REPRESENTATIVE FARMS ECONOMIC OUTLOOK FOR THE NOVEMBER 1997 FAPRI/AFPC BASELINE

REPRESENTATIVE FARMS ECONOMIC OUTLOOK FOR THE NOVEMBER 1997 FAPRI/AFPC BASELINE

AFPC Working Paper 97-13

Edward G. Smith
James W. Richardson
David P. Anderson
Allan W. Gray
Steven L. Klose
Ronald D. Knutson
Joe L. Outlaw
Paul Feldman
C. Shane Land
Robert B. Schwart, Jr.

Agricultural and Food Policy Center
Department of Agricultural Economics
Texas Agricultural Experiment Station
Texas Agricultural Extension Service
Texas A&M University

December 1997

College Station, Texas 77843-2124
Telephone: (409) 845-5913

REPRESENTATIVE FARMS ECONOMIC OUTLOOK FOR THE NOVEMBER 1997 FAPRI/AFPC BASELINE

Introduction

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 cooperation to develop economic information to describe representative crop, livestock, and dairy farms.
Projected prices, policy variables, and input inflation rates from the Food and Agricultural Policy Research Institute (FAPRI) November 1997 Baseline.

The primary objective of the analysis is to determine the farms' economic viability by region and commodity over the seven years covered by the 1996 Farm Bill.

This report is organized into ten sections. The first section summarizes the process used to develop the representative farms and the key assumptions for the farm level analysis. The second section summarizes the FAPRI November 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 to summarize the physical and financial characteristics for each of the representative farms. Appendix B provides the names of producers, land grant faculty, and industry leaders who cooperated in the panel interview process.

Panel Farm Process

AFPC has developed and maintains data to simulate more than 75 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, and the second panel usually represents farms 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 simulated results for 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.

The farms used in the analysis have been updated with the panels through 1996. Representative farms in the whole farm data base that have not been updated to1996 base conditions are not reported in this Working Paper. 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.

Key Assumptions

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 size economies.
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.
Minimum family living withdrawals were assumed at a base rate of 10 percent of gross receipts or $25,000 annually, whichever is lower. Actual family living withdrawals are determined by historical consumption patterns. Therefore, as the farm's profitability increases so does the level of family living withdrawals. The farm is subject to owner/operator federal and state income taxes as a sole proprietor.
No off-farm-related income including family employment 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 November 1997 FAPRI Baseline which assumes implementation of the 1996 Farm Bill.
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 signed up in the program and is included in the November 1997 FAPRI Baseline.
The farms are assumed to be enrolled in the 7 year production flexibility program and take full 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.
Marketing loan provisions for cotton and rice were continued under the 1996 Farm Bill. Marketing loans for wheat, feed grains, and soybeans were authorized in the 1996 Farm Bill and are assumed to be in place for the farm level analysis.
The farm level simulation model incorporates price and yield risk faced by farmers. Historical yield variability for crops and production for livestock (sale weights and milk/cow) over the past ten years are assumed to prevail for the 1997-2002 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.
The 1996 Farm Bill eliminated the dairy assessments after 1996 and provides for a reduction in the milk support price starting in 1997. Each year the dairy support price falls 15 cents per hundred weight until the support price reaches $9.90 per hundred weight in 1999, after which it is eliminated.

FAPRI November 1997 Baseline

Projected crop prices for FAPRI's November 1997 baseline are summarized in Table 1. Projected corn prices decline from the high of $2.70/bu. in 1996 to a low of $2.41/bu. in 1999 then increase steadily until they reach $2.56/bu. in 2002. Wheat prices are projected to decline to $3.30/bu. by 1998 and then increase through 2002 when wheat price are projected at $3.73/bu. Cotton prices will likely decline until 1999 reaching a low of $0.66/lb. and then increase only slightly to $0.6789/lb. in 2002. Rice price is projected to decline from the $9.90/cwt. level realized in 1996 to the $9.30/cwt. range by 1998 and continuing at this level throughout the remainder of the study period.

Assumed loan rates and projected annual contract payment rates, net of 1995 deficiency repayments in 1996 and 1997, are also summarized in Table 1. FAPRI estimated that the net annual contract payment rates for corn will be $0.28/bu. in 1997; increasing 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 $2.726/cwt. in 1997; increasing to $2.925/cwt. in 1998 and declining to $2.02/cwt in 2002. The farms growing contract commodities accepted the 1995 advance deficiency payments and had 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 November 1997 Baseline are summarized in Table 2. Beef cattle prices are projected to increase starting in 1996 and reach a peak in 2000. The average 1996 feeder cattle price was estimated at $61.31/cwt. for a low, with 1997 price being projected at $78.06/cwt., and 2000 is projected to experience the peak price of $96.32/cwt. Hog prices decline after 1996 reaching a low of $42.98/cwt. in 1999 and then recovering to $47.54/cwt. in 2001. Annual milk prices for the 12 states, where representative dairy farms are located, are summarized in Table 2. Milk prices generally decrease after 1996 to a low in 1998 and then show a small increase to 2002.

