The farm level economic impacts of the Federal Agriculture Improvement and Reform Act of 1996 (FAIR) on representative crop and livestock operations are projected in this report. For this report the FAIR Act will be referred to as the 1996 Farm Bill. The analysis was conducted over the 1996-2002 planning horizon using AFPC's whole farm simulation model. Data to simulate farming operations in the nation's major production regions came from two sources:

• Producer panel interviews to develop economic information to describe representative crop, livestock, and dairy farms.

• Projected prices and input inflation rates from the Food and Agricultural Policy Research Institute (FAPRI) January 1997 Baseline.

This report is organized into ten sections. The first section summarizes the major provisions of the 1996 Farm Bill, the panel farm process, key assumptions for the farm level analysis, and a map showing where the panel farms are located. The second section summarizes the FAPRI January 1997 Baseline and the policy and price assumptions used for the representative farm analyses. The third through sixth sections present the results of the simulation analyses for feed grain, wheat, cotton, and rice farms. The seventh through ninth sections summarize simulation results for dairy, cattle and hog farms. Two appendices constitute the final section of the report. Appendix A provides tables which summarize the physical and financial characteristics for each of the representative farms. Appendix B provides the names of producers and land grant faculty who cooperated in the panel interview process.

Provisions in the 1996 Farm Bill which are important to the farm level analysis are summarized in Table 1. Major changes from the 1990 Farm Bill included elimination of target prices to calculate income support (deficiency) payment rates, decoupling of income support payments from prices and production, allowing virtual full flexibility in planting decisions, and eliminating acreage reduction program (ARP) authority.

Contract payments for participating cotton, wheat, feed grain, and rice producers are made based on 85 percent of their historical base acreage times farm program yield times a contract payment rate. The contract payment rate is calculated by dividing the fixed annual appropriations by the production that signs up in the program. While the annual contract payment rates can be estimated, they are not certain because of CRP issues and other technical factors which may change the eligible production slightly.

Planting flexibility was increased from the 15 percent NFA and 10 percent OFA for the 1990 farm bill to 100 percent (Table 1). Producers are now allowed to plant any combination of program and non-program crops (excluding vegetables) on their farmland without the loss of fixed payments. The 0/85 and 50/85 provisions in the 1990 farm bill are eliminated under the 1996 farm bill.

Marketing loan provisions for cotton and rice are continued under the 1996 Farm Bill. Marketing loans for wheat, feed grains, and soybeans are authorized in the 1996 Farm Bill, with the provision that the Secretary of Agriculture set the loan repayment rates so as to minimize forfeitures, government storage costs, and promote marketing.

The 1996 Farm Bill eliminates the dairy assessments and provides for a reduction in the milk support price. Each year the dairy support price falls 15 cents per hundred weight until the support price reaches $9.90 per hundred weight in 1999.

AFPC has developed and maintains data to simulate 76 representative crop and livestock farms chosen from major production areas across the United States (Figure 1). Characteristics for each of the farms in terms of location, size, crop mix, assets, and average receipts are summarized in Appendix A. The location of these farms are primarily the result of discussions with staffers for the House and Senate Agriculture Committees. Information necessary to simulate the economic activity on these representative farms are developed from panels of producers using a consensus building interview process. Normally two farms are developed in each region using separate panels of producers: one is representative of moderate size full-time farm operations, while the second panel usually represents farms that are two to three times larger.

The data collected from the panel farms are analyzed in a whole farm simulation model (FLIPSIM) developed by AFPC. The producer panels are provided pro-forma financial statements for their representative farm and are asked to verify the accuracy of the past year and the reasonableness of a four to five year projection. Each panel must approve of the model's ability to reasonably reflect economic activity on their representative farm prior to using the farm for policy analyses.

Most farms used in the analysis have been updated with the panels through 1996. Those not updated during 1996 were indexed to begin in 1996 using indices for input costs for 1993-95. FAPRI projections of prices and yields for 1996-2002 are utilized for the baseline analyses presented in this report. All of the crop farms are assumed to begin 1996 with 20 percent intermediate- and long-term debt, based on information provided by ERS-USDA and the panel members. Initial debt levels for dairy farms were set at 30 percent; initial debt levels for beef cattle ranches were 1 percent for land and 5 percent for cattle and machinery; and initial debt levels for hog farms were 45 percent.

• All farms classified as moderate scale are the size (acres or number of livestock) considered to be representative of a majority of full-time commercial farming operations in the study area. In many regions, a second farm, two to three times larger than the moderate scale farm is developed as an indicator of economies of size.

• The farms are enrolled in the 7 year production flexibility program and take advantage of the flexibility provisions in the 1996 Farm Bill (within the current crop mix). Crop mix changes after 1996 were estimated based on projected net returns for each of the enterprises currently produced on the farms. During the update process most of the crop farm panels indicated that they would flex out of their current crop mix, but only if expected net returns per acre from the change exceeded $40, due to rotation and/or other cultural concerns.

• Dairy, hog, and cattle herd sizes are held constant for all farms over the 1996-2002 planning horizon.

• The farm was structured so government payment limits were not effective at reducing contract payments.

• Family living withdrawals were assumed at a minimum base rate of 10 percent of gross receipts or $25,000 annually, whichever is lower. The farm is subject to owner/operator federal and state income taxes as a sole proprietor.

• No off-farm-related income was included in the analyses.

• Farm program parameters, average annual prices, crop and livestock yield trends, interest rates, and input cost inflation (deflation) are based on the FAPRI January 1997 Baseline which assumed implementation of the 1996 Farm Bill.

• The farm level simulation model incorporates price and yield risk faced by farmers. Historical yield variability for crops and livestock (sale weights and milk/cow) for the past ten years are assumed to prevail for the 1996-2002 planning horizon. Market prices for crops and feedstuffs are assumed to be approximately 20 percent more variable than over the past ten years due to the 1996 Farm Bill provisions. Because cotton and rice relied heavily on the marketing loan over the past 10 years, price variability is increased 3 percent for cotton and 11 percent for rice. Random prices are appropriately correlated based on historical correlations, among crops and across years.

