Farm Income
 Net farm income in 1998 fell 23 percent to $308 million. The total agriculture output was $3.90 billion dollars, down 5.2 percent from 1997. This was supplemented by $208 million of government payments, up 72 percent from 1997. Production expenses were $3.80 billion in 1998, down 1 percent from the previous year.

Preliminary cash receipts from 1998 marketings of Michigan crops, livestock and livestock products totaled $3.48 billion, down 3 percent from 1997. Michigan ranked 22nd nationally in total cash receipts.

Crop receipts fell 3.4 percent from 1997 to $2.16 billion. Declines in the values of corn, soybeans, and wheat, the major field crops, contributed most to the decline. Livestock cash receipts of $1.32 billion were down 3.1 percent from a year earlier. Large decreases in the value of sales of meat animals more than offset a rise in milk receipts.

California, Texas, and Iowa were the three top states in agricultural cash receipts in 1998. They combined for nearly one-fourth of the U.S. total of $196.8 billion.

Farm Income chart for Major Michigan Commodity Groups, 1998

Table 2.1_Government payments
[Source: U.S. Department of Agriculture, Economic Research Service]
Program 1994 1995 1996 1997 1998
1,000 dollars
Conservation programs
 24,406 22,817 22,963 20,854 17,488
Wheat programs
 10,516 5,186 -- -- --
Feed grain programs
 39,376 86,358 -- -- --
Production flexibility contract payments
 -- -- -- -- 100,556
Loan deficiency payments
 -- -- -- -- 38,577
Miscellaneous programs
 1 27,767 1 36,635 1 86,622 1 100,433 2 51,755
Total
 102,065 150,996 109,585 121,287 208,077
1 Programs included are CAT, Disaster, Loan Deficiency, NAP, and Production Flexibility, and repayments by farmers.
2 No longer includes Loan Deficiency and Production Flexibility payments.

Table 2.2_Value added to the U.S. economy by the agricultural sector
[Source: U.S. Department of Agriculture, Economic Research Service]
Item 1 1994 1995 1996 1997 1998
Million dollars
Final crop output
 2,045.9 2,284.8 2,043.5 2,345.8 2,115.4
    Food grains
 91.6 143.7 95.2 104.2 75.1
    Feed crops
 400.8 537.3 508.7 482.3 396.1
    Oil crops
 305.8 364.0 320.6 395.0 376.2
    Fruits and tree nuts
 186.9 204.1 225.2 235.1 213.8
    Vegetables
 440.3 423.0 442.3 383.9 447.4
    All other crops
 577.4 589.6 560.0 633.1 649.0
    Home consumption
 3.8 3.8 3.7 3.6 3.5
    Value of inventory adjustment 2
 39.3 19.2 -112.1 108.6 -45.7
Final animal output
 1,389.6 1,330.9 1,441.2 1,320.6 1,337.8
    Meat animals
 495.2 469.4 459.4 451.7 340.9
    Dairy products
 739.0 717.5 807.5 732.1 820.9
    Poultry and eggs
 128.1 121.2 150.5 133.6 111.6
    Miscellaneous livestock
 37.2 44.5 49.1 47.4 49.3
    Home consumption
 10.7 10.1 9.9 9.9 9.3
    Value of inventory adjustment 2
 -20.7 -31.8 -35.1 -54.1 5.8
Services and forestry
 337.2 375.2 396.5 447.8 448.8
    Machine hire and customwork
 40.7 37.0 40.4 47.7 41.2
    Forest products sold
 11.0 10.0 10.0 10.0 10.0
    Other farm income
 60.0 70.0 71.0 96.2 88.4
    Gross imputed rental value of farm dwellings
 225.5 258.2 275.1 293.9 309.2
Final agricultural sector output
 3,772.7 3,990.9 3,881.3 4,114.2 3,902.1
less: Intermediate consumption outlays
 2,145.2 2,106.7 2,087.3 2,321.9 2,219.0
    Farm origin
 663.7 624.9 611.6 691.9 656.0
        Feed purchased
 368.8 391.3 380.9 425.3 373.4
        Livestock and poultry purchased
 81.1 47.2 37.6 40.2 38.2
        Seed purchased
 213.8 186.4 193.1 226.3 244.4
    Manufactured inputs
 646.5 642.0 670.5 726.5 680.4
        Fertilizers and lime
 269.9 266.7 269.4 293.8 263.2
        Pesticides
 185.4 192.8 206.2 228.7 231.1
        Petroleum fuel and oils
 135.9 127.2 138.6 145.5 129.5
        Electricity
 55.2 55.4 56.3 58.5 56.6
    Other intermediate expenses
 834.9 839.8 805.1 903.5 882.6
        Repair and maintenance of capital items
 256.5 250.9 290.7 299.7 299.6
        Machine hire and customwork
 73.1 65.9 58.5 68.3 77.5
        Marketing, storage, and transportation expenses
 127.2 125.0 107.2 116.5 93.3
        Contract labor
14.3 9.7 12.2 15.3 25.8
        Miscellaneous expenses
 363.9 388.3 336.5 403.6 386.4
plus: Net government transactions
 -83.9 -42.2 -84.9 -82.1 8.3
+ Direct Government payments
 102.1 151.0 109.6 121.3 208.1
- Motor vehicle registration and licensing fees
 8.1 8.7 8.4 12.5 11.4
- Property taxes
 177.9 184.5 186.1 190.8 188.5
Gross value added
 1,543.6 1,841.9 1,709.0 1,710.2 1,691.4
less:     Capital consumption
 511.0 527.8 531.6 523.1 529.2
Net value added
 1,032.6 1,314.2 1,177.4 1,187.1 1,162.3
less: Factor payments
 688.4 665.9 736.9 786.5 853.9
    Employee compensation (total hired labor)
 434.1 402.8 448.9 477.1 514.5
    Net rent received by nonoperator landlords
 36.9 35.1 44.2 52.2 69.0
    Real estate and nonreal estate interest
 217.4 228.0 243.8 257.2 270.4
Net farm income
 344.2 648.3 440.6 400.7 308.4
1    Final sector output is the gross value of the commodities and services produced within a year. Net value-added is the sector's contribution to the National economy and is the sum of the income from production earned by all factors-of- production. Net farm income is the farm oper-ators' share of income from the sector's production activities.The concept presented is consistent with that employed by the Organization for Economic Cooperation and Development.
2    A positive value of inventory change represents current-year production not sold by December 1. A negative value is an offset to production from prior years included in current-year sales.