Projected annual rates of change for variable cash expenses are presented in Table 3. The rate of change in input prices and interest rates come from FAPRI's November 1997 Baseline which relies on WEFA's macroeconomic projections. Annual interest rates paid for long- and intermediate-term loans and earned for savings are also summarized in Table 3. Assumed annual rates of change in land values over the 1997-2002 period are provided by the FAPRI Baseline (Table 3).

Definitions of Variables in the Summary Tables

Change in Real Net Worth, 1997-2002 -- The overall percentage change in the operator's net worth from January 1,1997 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, 1997-2002 -- The average value of all government payments divided by total receipts received from the market plus farm program (contract and marketing loan deficiency) payments, CCC loans, crop insurance indemnities, and other farm related income. The average value in the tables is computed over the planning horizon.
Expenses to Receipts, 1997-2002 -- 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, 1997-2002 -- 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 Contract Payments -- The average value of all contract payments received for each year in the planning horizon.
Average Net Cash Income -- Net cash farm income equals gross receipts minus all cash expenses. 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 Ending 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, 1997-2002 -- 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.

IMPACTS ON REPRESENTATIVE FARMS

Representative Farms Producing Feed Grains Map: Feed Grain Farms Tables: Feed Grain Farms Figures: Feed Grain Farms

Representative Farms Producing Wheat Map: Wheat Farms Table: Wheat Farms Figures: Wheat Farms

Representative Farms Producing Cotton Map: Cotton Farms Table: Cotton Farms Figures: Cotton Farms

Representative Farms Producing Rice Map: Rice Farms Table: Rice Farms Figures: Rice Farms

Representative Farms Producing Milk Map: Dairy Farms Tables: Dairy Farms Figures: Dairy Farms

Representative Farms Producing Beef Cattle Map: Beef Cattle Table: Beef Cattle Figures: Beef Cattle

Representative Farms Producing Hogs Map: Hog Farms Table: Hog Farms Figures: Hog Farms

APPENDIX A:
CHARACTERISTICS OF REPRESENTATIVE FARMS

CHARACTERISTICS OF PANEL FARMS PRODUCING FEED GRAINS

Appendix Tables A1-A2: Characteristics of Feed Grain Farms

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 55 percent of its receipts from corn.
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 56 percent of its receipts from corn.
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 44 percent of the farm's receipts.
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 54 percent of its total revenue from corn.
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 47 percent of its total revenue from corn and soybeans, 38 percent from hogs, and 13 percent from cattle.
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.
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 97 percent of its receipts from corn.
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.
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.
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 69 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.
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 57 percent of its receipts from corn and soybeans.

CHARACTERISTICS OF PANEL FARMS PRODUCING WHEAT

Appendix Table A3: Characteristics of Wheat Farms

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 a minimum amount of barley and peas in order to maintain wheat yields. The farm generates 67 percent of its receipts from wheat.
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 a minimum amount of barley and peas in order to maintain wheat yields. Winter and spring wheat account for 86 percent of receipts.
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 percent of the acres to be planted to sunflowers. The farm receives about 52 percent of receipts from wheat.
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 percent of the acres to be planted to sunflowers. Wheat accounts for 52 percent of the farms total gross receipts.
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.
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.
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.
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.
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 69 percent of its receipts from wheat.
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 81 percent of the farms gross revenue.

CHARACTERISTICS OF PANEL FARMS PRODUCING COTTON

Appendix Table A4: Characteristics of Cotton Farms

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.
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 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 70 percent of this farm's receipts.
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 81 percent of its receipts from cotton.
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 93 percent of this farms receipts.
TXRP2065	A 2,065-acre Texas Rolling Plains (Jones County) cotton farm that plants 1,240 acres of cotton, and 825 acres of wheat. The farm also has 25 breeding cows and uses the wheat acreage to graze the cattle in the winter. About 73 percent of this farms receipts are derived from cotton. This farm represents the consolidation of two previous representative farms.
TXBL1200	A 1,200-acre Texas Blacklands (Williamson County) moderate size cotton and grain farm with 400 acres of cotton, 350 acres of sorghum, 350 acres of corn, and 100 acres of wheat. 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.
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.