Projected crop prices for FAPRI's January 1997 baseline are summarized in Table 2. Assumed loan rates and projected annual contract payment rates, net of 1995 deficiency repayments in 1996 and 1997, are also summarized in Table 2. It has been estimated that the net annual contract payment rates for corn will be $0.28/bu. in 1997; decreasing to $0.376/bu. in 1998 and decreasing to $0.26/bu. in 2002. Contract payment rates for wheat are estimated at $0.61/bu. in 1997 with the payment rate decreasing to $0.45/bu. in 2002. Cotton's contract payment rate for 1997 is estimated at $0.0725/lb. and is projected to decrease to $0.0536/lb. by 2002. The contract payment rate for rice is projected to be $2.725/cwt. in 1997; increasing to $2.925/cwt. in 1998 and declining to $2.02/cwt in 2002. The farms that grow contract commodities are assumed to have accepted the 1995 advance deficiency payments and will have the repayments offset against 1996 contract payments for wheat, barley, oats, and upland cotton. The corn and sorghum repayments will be offset against their 1997 contract payments.

Projected livestock prices for FAPRI's January 1997 baseline are summarized in Table 3. Beef cattle prices are projected to increase starting in 1997. The average 1996 feeder cattle price was estimated at $61.37/cwt. for a low, with 1997 price being projected at $67.87/cwt., and 2001 is projected to experience the peak price of $92.92/cwt. Hog prices decline after 1997 to a low of $42.04/cwt. in 1999, then recover to $49.03/cwt. in 2001. Annual milk prices for the ten states, where representative dairy farms are located, are summarized in Table 3. Milk prices generally decrease after 1996 to a low in 2001 and then show a small increase to 2002.

Projected annual rates of change for variable cash expenses are presented in Table 4. The rate of change in input prices and interest rates come from FAPRI's January 1997 Baseline which relies on WEFA's macroeconomic projections. Annual interest rates paid for long-term and intermediate-term loans and earned for savings are also summarized in Table 4. Assumed annual rates of change in land values over the 1996-2002 period are provided by the FAPRI Baseline (Table 4).

• Change in Real Net Worth, 1996-2002 -- The overall percentage change in the operator's net worth from January 1,1996 through December 31, 2002, after adjusting for inflation. This value reflects the real increase or decrease in net worth or equity for the farm over the planning horizon including changes in real estate values.

• Government Payments to Receipts, 1996-2002 -- The average value of all government payments divided by total receipts received from the market plus farm program (contract) payments, CCC loans, marketing loan gains, crop insurance indemnities, and other farm related income. The average value in the tables is computed over the seven year planning horizon.

• Expenses to Receipts, 1996-2002 -- The ratio of all cash expenses to total receipts received from the market place plus farm programs. Cash expenses include interest costs, fixed cash costs, and variable costs but exclude principal payments, depreciation, income taxes, and family living expenses.

• Average Cash Receipts, 1996-2002 -- Gross receipts are cash receipts from market sales, contract payments, CCC loans, marketing loan gains, crop insurance indemnities, and other farm related income. The values presented in the tables represent the average value of total receipts for each year in the planning horizon.

• Average Government Payments -- The average value of all payments received for farm programs (i.e., contract payments, CCC loans, and marketing loan gains) and payments received from crop insurance indemnities. The values presented in the tables represent the average value of total payments for each year in the planning horizon.

• Average Net Cash Income -- Net cash farm income equals gross receipts minus all cash production costs including interest payments. Net cash farm income is used to pay family living expenses, principal payments, income taxes, self employment taxes, and machinery replacement costs. The values presented in the tables represent the average value of net cash farm income for each year in the planning horizon.

• Average Cash Reserve -- Cash reserve is the total cash on hand at the end of the year. Ending cash equals net cash farm income plus interest earned on cash reserves less principal payments, income taxes, self employment taxes, and family living withdrawals.

• Average Total Debt -- Ending debt is the sum of land debt, intermediate-term debt for machinery and breeding stock, and operating loan carryover debt at the end of the year. The values presented in the tables represent the average value of total debt for each year in the planning horizon.

• Average Nominal Net Worth -- Total net worth or equity at the end of each year in the planning horizon equals total assets including land minus total debt from all sources. This value of net worth is not adjusted for inflation and is reported for each year in the planning horizon.

• NIA for Total Real Net Worth, 1996-2002 -- Net income adjustment (NIA) is the annual increase or decrease in net cash farm income necessary to cause the change in total real net worth, including land inflation, to equal zero over the planning horizon. If the change in net worth is negative, the NIA is the annual increase in net income necessary to prevent a loss in total real net worth. NIA's are expressed both as total dollars per year and as a percent of average annual cash receipts.

• Eleven of the 13 representative feed grain farms experienced growth in nominal net worth over the 1996-2002 study period. Only the two Kansas operations face a decline in nominal net worth (Tables 5 and 6).

• The feed grain farms' ability to maintain firm value appears strong. Even after adjusting for inflation 10 of the 13 operations show real growth in net worth by 2002. The moderate Nebraska operation and the two Kansas farms face declining real equity (Figure 3).

  -- Nine of the 10 operations experiencing positive real growth are very resilient in that net cash farm incomes as a percent of gross receipts would have to decline by more than 8 percent before the farms would experience a loss in real equity. The moderate scale northern Missouri operation (MONG1200), however, is vulnerable. A drop in net cash farm income as a percent of receipts of only 3 percent would cause this farm to lose real equity.

  -- The two Kansas farms (KSG728 and KSG1652) will likely have to make significant adjustments if they are to maintain real equity over the period. On these two operations the net cash farm income relative to receipts would have to improve by 8-10 percent for the farms to maintain real net worth. The moderate scale Nebraska farm (NEG800), while projected to lose 3 percent of its real net worth over the period, only needs to improve its net cash income to receipts by $6,700 annually or less than 2 percent to maintain real equity. Improvements of this magnitude are possible within the farm's current operations.