Table 2.3_Cash receipts by commodity groups and selected commodities
[Source: U.S. Department of Agriculture, Economic Research Service]
Item 1994 1995 1996 1997 1998
1,000 dollars
     Dairy (milk)
 739,045 717,469 807,489 732,135 820,932
        Cattle and calves
 306,170 278,193 238,675 230,906 196,656
        Hogs
 184,401 186,293 215,629 213,722 141,009
        Sheep and lambs
 4,675 4,952 5,079 7,045 3,233
     Meat animals
 495,246 469,438 459,383 451,673 340,898
        Eggs
 50,823 50,431 68,426 61,927 58,104
        Poultry
 77,315 70,796 82,055 71,720 53,526
    Poultry/eggs
 128,138 121,227 150,481 133,647 111,630
        Honey
 4,257 6,961 8,726 4,582 4,488
        Mink pelts
 1,903 1,733 2,767 2,012 1,854
        Trout
 2,315 1,850 2,058 1,486 1,486
        Other
 28,748 33,909 35,581 39,323 41,498
    Miscellaneous livestock
 37,223 44,453 49,132 47,403 49,326
Total livestock and products
 1,399,652 1,352,587 1,466,485 1,364,858 1,322,786
        Barley
 2,430 2,611 3,026 2,512 2,252
        Beans, dry
 145,253 105,872 123,955 85,067 97,074
        Corn
 325,486 475,021 458,202 417,461 354,132
        Hay
 70,239 57,002 43,734 59,768 37,390
        Oats
 2,688 2,713 3,693 2,591 2,283
        Soybeans
 304,825 363,059 319,930 394,318 375,776
        Sugarbeets
 113,890 100,386 81,661 117,040 106,568
        Wheat
 91,220 143,231 94,858 103,799 74,683
        Other
 8,832 8,380 7,331 8,561 8,163
     Field crops
 1,064,863 1,258,275 1,136,390 1,191,117 1,058,321
        Asparagus
 14,194 20,106 20,110 17,792 17,480
        Beans, snap
 13,580 12,048 13,657 15,597 20,445
        Cabbage
 5,517 5,151 5,072 4,243 7,336
        Carrots
 13,616 34,564 17,736 18,903 23,421
        Celery
 14,745 14,255 13,294 14,358 12,327
        Corn, sweet
 18,300 16,166 17,229 17,408 16,892
        Cucumbers
 31,930 36,697 38,217 37,808 48,906
        Onions
 14,956 13,474 15,775 10,875 12,767
        Peppers, green
 7,904 8,104 7,360 7,817 9,576
        Potatoes
 86,854 81,429 94,642 74,578 88,013
        Tomatoes
 23,187 19,814 20,993 19,451 27,745
        Other
 50,241 55,341 54,256 60,019 65,371
     Vegetables
 295,024 317,149 318,341 298,849 350,279
        Apples
 84,553 102,094 109,627 89,619 92,914
        Blueberries
 25,180 33,450 36,330 50,042 30,260
        Cherries, sweet
 13,497 15,700 15,607 19,986 18,551
        Cherries, tart
 35,636 13,448 31,202 34,380 32,162
        Grapes
 14,860 15,196 13,555 15,380 17,510
        Peaches
 3,400 12,594 10,250 14,450 11,551
        Strawberries
 6,300 6,822 4,512 7,411 7,089
        Other
 3,438 4,768 4,073 3,800 3,792
     Fruit
 186,864 204,072 225,156 235,068 213,829
     Floriculture & Nursery
 398,385 424,625 415,253 451,384 475,323
     Miscellaneous crops
 57,702 57,691 56,785 57,145 59,805
Total crops
 2,002,838 2,261,812 2,151,925 2,233,563 2,157,557
Total cash receipts
 3,402,490 3,614,399 3,618,410 3,598,421 3,480,343

