Missouri FBMA 2007 Analysis and Comparisons

2007 FBMA Record Summary 143 Farms Submitted Analysis –122 Included in Summary 53 with enterprise analysis 69 with whole farm only –21 Not Included 6 with less than 250 unpaid hours and/or small gross income 15 with incomplete or missing data – corrections not made several more came after summary completed 16 1 st –year balance sheets only

Demographics – 122 Farms Missouri FBMA ,591 Farms FINBIN Gross Cash Farm Income Total Cash Expense Net Cash Farm Income Inventory Changes Depreciation/Capital Adjustments MO 2005 MO 2006 MO FINBIN 97 farms 80 farms 122 farms 2,591 farms $ 325,631 $394,389 $391,192 $592,664 $273,566 $327,150 $315,503 $496,996 $52,065 $67,239 $75,689 $95,669 $6,925 $31,317 $58,884 $89,498 -$6,510 -$11,894 -$11,878 -$29,025

Demographics – (continued) Net Farm Income (cash) Value of Farm Production Total Labor Hours/Farm Net Farm Income/Unpaid Hour MO 2005 MO 2006 MO FINBIN (97Farms) (80 Farms) (122 Farms) (2,591 farms) $62,480 $86,662 $122,695 $156,142 $252,846 $335,070 $367,326 $558,064 2,657 3,323 3,152 4,234 $39.33 $47.78 $70.91 $61.88

Demographics – Acres FINBIN 97 Farms 80 Farms 122 farms 2,591 Farms Total Acres Owned Total Crop Acres Crop Acres Cash Rented

Demographics – Operators FINBIN 97 Farms 80 Farms 122 farms 2,591 Farms Average Age of Operator Average Number of Years Farming

Demographics – Crop Yields MO Ag. Statistical ServiceMO FBMA Farms 2005/Avg2006/Avg2007/Avg2005/Avg2006/Avg2007/Avg Corn Soybeans Winter Wheat Grain Sorghum Hay

Current Ratio 2005 FBMA Avg. 97 Farms Low 25%High 25% FBMA Avg. 80 Farms Low 25%High 25% FBMA Avg. 122 Farms Low 25%High 25% FINBIN Avg. 2,591 Farms Low 20%High 20%

Working Capital 2005 FBMA Avg. 97 Farms Low 25%High 25% $110,781 $7,647 $316, FBMA Avg. 80 Farms Low 25%High 25% $168,332 $22,065 $319, FBMA Avg. 122 Farms Low 25%High 25% $188,384 $33,255 $470, FINBIN Avg. 2,591 Farms Low 20%High 20% $189,283 $21,951 $553,973

Farm Debt to Asset Ratio (MKT) 2005 FBMA Avg. 97 Farms Low 25%High 25% 25% 32% 19% 2006 FBMA Avg. 80 Farms Low 25%High 25% 25% 24% 23% 2007 FBMA Avg. 122 Farms Low 25%High 25% 23% 39% 17% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 47% 54% 43%

Farm Equity to Asset Ratio (MKT) 2005 FBMA Avg. 97 Farms Low 25%High 25% 75% 68% 81% 2006 FBMA Avg. 80 Farms Low 25%High 25% 75% 76% 77% 2007 FBMA Avg. 122 Farms Low 25%High 25% 77% 61% 83% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 53% 46% 57%

Farm Debt to Equity Ratio (MKT) 2005 FBMA Avg. 97 Farms Low 25%High 25% 34% 47% 23% 2006 FBMA Avg. 80 Farms Low 25%High 25% 33% 31% 30% 2007 FBMA Avg. 122 Farms Low 25%High 25% 30% 64% 20% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 88% 120% 76%

Rate of Return on Farm Assets (COST) 2005 FBMA Avg. 97 Farms Low 25%High 25% 6.4% -2.7% 10.9% 2006 FBMA Avg. 80 Farms Low 25%High 25% 7.6% -1.2% 11.3% 2007 FBMA Avg. 122 Farms Low 25%High 25% 11.3% -4.5% 17.6% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 14% -1.1% 19.3%

Rate of Return on Farm Equity (COST) 2005 FBMA Avg. 97 Farms Low 25%High 25% 7.0% -9.3% 13.0% 2006 FBMA Avg. 80 Farms Low 25%High 25% 8.4% -5.6% 13.6% 2007 FBMA Avg. 122 Farms Low 25%High 25% 13.5% -14.5% 21.6% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 20.9% -14.7% 28.5%