• Cash expenses as a percent of gross receipts is a measure of the firms ability to generate cash and/or withstand adverse economic events. Four of the 13 operations exhibit relatively high expense to receipts ratios. The Kansas farms, the moderate scale Nebraska operation and the moderate scale Northern Missouri farm all have average cash expense to receipt ratios that exceed 80 percent over the period. Given the vulnerable cash margin position, it is not surprising to see these four farms draw down cash reserves or carryover operating debt for most of the study period (Figures 5-7).

• Government payments as a percent of total receipts averages 6-9 percent for all but the moderate scale Northern Missouri (MONG 12000) operation. The Missouri farm only receives 2.6 percent of its receipts from government payments (Table 5). The differential for this farm is due to it's diversity. While feed grains and oilseeds constitute the major source of crop income on the Missouri farm (45 percent in 1996), it generates 57 percent of its receipts from livestock production (Appendix Table A1).

• In each region, where AFPC monitors both a moderate and large scale farm, the large operation is in a better financial position than its moderate scale counterpart. Thus, one can expect continued structural transition due to the financial position of these larger scale operations.

• All 10 representative wheat farms experience growth in nominal net worth over the 1996-2002 study period (Table 7). Even when adjusting for inflation the farms appear strong with 9 of the 10 showing growth in real equity (Figure 9). Only the moderate scale South Central Kansas (KSSC1495) farm is projected to lose real equity (9.6%) over the study period.

  -- While the KSSC1495 farm appears to be okay in terms of its average cash expenses to receipts ratio (78%), it is not large enough to generate the cash returns necessary to pay family living, principal payments and capital replacement. The cash receipts on this farm average only $161,000, making it the smallest crop farm AFPC monitors.

  -- The KSSC1495 operation is the only wheat farm projected to carry over operating debt consistently in the later years of the analyses (Figure 11).

  -- To maintain its real equity under current operations, the KSSC1495 farm would have to increase annual net cash income by an amount equal to 4 percent of receipts. While this is possible, it is more likely that this size operation will become more dependent on off-farm income to support its family living demands (Table 7).

• Of the 9 farms experiencing growth in real equity, only the moderate scale operation in Washington (WAW1500) and North Dakota (ND1760) warrant caution. If net cash income relative to receipts declined 10 percent, these farms would experience losses in real equity (Table 7).

• The farms' dependence on wheat as the major source of receipts in 1996 ranged from 53% on the North Dakota operations to in excess of 80 percent on the South Central Kansas and the large Colorado operations (Appendix Table A3). Dependence on government payments varies from a low of 5 percent on the Washington State farms (significant lentil and dry pea production) to 12 percent for the South Central Kansas operations (Table 7).

• Large farms in general appear to be better positioned economically over the study period. Only in Colorado does the larger farm perform worse than its moderate scale counterpart. Thus, structural transition is likely to continue in wheat production.

• Nine of the 10 representative cotton farms experience growth in nominal net worth over the 1996-2002 study period. Even after adjusting for inflation, 8 of the 10 farms show growth in real net worth ranging from 6 percent for the moderate scale Mississippi farm (MSC1635) to 73 percent for the large Texas Southern Plains operation (TXSP3697). The two moderate farms experiencing a loss in real equity are located in the Texas Blacklands (TXBL) and Coastal Bend (TXCB) regions (Figure 14).

  -- If net cash farm income as a percent of receipts increased by approximately 4 percent, both the TXBL and TXCB operations would be able to maintain real equity. Thus both operations could likely make managerial adjustments to offset real equity losses (Figure 14).

  -- Five of the eight cotton farms projected to increase real equity would lose this status if net cash income, as a percent of receipts, declined by as much as 7 percent (TXSP1682, TXRP1700 and 2500, and MSC1635 and 3620). Therefore, while the farms appear able to maintain value over the study period, a decline in prices or increases in input cost could stress these operations.

• The cotton farms in general operate on tighter profit margins than do wheat and feed grain operations. Average cash expense to receipt ratios range from 73 percent for the large Texas Southern Plains farm to 97 percent for the Texas Coastal Bend operations. Although subject to risk in net cash farm income, the large cotton farms appear able to handle the low gross margins due to the size of the operations (Table 8).

  -- Of the four large scale farms, only the Texas Rolling Plains operation (TXRP2500) is on average expected to draw down cash reserves after the year 2000 (Figures 15-17).

  -- Conversely, five of the six moderate scale operations have to draw on cash reserves. Three farms (TXSP1682, TXRP1700 and MSC1635) draw on cash reserves in the later years of the study period while two farms (TXBL1200, TXCB1700) carry over operating debt for the last five years analyzed (Figures 15-17).

• Government payments as a percent of total receipts range from 4 to 6 percent on the California and Mississippi operations, and from 8 to 13 percent on the Texas operations.

• Moderate scale operations are more likely to experience cash flow difficulties than their large scale counterparts in all regions where comparisons exist. Thus structural pressure will likely continue in cotton production.

• The cotton farms in general are operating on lower profit margins due to higher dependence on purchased inputs relative to receipts and thus are more vulnerable to risk due to changes in prices and yields. The cotton sector, therefore, may see greater adjustment due to the flexibility provisions of the 1996 Farm Bill than the wheat and feed grain sectors.

• All eight representative rice farms experience growth in nominal net worth over the 1996-2002 study period (Table 9). Six of the eight see real equity gains, after adjusting for inflation, ranging from 4 percent on the moderate Arkansas farm (ARR1260) to 53 percent for the moderate Texas operation (TXR2118). The two farms projected to lose real equity are the moderate scale operations in Missouri (MOR1900) and Louisiana (LAR1100).

  -- Although six of the eight rice farms show positive growth in real equity, they are particularly vulnerable to adverse price, yield and input cost movements. All six farms would lose equity if net cash farm income as a percent of receipts declined by as much as 10 percent (Figure 19). Declining net cash farm incomes over the study period suggest economic pressure for these rice farms (Figures 20-21).