Table 2.4_Crop prices received by farmers
Year Average annual prices
Corn
per bushel 		Wheat per bushel Oats per bushel Soybeans per
bushel 		Dry beans per cwt. Potatoes per
cwt. 		All hay per
ton 		Alfalfa hay per ton
Dollars
1994
 2.23 3.25 1.44 5.43 27.10 6.70 70.50 71.50
1995
 3.20 4.10 1.90 6.52 19.40 6.90 66.00 67.00
1996
 2.66 3.91 2.41 7.15 21.70 5.80 106.00 108.00
1997
 2.40 3.26 1.86 6.47 18.90 6.45 101.00 103.00
1998 1
 1.90 2.35 1.30 5.25 22.50 6.25 89.00 92.50
Year and
month 		Monthly prices
Dollars
1997:    June
 108.00 110.00
                July
 3.20 2.01 83.00 85.00
                August
 3.40 1.83 98.00 100.00
                September
 3.46 1.72 6.89 14.70 103.00 105.00
                October
 2.71 3.40 2.02 6.62 16.70 103.00 105.00
                November
 2.50 3.30 1.63 6.79 18.00 109.00 110.00
                December
 2.44 2.93 1.79 6.58 20.90 104.00 105.00
1998:    January
 2.48 3.10 1.79 6.54 20.90 108.00 110.00
                February
 2.45 3.07 1.91 6.36 20.10 6.30 102.00 105.00
                March
 2.47 3.06 1.98 6.40 18.80 6.55 98.00 100.00
                April
 2.32 2.77 1.89 6.12 20.00 6.65 99.00 100.00
                May
 2.25 2.59 1.90 6.14 18.80 7.25 101.00 105.00
                June
 2.14 2.60 1.75 5.93 19.00 8.05
                July
 2.18 6.06 19.00 6.35
                August
 1.98 5.50 17.10 5.70
                September
 1.81 5.25
                October
 5.60
                November
 6.35
                December
 6.55
1 Preliminary prices.

