and returns for KFBM Cooperators.

Comparing Preliminary Analysis. Jerry Pierce. May, 2010. (Adobe Acrobat format.)
Based on the preliminary analysis of 143 farms participating in the Kentucky Farm business Management program, the average Kentucky grain farm exerienced another year in profitability.

Dairy

Economic Management Analysis - Average Kentucky Dairy Farm for Year Ending December 31, 2010. KFBM Specialists. April, 2011. (Adobe Acrobat format.)
Preliminary Comparison by Herd Size

Economic Management Analysis: Average Kentucky Dairy Farm (2009). Jerry Pierce. May, 2010. (Adobe Acrobat format.)
Table showing the average Kentucky dairy farm costs and returns or the year ending 12/31/2009. Comparison is by herd size.

Observations of Kentucky Dairies: Based on 2009 Preliminary Data from KFBM Participating Farms. Jerry Pierce. April, 2010. (Adobe Acrobat format.)
Dairy Comparisons gives some observations on each size dairy. The mid-size group increased NFI. The other two groups made adjustments but lost income form 2008.

Dairy Herd Analysis Report KFBM Cooperators 2009 Preliminary Analysis. Jerry Pierce. April, 2010. (Adobe Acrobat format.)
Instructions for the Dairy Comparisons Spreadsheet.

Dairy Herd Analysis Report: 2009 Preliminary Analysis. Jerry Pierce. April, 2010. (MS Excel 2003 format.)
This spreadsheet gives some observations on each size dairy. The mid-size group increased NFI. The other two groups made adjustments but lost income form 2008.


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