National Farm Survey on Financial Stress

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No other use, including posting to another Internet site, is permitted without permission from the copyright owner (not AgEcon Search), or as allowed under the provisions of Fair Use, U.S. Copyright Act, Title 17 U.S.C. National Farm Survey on Financial Stress FAPRI Staff Report #6-85 July 1985 Conducted by FARM JOURNAL Philadelphia, Pennsylvania FOOD AND AGRICULTURAL POLICY RESEARCH INSTITUTE UNIVERSITY OF MISSOURI AND IOWA STATE UNIVERSITY GIANNINI FOI.;:.2.110N OF AGRICULTURAL ECONOMICS LIBRARY z. : JAN 1 3:1987 _ " I T-711 Lk, AUCTION vv2V:111In - - I , .01 National Farm Survey on Financial Stress FAPRI Staff Report #6-85 July 1985 Conducted by FARM JOURNAL Magazine Philadelphia, Pennsylvania and Food and Agricultural Policy Research Institute University of Missouri and Iowa State University Contributing Authors University of Missouri This report was made possible through the cooperation of Agricultural Economists and the staff in the Food and Agricultural Policy Institute at the University of Missouri and Iowa State University plus Editors and Staff at Farm Journal magazine in Philadelphia, PA. The persons contributing to the Research in participating organizations were Abner W. Womack, Co-Director of Center for National Food and Agricultural Policy; Bruce Bullock, Department Chairman and Co-Director of Center for National Food and Agricultural Policy; Robert Young II, Director of Models and Operation; Wesley Bailey, Director of Computer Programming; and Joseph Trujillo, Director of Data Services. Farm Journal Magazine Dale Smith, President; Lane Palmer, Editor-in-Chief; Earl Ainsworth, Editorial Director; John Byrnes, Managing Editor; John Marten, Staff Economist; Lee Alexander, Publisher; Ira Bix, Research and Development; Associate Editors - Robin Hoffman, Linda Schotsch and Marcia Zarley Taylor. Special Staff Assistants - Gregory Gergen and Connie Fithian. Iowa State University William Meyers, Director of Center for Trade and Agricultural Policy; Stanley R. Johnson, Director of Center for Agricultural and Resources Development; Robert Jolly, Professor of Agricultural Economics, and Damona Doye, Research Assistant. Table of Contents Page Introduction 1 Survey Procedure and Size 1 Financial Stress by Region and Age Group 3 Debt Distribution - Regional and National 3 Debt Distribution - Farm Product Categories 3 Farm Size and Debt Distribution by Age Group 4 Farm Size and Debt Distribution by Region 4 Farm Size and Debt Distribution by Product Category 4 Land and Capital Transactions 5 General Financial Information - Real Estate and Operating Loans 5 Farmer's Opinion of Their Future - Estimated Years Left in Farming 6 Debt/Asset Ratio Relative to Gross Sales 6 Tables 8 Questionnaire 43 List of Tables Table Page 1 Regional Debt/Asset Ratio by Age Group 2-5 Regional Debt Distribution 8-9 6 National Debt Distribution 9 7-10 Debt Distribution by Type Operation 10-11 11-15 Detailed Financial Breakdown by Age, Regional and National 12-16 16 Detailed Financial Breakdown by Age, Debt/Asset Ratio Greater than 40 Percent 17 17 Detailed Financial Breakdown by Age, Debt/Asset Ratio Greater than 70 Percent 18 18-22 Farm Size and Debt Distribution by Type Operation 8 19-23 23 Land and Capital Breakdown by Age, Weighted National Average 24 24 Land and Capital Breakdown, Regional and National 25 25 Land and Capital Breakdown by Type Operation 26 Land and Capital Breakdown by Age, Debt/Asset Ratio Greater than 40 Percent 27 27 Land and Capital Breakdown by Region, Debt/Asset Ratio Greater than 40 Percent 28 28 Land and Capital Breakdown by Type Operation, Debt/Asset Ratio Greater than 40 Percent 29 •29 Land and Capital Breakdown by Age, Debt/Asset Ratio Greater than 70 Percent 30 30 Land and Capital Breakdown by Region, Debt/Asset Ratio Greater than 70 Percent 31 31 Land and Capital Breakdown by Type Operation, Debt/Asset Ratio Greater than 70 Percent 32 General Financial Information on Real Estate and Operation Loans, Regional and National 33 General Financial Information on Real Estate and Operation Loans, Debt/Asset Ratio Greater than 40 Percent 34 • 26 32 33 List of Tables (cont.) Page Table General Financial Information on Real Estate and Operation Loans, Debt/Asset Ratio Greater than 70 Percent 35 35 Farmer's Opinion of Their Future, Years Left in Farming 36 36 National Gross Sales - Percent of Total Debt by Debt/Asset Class 37 37 National Gross Sales - Percent of Observations by Debt/Asset Class 37 38 Crop Producers Gross Sales - Percent of Total Debt by Debt/Asset Class 38 39 Crop Producers Gross Sales - Percent of Observations by Debt/Asset Class 38 40 Beef Producers Gross Sales - Percent of Total Debt by Debt/Asset Class 39 41 Beef Producers Gross Sales - Percent of Observations by Debt/Asset Class 39 42 Dairy Producers Gross Sales - Percent of Total Debt by Debt/Asset Class 40 43 Dairy Producers Gross Sales - Percent of Observations by Debt/Asset Class 40 44 Pork Producers Gross Sales - Percent of Total Debt by Debt/Asset Class 41 45 Pork Producers Gross Sales - Percent of Observations by Debt/Asset Class 41 46 Debt/Asset Ratio by Gross Sales Class and Type Operation 42 47 Debt/Asset Ratio by Gross Sales Class and Region 42 34 National Farm Survey on Financial Stress Farm Journal and Food and Agricultural Policy Research Institute Introduction In an effort to examine the magnitude of the financial difficulties facing farmers today, several surveys have been conducted. These studies have focused on individual regions and have been very useful in providing a snapshot of a particular area. For example, studies from several states including Iowa, Minnesota, Wisconsin, and Missouri have indicated that many farmers, especially those with heavy debt-to-asset ratios, will be forced out of farming in the next 3 to 5 years. But very little information has been available on the magnitude of the problem from a national standpoint. For this reason Farm Journal magazine in conjunction with the Food and Agriculture Policy Research Institute (FAPRI) at the University of Missouri and Iowa State University decided to conduct a national survey in an attempt to fill this void. In order to achieve the quickest possible survey response, the Ag-Pulse mailing system developed by Ira Bix of Farm Journal was used. This computerized system, along with the telephone, is utilized by Farm Journal to continually survey the U.S. agricultural industry. Survey Procedure and Size A survey of 8,000 owner-operators were randomly selected from Farm Journals computerized data bank of 1.1 million units. The survey results were evaluated for four major regions in the U.S. according to a distributional breakdown utilized by Farm Journal (Figure 1). Exactly 2,000 names were randomly selected from each region. National averages were weighted to compensate for concentration of operations. Thus the central region, for example, with a high concentration of operations, is given a greater weight than the others in the national average computation. An advisory letter was mailed on approximately December 1, 1984, indicating that a four-page questionnaire would arrive one week later. Currently about 1,600 responses have been received, representing 20 percent of all questionnaires originally mailed. An initial survey response based on 1,223 observations was reported in the March issue of Farm Journal magazine. The present analysis represents an update of the research data base used in that report. The number of questionnaires in the data base has been increased to 1,232, with 33 new questionnaires added and 24 questionnaires from the original survey response deleted. The deletions were based on quality control standards revised to ensure greater accuracy of recorded data. These deletions were primarily associated with reports containing negative assets and debt-to-asset ratios in excess of 300. The implication of a debt-to-asset ratio in excess of 300 is that the operator is well beyond a point for which collateral can sustain outstanding debt. Thus, the upper level cutoff on such ratios. These deletions may eliminate some producers who have sources of income not reported; however, this check ensures that overstatements do not bias the overall analysis. The updated set of 1,232 questionnaires is the basis for the summary tables reported. 368 of the original 1,600 responses could not be used for financial evaluation either because they omitted important financial data, or because they reported negative assets or debt-to-asset ratios in excess of 300. But it is apparent from an examination of all the responses that the respondents gave careful consideration to the financial information they reported. Also the pattern of responses reflected a fairly uniform coverage of all states, farm sizes, and operations. As expected, a large percentage of the respondents came from small farms. There were 520 operators, representing 42 percent of the total sample, with gross sales below $50,000. The middle income group with sales between $50,000 and $250,000 accounted for 571 operators, or 46 percent of the total sample. Farms with gross sales above $250,000 represented 11 percent of the survey total. For purposes of comparison, 1982 census of agriculture data showed 5.4 percent of farms with gross sales in excess of $200,000, approximately 23 percent with sales between $40,000 and $200,000, and 71.6 percent below $40,000. The survey results were also evaluated for categories of farm operations that included crops, dairy, poultry, beef, and pork. Crop operations were defined as those operations in which crop sales accounted for 70 percent of gross sales; beef, poultry and dairy operations, 50 percent of gross sales; pork operations, 30 percent of gross sales. Obviously some overlap can be expected given this arbitrary breakdown. The actual cut-off was ascertained from the total distribution of responses to ensure a subsample per region in excess of 30 observations. For this reason no summary information is given on the poultry industry since only 14 observations were contained in this farm operation category. FINANCIAL STRESS SURVEY REGIONS average debt/asset ratio .% farmers with debt/asset ratio over 40% Central Region: North Dakota, South Dakota, Nebraska, Kansas, Missouri, Iowa, Minnesota, Wisconsin, Illinois, Indiana, Ohio and Michigan. West Region: Washington, Oregon, California, Arizona, Nevada, Utah, Colorado, Wyoming, Montana, Idaho, Alaska and Hawaii. South Region: New Mexico, Texas, Oklahoma, Arkansas, Louisiana, Mississippi, Alabama, Georgia, Florida, South Carolina, North Carolina, Virginia, West Virginia, Kentucky and Tennessee. East Region: Maryland, Delaware, Pennsylvania, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, Vermont, Maine and New Hampshire. 