Operating Profit Margin (COST) 2005 FBMA Avg. 97 Farms Low 25%High 25% 18.7% -13.3% 28% 2006 FBMA Avg. 80 Farms Low 25%High 25% 20.9% -6.2% 29.5% 2007 FBMA Avg. 122 Farms Low 25%High 25% 29.3% -18.5% 40% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 27.2% -3.2% 33.4%

Net Farm Income (COST) 2005 FBMA Avg. 97 Farms Low 25%High 25% $62,480 -$3,982$192, FBMA Avg. 80 Farms Low 25%High 25% $86,662 -$297$199, FBMA Avg. 122 Farms Low 25%High 25% $122,695 -$25,435$349, FINBIN Avg. 2,591 Farms Low 20%High 20% $156,142 -$14,787 $343,869

Term Debt Coverage Ratio 2005 FBMA Avg. 97 Farms Low 25%High 25% 217% 198% 296% 2006 FBMA Avg. 80 Farms Low 25%High 25% 236% 113% 283% 2007 FBMA Avg. 122 Farms Low 25%High 25% 318% -50% 494% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 269% 65% 397%

Capital Replacement Margin 2005 FBMA Avg. 97 Farms Low 25%High 25% $24,451 $5,605 $90, FBMA Avg. 80 Farms Low 25%High 25% $41,257 $2,067 $101, FBMA Avg. 122 Farms Low 25%High 25% $66,259 -$30,705 $228, FINBIN Avg. 2,591 Farms Low 20%High 20% $109,053 -$14,787 $343,869

Asset Turnover Rate (Cost) 2005 FBMA Avg. 97 Farms Low 25%High 25% 34.2% 20.2% 39.0% 2006 FBMA Avg. 80 Farms Low 25%High 25% 36.4% 19.3% 38.2% 2007 FBMA Avg. 122 Farms Low 25%High 25% 38.7% 24.6% 44.0% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 51.3% 35.1% 57.9%

Operating Expense Ratio 2005 FBMA Avg. 97 Farms Low 25%High 25% 75.3% 87.3% 72.0% 2006 FBMA Avg. 80 Farms Low 25%High 25% 72.6% 83.7% 61.6% 2007 FBMA Avg. 122 Farms Low 25%High 25% 65.2% 100.2% 51.7% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 67.3% 88.4% 62.8%

Depreciation Expense Ratio 2005 FBMA Avg. 97 Farms Low 25%High 25% 1.9% 7.1%.4% 2006 FBMA Avg. 80 Farms Low 25%High 25% 2.8% 7.9% 1.7% 2007 FBMA Avg. 122 Farms Low 25%High 25% 2.7% 1.9% 2.2% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 4.3% 6.7% 3.7%

Interest Expense Ratio 2005 FBMA Avg. 97 Farms Low 25%High 25% 4.1% 10.8% 2.3% 2006 FBMA Avg. 80 Farms Low 25%High 25% 4.3% 8.7% 4.8% 2007 FBMA Avg. 122 Farms Low 25%High 25% 4.6% 6.1% 3.4% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 5.2% 7.5% 3.9%

Net Farm Income Ratio 2005 FBMA Avg. 97 Farms Low 25%High 25% 18.6% -5.2% 25.4% 2006 FBMA Avg. 80 Farms Low 25%High 25% 20.2% -0.3% 31.9% 2007 FBMA Avg. 122 Farms Low 25%High 25% 27.5% -8.1% 42.7% 2007 FINBIN Avg. 2,591 Farms Low 20%High 20% 23.2% -2.6% 29.6%

What is the Economic Impact of an Average Farm in a Local Community?

Money Spent by the Average 2007 Missouri FBMA Farm in the Local Community & Service Area With Other Farmers$24,228 –(Brd/Non-Brd.-Livestock & Custom Work) With Other Landowners$29,485 –(Cash Land Rent/Leases) For Labor$16,404 For Farm Utilities $5,875

Money Spent (continued) With Agribusiness Community$224,418 –Crop Production Expenses $89,912 –Livestock Production Expenses $80,961 –Fuel & Repair Expenses $37,287 –Other/Misc. Expenses $11,138 –Farm Insurance $5,120

Money Spent (continued) With Lenders (Interest/Leases)$19,610 For Farm Equipment/Vehicles$40,154 For Farm Assets$52,617 –(Bldgs./Land/Impr. - Other Farm Assets) For Local Government $3,415 –(Real Estate/Personal Prop Taxes) Family Living Expenses*$58,449 –(Inc. Taxes & Purch. Of Non-Farm Assets) *Partially reported

Total Annual Spending Within the Community or Service Area by the Average Missouri FBMA Farm… $474,655

FBMA & FINBIN Comparisons