Michigan Corn Price Chart, 1950-98

Table 2.5_Livestock prices received by farmers
Year Average annual prices
All hogs per cwt. Beef cattle per cwt. 1 Cows per cwt. 2 Steers and heifers per cwt. Milk cows per head 3 Calves per cwt. Market eggs per dozen All milk wholesale per cwt.
Dollars
1994
 38.80 55.50 42.70 61.30 1,210 94.10 0.425 13.40
1995
 39.70 52.00 37.00 58.50 1,150 69.30 0.435 13.00
1996
 51.40 49.80 31.50 54.60 1,100 51.60 0.623 15.00
1997
 53.10 50.80 35.80 60.60 1,090 54.00 0.560 13.60
1998
 33.90 47.70 34.40 55.40 1,130 51.70 0.500 15.30
Year and
month 		Monthly prices
Dollars
1997:     December
 41.90 0.660
1998:     January
 36.40 48.60 34.70 57.80 1,080 52.00 0.570 14.70
                February
 36.30 50.20 34.40 60.80 55.00 0.440 15.10
                March
 36.50 50.30 37.30 59.00 55.00 0.570 14.80
                April
 36.50 47.80 37.20 54.90 1,110 55.00 0.440 14.50
                May
 42.20 48.50 36.50 53.60 55.00 0.320 13.80
                June
 40.80 50.00 37.50 55.30 52.50 0.410 13.80
                July
 35.30 47.30 34.10 52.90 1,120 54.00 0.450 13.40
                August
 33.40 49.00 36.70 54.30 54.00 0.500 14.80
                September
 27.20 44.90 31.80 53.70 48.60 0.480 16.40
                October
 26.20 45.40 31.00 55.00 1,190 47.00 0.520 17.40
                November
 17.00 44.00 29.80 53.50 45.00 0.560 17.60
                December
 44.80 31.00 54.00 50.00 17.70
1 Combined price for "Cows" and "Steers and Heifers."
2 Cull dairy cows sold for slaughter.
3 Sold for dairy herd replacement only. Prices published January, April, July, and October.

Michigan Hog Price Chart, 1950-98

Farm Marketings: Percent of sales by month
Table 2.6_Beans, dry
Month 1993-94 1994-95 1995-96 1996-97 1997-98
Percent
September
 12 24 26 6 5
October
 25 30 11 32 16
November
 7 8 8 8 11
December
 11 8 8 6 16
January
 6 12 7 15 11
February
 8 2 5 6 10
March
 3 2 6 3 6
April
 5 7 5 6 6
May
 10 2 10 3 5
June
 6 2 7 7 5
July
 3 1 4 5 5
August
 4 2 3 3 4

Table 2.7_Corn
Month 1993-94 1994-95 1995-96 1996-97 1997-98
Percent
October
 5 3 18 5 5
November
 25 18 19 22 20
December
 16 14 13 12 19
January
 12 14 20 15 16
February
 8 6 10 9 9
March
 6 6 6 6 7
April
 4 5 7 5 5
May
 5 5 3 3 5
June
 7 11 1 5 4
July
 5 7 1 6 3
August
 4 7 1 6 3
September
 3 4 1 6 4

Table 2.8_Hay
Month 1993-94 1994-95 1995-96 1996-97 1997-98
Percent
June
 11 11 12 11 13
July
 10 10 9 9 13
August
 9 9 6 6 9
September
 6 6 3 3 6
October
 6 6 6 6 6
November
 6 6 4 4 12
December
 6 6 7 7 12
January
 10 10 8 8 8
February
 9 9 14 14 6
March
12 12 15 15 7
April
8 8 12 12 5
May
 7 7 4 5 3

Table 2.9_Oats
Month 1993-94 1994-95 1995-96 1996-97 1997-98
Percent
July
 7 8 4 11 7
August
 44 50 39 33 39
September
 11 7 4 10 7
October
 6 3 6 4 2
November
 6 2 5 1 2
December
 3 3 1 2 2
January
 6 5 12 3 1
February
 3 4 8 6 4
March
 4 3 3 5 11
April
 3 9 6 5 15
May
 2 3 8 5 4
June
 5 3 4 15 6

Table 2.10_Soybeans
Month 1993-94 1994-95 1995-96 1996-97 1997-98
Percent
September
 -- 2 9 2 1
October
 39 26 41 34 31
November
 15 20 8 15 19
December
 9 9 7 8 8
January
 6 12 14 15 8
February
 5 8 6 6 7
March
 4 5 4 6 5
April
 4 4 5 4 4
May
 7 4 3 2 4
June
 4 4 1 1 5
July
 3 3 1 4 4
August
 4 3 1 3 4

Table 2.11_Wheat
Month 1993-94 1994-95 1995-96 1996-97 1997-98
Percent
July
 28 29 38 27 20
August
 24 29 26 39 27
September
 8 12 5 8 7
October
 9 5 7 3 3
November
 5 2 8 1 25
December
 11 7 3 3 3
January
 8 7 6 7 3
February
 3 3 5 3 5
March
 1 2 1 4 2
April
 1 1 1 4 2
May
 1 1 -- 1 2
June
 1 2 -- -- 1