2 Financial Survey Summary Financial Stress by Region and Age Group In the eastern states approximately half the debt is held by farmers whose debt/asset ratio is 40 percent or above. And this group represents only 18.7 percent of all operators in the sample of 283. On the other hand, those operators with debt/asset ratios of 10 percent or less represent 54 percent of the sample, the highest for any region. But these farmers hold only 6.6 percent of the total regional debt (Table 3). A similar situation occurs in the south (Table 4) and west (Table 5). In the south, the highly leveraged group with debt-to-asset ratios of 40 and above represents 22.8 percent of the 272 operators surveyed, and holds 56.8 percent of the debt. In the west, 93 of the 367 farmers surveyed, or 25.3 percent, have debt/asset ratios in excess of 40 percent. This group holds 44 percent of the total debt in the west. Table 6 implies that 31.1 percent of operators nationally have debt/asset ratios in excess of 40 percent. These operators hold about 63 percent of the total debt. These numbers reflect excessive debt concentrated in the hands of a minority of farm operators. Most farm operations will begin to move into cash flow problems at debt/asset ratios exceeding 40 percent. Thus, a farm with $100,000 in asset value will probably have difficulty meeting all expenses if total debt exceeds $40,000, given the current environment of high interest rates and low commodity prices. In more marginal crop areas, where yields are below the national average, this figure has ranged down to 33 percent. Based on this 40 percent criterion, younger farmers appear to be in the most vulnerable position, averaging a 50.7 percent debt/asset ratio nationally for the under 35 age group (Table 1). On a regional basis debt/asset ratios among this group range from a high of 55.1 percent in the central region to 41.5 percent in the east. But financial vulnerability is not limited to the under 35 age group. Ratios for the central region imply substantial vulnerability through age 54, with the debt/asset ratio of the 45-54 age group in the central region at 44.1 percent (Table 1). Both the south and west indicate financial pressure through age 44. On the whole, financial stress is evident through age 54 with a weighted national average of 32.6 percent for the 45-54 age group, and a total national average of 31.6 percent for all age groups. In summary, many of America's younger farmers appear to be in serious financial trouble. Financial stress also varies by region. The highest debt/asset ratios occur in the central region, with an average of 38.2 percent for all farm operators surveyed. Debt/asset ratios in other regions were significantly lower, with average ratios of 27.8 percent in the west, 25.6 percent in the south, and 20.1 percent in the east. The national weighted average was 31.7 percent (Table 1). Debt Distribution-Farm Product Categories Does one particular farm operation fare better than another in the current economic environment? Does a decision to become a livestock producer as opposed to a crop producer entail less risk in this environment? About 34 percent of the crop producers have debt exceeding 40 percent, and they hold about 60 percent of total debt for the survey of 502 operators (Table 7). Beef producers fared somewhat better with only 19 percent of the operators above the 40 percent debt/asset class. However as in previous cases, this small percentage of operators holds 54.7 percent of the debt held by the 283 operators surveyed (Table 8). Dairy producers (Table 9) also seem to have fared better than crop producers. About 24 percent are in the higher debt category, and they hold 52.5 percent of the total debt. Although this group is smaller with only 215 actual observations, the same problem prevails - a large amount of debt is concentrated in the hands of a very small number of producers. Pork producers reflect the greatest amount of financial stress with 53 percent of operators in the heavy debt range (Table 10). They hold 86.5 percent of total debt, reflecting a more uneven debt distribution within the sample of 94 operators surveyed. Based on these survey percentages, pork production currently reflects the greatest risk with almost one-half of all operators surveyed in the heavy debt category. Crop produc- Debt Distribution-Regional and National The potential for unserviced debt is reflected in Tables 2 through 6. These tables show that the highest debt to asset categories contain a smaller proportion of total farmers, but a significantly higher proportion of total debt. In Table 2 for example, reflecting a sample of 310 operators in the central region, those operators with debt/asset ratios greater than 40 percent represent only about 39.9 percent of the total sample. Yet this 39.9 percent holds approximately 75 percent of the total debt. Stated more positively, 60.1 percent have only 25 percent of the debt. Thus a large percentage of these farmers are in reasonably good financial shape. This larger group will likely weather the storm unless current conditions deteriorate further. However, about 40 percent of the operators in this region may be experiencing substantial financial problems. And the majority of these producers are in the younger age group. 3 Farm Size and Debt Distribution by Region ers rank second with 34 percent in the heavy debt category. The scale slides significantly lower for dairy and beef producers at 24 and 19 percent, respectively. A cross-section of farms by region indicates a wide variation in size and financial condition (Table 18). Average size varies from 2,412 acres in the west to 369 acres in the east. It is interesting to note that the percentage of farmland owned and rented is about the same in the central and southern regions, with only 100 acres difference in the total operation size. As a result, total assets for the two regions are very near $500 thousand, but total debt is significantly higher in the central region. Interest payments are uniform throughout all regions, averaging 10.5 percent on real estate debt, 13.2 percent on farm operating and intermediate debt, and 11.4 percent on other debt. Although western producers have significantly larger operations than the other regions, the debt/asset ratio of the western region, at 28 percent, is 10 points lower than the central region. The east seems to be in much better financial shape than other sections of the country. This area has the lowest percentage of real estate debt and the smallest number of farmers holding debt. Farm Size and Debt Distribution by Age Group Of the 310 operators surveyed in the central region (Table 11), the younger farmers have the highest debt. These younger farmers are highly leveraged, and hold a higher level of debt and a lower value of assets than the over 55 age group. The average total debt of farmers age 54 or younger ranged from $187 to $204 thousand. For farmers age 55 and over the average total debt drops significantly, down to $30.4 thousand for age 65 and over. The average value of total assets held moves progressively upward from $360 thousand in the lower age bracket to a high of $627 thousand in the 55-64 age group. Average debt/asset ratios above 44 percent reveal financial pressure through age 54, with a high ratio of 56.8 percent in the 35-54 age group. The average farmer in the central region owns 417 acres and rents 446, farming a total of 863 acres. High levels of operating debt are incurred in farm operations of this size. With average interest rates on operating debt at 13.3 percent, it is apparent that one bad crop year can easily tip the scales toward a financially insolvent position for many of these producers. Operating debt rolled into a second or third year magnifies the problem if production is totally financed by loans at current levels of interest rates. Similar information for the east, south, and west is contained in Tables 12, 13, and 14. As the debt/asset ratio of the farmer increases, so does the ratio of rented land to acres owned. This information is contrasted in Tables 15, 16, and 17. For all farmers nationally (Table 15), more than half the total land area farmed is owned. However, for the category of farmers with debt/asset ratios above 40 percent (Table 16), only _40 percent of total land area is owned. This percentage declines to 34 percent for farm operators with debt/asset ratios above 70 percent (Table 17). . This pattern is somewhat more predominant among younger farmers that are carrying heavy debt loads. This group was not as aggressive in land purchasing compared to the national average, even though the total size of the farm operation is very similar to the national average. Table 15 for example, indicates that all young farmers under age 35 owned 500 out of 1,086 acres of land operated, or about 46 percent. Table 16 reflects the same age group with debt/asset ratios above 40 percent. This group operates 840 acres on average, but owns only 267 acres, or about 32 percent of the land under operation. Similarly, the extremely leveraged farmers under age 35 with debt/asset ratios greater than 70 percent owned just 39 percent of the total area operated (Table 17). Farm Size and Debt Distribution by Product Category The average farm size of crop producers (Table 19) ranks highest in the west at about 1.5 thousand acres per farm. This is followed by the south at 940 acres, the central at 608 acres, and the east on the lower side at 388 acres per farm. The debt/asset ratio among crop producers is below 40 percent in every region. But the national average, at 35.8 percent, is only 4.2 percent below this threshold figure. Beef operations (Table 20) averaged 4.6 thousand acres in the west and 2.3 thousand acres in the central region. This is in sharp contrast to the smaller operations in the south which average 676 acres, and in the east, where the average farm size is 425 acres. Although beef prices have been fairly flat since 1979, the industry has managed to adjust, indicating the lowest debt/asset ratio among all product categories. Even the larger ranches in the west are only carrying a debt/asset ratio of 22 percent, compared to the national average of 19.5 percent. Dairy producers are in a similar position (Table 21). The national debt/asset ratio is 25.8 percent, with all regions very near this average. These dairy operations range in size from 270 to 580 acres, with a national average of 458 acres. Average asset value is fairly high at $558 thousand, with an average total debt of $128 thousand. As a fairly labor intensive operation dairy farming leaves little time for off-farm employment. The average off-farm income for all operations is only $4,031 per year. The average farm size of the 94 pork producers surveyed is 490 acres. The majority of this land is rented. The national debt/asset ratio for these producers is 47.6 percent, 4 A more salient set of characteristics associated with farmers in financial trouble is percentage of land rented relative to total land area farmed and the corresponding age of the farmer. About 60 percent of the 331 farmers with debt/asset ratios above 40 percent were under 45 years of age. The farming operation of these farmers, at about 1,000 acres, is similar to that of the average farmer. But a much higher percentage of this land is rented. Almost 70 percent of the farmers with debt/asset ratios in excess of 70 percent are below age 45. They also farm about 1,000 acres but own only 34 percent of total land area. Neither of the heavily leveraged groups seem to be aggressive land buyers, nor do their capital purchases seem to be out of line with average farm size. Another significant characteristic associated with the farm financial problem seems to be the apparent shift in the financial market. Levels of debt to assets that could be sustained in the 1970's can no longer be sustained in the 1980's. As a rule of thumb, farmers who owned 30 percent of their assets were previously considered to be a reasonable financial