  -- The moderate scale Missouri and Louisiana operations will have to see increases in net cash farm income relative to receipts of from 2 to 5 percent to stop the projected loss in real equity. While possible, the downward trend in net cash incomes experienced by all rice farms raises concern (Figures 20-21).

• Rice farming is the most input intensive of the program crops analyzed. Average cash expenses as a percent of receipts range from 74 percent on the moderate Texas farm (TXR2118) to 91 percent for the moderate Missouri operation (MOR1900). As a result of this relatively tight cash profit margin, the farms are especially sensitive to increased risk.

  -- The moderate Missouri (MOR1900) and Louisiana (LAR1100) farms carry over operating debt as early as 1998 and 2001, respectively (Table 9 and Figure 21).

  -- The moderate scale California (CAR424) and large Missouri farm (MOR4000) start to draw on cash reserves after 1999 (Table 9).

• The rice farms are more dependent on government payments than any other crop commodity group. Government payments as a percent of receipts range from 11-12 percent on the Missouri farm to over 18 percent for the Texas and California operations.

• Structural pressure does not appear as prevalent in the rice areas compared to the other program crops. Some of this, however, may be a function of farm reorganization under past farm programs.

• Milk prices over the baseline period, while declining, are high enough to allow most of the representative dairy farms to profit. Higher cattle prices allow the dairy farms to net more cash from livestock sales than observed over the recent period. Also, higher cattle prices increase the value of dairy cattle, thus contributing about 8 to 10 percent to the growth in real net worth over the study period.

• All but two of the 22 representative dairy farms increase real net worth over the 1996-2002 study period. The moderate Georgia (GAND175) operation experiences a 33 percent decline in real net worth. The moderate size Missouri dairy farm (MOD85) is projected to experience a 6 percent decrease in real net worth over the study period (Tables 8-10).

• The 20 dairy farms projected to experience increases in real net worth see increases ranging from 9 percent for the large Washington dairy (WAD850) to 96 percent for a large dairy in Central Texas (TXCD825).

• Eight of the dairy farms exhibit relatively high expense to receipt ratios, greater than 85 percent. These farms will be more vulnerable to milk and feed price variability. The 2000 cow New Mexico (NMD2000) dairy increased real net worth and built cash reserves over the study period, but only a 7 percent decline in receipts would reduce this farm's real net worth growth to zero. Representative dairies in Washington (WAD850), Central Texas (TXCD40), Missouri (MOD300), and Central New York (NYCD110) would lose real net worth if their receipts dropped by as little as 4 percent.

• The moderate Missouri (MOD85), moderate Georgia (GAD175), and moderate Central New York (NYCD110) dairies experience negative cash reserves. This results in increased carryover debt and interest expenses. Two of the farms (WAD850 and MOD300) experience declining cash reserves during the study period. Potential cash flow problems loom on the horizon for these two farms.

• Overall, the baseline is favorable for representative dairy farms. However, one third (7 of 22) of the dairy farms are either losing real net worth or would lose real net worth if their receipts declined by more than 4 percent.

• The beef cattle situation is positively impacted due to the upturn in prices projected over the study period. Feeder cattle prices are projected to rise from approximately $61/cwt in 1996 to $93/cwt by 2001 before starting to decline in 2002.

• All of the cattle ranches experience growth in nominal net worth over the 1996-2002 study period. Even after adjusting for inflation, all of the five representative cow/calf operations realize an increase in real equity over the 1996-2002 study period. The South Texas cattle ranch (TXB400) just maintains its real equity over the period with a 0.14 percent increase (Figure 32).

• Two of the four ranches (WYB300 and MOB150) experiencing increases in real equity over the period appear vulnerable. If net cash income relative to receipts decline by a as much as 4 percent, these farms would experience losses in real net worth.

• Net cash farm incomes (NCFIs) show substantial improvement over the 1996-2002 period as cattle prices rebound. However, low to negative net cash farm income in early years for three of the five ranches (WYB300, MOB150, and TXB400) cause substantial cash flow problems and increasing debt on these farms. This increasing debt suggests financial vulnerability when the cattle cycle turns down again, and/or if feed prices remain higher than expected. Negative ending cash reserves throughout the study period suggest that the three cow/calf operations will have to supplement the ranch with off farm income.

• Although growing crops can help the diversified Missouri operation weather the cattle cycle the farm experiences significant cash flow problems due to the inefficiencies of size in its cropping and cattle enterprises.

• The 1997 baseline projections positively impacted the farm level hog outlook With a price forecast starting in the $53 to $54 range and cycling throughout the period with a low in 1999 of $42 returning to $49 in 2001, each farm fairs well over the projection horizon.

• All eight hog farms experience an increase in real equity over the 1996-2002 period (Figure 36). The real equity growth ranges from 17 percent on the moderate Indiana farm (INH150) to 86 percent on the NCH350. Growth in real equity on the large contract farming operation in North Carolina is substantially higher than the other farms at 171 percent. The large percentage growth in real equity on both North Carolina farms is due to efficiency of operation and the fact that both farms maintain a low asset base per sow, relative to the other farms.

• Only the two farms showing the smallest increase in real equity indicate signs of vulnerability (INH150 and MOH100). These two farms are the only hog farms which cannot withstand a decline in net cash farm income equivalent to a 5-7 percent drop in cash receipts annually without realizing a loss in real equity over the 1996-2002 period.

• Net cash farm income for all eight farms generally peaks in 1997 and declines to the lowest income in 1999; following the normal hog price cycle, incomes peak again in 2001. Only the INH150 shows signs of financial stress as low incomes result in increasing debt and create significant cash flow problems. The farm begins to draw on cash reserves in 1997 and have to carryover operating debt as early as 2000.

• Each moderate / large pair of farms in the different regions indicate some economies of scale. The large farm in each case operates more efficiently as measured by the expense to receipts ratio. In addition the larger scale farms exhibit greater profitability and more potential for real equity growth over the 1996-2002 period.