Table 2.12_Prices paid by farmers
[Regional and U.S. data only. Published in April]
Item and unit 1995 1996 1997 1998 1999
Dollars
Dairy feed, 16% protein, ton 1
 172 226 212 190 171
Hog concentrate, 38-40% protein, ton 1
 287 339 393 300 273
Soybean meal, 44% protein, cwt. 1
 10.10 14.40 16.40 11.50 9.50
Gasoline, unleaded, bulk, gallon 1
 1.16 1.32 1.30 1.16 1.17
Diesel fuel, gallon 1
 0.83 0.98 0.91 0.79 0.76
Tractors:    110-129 hp, each 2
 54,000 55,400 57,400 59,500 60,100
                        200-280 hp, 4-wd., each 2
 98,700 100,000 111,000 116,000 116,000
Corn planter, 8-row, each 2
 22,700 24,400 25,800 25,700 26,000
Grain drill, press, 23-25 openers, each 2
 11,500 13,300 14,400 16,300 15,600
Combine, self-propelled with grain head, large capacity
 130,000 137,000 135,000 140,000 142,000
Ammonium nitrate, ton 3
 218 220 218 179 168
Muriate of potash, 60-62% K2 O, ton 3
 152 151 150 161 166
Superphosphate, 44-46% P2O5, ton 3
 230 256 255 248 252
Anhydrous ammonia, ton 3
 335 309 314 256 211
2,4-D, 4 lb/gal EC, gallon 2
 14.20 14.80 14.90 14.90 14.90
Lasso, 4 lb/gal EC, gallon 2
 28.10 28.70 25.30 25.70 24.90
Bladex, 4 lb/gal liquid, gallon 2
 28.30 29.40 30.00 31.60 32.30
Dual, 8 lb/gal EC, gallon 2
 67.70 69.40 69.50 72.60 77.70
Treflan, 4 lb/gal EC, gallon 2
 32.80 32.60 31.40 29.90 29.20
EC=Emulsifiable Concentrate.
1 Lake States=MI, MN, WI.
2 United States.
3 North Central Region=IL, IN, IA, MI, MN, MO, OH, WI.

Table 2.13_Farm production expenses
Item 1994 1995 1996 1997 1998
Million dollars
Feed purchased
368.8 391.3 380.9 425.3 373.4
Livestock and poultry purchased
 81.1 47.2 37.6 40.2 38.2
Seed purchased
213.8 186.4 193.1 226.3 244.4
Fertilizers and lime
 269.9 266.6 269.4 293.8 263.2
Pesticides
 185.4 192.8 206.2 228.7 231.1
Petroleum fuel and oils
135.9 127.2 138.6 145.5 129.5
Electricity
 55.2 55.4 56.3 58.5 56.6
Repair and maintenance of capital items
256.5 250.9 290.7 299.7 299.6
Machine hire and custom work
73.1 65.9 58.5 68.3 77.5
Contract and hired labor expenses
 448.4 412.5 461.1 492.4 540.3
Marketing, storage, and transportation expenses
 127.2 125.0 107.2 116.5 93.3
Capital consumption
 511.0 527.8 531.6 523.1 529.2
Real estate and nonreal estate interest
217.4 228.0 243.9 257.2 270.4
Property taxes
177.9 184.5 186.1 190.8 188.5
Net rent received by nonoperator landlords
 36.9 35.1 44.2 52.2 69.0
Miscellaneous expenses
 372.0 397.0 344.9 416.3 397.6
Total production expenses
 3,530.5 3,493.6 3,550.3 3,834.8 3,801.8

Farm Labor
 The number of self employed and unpaid workers dropped in 1998, while the number of hired workers rose. The number of self employed workers decreased 5 percent to 36,300 and unpaid workers dropped 6 percent to 8,000. The number of hired workers rose 9 percent to 23,800.

Wage rates for all hired workers increased 10 percent to $7.87. The number of hired workers also increased 9 percent to 23,800.

Table 2.14_Farm Labor, Michigan
[All numbers are annual averages]
Year Workers Hours worked Wage rates
Self employed Unpaid Hired Hired
workers 		All hired workers Field
workers 		Field and
livestock workers
Number Hours per week Dollars per hour
1994
 (1) (1) 26,000 35.5 6.40 5.97 5.99
1995
 38,000 11,800 25,000 39.2 6.64 6.40 6.33
1996
 39,800 10,300 17,800 34.5 6.96 6.73 6.61
1997
 38,300 8,500 21,800 36.9 7.14 6.78 6.62
1998
 36,800 8,000 23,800 38.6 7.87 7.39 7.39
1 Data not available.

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Michigan Agricultural Statistics Service

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