risk. This position has now been reversed to the point that anything less than 60 percent owned is now considered a very risky financial situation. In this environment, younger farmers with low assets relative to debt would necessarily choose to rent land. Accumulation of capital and equipment, and moderate expansion in land purchases sets the stage for insolvency unless sufficient off-farm income compensates for this differential. In general about 50 percent of all farmers have off-farm income, however, the farmers with the greatest financial pressure averaged significantly less off-farm income than all farms. Table 34 indicates average off-farm income of $8,030 per year for farmers whose debt/asset ratio exceeds 70 percent. All farms (Table 32) averaged $12,610 per year. Potential buyers and sellers of land were sampled as well. There was a total of 377 potential buyers from all regions, and 291 potential sellers (Table 24). Considerable gaps existed between the asking and selling price of land in all regions. The weighted average selling price for all producers was $1,169 compared to an offer price of $804 per acre. This differential was fairly uniform for all regions except in the east, where the selling price exceeded the buying price by only $90. This differential gap tends to widen as financial pressure intensifies (Tables 26 and 29), with the asking price increasing and the offer price declining. reflecting the highest average for any farm operations in the survey. A summary of farm product categories is contained in Table 22. Land and Capital Transactions Tables 23 through 31 indicate the purchase. and selling characteristics of farmers over the previous 10 years. The information on net transactions is broken into 3 year intervals for land and capital purchased and sold. All farmers (Table 23) farmed an average of 1,010 acres, of which 547 acres, or 54 percent, was owned. However, only 19 percent, or 107 acres, of this land was purchased in the last 10 years. Age groups below 35 and between 45-54 purchased slightly in excess of this 10-year average at 28 and 24 percent, respectively. This reflects an actual net purchase of 139 acres out of the 500 acres owned for farmers below age 35, and 160 out of the 654 acres owned for age group 45-54..The average net capital purchases associated with these age groups were $85 thousand. Younger farmers were more likely to be slightly in excess of this level. Table 26 contrasts farms in which the debt levels exceed 40 percent. These farms, at 1,244 acres, are larger than average, but a smaller proportion of the land, 40 percent or 500 acres per farm, is owned. Net land purchased exceeded by about 60 acres the figure for all farms in Table 23, and averaged 33 percent of total land owned. The most aggressive purchases were made by farmers in age group 45-54, who purchased 336 acres, or 47 percent of the 721 total acres owned. The majority of this land was bought in the 4-6 and 7-10 year brackets, or approximately 1974 to 1980. Net capital purchases for this group of farmers, at $93 thousand, is very similar to all farms surveyed for the 10 year period. Figures for the most heavily leveraged farms, those in which the debt/asset ratio exceeds 70 percent, are given in Table 29. These farms average 972 acres and can be best characterized as major cash renters, since only 34 percent of land farmed was owned. Average acres (net) purchased were substantially below the other groups. An average of66 acres were purchased over the previous 10 years, for about 20 percent of total land area owned. Two age groups exceed the average, 35-44 and 45-54, purchasing 35 and 31 percent of land owned in the 10 year period. The majority of this land was bought between 1974 and 1980. The average capital net purchase for this group at $83.5 thousand, is very similar to that of the less stressed farmers. In general the capital required to sustain operations of around 1,000 acres in size is very similar across all farming operations, regardless of the financial situation. As previously indicated, a common characteristic among those farmers under the greatest financial stress is a high percentage of total land area rented. But these farmers were not necessarily aggressive land purchasers. In general, the area purchased does not suggest an aggressive buying pattern. Farmers in trouble expanded acres owned, but on average only expanded by 20 to 47 percent. General Financial Information— Real Estate and Operating Loans The financial strength of the farm sector and concentration of debt is also reflected in the real estate and operating loan information given in Tables 32 through 34. Of the total respondents (Table 32), 56 percent had real estate debt and 61 percent had operating debt. These numbers indicate that a large number of U.S. farmers are in a fairly strong financial position, with 44 percent having no real estate debt. 5 Concentration of debt and financial stress is also reflected in the distribution of respondents that were not current on principal and operating loan payments. On average 98 percent of respondents with real estate debt were current on payments and 97 percent were current on interest. Payments on operating loans were not as current. Only 90 percent of the farmers made their principal and interest payments as scheduled. Since 748 of the total respondents, or 61 percent, had operating loans, and 10 percent are not current, then approximately 6 percent did not meet all financial obligations. Total debt for all regions averaged $155 thousand, with 51 percent concentrated in the central region. Total assets averaged $583 thousand, with 40 percent concentrated in the central region. Similar financial information for farmers with heavy debt/asset ratios is given in Tables 33 and 34. As expected these farmers report a much higher percentage of real estate and operating debt. However, as a group their repayment schedules appear to be somewhat more current than for the total survey reflected in Table 32. Off-farm income is an important component of the farm financial situation. The south averages $19 thousand per year, with 72 percent of the operators reporting off-farm sources. Apparently the opportunity for off-farm employment is not as great in the central region where 50 percent of the operators reported an average of $8.3 thousand per year in off-farm income, or roughly 44 percent of the southern total. Average off-farm income nationally was $12,610, with 59 percent of the operators reporting off-farm sources of income. Off-farm income declines as financial stress increases, although the percentage of farmers receiving this income remains constant. Average off-farm income for farmers with debt/asset ratios in excess of 70 percent is $8,030 per year, in contrast to a national average of $12,610 per year. farmers who indiated that they planned to sell out had a high average debt/asset ratio of 34.78 percent. Finally, farmers who indicated that they did not know the length of time left in farming, or who left this answer open, were placed in the "until retirement" column, and were deemed to have given retirement as the reason for leaving farming. 16.41 percent of the farmers fall in this category, and their average debt/asset ratio is fairly high at 33.70 percent. Thus an additional 26.67 percent of farmers have fairly high debt/asset ratios above 33 percent. From these debt/asset ratios it is apparent that additional farmers are vulnerable. How many is difficult to ascertain, however a bench mark number is near 50 percent of this group, since on the average half of all farmers have off-farm income. Using this bench mark estimate and adding the 5.2 percent of farmers who acknowledge their financial vulnerability, an approximation can be made that 14 to 18 percent of all farmers are financially vulnerable over the next 3 to 5 years if current conditions prevail. The land and capital transaction tables show that about 50 percent of farms have off-farm income. An assumption that this off-farm income is sustaining one-half of the 31 percent of farms with debt/asset ratios in excess of 40 percent (Table 6), would imply financial vulnerability for 15.5 percent of these farmers. This percentage approximates the 14 to 18 percent figure arrived from the survey of farmer's opinion of their future. Taken together, these figures suggest that about 15 percent of all farmers are extremely vulnerable to financial insolvency. Debt/Asset Ratio Relative to Gross Sales Debt distribution by sales class is given in Tables 36 through 46. Information in Table 36 represents percent of all debt relative to sales class for three different debt/asset classes. Percent of farms associated with this debt is given in Table 37. This survey indicates that 66 percent of all farms surveyed had gross sales below $100 thousand (Table 37). But these farms hold only about 28 percent of the total debt (Table 36). Farms with gross sales above $100 thousand represent 34 percent of all farms but holds 72 percent of all debt. The most significant level of financial pressure occurs in farms with gross sales of $100 thousand and above, with the heaviest debt distribution in the $100 to $250 thousand sales class. Obviously, a very high concentration of debt resides with a relatively small number of larger farms. A similar pattern is reflected in crop operations (Tables 38 and 39), although the distribution of farms by sales class is more concentrated. About 71 percent of crop farms surveyed had gross sales of $100 thousand or less. The distribution also indicates that a majority of these farms, 66 percent, have debt/asset ratios below 40 percent. The remaining 34 percent hold 61 percent of the total debt, and 42 percent of this debt is held by farms with income in Farmer's Opinion of Their Future— Estimated Years Left in Farming Approximately 14 percent of all farmers surveyed indicated that they would eventually be forced out of farming because of financial problems (Table 35). Correspondingly, this group also reported heavy debt/asset ratios averaging 59.61 percent. The 2.31 percept of farmers, who estimated their length of time left in farming at 0 to 1 year had an average debt/asset ratio of 88.11 percent. Similarly, the 2.89 percent of farmers who indicated only 2 to 5 years left in farming had a high average debt/asset ratio of 65.71 percent. Thus 5.2 percent of the farmers were of the opinion that they would be forced out of farming by financial problems in the next 5 years. But these 5.2 percent of farmers will probably not be the only farmers who are financially vulnerable in the next 5 years. Fairly heavy debt concentrations are found in several of the other categories from Table 35 as well. First, the average debt/asset ratio of the 4.72 percent of farmers who indicated "other" as the reason for leaving farming was 33.52 percent. Second, the 5.54 percent of 6 excess of $100 thousand. This latter group represents only 14 percent of all crop producers. Beef and dairy producers information is given in Tables 40 through 43. Only 18 percent of the beef producers surveyed had debt/asset ratios above 40 percent. They hold 54 percent of all debt in the beef industry. Twenty-three percent of the dairy producers have debt/asset ratios in excess of 40 percent. Fifty percent of the debt in the dairy sector is held by this group. Pork producers reflect the highest financial stress with 57 percent having debt to asset ratios in excess of 40 percent (Tables 44 and 45). Tables 46 and 47 contrast farm operations and regions. Among the five different product categories, pork production shows the highest average debt/asset ratio. And among the four different regions, the greatest financial pressure exists in the central region, with an average debt/asset ratio of 38.37. ** TABLE 1: Region Central East South West Weighted Natl.Average DEBT/ASSET RATIO ANALYSIS BY AGE GROUP ** WEIGHTED NATIONAL AVERAGE Under 35 D/A 35-44 D/A AGE 45-54 D/A 55-64 D/A Over 65 D/A All Age Groups D/A 55.100 41.519 44.725 44.613 50.650 56.830 26.846 40.196 42.112 47.367 44.128 17.739 23.495 25.808 32.598 18.618 11.186 16.933 19.028 17.754 8.130 5.683 5.537 11.060 7.243 38.191 20.062 25.576 27.798 31.652 ** TABLE 2: DEBT DISTRIBUTION -- CENTRAL REGION ** DEBT No.of Observations . Debt/Asset Class 00-10 10-40 40-70 70 Plus All Percent DisThousand Dollars tribution Ave. Debt Total Debt 103.000 84.000 65.000 58.000 310.000 ** TABLE 3: 33.226 27.097 20.968 18.710 100.000 8.849 140.714 311.894 308.079 164.107 911.491 11,819.941 20,273.086 17,868.599 50,873.117 Percent of Regional Debt 1.792 23.234 39.850 35.124 100.000 DEBT DISTRIBUTION -- EASTERN REGION ** DEBT No.of Obser- Percent DisThousand Dollars vations tribution Ave. Debt Total Debt Debt/Asset Class 00-10 10-40 40-70 70 Plus All 153.000 • 77.000. 