IAG950	A 950-acre Northwestern Iowa (Webster County) moderate size grain farm that plants 475 acres of corn and 475 acres of soybeans. The farm receives 57 percent of its receipts from corn. This farm has been updated for 1996.
IAG2200	A 2,200-acre Northwestern Iowa (Webster County) large grain farm that plants 1,100 acres of corn and 1,100 acres of soybeans. The farm generates 58 percent of its receipts from corn. The farm has been updated for 1996.
MOCG1500	A 1,500-acre Central Missouri (Carroll County) moderate size grain farm with 250 acres of wheat, 550 acres of corn, and 700 acres of soybeans. This farm is located in the Missouri river bottom and supplies feed to the livestock producers in the region at premium to other areas of Missouri. Corn generates about 46 percent of the farm's receipts. The farm has been updated for 1996.
MOCG3000	A 3,000-acre Central Missouri (Carroll County) large grain farm with 300 acres of wheat, 1,350 acres of corn, and 1,350 acres of soybeans. This farm is located in the Missouri river bottom and supplies feed to the livestock producers in the region at premium to other areas of Missouri. The farm generates about 56 percent of its total revenue from corn. The farm has been updated for 1996.
MONG1200	A 1,200-acre Northern Missouri (Nodaway County) diversified grain farm with 525 acres of corn, 525 acres of soybeans, and 150 acres of hay. The farm also has 150 breeding cows and 80 breeding sows. The farm generates about 45 percent of its total revenue from corn and soybeans, 40 percent from hogs, and 14 percent from cattle. The farm has been updated for 1996.
NEG800	A 800-acre South Central Nebraska (Phelps County) moderate size 100 percent irrigated grain farm that plants 770 acres of corn, and 30 acres of alfalfa. The farm also has 100 breeding cows. The farm generates 92 percent of its receipts from corn. The farm has been updated for 1996.
NEG1575	A 1,575-acre South Central Nebraska (Phelps County) large 100 percent irrigated grain farm that plants 1,575 acres of corn. The farm generates about 98 percent of its receipts from corn. The farm has been updated for 1996.
TXNP1600	A 1,600-acre Northern High Plains of Texas (Moore County) moderate size 100 percent irrigated grain farm with 642 acres of wheat, 280 acres of sorghum, 470 acres of corn, and 208 acres fallow. The farm generates 68 percent of its total receipts from feed grains. The farm has been updated for 1996.
TXNP5500	A 5,500-acre Northern High Plains of Texas (Moore County) large 85 percent irrigated grain farm with 1,675 acres of irrigated wheat, 800 acres of dryland wheat in the corners of all pivot irrigated fields, 275 acres of irrigated sorghum, 2,200 acres of irrigated corn, and 550 acres fallow. The farm generates about 72 percent of its receipts from feed grains. The farm has been updated for 1996.
KSG728	A 728-acre Southwestern Kansas (Finney County) 100 percent irrigated grain farm with 128 acres of wheat, and 600 acres of corn. The farm generates 92 percent of its total receipts from corn. This farm is more likely to be considered a small farm rather than our typical moderate size operation. The farm has been updated for 1996.
KSG1652	A 1,652-acre Southwestern Kansas (Finney County) moderate size 100 percent irrigated grain farm with 600 acres of wheat, and 1050 acres of corn. The farm generates 89 percent of its total receipts from corn. The farm has been updated for 1996.
SCG1500	A 1,500-acre South Carolina (Clarendon County) moderate size grain farm with 750 acres of double cropped wheat and soybeans, 600 acres of corn, and 150 acres of full season soybeans. The farm generates about 68 percent of its total receipts from corn and soybeans. This farm enjoys high returns on double cropped acreage but timing will not allow more than 750 acres. The farm has been updated for 1996.
SCG3500	A 3,500-acre South Carolina (Clarendon County) large grain farm with 2020 acres of double crop wheat and soybeans, 350 acres of cotton, 1,130 acres of corn. This farm enjoys high returns on double cropped acreage but timing is a limiting factor. The farm generates 73 percent of its receipts from corn and soybeans. The farm has been updated for 1996.

WAW1500	A 1,500-acre Southeastern Washington (Whitman County) moderate size grain farm that plants 750 acres of wheat, 300 acres of barley, and 450 acres of peas. Disease problems require a rotation that includes at least a minimum amount of barley and peas in order to maintain wheat yields. The farm generates 67 percent of its receipts from wheat. The farm has been updated for 1996.
WAW4250	A 4,250-acre Southeastern Washington (Whitman County) large size grain farm that is harvesting 3,188 acres of wheat, 425 acres of Barley, and 638 acres of Peas. Disease problems require a rotation that includes at least a minimum amount of barley and peas in order to maintain wheat yields. The farm generates 86 percent of its receipts from winter and spring wheat. The farm has been updated for 1996.
NDW1760	A 1,760-acre South Central North Dakota (Barnes County) moderate size grain farm that has 920 acres of wheat, 400 acres of barley, and 440 acres of sunflowers. Rotation and disease problems will not allow more than 25% of the acres to be planted to sunflowers. The farm receives about 53 percent of receipts from wheat. The farm has been updated for 1996.
NDW4600	A 4,600-acre South Central North Dakota (Barnes County) large grain farm that plants 2,400 acres of wheat, 1,200 acres of barley, and 1,000 acres of sunflowers. Rotation and disease problems will not allow more than 25% of the acres to be planted to sunflowers. Wheat accounts for 53 percent of the farms total gross receipts. The farm has been updated for 1996.
KSSC1495	A 1,495-acre South Central Kansas (Sumner County) moderate size grain farm that plants 1,200 acres of wheat, and 295 acres of grain sorghum. The farm generates 81 percent of its receipts from wheat. The farm has been updated for 1996.
KSSC3080	A 3,080-acre South Central Kansas (Sumner County) large grain farm harvesting 2,464 acres of wheat, 462 acres of grain sorghum, and 154 acres of hay. The farm also has 67 breeding cows. The farm generates 81 percent of its receipts from wheat. The farm has been updated for 1996.
KSNW2325	A 2,325-acre North Western Kansas (Thomas County) moderate size grain farm that plants 900 acres of wheat, 225 acres of grain sorghum, 225 acres of corn and has 900 acres of fallow. The farm also has 100 breeding cows. The farm generates 55 percent of its receipts from wheat. The farm has been updated for 1996.
KSNW4300	A 4,300-acre North Western Kansas (Thomas County) large grain farm harvesting 2,000 acres of wheat, 250 acres of grain sorghum, 250 acres of dryland corn, 240 of irrigated corn, 75 acres of hay, and 1485 acres of fallow. The farm also has 100 breeding cows. The farm generates 56 percent of its receipts from wheat. The farm has been updated for 1996.
COW2700	A 2,700-acre Northeast Colorado (Washington County) moderate size grain farm that plants 1,100 acres of wheat, 400 acres of millet, and 120 acres of corn, and will leave 810 acres fallow. This farm is using a smaller fallow rotation than its larger counterpart thus allowing for only 680 less harvested acres per year. The farm generates 70 percent of its receipts from wheat. The farm has been updated for 1996.
COW4000	A 4,000-acre Northeast Colorado (Washington County) large size grain farm that plants 1,700 acres of wheat, and 600 acres of millet, and will leave 1700 acres in fallow. The 50/50 rotation on wheat and fallow makes the harvested acres on this farm closer to the harvested acres on the moderate farm. Wheat produces 82 percent of the farms gross revenue. The farm has been updated for 1996.

