Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 3/21/18


The economic state of U.S. crop farming has drawn considerable attention in recent years. This article uses U.S. Department of Agriculture (USDA) cost of production data to compare the ratio of gross revenue per acre from the market to total cost of production per acre for 9 crops over 3 recent periods: 2003-2006, 2008-2013, and 2015-2016. Also compared are farm safety net payments. The 3 periods are distinct price and income periods. Prices and income were lower in 2003-2006 than in the 2008-2013 farm prosperity period of higher prices and incomes. The 2015-2016 period is associated with lower crop prices and incomes. Both 2007 and 2014 are treated as transition years. Data note 1 contains further discussion of the cost of production data and time periods. Data note 2 contains further discussion of the farm safety net payment data.

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