38.000 15.000 283.000 , 54.064 27.208 13.428 5.300 100.000 8 11.352 134.413 219.614 381.935 92.442 1,736.895 10,349.827 8,345.314 5,729.030 26,161.066 Percent of Regional Debt 6.639 39.562 31.900 21.899 100.000 ** TABLE 4: DEBT DISTRIBUTION -- SOUTHERN REGION ** DEBT Thousand Dollars No.of Obser- Percent DisAve. Debt Total Debt tribution vations Debt/Asset Class 00-10 10-40 40-70 70 Plus All 127.000 83.000 37.000 25.000 272.000 ** TABLE 5: 46.691 30.515 13.603 9.191 100.000 6.028 134.189 284.604 205.034 101.321 Percent of Regional Debt 765.547 11,137.651 10,530.357 5,125.852 27,559.407 2.778 40.413 38.210 18.599 100.000 DEBT DISTRIBUTION -- WESTERN REGION ** DEBT Thousand Dollars No.of Obser- Percent DisAve. Debt Total Debt tribution vations Debt/Asset Class 00-10 10-40 40-70 70 Plus All 141.000 133.000 59.000 34.000 367.000 ** TABLE 6: 38.420 36.240 16.076 9.264 100.000 33.378 392.219 485.011 481.965 277.586 4,706.338 52,165.143 28,615.635 16,386.823 101,873.939 Percent of Regional Debt 4.620 51.206 28.089 16.085 100.000 DEBT DISTRIBUTION -- WEIGHTED NATIONAL AVERAGE ** DEBT Percent of No. of Weighted National Thousand Dollars Actual Obser- Percent DisDebt Ave. Debt Total Debt vations tribution Debt/Asset Class 00-10 10-40 40-70 70 Plus All 524.000 377.000 199.000 132.000 1,232.000 39.517 29.431 17.487 13.564 100.000 9 11.215 180.016 322.231 303.575 154.941 1,334.457 15,952.287 16,967.027 12,398.404 46,652.176 2.860 34.194 36.369 26.576 100.000 ** TABLE 7: DEBT DISTRIBUTION -- CROP PRODUCERS ** ** WEIGHTED NATIONAL AVERAGE ** DEBT No. of Weighted Percent of Actual Obser- Percent DisThousand Dollars National vations tribution Ave. Debt Total Debt Debt Debt/Asset Class 00-10 10-40 40-70 70 Plus All 194.000 153.000 85.000 70.000 502.000 35.148 30.960 16.614 17.278 100.000 11.014 209.433 319.118 307.994 174.945 491.349 8,230.146 6,729.589 6,754.175 22,205.258 2.213 37.064 30.306 30.417 100.000 ** TABLE 8: DEBT DISTRIBUTION -- BEEF PRODUCERS ** ** WEIGHTED NATIONAL AVERAGE ** DEBT No. of Weighted Percent of Actual Obser- Percent DisThousand Dollars National vations tribution Ave. Debt Total Debt Debt Debt/Asset Class 00-10 10-40 40-70 70 Plus All 143.000 92.000 35.000 13.000 283.000 52.353 28.787 14.430 4.430 100.000 9.667 203.504 427.063 346.893 140.630 346.064 4,005.963 4,213.703 1,050.635 9,616.365 3.599 41.658 43.818 10.925 100.000 ** TABLE 9: DEBT DISTRIBUTION -- DAIRY PRODUCERS ** ** WEIGHTED NATIONAL AVERAGE ** DEBT No. of Weighted Percent of Actual Obser- Percent DisThousand Dollars National vations tribution Ave. Debt Total Debt Debt Debt/Asset Class 00-10 10-40 40-70 70 Plus All 90.000 78.000 32.000 15.000 215.000 37.77 38.42 17.42 6.39 100.000 10 14.488 143.802 234.701 410.073 127.814 214.421 2,164.654 1,602.305 1,026.987 5,008.368 4.281 43.221 31.993 20.505 100.000 ** TABLE 10: DEBT DISTRIBUTION -- PORK PRODUCERS ** ** WEIGHTED NATIONAL AVERAGE ** DEBT Percent of Weighted No. of National Thousand Dollars Actual Obser- Percent DisDebt Ave. Debt Total Debt tribution vations Debt/Asset Class 00-10 10-40 40-70 70 Plus All 32.000 18.000 22.000 22.000 94.000 26.75 20.06 24.54 28.65 100.000 11 5.803 113.698 305.162 285.964 181.178 53.158 781.047 2,564.366 2,806.312 6,204.884 0.857 12.588 41.328 45.227 100.000 ** TABLE 11: FARM SIZE AND DEBT DISTRIBUTION BY AGE GROUP -- CENTRAL REGION ** Pctn Mean 19.677 55.100 Total Assets Mean Total Debt Mean Real Estate Debt Mean Operating Debt Mean Gross Sales Mean Off-farm Income Mean Acres Owned Mean Acres Rented Mean Real Estate Debt Outstanding Amount Mean Annual Payment Mean Interest Rate (%) Mean Farm Operating Debt Outstanding Amount Mean Annual Payment .Mean Interest Rate (%) Mean Intermediate Debt Outstanding Amount Mean Annual Payment Mean Interest Rate (%) Mean Other Debt Outstanding Amount Mean Annual Payment Mean Interest Rate (%) Mean 360.289 187.721 110.810 76.911 131.284 7.238 0.461 0.532 A G E 45-54 55-64 66.000 87.000 48.000 35.000 53.000 41.000 PERCENT 20.968 21.290 28.065 56.830 44.128 18.618 THOUSANDS 448.721 517.386 627.199 203.728 196.558 140.974 120.834 120.057 78.572 82.893 76.501 62.402 177.880 140.499 103.169 9.261 10.708 7.372 0.265 0.528 0.471 0.541 0.322 0.544 110.810 18.197 10.472 120.834 13.912 10.394 120.057 14.107 10.835 78.572 17.537 10.410 23.540 13.419 10.036 97.106 15.582 10.517 47.469 11.426 13.183 65.549 17.919 13.245 51.658 30.368 13.412 39.780 24.637 13.552 6.435 35.200 14.300 45.891 21.219 13.358 23.762 7.011 13.134 15.347 9.044 13.179 17.608 7.675 13.584 8.959 8.918 12.804 0.258 3.100 13.750 14.182 7.904 13.210 5.680 1.736 11.400 1.997 4.900 11.625 7.236 5.245 11.675 13.663 12.114 9.528 0.161 0.000 6.927 5.844 11.036 No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N Age Distribution Debt/Asset Ratio Under 35 61.000 40.000 56.000 35-44 65.000 53.000 55.000 12 Over 65 31.000 7.000 6.000 Regional Total 310.000 183.000 211.000 10.000 8.130 100.000 38.191 275.380 30.395 23.540 6.855 51.690 5.842 0.263 0.069 478.694 164.107 97.106 67.001 127.368 8.299 0.417 0.446 ** TABLE 12: FARM SIZE AND DEBT DISTRIBUTION BY AGE GROUP -- EASTERN REGION ** No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N Age Distribution Debt/Asset Ratio Pctn Mean Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned Acres Rented Real Estate Debt Outstanding Amount Annual Payment Interest Rate (%) Farm Operating Debt Outstanding Amount Annual Payment Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other Debt Outstanding Amount Annual Payment Interest Rate (%) Mean Mean Mean Mean Mean Mean Mean Mean A G E Over 65 55-64 Under 35 35-44 45-54 35.000 73.000 70.000 64.000 41.000 8.000 37.000 28.000 45.000 23.000 14.000 33.000 37.000 39.000 33.000 PERCENT 12.367 25.795 22.615 24.735 14.488 5.683 11.186 17.739 26.846 41.519 THOUSANDS 271.768 464.348 476.763 528.411 451.679 56.697 38.294 139.626 122.656 101.532 15.501 62.250 32.827 89.757 83.024 22.793 23.870 39.283 56.601 32.899 69.294 99.589 148.441 103.261 113.891 11.415 9.245 12.292 25.855 10.241 0.222 0.229 0.295 0.312 0.128 0.071 0.142 , 0.081 0.177 0.107 Regional Total 283.000 141.000 156.000 100.000 20.062 454.477 92.442 58.109 34.333 112.120 14.168 0.249 0.120 Mean Mean Mean 83.024 15.394 9.900 89.757 7.980 12.140 62.250 11.049 9.871 32.827 12.428 10.122 15.501 5.681 8.750 58.109 10.767 10.582 Mean Mean Mean 27.343 18.249 12.461 15.469 14.593 12.933 24.357 13.619 12.161 16.844 17.560 11.287 11.723 11.671 12.273 19.279 15.359 12.261 Mean Mean Mean 20.546 7.926 12.250 13.680 7.485 12.263 12.217 8.277 13.150 6.327 10.310 12.253 9.921 9.842 10.293 11.951 8.588 12.212 Mean Mean Mean 8.712 9.037 8.250 3.750 13.978 11.983 2.709 3.591 11.188 0.699 5.000 16.500 1.149 20.100 14.000 3.102 9.441 11.485 13 ** TABLE 13: FARM SIZE AND DEBT DISTRIBUTION BY AGE GROUP -- SOUTHERN REGION ** No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N Under 35 36.000 16.000 31.000 A G E 45-54 55-64 65.000 60.000 41.000 24.000 40.000 24.000 PERCENT 22.963 24.074 22.222 40.196 23.495 16.933 THOUSANDS 438.823 503.428 499.158 162.696 104.522 105.067 103.413 74.081 54.047 59.283 50.475 30.985 115.579 103.355 62.821 20.978 21.621 19.182 0.330 0.439 0.338 0.506 0.538 0.185 35-44 62.000 43.000 45.000 Over 65 47.000 10.000 10.000 Regional Total 270.000 134.000 150.000 17.407 5.537 100.000 25.576 754.100 29.920 23.410 6.511 69.277 17.315 0.627 0.096 516.261 101.898 61.547 40.350 90.681 18.759 0.400 0.366 Age Distribution Debt/Asset Ratio Pctn Mean 13.333 44.725 Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned Acres Rented Real Estate Debt Outstanding Amount . Annual Payment Interest Rate (%) Farm Operating Debt Outstandin Amount Annual Payment . Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other Debt Outstanding Amount Annual Payment Interest Rate (%) Mean Mean Mean Mean Mean Mean Mean Mean 390.791 81.141 31.889 49.252 98.872 10.952 0.262 0.465 Mean Mean Mean 31.889 7.190 9.567 103.413 19.091 11.004 54.047 9.158 10.167 74.081 22.582 10.726 23.410 5.132 9.813 61.547 14.178 10.454 Mean Mean Mean 21.028 32.206 12.618 31.542 39.483 12.804 31.917 53.543 13.374 24.497 54.332 13.724 2.809 18.350 12.833 23.663 43.755 13.117 Mean Mean Mean 19.264 8.927 13.538 18.585 9.911 13.081 10.115 7.371 13.140 5.697 11.275 14.346 3.319 3.460 15.083 11.115 8.767 13.532 Mean Mean Mean 8.961 10.326 11.688 9.156 6.006 12.722 8.443 6.334 8.556 0.792 1.450 15.333 0.383 5.800 14.000 5.572 6.756 11.500 14 ** TABLE 14: N No. of Observations No. w/ Real Estate Debt N N No. w/ Operating Debt Age Distribution Debt/Asset Ratio Pctn Mean FARM SIZE AND DEBT DISTRIBUTION BY AGE GROUP -- WESTERN REGION ** Under 35 35-44 41.000 78.000 28.000 59.000 33.000 58.000 11.202 44.613 21.311 42.112 Mean 1,154.820 858.600 Total Assets 360.379 254.027 Mean Total Debt 200.049 148.115 Mean Real Estate Debt Mean 160.329 105.912 Operating Debt 254.281 183.248 Mean Gross Sales 10.044 13.126 Mean Off-farm Income 0.922 1.633 Mean Acres Owned 0.757 Mean 1.549 Acres -Rented Real Estate Debt 200.049 148.115 Outstanding Amount Mean Mean 33.309 21.886 Annual Payment 9.619 10.548 Interest Rate (%) Mean Farm Operating Debt 79.549 56.232 Outstanding Amount Mean Mean 62.108 45.858 Annual Payment 13.116 13.735 Interest Rate (%) Mean Intermediate Debt 24.902 34.130 Outstanding Amount Mean 12.877 13.616 Mean Annual Payment 12.677 13.785 Interest Rate (%) Mean Other Debt 55.878 15.550 Outstanding Amount Mean 26.874 27.256 Mean Annual Payment 10.333 16.768 Interest Rate (%) _Mean 15 A G E 55-64 45-54 96.000 106.000 53.000 79.000 57.000 70.000 PERCENT 26.230 28.962 19.028 25.808 THOUSANDS 1,171.488 1,654.372 353.775 258.707 168.151 145.562 185.623 113.144 239.743 220.059 11.276 14.600 1.815 1.572 1.143 0.655 145.562 22.235 10.019 Over 65 45.000 15.000 11.000 Regional Total 366.000 234.000 229.000 12.295 11.060 100.000 27.798 681.476 1,169.351 276.227 113.867 148.694 68.778 127.532 45.089 211.258 138.490 12.381 10.351 1.457 1.193 0.908 0.686 168.151 , 68.778 44.323 27.673 10.964 10.487 148.694 28.823 10.230 89.052 61.341 13.071 154.092 51.603 13.464 42.667 80.778 13.040 92.349 55.942 13.338 20.697 13.738 13.034 25.881 11.460 