CAC2000	A 2000-acre Central San Joaquin Valley California (Kings County) moderate size cotton farm that plants 1100 acres of cotton, 300 acres of wheat, 300 acres of corn and 300 acres of hay. The farm generates 65 percent of its gross income from cotton. The farm has been updated for 1996.
CAC6000	A 6000-acre Central San Joaquin Valley California (Kings County) large cotton farm harvesting 3,000 acres of cotton, 1,500 acres of vegetables, 720 acres of wheat, 240 acres of corn, and 300 acres of hay. Vegetables on this farm vary considerable from year to year depending on the price of the particular vegetable, however, the returns to this 1500 acres remain relatively stable over time. Cotton generates about 71 percent of this farm's receipts. The farm has been updated for 1996.
TXSP1682	A 1,682-acre Texas Southern High Plains (Dawson County) moderate size cotton farm. The farm plants 961 acres of cotton (886 dryland and 75 irrigated), 95 acres of peanuts, and has 183 acres in CRP. This farm is just now starting to adopt the irrigation practices of its larger counterpart. The farm generates 79 percent of its receipts from cotton. The farm has been updated for 1996.
TXSP3697	A 3,697-acre Texas Southern High Plains (Dawson County) large cotton farm. The farm plants 2,822 acres of cotton (2,094 dryland and 728 irrigated), 128 acres of peanuts and has 214 acres in CRP. Cotton generates 92 percent of this farms receipts. The farm has been updated for 1996.
TXRP1700	A 1,700-acre Texas Rolling Plains (Jones County) moderate size cotton farm that plants 1,070 acres of cotton and 200 acres of wheat. The farm also has 50 breeding cows and uses the wheat to graze the cattle during the winter. Cotton accounts for 88 percent of the farms receipts. The farm has been updated for 1993.
TXRP2500	A 2,500-acre Texas Rolling Plains (Jones County) large cotton farm that plants 1,633 acres of cotton, and 300 acres of wheat. The farm also has 75 breeding cows and uses the wheat acreage to graze the cattle in the winter. About 88 percent of this farms receipts are derived from cotton. The farm has been updated for 1993.
TXBL1200	A 1,200-acre Texas Blacklands (Williamson County) moderate size cotton and grain farm with 400 acres of cotton, 350 acres of sorghum, and 350 acres of corn. This farm also has 50 breeding cows which are pastured on rented land that cannot be cropped. Cotton generates 50 percent of the farms receipts. The farm has been updated for 1996.
TXCB1700	A 1,700-acre Texas Coastal Bend (San Patricio County) cotton farm with 765 acres of cotton and 935 acres of grain sorghum. Severe disease problems force this farm to plant at a minimum 50 percent of the land to grain sorghum. About 70 percent of this farm's receipts are cotton receipts. The farm has been updated for 1996.
MSC1635	A 1,635-acre Mississippi Delta (Washington County) moderate size cotton farm that plants 925 acres of cotton and 640 acres of soybeans. The farm generates 87 percent of its receipts from cotton. The farm has been updated for 1993.
MSC3620	A 3,620-acre Mississippi Delta (Washington County) large cotton farm that plants 1,700 acres of cotton and 1,620 acres of soybeans. About 83 percent of the farm's receipts are derived from cotton. The farm has been updated for 1993.

CAR424	A 424-acre Sacramento Valley California (Sutter and Yuba Counties) moderate size rice farm that plants 400 acres of rice. The farm generates 95 percent of its gross income from rice. The farm has been updated for 1996.
CAR1365	A 1,365-acre Sacramento Valley California (Sutter and Yuba Counties) large rice farm that plants 1265 acres of rice. The farm generates about 98 percent of its gross income from rice. The farm has been updated for 1996.
TXR2118	A 2,118-acre West of Houston, Texas (Wharton County) moderate size rice farm that harvests 600 acres of first crop rice, and 510 acres of ratoon rice. The farm receives 99 percent of its gross receipts from rice. The farm has been updated for 1996.
TXR3750	A 3,750-acre West of Houston, Texas (Wharton County) large rice farm that harvests 1500 acres of first-crop rice, 1275 acres of ratoon rice, and 200 acres of hay. The farm also has 200 breeding cows. 90 percent of the farm's gross receipts are from rice. The farm has been updated for 1996.
MOR1900	A 1,900-acre Southeastern Missouri (Butler County) moderate size rice farm with 616 acres of rice, 650 acres of soybeans, and 633 acres of corn. Rice accounts for 47 percent of this farms receipts. The farm has been updated for 1996.
MOR4000	A 4,000-acre Southeastern Missouri (Butler County) large rice farm with 1,710 acres of rice, 800 acre soybeans, 1,250 acres of corn, and 240 acres of cotton. Fifty-five percent of this farm's receipts are generated from rice. The farm has been updated for 1996.
ARR1260	A 1,260-acre Arkansas (Poinsett County) moderate size rice farm that plants 696 acres of rice, 319 acres of soybeans and 145 acres of wheat. Rice accounts for 77 percent of the farm's receipts. This farm has been updated for 1993.
LAR1100	A 1,100-acre Louisiana (Jefferson Davis, Acadia, and Vermilion Parishes) moderate size rice farm harvesting 540 acres of rice, 362 acres of soybeans, and 198 acres of fallow. About 83 percent of this farm's receipts are generated by rice. This farm has been updated for 1993.