CHARACTERISTICS OF PANEL FARMS PRODUCING RICE

Appendix Table A5: Characteristics of Rice Farms

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.
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.
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.
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. 96 percent of the farm's gross receipts are from rice.
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.
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.
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.

CHARACTERISTICS OF PANEL FARMS PRODUCING MILK

Appendix Tables A6 - A8: Characteristics of Dairy Farms

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.
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.
WAD185	A 185-cow Northern Washington (Whatcom County) moderate size dairy farm that produces 25,500 pounds of milk per cow. The farm plants 115 acres of silage and generates 98 percent of its receipts from milk.
WAD850	A 850-cow Northern Washington (Whatcom County) large dairy farm that produces 23,500 pounds of milk per cow. The farm plants 505 acres of silage and generates 97 percent of its receipts from milk.
IDD500	A 500-cow Idaho (Twin Falls County) moderate size dairy farm that produces 21,000 pounds of milk per cow. The farm plants no crops. Milk is 91 percent of the farms gross income.
IDD1800	A 1800-cow Idaho (Twin Falls County) large dairy farm that produces 21,000 pounds of milk per cow. The farm plants 156 acres of hay and 398 acres of silage. Milk is 95 percent of the farms gross income.
TXCD400	A 400-cow Central Texas (Erath County) moderate size dairy farm that produces 16,100 pounds of milk per cow. The farm plants 120 acres of hay and 183 acres of silage. Milk is 95 percent of the farms gross income.
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, 20 acres of haylage, and milk accounts for 96 percent of receipts.
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.
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 360 acres of silage. The farm generates 93 percent of its receipts from milk.
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, 45 acres of corn, 24 acres of silage, and 89 acres of haylage. Milk makes up 92 percent of this farm's receipts.
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.
MIED200	A 200-cow Michigan (Sanilac County) moderate size dairy farm that produces 22,000 pounds of milk per cow. The farm plants 220 acres of corn and 170 acres of silage. Milk accounts for 94 percent of the farm's receipts.
MICD140	A 140-cow Michigan (Isabella County) moderate size dairy farm that produces 20,300 pounds of milk per cow. The farm plants 110 acres of corn, 45 acres of hay, 65 acres of silage, and 70 acres of haylage. Milk accounts for 91 percent of the farm's receipts.
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 535 acres of silage and 450 acres of haylage. About 94 percent of the farm's receipts come from milk.
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.
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 49 acres of hay, 75 acres of corn, 78 acres of silage, and 84 acres of haylage. Milk accounts for 95 percent of the farms receipts.
NYCD300	A 300-cow Central New York (Cayuga County) large dairy farm that produces 21,500 pounds of milk per cow. The farm plants 170 acres of hay, 142 acres of corn, 190 acres of silage, and 298 acres of haylage. The farm generates 95 percent of its receipts from milk.
VTD85	A 85-cow Vermont (Washington County) moderate size dairy farm that averages 22,400 pounds of milk per cow. The farm plants 60 acres of hay, 58 acres of silage, and 70 acres of haylage. Milk accounts for 92 percent of the receipts.
VTD350	A 350-cow Vermont (Washington County) large dairy farm that averages 22,000 pounds of milk per cow. The farm plants 205 acres of hay, 200 acres of silage, and 177 acres of haylage. Milk accounts for 96 percent of the farm's receipts.
MOD85	A 85-cow Southwestern Missouri (Christian County) moderate size dairy farm that averages 15,600 pounds of milk per cow. The farm plants 220 acres of hay. About 91 percent of the farm's receipts come from milk.
MOD300	A 300-cow Southwestern Missouri (Christian County) large dairy farm that averages 17,300 pounds of milk per cow. The farm plants 578 acres of hay and 107 acres of silage. Milk accounts for 95 percent of this farm's receipts.
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.
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.
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.
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.

CHARACTERISTICS OF PANEL FARMS PRODUCING BEEF CATTLE

Appendix Table A9: Characteristics of Beef Cattle Ranches

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.
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.
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.

CHARACTERISTICS OF PANEL FARMS PRODUCING HOGS

Appendix Table A10: Characteristics of Hog Farms

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.
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 81 percent of the total receipts for the farm. The remainder of total receipts is generated in crop sales.
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.
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 88 percent of the total receipts on the farm. Corn and soybean sales account for the remaining 11 percent.
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.
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.
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, but does not plant any crops for feed. All feed for the operation is purchased. 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.
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, purchased 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.