12.994 2.422 10.500 9.250 23.144 12.977 13.078 3.396 15.440 12.889 5.650 15.036 10.750 0.000 • 12.039" 21.658 13.084 ** TABLE 15: FARM SIZE AND DEBT DISTRIBUTION BY AGE GROUP ** ** WEIGHTED NATIONAL AVERAGE ** No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N Age Distribution Debt/Asset Ratio Pctn Mean Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned Acres Rented Real Estate Debt Outstanding Amount Annual Payment Interest Rate (%) Farm Operating Debt Outstanding Amount Annual Payment Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other ,Debt Outstanding Amount Annual Payment Interest Rate (%) Mean Mean Mean Mean Mean Mean Mean Mean A G E Under 35 35-44 45-54 55-64 Over 65 179.000 269.000 307.000 316.000 158.000 107.000 200.000 205.000 140.000 40.000 153.000 197.000 200.000 155.000 41.000 PERCENT 14.529 21.834 24.919 25.649 12.825 50.650 47.367 32.598 17.754 7.243 THOUSANDS 437.615 500.637 619.385 726.962 545.477 173.266 191.387 170.633 155.131 41.478 96.932 116.594 98.954 86.807 28.866 76.334 74.794 71.678 68.323 12.612 132.733 153.536 139.173 113.857 71.838 8.639 14.775 15.030 11.259 11.719 0.500 0.377 0.654 0.608 0.538 0.586 0.534 0.436 0.499 0.161 Weighted National Average 1232.000 694.000 748.000 100.000 31.602 582.629 154.941 90.264 64.677 126.016 12.613 0.547 0.463 Mean Mean Mean 96.932 17.520 10.284 116.594 16.189 10.586 98.954 13.938 10.443 86.807 23.381 10.574 28.866 12.343 9.969 90.264 16.972 10.446 Mean Mean Mean 42.425 20.749 13.019 49.672 26.729 13.179 49.663 39.697 13.288 49.862 36.432 13.473 9.878 36.042 13.457 43.477 31.040 13.242 Mean Mean Mean 22.512 8.032 13.181 18.813 9.968 13.200 15.321 8.612 13.355 10.225 10.058 13.177 2.438 5.200 13.358 14.266 8.899 13.237 Mean Mean Mean 11.397 7.170 11.255 6.308 9.232 12.917 6.694 6.692 10.720 8.237 11.066 10.825 0.295 5.152 14.000 6.935 8.119 11.405 16 ** DEBT/ASSET RATIO GREATER THAN 40 PERCENT ONLY ** ** TABLE 16 FARM SIZE AND DEBT DISTRIBUTION BY AGE GROUP ** ** WEIGHTED NATIONAL AVERAGE ** N No. of Observations No. w/ Real Estate Debt N N No. w/ Operating Debt Pct Distribution Debt/Asset Ratio Pctn Mean A G E Over 65 55-64 45-54 Under 35 35-44 11.000 44.000 76.000 95.000 105.000 11.000 40.000 69.000 84.000 70.000 41.000 8.000 70.000 96.000 90.000 PERCENT 3.323 13.293 22.961 31.722 28.701 61.654 72.983 74.511 80.467 76.696 THOUSANDS 301.689 449.196 545.998 765.438 596.454 222.117 297.111 346.413 495.840 361.122 129.277 169.148 200.755 292.805 279.060 82.061 92.840 127.962 145.659 203.034 170.893 132.916 214.271 168.320 154.560 15.761 11.178 10.360 11.106 9.272 1.006 0.891 0.721 0.356 0.267 0.617 1.575 0.457 0.768 0.573 Mean Total Assets Mean Total Debt Mean Real Estate Debt Mean operating Debt Mean Gross Sales Mean Off-farm Income Mean Acres Owned Mean Acres Rented Real Estate Debt Outstanding Amount Mean 129.277 Mean .19.016 Annual Payment 10,334 Interest Rate (%) Mean Farm Operating Debt 51.832 Outstanding Amount Mean Mean '7-17.820 Annual Payment Interest Rate:.(%) Mean 13.037 Intermediate Debt 27.124 Outstanding Amount Mean Mean 8.751 Annual Payment 13.295 Interest Rate (%) Mean Other Debt 13.884 Outstanding Amount Mean Mean 6.819 Annual Payment Interest Rate (%) Mean 11.460 Weighted National Average 331.000 274.000 305.000 100.000 76.521 473.269 314.082 183.875 130.207 171.076 10.542 0.500 0.744 169.148 20.109 10.410 200.755 21.422 10.647 292.805 31.548 11.855 279.060 26.879 11.271 183.875 21.981 10.682 90.345 33.245 13.359 103.835 58.261 13.106 131.665 28.351 13.840 73.963 115.053 12.992 87.025 35.814 13.258 27.480 11.151 13.328 30.908 10.756 13.884 24.858 13.200 13.272 8.098 5.165 13.599 27.246 10.349 13.419 10.137 15.111 14.273 10.916 4.847 10.982 46.511 22.254 11.516 0.000 • • 15.936 10.836 12.016 17 ** DEBT/ASSET RATIO GREATER THAN 70 PERCENT ONLY ** ** TABLE 17: FARM SIZE AND DEBT DISTRIBUTION BY AGE GROUP ** ** WEIGHTED NATIONAL AVERAGE ** Over 65 3.000 3.000 2.000 Weighted National Average 132.000 102.000 123.000 2.273 93.151 100.000 106.467 528.369 460.167 362.510 97.657 272.294 0.000 2.330 0.110 317.663 303.575 175.830 127.745 136.641 8.035 0.333 0.639 234.167 29.700 11.958 362.510 36.244 10.894 175.830 23.148 10.434 105.088 - 78.892 46.240 39.623 12.383 13.480 85.473 240.284 12.455 86.120 34.671 12.955 Pct Distribution Debt/Asset Ratio Pctn Mean Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned Acres Rented Real Estate Debt Outstanding Amount Annual Payment Interest Rate (%) Farm Operating Debt Outstanding Amount Annual Payment Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other Debt Outstanding Amount Annual Payment Interest Rate (%) Mean Mean Mean Mean Mean Mean Mean Mean A G E Under 35 35-44 45-54 55-64 43.000 45.000 25.000 16.000 33.000 32.000 21.000 13.000 41.000 42.000 24.000 14.000 PERCENT 32.576 34.091 18.939 12.121 100.240 115.001 109.531 97.665 THOUSANDS 303.947 260.861 361.441 404.286 286.411 268.961 342.832 356.123 166.404 144.110 191.332 234.167 120.007 124.851 151.500 121.956 147.907 126.066 143.298 107.278 7.628 7.421 5.776 15.177 0.339 0.153 0.399 0.432 0.527 0.951 0.526 0.375 Mean Mean Mean 166.404 23.450 9.994 144.110 16.955 10.264 Mean . Mean Mean 72.286 16.765 12.790 91.457 39.437 13.357 Mean Mean Mean 28.783 8.449 12.884 24.004 11.197 13.096 35.137 7.699 13.853 26.041 16.447 14.608 12.184 1.600 12.000 27.873 9.798 13.281 Mean Mean Mean 18.938 9.219 11.344 9.390 24.042 12.284 11.275 2.509 13.030 17.022 0.000 11.333 0.000 • 13.752 8.140 11.828 No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N 18 191.332 26.896 10.396 ** TABLE 18: FARM SIZE AND DEBT DISTRIBUTION -- REGIONAL AND NATIONAL ** No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N Central 310.000 183.000 211.000 Weighted National Region Average West South East 366.000 1,229.000 283.000 270.000 235.000 694.000 141.000 135.000 230.000 156.000 151.000 748.000 PERCENT 100.000 23.027 29.780 21.969 31.602 27.788 20.062 25.472 THOUSANDS 582.629 454.477 514.403 1,174.816 92.442 101.321 154.941 277.586 61.110 90.264 149.461 58.109 128.125 40.212 64.677 34.333 112.120 90.128 212.047 126.016 14.168 12.456 12.613 18.904 0.398 1.497 0.547 0.249 0.915 , 0.120 0.463 0.365 PCT Distribution Debt/Asset Ratio Pctn Mean 25.224 38.191 Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned Acres Rented , Real Estate Debt Outstanding Amount Annual Payment Interest Rate (%) Farm Operating Debt Outstanding Amount Annual Payment Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other Debt Outstanding Amount Annual -Payment Interest Rate (%) Mean Mean Mean Mean Mean Mean Mean Mean 478.694 164.107 97.106 67.001 127.368 8.299 0.417 0.446 Mean Mean Mean 97.106 15.582 10.517 58.109 10.767 10.582 61.110 14.077 10.412 149.461 28.999 10.218 90.264 16.972 10.446 Mean Mean Mean 45.891 21.219 13.358 19.279 15.359 12.261 23.636 43.715 13.116 92.847 55.613 13.342 43.477 31.040 13.242 Mean Mean Mean 14.182 7.904 13.210 11.951 8.588 12.212 11.033 8.767 13.532 23.271 12.890 13.085 14.266 8.899 13.237 Mean Mean Mean 6.927 5.844 11.036 3.102 9.441 11.485 5.542 6.642 11.355 12.006 21.658 13.084 6.935 8.119 11.405 19 ** TABLE 19: FARM SIZE AND DEBT DISTRIBUTION -- REGIONAL & NATIONAL ** FOR CROP PRODUCERS No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N PCT Distribution Debt/Asset Ratio Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned . Acres Rented Real Estate Debt Outstanding Amount Annual Payment Interest Rate (%) Farm Operating Debt Outstanding Amount Annual Payment Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other Debt Outstanding Amount Annual Payment Interest Rate (%) Central 135.000 75.000 86.000 Region East South West 86.000 110.000 171.000 35.000 65.000 115.000 36.000 78.000 106.000 PERCENT 17.131 21.912 34.064 16.499 32.101 37.825 THOUSANDS 392.596 540.152 1,291.833 66.436 160.239 341.033 42.688 101.360 204.139 23.748 58.879 136.894 92.201 128.036 213.846 21.441 12.932 10.903 0.216 0.345 0.936 0.172 0.641 0.594 Weighted National Average 502.000 290.000 306.000 Pctn Mean 26.892 37.419 Mean Mean Mean Mean Mean Mean Mean Mean 477.689 144.001 94.720 49.281 95.052 8.843 0.296 0.312 Mean Mean Mean 94.720 18.658 10.368 42.688 11.376 12.673 101.360 20.775 10.605 204.139 36.045 10.443 110.777 22.157 10.528 Mean Mean Mean 30.198 21.070 13.223 9.591 20.890 13.156 37.723 56.995 13.202 90.435 80.109 13.019 40.582 40.736 13.186 Mean Mean Mean 15.504 9.418 12.728 12.760 8.781 12.381 17.800 11.818 13.699 37.205 16.322 13.234 19.325 11.324 13.132 Mean Mean Mean 3.580 3.057 9.865 1.398 20.857 7.907 3.356 5.602 11.273 9.254 12.760 14.409 4.261 5.642 10.979 20 100.000 35.820 614.595 174.945 110.777 64.168 122.879 10.964 0.403 0.441 ** TABLE 20: FARM SIZE AND DEBT DISTRIBUTION -- REGIONAL & NATIONAL ** FOR BEEF PRODUCERS N No. of Observations No. w/ Real Estate Debt N N No. w/ Operating Debt PCT Distribution Debt/Asset Ratio Pctn Mean Mean Total Assets Mean Total Debt Mean Real Estate Debt Mean Operatin Debt Mean Gross Sales Mean Off-farm Income Mean Acres Owned Mean Acres Rented Real Estate Debt Outstanding Amount Mean Mean Annual Payment Interest Rate (%) Mean Farm Operating Debt Outstanding Amount Mean Mean Annual'Payment Interest Rate (%) Mean Intermediate Debt Outstanding Amount Mean Mean Annual Payment Interest Rate (%) Mean Other Debt Outstanding Amount Mean Mean Annual Payment Interest Rate (%) Mean Weighted National Region Average West South Central East 280.000 112.000 90.000 33.000 45.000 149.000 70.000 34.000 29.000 16.000 145.000 67.000 33.000 14.000 31.000 PERCENT 100.000 40.000 32.143 11.786 16.071 19.480 22.761 10.246 21.725 31.531 THOUSANDS 633.206 628.854 277.645 476.077 1,110.638 140.630 231.728 40.763 77.081 247.012 79.184 104.615 26.795 65.577 146.213 61.446 127.113 13.968 11.503 100.799 89.602 136.467 33.840 20.551 155.056 19.456 16.031 23.971 27.144 13.742 1.127 0.461 2.952 0.294 1.157 0.756 1.633 0.131 0.215 1.135 146.203 15.460 10.533 65.577 6.426 9.781 26.795 7.829 10.112 104.615 26.254 9.772 79.184 14.950 10.197 87.610 9.522 14.074 6.744 6.236 12.361 6.507 17.695 12.168 114.971 40.921 13.258 51.443 19.163 13.327 7.322 3.696 12.639 3.108 3.086 6.427 , 2.736 11.818 13.283 10.292 7.163 12.725 5.725 4.192 12.458 5.867 2.571 12.167 1.673 6.037 13.000 4.353 10.763 12.438 1.850 8.574 11.312 4.278 6.844 12.192 21 ** TABLE 21: FARM SIZE AND DEBT DISTRIBUTION -- REGIONAL & NATIONAL ** FOR DAIRY PRODUCERS No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N Central 39.000 25.000 28.000 Region East South 115.000 27.000 69.000 11.000 79.000 19.000 PERCENT 53.488 12.558 22.894 25.073 THOUSANDS 479.733 625.921 102.460 93.498 58.735 30.909 43.725 62.589 143.877 168.453 3.552 5.428 0.261 0.407 0.089 0.178 West 34.000 21.000 27.000 Weighted National Average 215.000 126.000 153.000 15.814 28.734 100.000 25.819 620.447 235.681 76.940 158.741 273.656 4.394 0.142 0.132 558.191 127.814 60.339 67.475 167.514 4.031 0.338 0.120 PCT Distribution Debt/Asset Ratio Pctn Mean 18.140 26.813 Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned Acres Rented Real Estate Debt Outstanding Amount Annual Payment Interest Rate (%) Farm Operating Debt Outstanding Amount Annual Payment Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other Debt Outstanding Amount Annual Payment Interest Rate (%) Mean Mean Mean Mean Mean Mean Mean Mean 542.369 133.973 72.937 61.036 154.618 3.426 0.374 0.100 Mean Mean Mean 72.937 11.051 10.760 58.735 10.240 9.626 30.909 6.606 9.527 76.940 17.509 10.660 60.339 10.787 10.318 Mean Mean Mean 41.372 