CAD1710	A 1710-cow Central California (Tulare County) large dairy farm that produces 21,800 pounds of milk per cow. The farm plants 200 acres of hay and 325 acres of silage for which it employs custom harvesting. Milk receipts generate 95 percent of all receipts. The farm has been updated for 1996.
WAD185	A 185-cow Northern Washington (Whatcom County) moderate size dairy farm that produces 25,500 pounds of milk per cow. The farm plants 112 acres of silage and generates 98 percent of its receipts from milk. The farm has been updated for 1996.
WAD850	A 850-cow Northern Washington (Whatcom County) large dairy farm that produces 23,500 pounds of milk per cow. The farm plants 500 acres of silage and generates 97 percent of its receipts from milk. The farm has been updated for 1996.
TXCD400	A 400-cow Central Texas (Erath County) moderate size dairy farm that produces 16,100 pounds of milk per cow. The farm plants 118 acres of hay and 172 acres of silage. Milk is 95 percent of the farms gross income. The farm has been updated for 1996.
TXCD825	A 825-cow Central Texas (Erath County) large dairy farm that produces 19,200 pounds of milk per cow. The farm plants 215 acres for silage and milk accounts for 96 percent of receipts. The farm has been updated for 1996.
TXED210	A 210-cow East Texas (Hopkins County) moderate size dairy farm that produces 16,000 pounds of milk per cow. The farm plants 195 acres of hay and generates 90 percent of its receipts from milk. The farm has been updated for 1996.
TXED650	A 650-cow East Texas (Lamar County) large dairy farm that produces 17,000 pounds of milk per cow. The farm plants 140 acres of hay and 425 acres of silage. The farm generates 93 percent of its receipts from milk. The farm has been updated for 1996.
WID70	A 70-cow Eastern Wisconsin (Winnebago County) moderate size dairy farm that produces 20,500 pounds of milk per cow. The farm plants 37 acres of hay, 40 acres of corn, 23 acres of silage, and 102 acres of haylage. Milk makes up 92 percent of this farm's receipts. The farm has been updated for 1996.
WID600	A 600-cow Eastern Wisconsin (Winnebago County) large dairy farm that produces 19,800 pounds of milk per cow. The farm plants 350 acres of corn, 200 acres of silage, and 450 acres of haylage. Milk accounts for 93 percent of the farm's receipts. The farm has been updated for 1996.
MOD85	A 85-cow Southwestern Missouri (Christian County) moderate size dairy farm that averages 15,600 pounds of milk per cow. The farm plants 211 acres of hay. About 91 percent of the farm's receipts come from milk. The farm has been updated for 1996.
MOD300	A 300-cow Southwestern Missouri (Christian County) large dairy farm that averages 17,300 pounds of milk per cow. The farm plants 573 acres of hay and 107 acres of silage. Milk accounts for 95 percent of this farm's receipts. The farm has been updated for 1996.
NYWD700	A 700-cow Western New York (Wyoming County) moderate size dairy farm that produces 22,700 pounds of milk per cow. The farm plants 510 acres of silage and 425 acres of haylage. About 94 percent of the farm's receipts come from milk. The farm has been updated for 1996.
NYWD1200	A 1200-cow Western New York (Wyoming County) large dairy farm that produces 21,700 pounds of milk per cow. The farm plants 825 acres of silage and 700 acres of haylage. Milk accounts for 96 percent of the farm's receipts. The farm has been updated for 1996.
NYCD110	A 110-cow Central New York (Cayuga County) moderate size dairy farm that produces 22,000 pounds of milk per cow. The farm plants 50 acres of hay, 75 acres of corn, 76 acres of silage, and 94 acres of haylage. Milk accounts for 95 percent of the farms receipts. The farm has been updated for 1996.
NYCD300	A 300-cow Central New York (Cayuga County) large dairy farm that produces 21,500 pounds of milk per cow. The farm plants 155 acres of hay, 145 acres of corn, 170 acres of silage, and 286 acres of haylage. The farm generates 95 percent of its receipts from milk. The farm has been updated for 1996.
VTD85	A 85-cow Vermont (Washington County) moderate size dairy farm that averages 22,400 pounds of milk per cow. The farm plants 73 acres of hay, 57 acres of silage, and 70 acres of haylage. Milk accounts for 91 percent of the receipts. The farm has been updated for 1996.
VTD350	A 350-cow Vermont (Washington County) large dairy farm that averages 22,000 pounds of milk per cow. The farm plants 332 acres of hay, 200 acres of silage, and 168 acres of haylage. Milk accounts for 96 percent of the farm's receipts. The farm has been updated for 1996.
GAND175	A 175-cow Central Georgia (Putnam County) moderate size dairy farm that produces 18,000 pounds of milk per cow. Rather than plant any crops, this farm opts to purchase all of its feed requirements in the form of a premixed ration. Milk accounts for 96 percent of the farm's gross income. The farm has been updated for 1996.
GASD650	A 650-cow Southern Georgia (Houston County) large dairy farm that produces 19,000 pounds of milk per cow. The farm plants 150 acres of hay and 200 acres of silage. Milk makes up 96 percent of the farm's receipts. The farm has been updated for 1996.
FLND380	A 380-cow North Florida (Lafayette County) moderate size dairy farm that averages 17,000 pounds of milk per cow. The farm grows 200 acres of hay. All feed requirements, in addition to hay, are met through a purchased pre-mixed ration. Milk sales account for 95 percent of the farm's receipts. Excess hay sales provide one percent of cash receipts and are expected to provide supplemental sales from year to year. The farm has been updated for 1996.
FLSD2000	A 2000-cow South Central Florida (Okeechobee County) large dairy farm that produces 16,500 pounds of milk per cow. The farm grows 1210 acres of hay. In addition to grass hay, grass silage, and pasture, cows receive a purchased premixed ration. Milk sales generate 94 percent of its receipts. The farm has been updated for 1996.
NMD2000	A 2000-cow Southern New Mexico (Dona Anna and Chaves County) large dairy farm that averages 22,400 pounds per cow. Rather than plant any crops, this farm purchased all commodities necessary for blending its own total mixed ration. Milk sales account for 95 percent of cash receipts. The farm has been updated for 1996.

