Current Data Sources for Farm Income and Expenditure Estimates 2009-2011

The annual values for crop cash receipts for each State are based on data obtained from both published and unpublished NASS sources, the annual Agricultural Resource Management Survey (ARMS) Phase III, and Farm Service Agency Commodity Credit Corporation (CCC) loan data. NASS annual crop quantities produced for each State are converted to quantities sold. Crop quantities are allocated over the 12 months of the calendar year using NASS monthly marketing percentages for that State, which are then converted to monthly open-market cash receipts using monthly average State prices. In lieu of State monthly prices, the annual crop marketing-year estimates of sales are allocated over the calendar-year months to obtain each State's calendar-year annual estimate. Monthly CCC loan receipts plus any profits from CCC transactions are added to the open-market sales to create monthly cash receipts. The sum of the State's monthly cash receipts from January through December for each crop obtains its calendar-year annual cash receipts. The U.S. estimate for each crop is the sum of the States' annual estimates.

The annual values for livestock cash receipts are based on NASS' annual Production, Disposition, and Income (PDI) reports and other published and unpublished NASS data. The Meat Animal PDI report contains information on Cattle & Calves and Hogs. Dairy cow data are derived from the Milk PDI. Broiler, turkey, and egg data are provided by the Poultry & Egg PDI. The livestock commodities not accounted for in these reports are presented in other commodity-specific reports such as "Honey" or "Trout." Receipts for commodities not accounted for in individual or grouped reports are collected in a Minor Commodities report. Unlike the crop cash receipts, all livestock commodities are measured on a calendar-year basis, so no transformations from commodity year to calendar year are required. The U.S. estimate for each livestock category is the sum of the States' annual estimates.

Annual estimates of home consumption for each State are based on State annual ARMS estimates for the 15 largest agricultural States. Estimates for the remaining States are based on their proportion of farm operations, reflecting the most recent NASS data, within their particular region. The value of inventory adjustment reflects the sum of each State's inventory adjustments for their respective crop inventories. Inventory adjustments reflect the value of the annual quantity change in inventories. U.S. estimates are a summation of the State estimates.

The majority of USDA estimates of farm sector production expenses for the 48 contiguous States are derived from annual ARMS results. USDA analysts from ERS and NASS utilize survey responses to produce estimates of 18 individual production expenses for the United States, 5 geographical regions, and 15 "core" States, as reported in NASS' Farm Production Expenses Annual Summary. The core States are the largest in terms of agricultural production.

Production expenses are first estimated of each production expense category for the United States. Estimates of each production expense and total expenses for the 5 regions, the 15 "core" States, and the group of remaining States in each region are then produced. The intraregional distribution of expenses for non-core States are based on data reported in the latest census of agriculture. Since ARMS is conducted only for the 48 contiguous States, estimates for Alaska and Hawaii have to be generated using other sources when ARMS is the basis for an estimate. Estimates for Alaska are based on the relationship of the State's values to the sum of the 48 contiguous States' values, based most often on the census of agriculture. Hawaii's estimates are mainly based on the State's census of agriculture values in the census year adjusted by the change in its cash receipts in subsequent years. In the case of hired labor, the census value is adjusted by results from the Farm Labor Survey. When no census expense exists, Hawaii's estimates are generated in a manner similar to Alaska's.

NASS Statistical Bulletins Currently Used in USDA's Net Farm Income Estimates

1. Citrus Fruits
2. Crop Production - Annual Summary
3. Noncitrus Fruits and Nuts
4. Vegetables - Annual Summary
5. Potatoes - Annual Summary
6. Crop Values - Annual Summary
7. Land Values
8. Farms, Land in Farms, and Livestock Operations
9. Cattle
10. Hogs and Pigs
11. Milk Production
12. Sheep and Goats
13. Chickens and Eggs - Annual Summary
14. Honey
15. Meat Animals Production, Disposition, and Income - Annual Summary
16. Milk Production, Disposition and Income - Annual Summary
17. Poultry Production and Value
18. Mink

Assets, Debt, and Wealth Data Sources and Definitions

Last updated: Monday, February 11, 2013

For more information contact: Mitch Morehart