26.492 12.245 26.279 15.702 11.847 29.667 34.495 12.562 69.338 46.474 13.342 38.300 28.212 12.360 Mean Mean Mean 16.382 12.194 14.040 13.794 9.752 11.954 19.057 7.198 13.464 16.242 14.139 12.936 16.523 10.515 13.413 Mean Mean Mean 3.282 25.000 14.000 3.652 8.117 13.021 13.865 0.600 10.500 73.161 80.898 11.900 12.652 19.566 11.619 A 22 ** TABLE 22: FARM SIZE AND DEBT DISTRIBUTION -- NATIONAL AVERAGE ** FOR FARM TYPE OPERATION No. of Observations N No. w/ Real Estate Debt N No. w/ Operating Debt N - PCT Distribution Debt/Asset Ratio Pctn Mean Total Assets Total Debt Real Estate Debt Operating Debt Gross Sales Off-farm Income Acres Owned Acres Rented Real Estate Debt Outstanding Amount Annual Payment Interest Rate (%) Farm Operating Debt Outstanding Amount Annual Payment Interest Rate (%) Intermediate Debt Outstanding Amount Annual Payment Interest Rate (%) Other Debt Outstanding Amount Annual Payment Interest Rate (%) Mean Mean Mean Mean Mean Mean Mean Mean Type Beef Crops Dairy 280.000 502.000 215.000 149.000 290.000 126.000 145.000 306.000 153.000 PERCENT 25.339 45.430 19.457 19.480 35.820 25.819 THOUSANDS 633.206 614.595 558.191 140.630 174.945 127.814 79.184 110.777 60.339 61.446 64.168 67.475 89.602 122.879 167.514 10.964 4.031 19.456 0.338 1.127 0.403 0.756 0.441 0.120 Pork 94.000 59.000 64.000 Poultry 14.000 12.000 7.000 8.507 47.562 1.267 33.709 380.469 181.178 99.529 81.648 175.305 7.518 0.207 0.280 668.747 217.091 178.187 38.904 104.776 17.989 0.239 0.465 Mean Mean Mean 79.184 14.950 10.197 110.777 22.157 10.528 60.339 10.787 10.318 99.529 11.999 10.780 178.187 15.956 10.251 Mean Mean Mean 51.443 19.163 13.327 40.582 40.736 13.186 38.300 28.212 12.360 53.552 19.038 13.380 29.376 1.872 13.746 Mean Mean Mean 5.725 4.192 12.458 19.325 11.324 13.132 16.523 10.515 13.413 12.602 4.387 13.121 4.169 7.058 12.936 Mean Mean Mean 4.278 6.844 12.192 4.261 5.642 10.979 12.652 19.566 11.619 15.494 11.035 10.545 5.358 13.500 10.125 23 ** TABLE 23: LAND INFORMATION ** ** WEIGHTED NATIONAL AVERAGE ** No.of Observations N Weighted Number SUMWGT Age Distribution PCTN Total Assets Mean Total Debt Mean Acres Owned Mean Acres Rented Mean No.Willing to Sell N No.Willing to Sell PCTN Acres to Sell Mean Price per Acre Mean No.Willing to Buy N No.Willing to Buy PCTN Acres to Buy Mean Price per Acre Mean 0-3 Years Acres Bought Mean Acres Sold " Mean Net Mean 4-6 Years Acres Bought Mean Acres Sold Mean Net Mean 7-10 Years Acres Bought Mean Acres Sold Mean Net Mean 0-3 Years Capital Bought Mean Capital Sold Mean Net Mean 4-6 Years Capital Bought Mean Capital Sold Mean Net Mean 7-10 Years Capital Bought Mean Capital Sold Mean Net Mean Under 35 179.000 48.624 14.529 437.615 173.266 0.500 0.586 28.000 9.622 524.038 1278.716 100.000 26.525 249.606 834.083 0.060 0.011 0.049 Age 35-44 45-54 55-64 269.000 307.000 316.000 65.313 70.340 77.523 21.834 24.919 25.649 THOUSANDS 500.637 619.385 726.962 191.387 170.633 155.131 0.377 0.654 0.608 0.534 0.436 0.499 66.000 87.000 77.000 22.680 29.897 26.460 328.629 581.668 523.016 1077.129 1271.436 1137.366 114.000 74.000 68.000 30.239 19.629 18.037 615.611 304.303 432.650 757.204 791.739 825.377 THOUSANDS 0.030 0.038 0.023 0.011 0.010 0.009 0.018 0.027 0.014 Over 65 158.000 38.476 12.825 Weighted National Average 1232.000 301.096 100.000 545.477 41.478 0.538 0.161 33.000 11.340 515.075 1015.596 21.000 5.570 231.054 840.373 582.629 154.941 0.547 0.463 291.000 100.000 494.986 1168.789 377.000 100.000 385.190 804.050 0.020 0.032 0.012 0.034 0.013 0.020 0.048 0.004 0.044 0.052 0.026 0.026 0.065 0.007 0.058 0.039 0.004 0.035 0.008 0.043 0.034 0.047 0.015 0.032 0.049 0.003 0.046 0.081 0.012 0.070 0.085 0.011 0.075 0.053 0.006 0.047 0.024 0.011 0.013 0.064 0.009 0.055 54.209 3.662 50.546 179.000 42.890 1.907 40.983 179.000 30.624 0.277 30.347 30.524 6.353 24.171 269.000 35.410 6.917 28.493 269.000 35.544 3.338 32.207 35.002 5.089 29.913 307.000 37.807 2.165 35.642 307.000 40.169 2.152 38.017 26.035 8.255 17.780 316.000 28.867 0.928 27.938 316.000 30.853 1.433 29.421 8.860 0.349 8.511 158.000 9.986 2.914 7.072 158.000 15.024 0.151 14.873 31.432 5.328 26.104 1232.000 32.217 2.926 29.292 1232.000 31.998 1.660 30.338 24 ** TABLE 24 -- LAND AND CAPITAL TRANSACTIONS ** BY REGIONS AND NATIONAL No. of Observations N Weighted Number SUMWGT Age Distribution PCTN Total Assets Total Debt Acres Owned Acres Rented No.Willing to Sell No.Willing to Sell Acres to Sell Price per Acre No. Willing to Buy No. Willing to Buy Acres to Buy Price per Acre 0-3 Years Acres Bought Acres Sold Net 4-6 Years Acres Bought Acres Sold Net 7-10 Years Acres Bought Acres Sold Net 0-3 Years Capital Bought Capital Sold Net 4-6 Years Capital Bought Capital Sold Net 7-10 Years Capital Bought Capital Sold Net Central 310.000 145.607 25.162 Mean 478.694 Mean 164.107 Mean 0.417 Mean 0.446 N 71.000 PCTN 24.399 Mean 321.021 Mean 1237.090 N 83.000 PCTN 22.016 MEAN 319.660 MEAN 809.600 Weighted Region National East South West Average 283.000 272.000 367.000 1232.000 18.565 96.261 40.664 301.096 22.971 22.078 29.789 100.000 THOUSANDS 454.477 514.403 1174.816 582.629 154.941 92.442 101.321 277.586 1.497 0.249 0.398 0.547 0.120 0.915 0.463 0.365 45.000 58.000 117.000 291.000 15.464 40.206 100.000 19.931 254.240 427.067 1077.936 494.986 1010.944 1057.646 1179.368 1168.789 102.000 84.000 108.000 377.000 27.056 22.281 28.647 100.000 256.415 879.140 385.190 245.094 804.050 920.053 791.356, 756.368 THOUSANDS 0.022 0.019 0.086 0.034 0.003 0.006 0.056 0.013 0.016 0.020 0.015 0.030 Mean Mean Mean 0.029 0.007 0.022 Mean Mean Mean 0.048 0.002 0.046 0.036 0.003 0.033 0.029 0.011 0.018 0.089 0.074 0.014 0.047 0.015 0.032 Mean Mean Mean 0.063 0.002 0.061 0.030 0.017 0.012 0.043 0.010 0.033 0.133 0.025 0.108 0.064 0.009 0.055 Mean Mean Mean 29.094 3.990 25.104 39.515 5.606 33.910 25.284 6.513 18.771 50.669 7.191 43.477 31.432 5.328 26.104 Mean Mean Mean 33.036 1.310 31.726 29.632 1.675 27.957 27.887 2.731 25.156 40.716 9.743 30.973 32.217 2.926 29.292 Mean Mean Mean 31.303 0.983 30.319 30.124 1.934 28.190 28.913 1.412 27.501 42.645 4.543 38.102 31.998 1.660 30.338 25 ** TABLE 25: LAND AND CAPITAL TRANSACTIONS ** BY FARM TYPE OPERATION Type Pork Crops Dairy 215.000 502.000 94.000 34.247 126.927 39.185 45.307 8.484 19.404 THOUSANDS 558.191 380.469 614.595 127.814 181.178 174.945 0.338 0.403 0.207 0.280 0.441 0.120 39.000 134.000 10.000 3.922 15.294 52.549 490.422 283.333 131.667 1,385.316 1,066.361 1,154.136 161.000 66.000 33.000 46.667 19.130 9.565 280.425 172.995, 168.005 889.216 901.643 910.699 THOUSANDS 0.024 0.040 0.026 0.010 0.004 0.004 0.030 0.022 0.021 Number of Observations Weighted Number Age Distribution N SUMWGT PCTN Beef 283.000 68.380 25.542 Total Assets Total Debt Acres Owned Acres Rented Number Willing to Number Willing to Acres to Sell Price per Acre Number Willing to Number Willing to Acres to Buy Price per Acre 0-3 Years Acres Bought Acres Sold Net 4-6 Years Acres Bought Acres Sold Net 7-10 Years Acres Bought Acres Sold Net 0-3 Years Capital Bought Capital Sold Net 4-6 Years Capital Bought Capital Sold Net 7-10 Years Capital Bought Capital Sold Net Mean Mean Mean Mean N PCTN Mean Mean N PCTN Mean Mean 633.206 140.630 1.127 0.756 70.000 27.451 714.893 729.458 80.000 23.188 648.035 517.515 Mean Mean Mean 0.040 0.030 0.010 Mean Mean Mean 0.074 0.034 0.040 0.036 0.008 0.028 0.026 0.010 0.017 0.040 0.000 0.040 Mean Mean Mean 0.103 0.021 0.083 0.054 0.008 0.046 0.051 0.001 0.050 0.039 0.000 0.039 Mean Mean Mean 18.775 3.844 14.931 35.310 5.972 29.338 39.060 1.132 37.928 30.280 1.282 28.998 Mean Mean 'Mean 19.413 2.427 . 16.986 35.817 3.883 31.934 51.293 2.091 49.202 29.287 0.991 28.297 Mean Mean Mean 21.594 1.883 19.711 36.990 2.351 34.639 41.995 0.281 41.714 31.636 0.311 31.324 Sell Sell Buy Buy 26 ** DEBT/ASSET GREATER THAN 40 PERCENT ** TABLE 26 LAND AND CAPITAL TRANSACTIONS BY AGE GROUP ** ** Weighted National Average 331.000 93.496 100.000 Age 55-64 45-54 ; 35-44 44.000 76.000 105.000 12.362 20.740 30.301 13.293 22.961 31.722 THOUSANDS 765.438 545.998 449.196 495.840 297.111 346.413 0.891 0.721 0.356 1.575 0.768 0.457 22.000 35.000 29.000 19.643 31.250 25.893 433.228 386.264 578.727 1064.484 1321.200 1206.773 7.000 10.000 33.000 6.731 '9.615 31.731 338.000 963.015 280.568 408.030 597.934 562.579 THOUSANDS 0.040 0.042 0.033 0.041 0.014 0.013 -0.002 0.019 0.029 596.454 361.122 1.006 0.617 6.000 5.357 1553.632 756.103 0.000 0.000 473.269 314.082 0.500 0.744 112.000 100.000 521.134 1240.277 104.000 100.000 455.978 759.715 0.111 0.423 -0.312 0.041 0.030 0.011 Over 65 11.000 2.621 3.323 No.of Observations N Weighted Number SUMWGT Age Distribution PCTN Under 35 95.000 27.472 28.701 Mean Mean Mean Mean N PCTN Mean Mean N PCTN Mean Mean 301.689 222.117 0.267 0.573 20.000 17.857 468.495 1474.607 54.000 51.923 231.307 903.567 Mean Mean Mean 0.042 0.018 0.024 Mean Mean Mean 0.057 0.001 0.056 0.049 0.018 0.030 0.143 0.007 0.136 0.087 0.000 0.086 0.010 0.000 0.010 0.076 0.008 0.068 Mean Mean Mean 0.020 0.004 0.015 0.078 0.014 0.063 0.173 0.002 0.171 0.157 0.018 0.138 0.220 0.000 0.220 0.096 0.009 0.088 Mean Mean Mean 55.939 4.816 51.123 27.017 8.332 18.685 27.744 10.611 17.132 35.087 39.672 -4.585 20.793 0.000 20.793 36.569 11.715 24.854 Mean Mean Mean 36.593 0.746 35.847 32.687 4.008 28.679 41.092 3.156 37.936 37.111 0.309 36.802 18.764 0.000 18.764 35.894 2.259 33.635 Mean Mean Mean 17.928 0.198 17.731 32.974 0.950 32.023 51.554 2.608 48.946 56.836 1.668 55.168 55.814 0.000 55.814 36.470 1.165 35.305 Total Assets Total Debt Acres Owned Acres Rented No.Willing to Sell No.Willing to Sell Acres to Sell Price per Acre No.Willin to Bu No.Willing to Buy Acres to Buy Price per Acre 0-3 Years Acres Bought Acres Sold Net 4-6 Years Acres Bought Acres Sold Net 7-10 Years Acres Bought Acres Sold Net 0-3 Years Capital Bought Capital Sold Net 4-6 Years Capital Bought clpital Sold Net 7-10 Years Capital Bought Capital Sold Net 27 ** TABLE 27: ** DEBT/ASSET GREATER THAN 40 PERCENT ** LAND AND CAPITAL TRANSACTION BY REGION AND NATIONAL ** Central 123.000 57.773 37.160 Weighted Region National East South West Average 53.000 62.000 93.000 331.000 3.477 21.942 10.304 93.496 16.012 18.731 28.097 100.000 THOUSANDS 410.414 407.182 750.585 473.269 265.554 252.519 483.897 314.082 0.187 0.379 1.237 0.500 0.200 0.595 1.370 0.744 12.000 21.000 42.000 112.000 10.714 18.750 37.500 100.000 189.000 542.067 1073.273 521.134 1255.000 1188.889 1151.184 1240.277 22.000 19.000 32.000 104.000 21.154 18.269 30.769 100.000 146.308 189.000 730.690 455.978 927.381 775.000 758.906 759.715 THOUSANDS 0.033 0.032 0.114 0.041 0.004 0.007 0.165 0.030 0.028 0.025 -0.051 0.011 No. of Observations Weighted Number Age Distribution N SUMWGT PCTN Total Assets Total Debt Acres Owned Acres Rented No. Willing to Sell No. Willing to Sell Acres to Sell Price per Acre No. Willing to Buy NO. Willing to Buy Acres to Buy Price per Acre 0-3 Years Acres Bought Acres Sold Net 4-6 Years Acres Bought Acres Sold Net 7-10 Years Acres Bought Acres Sold Net 0-3 Years Capital Bought Capital Sold Net 4-6 Years Capital Bought Capital Sold Net 7-10 Years Capital Bought Capital Sold Net Mean Mean Mean Mean N PCTN Mean Mean N PCTN Mean Mean 452.688 310.095 0.433 0.722 37.000 33.036 366.926 1281.250 31.000 29.808 486.174 737.000 Mean Mean Mean 0.031 0.016 0.015 Mean Mean Mean 0.073 0.002 0.071 0.038 0.001 0.037 0.062 0.022 0.040 0.135 0.013 0.122 0.076 0.008 0.068 Mean Mean Mean 0.090 0.003 0.087 0.043 0.012 0.030 0.081 0.024 