MTB400	A 400-cow ranch located in the eastern plains of Montana (Custer County). The ranch runs cows on a combination of owned, federal, state, and private lease land. One quarter of its total animal unit month grazing needs come from federal land and the ranch owns 14,000 acres of pasture. Of the total land owned, 440 acres are planted for hay. Cattle generates 100 percent of the total receipts on the ranch. This ranch has been updated for 1996.
WYB300	A 300-cow ranch located in North Central Wyoming (Washakie County). The ranch harvests hay from 200 acres of owned cropland, and it owns another 1000 acres of pastureland. Rangeland leased from the Forest Service provides 42 percent of the ranch's grazing needs. Cattle generates 100 percent of the total receipts on the ranch. This ranch has been updated for 1996.
COB300	A 300-cow ranch located in Northwest Colorado (Routt County). Federal land provides 7 percent of the ranch's AUM needs. Hay is produced on 400 acres of the pasture-hay land, of which the ranch owns 300. The ranch owns 1800 acres of pastureland, and the cattle graze the federal land during the summer months. Cattle generates 89 percent of the total receipts on the ranch. This ranch participates in a retained ownership program through the feedlot with 75% of the steers raised. This ranch has been updated for 1996.
TXB400	A 400-cow ranch located in South Central Texas (Gonzales County). The ranch owns 2,000 acres and leases 1,200 acres of pasture. Hay and oats for grazing are grown on 480 acres. Cattle generates 98 percent of the total receipts on the ranch. This ranch has been updated for 1993.
MOSB150	A 150-cow/grain farm located in Southwest Missouri (Dade County). The farm has 400 acres of hay, 160 acres of soybeans, 80 acres of sorghum, and 80 acres of wheat. The farm has 400 acres of pastureland for the cattle herd. Cattle generates 47 percent of the total receipts for the farm. Crops other than hay generate another 49 percent of this farm's receipts. This farm has been updated for 1993.

MOH100	A 100-sow hog farm located in North Central Missouri (Carroll County). The farm plants 160 acres of corn, 80 acres of soybeans, 80 acres of wheat, and 40 acres of hay. The farm weans 16 pigs per sow in a year and has a feeding efficiency measure of 3.4 pounds of feed per pound of pork sold. Hogs generate 82 percent of the farm's total receipts while crops produce another 15 percent of receipts. This farm has been updated for 1996.
MOH225	A 225-sow hog farm located in North Central Missouri (Carroll County). The farm plants 400 acres of corn, 400 acres of soybeans, and 200 acres of wheat. This farm feeds 3.7 pounds of feed for every pound of pork sold and averages 19 pigs weaned per sow per year. The hog enterprise generates about 82 percent of the total receipts for the farm. The remainder of total receipts is generated in crop sales. This farm has been updated for 1996.
ILH200	A 200-sow hog farm located in Western Illinois (Knox County). The farm plants 750 acres of corn, 610 acres of soybeans, and 20 acres of wheat. This farm weans 17 pigs/sow/year and operates on 3.5 pounds of feed per pound of pork sold. The hog operation produces about 60 percent of the farm's total receipts while the sale of crops accounts for about 40. This farm has been updated for 1996.
ILH750	A 750-sow hog farm located in Western Illinois (Knox County). The farm plants 1080 acres of corn and 720 acres of soybeans. This farm will wean an average of 22 pigs per sow in a year, and feeds about 3.1 pounds of feed per pound of pork sold in a year. The hog enterprise generates 89 percent of the total receipts on the farm. Corn and soybean sales account for the remaining 11 percent. This farm has been updated for 1996.
INH150	A 150-sow hog farm located in North Central Indiana (Carroll County). The farm plants 750 acres of corn, 225 acres of soybeans, and 25 acres of wheat. The farm feeds 3.3 pounds of feed per pound of pork sold and weans 17 pigs/sow/year. About 58 percent of the farm's receipts comes from hogs, and the remainder of receipts is generated through crop sales. This farm has been updated for 1996.
INH600	A 600-sow hog farm located in North Central Indiana (Carroll County). The farm plants 1500 acres of corn, 700 acres of soybeans, and 50 acres of wheat. The farm is able to wean 20 pigs per sow per year and feed 3.3 pounds of feed per pound of pork sold. The hog operation accounts for approximately three quarters of the farm's total receipts. The other quarter of receipts comes from crop sales. This farm has been updated for 1996.
NCH350	A 350-sow hog farm located in Eastern North Carolina (Wayne County). The farm plants 100 acres of hay to dispose of waste from the farrow-to-finish hog operation. The farm will wean 19.5 pigs per sow per year and will feed 3.0 pounds of feed per pound of pork sold. The sale of hogs produces 100 percent of the farm's receipts. This farm has been updated for 1996.
NCH13268	A 13,268-sow hog farm located in Eastern North Carolina (Wayne County). The operation contracts with individual farmers who provide on-site management, labor, and facilities. The operation provides hogs, feed and specialized labor for its group of contract farrowing, nursery and finishing farms. On average the farm will wean 20 pigs per sow per year. A measure of feed efficiency for this operation is 2.9 pounds of feed per pound of pork sold. 100 percent of the farm's receipts are produced from the sale of hogs. This farm has been updated for 1996.