0.057 0.181 0.005 0.177 0.096 0.009 0.088 Mean Mean Mean 30.714 7.577 23.138 46.986 12.683 34.303 34.309 21.641 12.667 70.694 13.452 57.242 36.569 11.715 24.854 Mean Mean Mean 37.012 1.732 35.280 41.277 1.462 39.815 28.478 1.521 26.957 43.600 7.058 36.542 35.894 2.259 33.635 Mean Mean Mean 36.664 0.886 35.778 45.369 0.840 44.530 30.413 0.734 29.679 45.275 3.758 41.516 36.470 1.165 35.305 28 ** DEBT/ASSET GREATER THAN 40 PERCENT ** TABLE 28: LAND AND CAPITAL TRANSACTIONS BY FARM TYPE OPERATION Beef 48.000 12.895 16.000 Type Dairy Crops 47.000 155.000 9.331 43.018 15.667 51.667 THOUSANDS 447.982 455.145 281.768 313.447 0.262 0.344 0.138 0.605 63.000 10.000 10.204 64.286 296.119 553.437 1,394.011 994.539 15.000 48.000 15.625 50.000 165.881 223.440 816.661 1,008.038 THOUSANDS 0.021 0.049 0.020 0.000 0.021 0.030 Pork 44.000 18.217 14.667 Number of Observations Weighted Number Age Distribution N SUMWGT PCTN Total Assets Total Debt Acres Owned Acres Rented Number Willing to Number Willing to Acres to Sell Price per Acre Number Willing to Number Willing to Acres to Buy Price per Acre 0-3 Years Acres Bought Acres Sold Net 4-6 Years Acres Bought Acres Sold Net 7-10 Years Acres Bought Acres Sold Net 0-3 Years Capital Bought Capital Sold Net 4-6 Years Capital Bought Capital Sold Net 7-10 Years Capital Bought Capital Sold Net Mean Mean Mean Mean N PCTN Mean Mean N PCTN Mean Mean 674.235 408.234 1.583 1.840 17.000 17.347 796.930 643.714 17.000 17.708 611.908 401.503 Mean Mean Mean 0.063 0.129 -0.066 Mean Mean Mean 0.141 0.000 0.141 0.060 0.015 0.045 0.042 0.000 0.042 0.051 0.000 0.051 Mean Mean Mean 0.279 0.009 0.270 0.070 0.015 0.054 0.040 0.001 0.039 0.035 0.000 0.035 Mean Mean Mean 21.896 15.228 6.668 34.308 9.558 24.751 46.885 1.997 44.888 34.711 0.283 34.429 Mean Mean Mean 25.219 0.823 24.395 38.649 2.788 35.861 48.761 1.049 47.712 35.185 1.811 33.374 Mean Mean Mean 34.260 0.014 34.246 36.473 1.452 35.021 29.980 0.557 29.423 43.099 0.568 42.531 Sell Sell Buy Buy 29 405.674 294.820 0.190 0.311 6.000 6.122 133.333 1,299.334 13.000 13.542 218.780 857.197 0.012 0.006 0.006 ** DEBT/ASSET GREATER THAN 70 PERCENT ** ** TABLE 29: LAND AND CAPITAL TRANSACTION BY AGE GROUP ** No.of Observations N Weighted Number SUMWGT Age Distribution PCTN Under 35 43.000 13.526 32.576 Total Assets Mean 303.947 Total Debt Mean 286.411 Acres Owned Mean 0.339 Acres Rented Mean 0.527 No.Willing to Sell N 10.000 No.Willing to Sell PCTN 22.222 Acres to Sell Mean 533.494 Price per Acre Mean 1752.246 No.Willing to Buy N 19.000 No.Willing to Buy PCTN 43.182 Acres to Buy Mean 254.620 Price per Acre Mean 942.288 0-3 Years Acres Bought Mean 0.036 Acres Sold Mean 0.029 Net .Mean 0.006 4-6 Years Acres Bought Mean 0.063 Acres Sold Mean 0.002 Net Mean 0.061 7-10 Years Acres Bought Mean 0.012 Acres Sold Mean 0.008 Net Mean 0.004 0-3 Years Capital Bought Mean 79.417 Capital Sold Mean 9.153 Net Mean 70.264 4-6 Years Capital Bought Mean. 29.572 Capital Sold Mean 0.529 Net Mean 29.042 7-10 Years Capital Bought Mean 18.185 Capital Sold 0.008 Mean Net Mean 18.177 Age 35-44 45-54 55-64 45.000 25.000 16.000 13.337 8.120 5.212 34.091 12.121 18.939 THOUSANDS 260.861 361.441 404.286 268.961 342.832 356.123 0.153 0.432 0.399 0.951 0.526 0.375 13.000 12.000 8.000 28.889 26.667 17.778 275.391 614.716 671.846 1253.752 1242.304 1106.643 18.000 1.000 6.000 2.273 40.909 13.636 1567.885 600.000 209.127 485.522 1000.000 426.903 THOUSANDS 0.012 0.011 0.081 0.012 0.013 0.091 -0.001 -0.001 -0.010 Over 65 3.000 0.646 2.273 Weighted National Average 132.000 40.841 100.000 528.369 460.167 2.330 0.110 2.000 4.444 6129.932 248.753 0.000 0.000 • • 317.663 303.575 0.333 0.639 45.000 100.000 603.343 1308.902 44.000 100.000 679.809 706.928 0.145 1.663 -1.518 0.030 0.054 -0.024 0.062 0.012 0.050 0.079 0.014 0.064 0.034 0.001 0.034 0.000 0.000 0.000 0.061 0.007 0.054 0.028 0.023 0.005 0.061 0.001 0.060 0.089 0.019 0.070 0.755 0.000 0.755 0.049 0.013 0.036 24.892 9.935 14.957 17.836 2.806 15.030 57.592 85.997 -28.404 47.254 0.000 47.254 46.073 17.809 28.265 '26.234 4.185 22.049 32.949 2.478 30.471 27.633 0.000 27.633 68.392 0.000 68.392 29.520 2.035 27.485 29.554 1.309 28.244 28.855 4.139 24.716 48.140 2.034 46.106 112.021 0.000 112.021 29.326 1.513 27.814 30 ** TABLE 30: ** DEBT/ASSET GREATER THAN 70 PERCENT ** LAND AND CAPITAL TRANSACTION BY REGION AND NATIONAL ** No. of Observations Weighted Number Age Distribution N SUMWGT PCTN Total Assets Total Debt Acres Owned Acres Rented No. Willing to Sell No. Willing to Sell Acres to Sell Price per Acre No. Willing to Buy NO. Willing to Buy Acres to Buy Price per Acre 0-3 Years Acres Bought Acres Sold Net 4-6 Years Acres Bought Acres Sold Net 7-10 Years Acres Bought Acres Sold Net 0-3 Years Capital Bought Capital Sold Net 4-6 Years Capital Boupt Capital Sold Net 7-10 Years Capital Bought Capital Sold Net Mean Mean Mean Mean Central 58.000 27.243 43.939 Region East South West 15.000 25.000 34.000 0.984 8.847 3.767 11.364 18.939 25.758 THOUSANDS 352.070 215.348 503.216 381.935 205.034 481.965 0.192 0.216 0.719 0.089 0.536 0.911 6.000 7.000 14.000 13.333 15.556 31.111 141.750 756.000 1589.364 1080.000 1125.000 980.385 5.000 10.000 14.000 11.364 22.727 31.818 108.500 212.500 1020.000 960.000 662.500 831.071 THOUSANDS 0.085 0.021 0.147 0.014 0.003 0.423 0.071 0.017 -0.276 Weighted National Average 132.000 40.841 100.000 PCTN Mean Mean N PCTN Mean Mean 323.990 308.079 0.324 0.655 18.000 40.000 397.929 1426.471 15.000 34.091 714.000 685.667 Mean Mean Mean 0.016 0.021 -0.005 Mean Mean Mean 0.062 0.004 0.058 0.023 0.004 0.019 0.028 0.017 0.011 0.144 0.007 0.137 0.061 0.007 0.054 Mean Mean Mean 0.031 0.004 0.027 0.055 0.000 0.055 0.032 0.046 -0.015 0.212 0.005 0.207 0.049 0.013 0.036 Mean Mean Mean 37.390 6.603 30.787 54.849 2.600 52.249 48.628 52.400 -3.772 100.574 21.572 79.001 46.073 17.809 28.265 Mean Mean Mean 34.819 2.621 32.198 15.200 1.667 13.534 13.941 0.200 13.741 31.529 2.201 29.328 29.520 2.035 27.485 Mean Mean Mean 31.502 1.410 30.092 22.797 0.000 22.797 22.178 1.000 21.178 32.088 3.853 28.235 29.326 1.513 27.814 31 317.663 303.575 0.333 0.639 45.000 100.000 603.343 1308.902 44.000 100.000 679.809 706.928 0.030 0.054 -0.024 ** TABLE 31: ** DEBT/ASSET GREATER THAN 70 PERCENT ** LAND AND CAPITAL TRANSACTION BY FARM TYPE OPERATION ** Number of Observations Weighted Number Age Distribution Total Assets Total Debt Acres Owned Acres Rented Number Willing to Number Willing to Acres to Sell Price per Acre Number Willing to Number Willing to Acres to Buy . Price per Acre 0-3 Years Acres Bought Acres Sold Net 4-6 Years Acres Bought Acres Sold Net 7-10 Years Acres Bought Acres Sold Net 0-3 Years , Capital Bought Capital Sold Net 4-6 Years Capital Bought Capital Sold Net 7-10 Years Capital Bought Capital Sold Net N SUMWGT PCTN Mean Mean Mean Mean Sell Sell Buy Buy Beef 13.000 3.029 10.833 Type Crops Dairy 70.000 15.000 21.930 2.504 58.333 12.500 THOUSANDS 323.197 404.144 307.994 410.073 0.281 0.253 0.529 0.194 26.000 5.000 65.000 12.500 552.668 140.000 1,554.364 975.000 22.000 6.000 57.895 15.789 222.815 122.005 807.546 1,506.850 THOUSANDS 0.041 0.038 0.024 0.000 0.017 0.038 Pork 22.000 9.813 18.333 PCTN Mean Mean N PCTN Mean Mean 405.442 346.893 1.683 0.960 6.000 15.000 1,094.490 488.935 5.000 13.158 1,258.915 375.851 Mean Mean Mean 0.006 0.519 -0.513 Mean Mean Mean 0.094 0.000 0.094 0.067 0.012 0.055 0.024 0.001 0.023 0.042 0.000 0.042 Mean Mean Mean 0.250 0.037 0.213 0.041 0.019 0.023 0.025 0.000 0.025 0.024 0.000 0.024 Mean Mean Mean 16.845 64.175 -47.330 38.357 3.834 34.523 104.548 1.122 103.426 45.332 0.348 44.984 Mean Mean Mean ,12.658 0.000 12.658 37.905 2.074 35.831 33.351 0.655 32.696 33.262 3.350 29.912 Mean Mean Mean 47.977 0.000 47.977 25.084 1.763 23.321 12.748 0.000 12.748 44.746 0.900 43.846 N 32 289.290 285.964 0.147 0.382 3.000 7.500 160.000 1,325.000 5.000 13.158 183.333 637.500 0.015 0.008 0.006 ** TABLE 32: GENERAL FINANCIAL INFORMATION ON REAL ESTATE AND OPERATION LOANS BY REGION AND NATIONAL N No. of Observations No. w/ Real Estate Debt N N No. w/ Operating Debt Region South East 270.00 283.00 135.00 141.00 151.00 156.00 Central 310.00 183.00 211.00 West 366.00 235.00 230.00 Weighted National Average 1,229.00 694.00 748.00 29.78 0.80 0.64 0.63 27.79 217.00 0.99 0.98 191.00 0.92 0.92 33.36 100.00 0.75 0.56 0.63 31.60 637.00 0.98 0.97 622.00 0.90 0.90 35.41 1,174.82 27.23 277.59 24.20 149.46 128.12 212.05 18.93 12.46 0.59 31.39 1.50 0.91 582.63 100.00 154.94 100.00 90.26 64.68 126.02 27.02 12.61 0.59 39.63 0.55 0.46 PERCENT PCTN Age Distribution Mean Farms w/ Any Debt Farms w/R. Estate Debt Mean Farms w/ Operating Debt Mean Mean Debt/Asset Ratio Real Estate Loans Current on Principal Mean Mean Current on Interest Operating Loans Current on Principal Mean Mean Current on Interest Off-Farm/Totl.Farm Ratio Mean 23.03 0.68 0.50 0.55 20.06 133.00 0.95 0.93 136.00 0.88 0.87 47.16 25.22 0.78 0.59 0.68 38.19 164.00 0.97 0.96 169.00 0.90 0.92 21.59 21.97 0.68 0.50 0.56 25.47 123.00 0.98 0.98 126:00 0.88 0.87 54.89 THOUSANDS Total Assets Percent Distribution Total Debt Percent Distribution Real Estate Debt Operating Debt Gross Sales Net Farm Income Off-Farm Income Percent of Group Total Farm Income Acres Owned Acres Rented Mean 478.69 PCTSUM 39.73 Mean 164.11 PCTSUM 51.22 Mean 97.11 Mean 67.00 Mean 127.37 Mean 35.76 Mean 8.30 Mean 0.50 Mean 44.06 Mean 0.42 Mean 0.45 33 454.48 4.81 92.44 3.68 58.11 34.33 112.12 21.43 14.17 0.59 35.62 0.25 0.12 514.40 28.23 101.32 20.91 61.11 40.21 90.13 18.29 18.90 0.72 37.20 0.40 0.36 ** DEBT/ASSET RATIO GREATER THAN 40 PERCENT ** ** TABLE 33: GENERAL FINANCIAL INFORMATION ON REAL ESTATE AND ** OPERATION LOANS BY REGION AND NATIONAL No. of Observations Weighted Number No. w/ Real Estate Debt No. w/ Operating Debt Central N 123.00 SUMWGT 57.77 N 100.00 N 120.00 Age Distribution PCTN Farms w/ Any Debt Mean Farms w/R. Estate Debt Mean Farms w/ Operating Debt Mean Debt/Asset Ratio Mean Real Estate Loans Current on Principal Mean Mean Current on Interest Operating Loans Current on Principal Mean Mean Current on Interest Off-Farm/Totl.Farm Ratio Mean Total Assets Percent Distribution Total Debt Percent Distribution Real Estate Debt Operating Debt Gross Sales Off-Farm Income Percent of Group Acres Owned Acres Rented Weighted National Region South West Average East 62.00 93.00 331.00 53.00 93.50 3.48 21.94 10.30 78.00 274.00 47.00 49.00 48.00 57.00 80.00 305.00 PERCENT 16.01 18.73 28.10 100.00 1.00 1.00 1.00 1.00 0.92 0.84 0.81 0.76 0.95 0.91 0.86 0.92 76.52 72.48 64.78 76.64 63.00 227.00 43.00 40.00 0.98 1.00 0.98 0.95 0.97 1.00 0.95 0.94 42.00 38.00 58.00 221.00 0.94 0.90 0.98 0.92 0.91 0.97 0.94 0.93 26.60 32.05 29.07 95.72 THOUSANDS 410.41 407.18 750.58 473.27 3.22 20.19 17.48 100.00 265.55 252.52 483.90 314.08 16.98 100.00 3.14 18.87 170.91 151.83 269.19 183.87 94.64 100.69 214.70 130.21 138.58 137.72 238.29 171.08 10.54 14.34 15.87 9.39 0.66 0.58 0.62 0.56 0.19 0.38 1.24 0.50 0.20 0.59 1.37 0.74 Mean PCTSUM Mean PCTSUM Mean Mean Mean Mean Mean Mean Mean 37.16 1.00 0.81 0.98 77.90 81.00 0.98 0.97 83.00 0.94 0.95 19.80 452.69 59.10 310.09 61.01 181.61 128.49 173.73 8.50 0.55 0.43 0.72 34 ** DEBT/ASSET RATIO GREATER THAN 70 PERCENT ** ** TABLE 34: GENERAL FINANCIAL INFORMATION ON REAL ESTATE AND ** OPERATION LOANS BY REGIONS AND NATIONAL No. of Observations Weighted Number No. w/ Real Estate Debt No. w/ Operating Debt Central 58.00 N SUMWGT 27.24 45.00 N 56.00 N PCTN Age Distribution Mean Farms w/ Any Debt Mean Debt Farms w/R. Estate Farms w/ Operating Debt Mean Mean Debt/Asset Ratio Real Estate Loans Current on Principal Mean Mean Current on Interest Operating Loans Current on Principal Mean Mean Current on Interest Off-Farm/Totl.Farm Ratio Mean Total Assets Percent Distribution Total Debt Percent Distribution Real Estate Debt Operating Debt Gross Sales Off-Farm Income Percent of Group Acres Owned Acres Rented Mean PCTSUM Mean PCTSUM Mean Mean Mean Mean Mean Mean Mean 43.94 1.00 0.78 0.97 105.30 33.00 0.97 0.94 35.00 0.94 0.93 15.19 323.99 68.03 308.08 67.69 187.48 120.60 141.46 6.25 0.55 0.32 0.66 35 Weighted National Region West Average South East 34.00 132.00 25.00 15.00 40.84 3.77 8.85 0.98 27.00 102.00 16.00 14.00 30.00 123.00 24.00 13.00 PERCENT 25.76 100.00 18.94 11.36 1.00 1.00 1.00 1.00 0.79 0.75 0.64 0.93 0.95 0.88 0.96 0.87 111.28 104.84 106.47 101.82 73.00 18.00 12.00 10.00 0.98 1.00 1.00 0.90 0.95 1.00 0.95 0.92 77.00 18.00 15.00 9.00 0.94 1.00 0.93 0.89 1.00 0.94 0.94 0.92 18.49 20.66 35.48 26.81 THOUSANDS 215.35 503.22 317.66 352.07 14.61 100.00 2.67 14.69 381.94 205.03 481.97 303.58 14.64 100.00 3.03 14.63 282.14 103.57 233.52 175.83 99.79 101.46 248.44 127.75 121.04 78.35 242.74 136.64 6.49 8.03 12.99 9.68 0.53 0.68 0.62 0.59 0.19 0.22 0.72 0.33 0.09 0.64 0.91 0.54 ** TABLE 35: FARMER'S OPINION OF THEIR FUTURE ** ** WEIGHTED NATIONAL AVERAGE ** -- Reason -Transfer Ownership Within Family Retirement Plan to Sell Out Forced Out By Financial Problems Other Health Gradual Withdrawal from Farming -- Reason -Transfer Ownership Within Family Retirement Plan To Sell Out Forced Out By Financial Problems Other Health Gradual Withdrawal From Farming All All Years Left in Farming 6-10 Until 2 - 5 0- 1 Years Retire Years Years PERCENT OF TOTAL PCTN Mean All 1.01 1.93 2.65 6.31 4.72 7.17 9.00 16.47 17.38 31.87 1.30 1.83 0.87 1.54 5.54 2.31 0.53 0.91 2.89 0.96 1.97 1.59 0.67 2.84 6.88 2.55 7.56 13.67 4.72 13.29 3.42 3.32 6.16 0.63 MEAN DEBT/ASSET 13.53 6.40 24.30 8.13 11.37 23.92 20.64 28.73 33.70 23.00 25.84 45.68 30.68 19.01 38.39 34.78 88.11 16.14 36.52 65.71 30.09 16.35 43.13 16.77 11.09 50.08 41.99 25.86 59.61 33.52 22.24 18.92 8.62 46.71 -20.12 19.93 24.86 18.09 21.28 21.31 33.69 50.17 34.78 25.49 100.00 31.06 36 ** TABLE 36: DEBT/ASSET RATIO VERSUS SALES CLASS ** 00-40 Percent of all Debt Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over All 2.28 1.26 2.20 6.41 11.19 6.41 7.31 37.05 D/A Class 70 Plus 40-70 Percent Percent of all of all Debt Debt 0.88 0.59 1.61 4.44 12.42 9.71 6.72 36.37 0.62 0.69 2.24 4.40 13.07 4.04 1.52 26.58 All Percent of all Debt 3.78 2.53 6.05 15.25 36.68 20.16 15.55 100.00 ** TABLE 37: DEBT/ASSET RATIO VERSUS SALES CLASS ** ** WEIGHTED NATIONAL AVERAGE ** Weighted National Average 70 Plus 40-70 00-40 Weighted Weighted Weighted Weighted Percent Percent Percent Percent D/A Class Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over Weighted National Average 10.38 11.36 12.16 15.44 14.38 3.45 1.77 68.95 37 1.66 0.73 2.35 4.03 5.64 2.28 0.79 17.49 0.62 1.05 2.08 3.23 5.19 1.12 0.27 13.56 12.67 13.14 16.60 22.69 25.21 6.85 2.83 100.00 ** CROP PRODUCERS ONLY ** ** TABLE 38: DEBT/ASSET RATIO VERSUS SALES CLASS ** 00-40 Percent of all Debt Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over All 3.11 0.55 1.80 6.36 10.47 8.91 8.08 39.28 D/A Class 40-70 70 Plus Percent Percent of all of all Debt Debt 0.13 0.97 3.20 7.13 14.52 4.31 0.17 30.42 0.44 0.53 2.25 4.02 7.80 7.00 8.26 30.31 All Percent of all Debt 3.68 2.05 7.25 17.51 32.79 20.21 16.51 100.00 ** CROP PRODUCERS ONLY ** ** TABLE 39: DEBT/ASSET RATIO VERSUS SALES CLASS ** ** WEIGHTED NATIONAL AVERAGE ** D/A Class Weighted National 00-40 70 Plus 40-70 Average Weighted Weighted Weighted Weighted Percent Percent Percent Percent Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over Weighted National Average 5.56 10.38 13.54 16.85 • 13.94 3.47 2.37 66.11 38 0.51 1.29 2.54 5.58 6.09 1.17 0.09 17.28 1.21 0.83 3.51 4.66 3.55 2.24 0.63 16.62 7.28 12.49 19.59 27.09 23.58 6.88 3.09 100.00 ** BEEF PRODUCERS ONLY ** ** TABLE 40: DEBT/ASSET RATIO VERSUS SALES CLASS ** D/A Class All 70 Plus 40-70 00-40 Percent Percent Percent Percent of all of all of all of all Debt Debt Debt Debt Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over All 1.36 3.65 4.31 7.20 13.71 4.48 10.54 45.26 1.53 0.14 0.99 1.54 20.60 9.52 9.51 43.82 0.29 0.17 0.43 1.03 4.61 1.48 2.93 10.93 3.18 3.95 5.73 9.77 38.91 15.48 22.97 100.00 ** BEEF PRODUCERS ONLY ** ** TABLE 41: DEBT/ASSET RATIO VERSUS SALES CLASS ** ** WEIGHTED NATIONAL AVERAGE ** Weighted - National Average 70 Plus 00-40 40-70 Weighted Weighted Weighted Weighted Percent Percent Percent Percent D/A Class Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over Weighted National Average 26.50 19.54 12.85 7.56 11.35 2.69 0.64 81.15 39 3.51 0.16 1.73 1.70 4.80 1.86 0.69 14.43 0.51 0.16 0.42 0.26 2.06 0.32 0.69 4.43 30.52 19.86 14.99 9.52 18.21 4.88 2.02 100.00 ** DAIRY PRODUCERS ONLY ** ** TABLE 42: DEBT/ASSET RATIO VERSUS SALES CLASS ** 00-40 Percent of all Debt Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over All 1.17 0.72 0.62 4.54 24.17 11.04 5.25 47.50 D/A Class 40-70 70 Plus Percent Percent of all of all Debt Debt 2.35 0.84 0.25 8.30 12.70 6.35 1.20 31.99 None None 1.63 0.48 9.27 1.34 7.79 20.51 All Percent of all Debt 3.52 1.56 2.50 13.32 46.13 18.73 14.24 100.00 ** DAIRY PRODUCERS ONLY ** ** TABLE 43: DEBT/ASSET RATIO VERSUS SALES CLASS ** ** WEIGHTED NATIONAL AVERAGE ** D/A Class Weighted National 70 Plus 00-40 40-70 Average Weighted Weighted Weighted Weighted Percent Percent Percent Percent Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over Weighted National Average 3.75 3.04 5.08 18.94 34.05 7.71 3.62 76.19 40 1.38 0.28 0.28 7.43 5.95 1.81 0.28 17.43 None None 1.97 0.33 3.06 0.46 0.56 6.38 5.10 3.32 7.35 26.72 43.06 9.98 4.47 100.00 ** PORK PRODUCERS ONLY ** ** TABLE 44: DEBT/ASSET RATIO VERSUS SALES CLASS ** 00-40 Percent of all Debt Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over All 0.34 1.11 0.00 1.90 4.03 5.96 0.11 13.44 D/A Class 70 Plus 40-70 Percent Percent of all of all Debt Debt 0.78 0.42 None 3.16 13.90 22.82 0.25 41.33 0.45 1.12 0.23 4.08 27.78 11.58 None 45.23 All Percent of all Debt 1.56 2.65 0.23 9.14 45.71 40.36 0.36 100.00 ** PORK PRODUCERS ONLY ** ** TABLE 45: DEBT/ASSET RATIO VERSUS SALES CLASS ** ** WEIGHTED NATIONAL AVERAGE ** Weighted National Average 70 Plus 40-70 00-40 Weighted Weighted Weighted Weighted Percent Percent Percent Percent D/A Class Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 and Over Weighted National Average 7.71 6.04 2.77 15.97 9.96 4.12 0.20 46.80 41 1.58 0.64 None 2.74 12.53 5.66 1.37 24.53 1.02 2.74 1.37 5.49 13.72 4.29 None 28.64 10.31 9.43 4.15 24.20 36.20 14.10 1.58 100.00 ** TABLE 46: Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 250,000 - 499,999 500,000 And Over All DEBT/ASSET RATIO BY SALES CLASS ** Crops D/A Beef D/A Type Pork D/A Dairy D/A Poultry D/A 18.93 16.50 30.21 43.04 41.95 50.48 32.40 36.07 10.85 9.22 17.15 30.27 28.36 45.44 44.32 19.45 16.61 37.27 30.51 39.36 61.56 60.50 36.16 47.56 22.85 12.45 41.64 24.07 22.20 34.32 33.36 25.58 14.22 None 38.82 27.55 52.67 None 48.00 33.84 ** TABLE 47: DEBT/ASSET RATIO BY SALES CLASS ** ** WEIGHTED NATIONAL AVERAGE ** East D/A Gross Sales Class Less Than 10,000 10,000 - 24,999 25,000 - 49,999 50,000 - 99,999 100,000 - 249,999 / 250,000 - 499,999 500,000 And Over All 13.78 9.14 11.96 25.87 23.56 41.26 13.64 20.85 Region South Central D/A D/A 13.07 7.97 28.43 43.17 38.01 33.48 22.93 25.30 42 15.57 23.60 29.44 39.07 43.42 54.03 43.45 38.37 West D/A Weighted National Average D/A 15.53 21.18 27.70 26.43 25.73 41.49 43.15 28.32 13.93 15.02 27.88 37.76 38.52 48.41 35.19 31.80 Questionnaire 1. How do you feel about yoUr future in farming? Enthusiastic Hopeful Depressed Discouraged Other Why? 2. In your opinion, what is the biggest problem facing farmers today? 3. What is the biggest problem you personally face? 4. How would you evaluate the government's present farm policy? 5. What changes in government policy should be made? 6. How many years has farming been your primary source of income? None Under 5 years 5-10 years Over 10 years 7. What is your level of education? Elementary School Some High School High School Graduate Some College College Graduate Graduate School 7a. My approximate age is: A Under 35 35-44 45-54 55-64 65 and Over 8. What was the value of gross sales from your farming operation in 1983 and 1984 (including government payments)? 1983 Estimated 1984 Estimated 1985 43 9. What percent of your 1984 gross farm sales will come from each of these sources? Crops Beef Dairy Poultry Pork Others 10. How much did you spend for cash operating expenses in: 1983 Estimated 1984 Estimated 1985 11. What was your 1984 OFF-FARM INCOME? Husband $ Wife $ 12. How many acres do you: A. Own B. Rent from others C. Rent to others Total land you operate (Item A + B - C) acres acres acres acres 13. How many acres of land did you purchase or sell: Purchase acres acres acres During the last 3 years 4 - 6 years ago 7 - 10 years ago Sell acres acres acres 14. What dollar amount of capital investments in buildings, facilities and equipment have you bought or sold? Bought Sold During the last three years 4 - 6 years 7 - 10 years 15. What is the current market value of assets that you own? Real estate (land and buildings) Machinery Livestock Other 16. How much debt outstanding do you have in each category? Amount Farm real estate debt Farm operating loans Intermediate (Machinery) Other $ $ $ $ Annual Payment Interest Rate % % % % $ $ $ $ (Specify) 17. Are your debt payments current? Yes principal interest principal interest A. Real estate debt B. Operating loans 44 No years. 18. How long do you believe you will be in farming'? 19. What do you anticipate will be your reason for leaving farming? (Check as many as apply.) Retirement Health Transfer ownership within family Gradual withdrawal from farming Plan to sell out Will be forced out because of financial problems Other 20. Have you been turned down for a loan during the past 12 months by any of the following lenders? Yes Did Not Apply For Loan No Local Bank Production Credit Association Federal Land Bank Insurance Company Farmers Home Administration YES 21. Are you currently a FmHA borrower9 NO 22. Do you have any land you would sell if you could get a reasonable price? NO YES (IF YES) how many acres? At what price would you sell? $ acres per acre 23. Are you interested in buying land now? YES NO (IF YES) how many acres? At what price would you buy? $ acres per acre 24. The administration is considering several options for the 1985 farm bill, which of the following options do you favor? Extension of the current farm program Less government with market-oriented loan rates linked to a moving average of farm prices Stronger government programs with higher supported loan rates Two-tier pricing program with higher domestic loan rates and subsidies exported Other 25. The U.S. currently has about thirty million acres of land capacity over and above current levels of demand. Which of the following options do you favor for dealing with this excess capacity? Long-term retirement program with land in grass or trees Modify current programs with stronger set-aside and paid diversion Annual program based on the lowest bid at the county ASCS office Less supply control with more efforts on domestic and export demand Other 45 1