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Riverland Farm Business Management Spring Analysis Summary Meeting April 9, 2013.

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Presentation on theme: "Riverland Farm Business Management Spring Analysis Summary Meeting April 9, 2013."— Presentation transcript:

1 Riverland Farm Business Management Spring Analysis Summary Meeting April 9, 2013

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3 EVERYTHING CHANGES GOOD-BYE, 1973

4 4 Aviate Navigate Communicate

5 COMPUTER TECH CIRCA 1983

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7 1983 COMPAQ V. 2012 ANDROID Weight 28 pounds Speed 5 mghz Internal memory 10 megabytes RAM 128 kilobytes Price $3590(nominal) Price $8257(CPI adjusted) 5.5 ounces (81X <) 1.2 ghz (240X >) 48 gigabytes (4.8 million X >) 1 gigabyte (7.8 million X >) Price $400 (9 X <) {$49.95 w/contract} Price (21 X <)

8 2012 BLOWS THE DOORS OFF 1973 Net Farm Income in 1973 was $43,358 Net Farm Income in 2012 was $260,813 (Riverland Data) Adjusted for inflation, the $43,358 in1973 dollars act like $223,294 of todays dollars. Our 2012 Net Farm Income surpassed 1973.

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12 Now a Slide About How I Lied

13 I adjusted the numbers based on the Consumer Price Index The CPI is a calculation based on a market basket sampling of the things that people buy. It is a measure of inflation as it affects most of us. The CPI factor for 1973 compared to 2012 is 5.15 If you bought $10,000 worth of exactly the same amounts of exactly the same things that you did in 1973 as you did in 2012, they would have cost you $51,500 in 2012. Of course, thats impossible.

14 What Things Cost – 1973 vs. 2012 1973 nominal Gas.39 Postage.08 Bread.27 Car 3200 House 45250 Income 9572 Family Living 11869 Land 466

15 What Things Cost – 1973 vs. 2012 1973 nominal CPI adjusted to 2012 Gas.392.01 Postage.08.41 Bread.271.39 Car 320016480 House 45250233038 Income 957249296 Family Living 1186961125 Land 4662400

16 What Things Cost – 1973 vs. 2012 1973 nominal CPI adjusted to 2012 Actual 2012 prices Gas.392.013.63 Postage.08.41.45 Bread.271.391.88 Car 32001648030748 House 45250233038301100 Income 95724929651000 Family Living 1186961125108764 Land 46624005000

17 How Much Did N.F.I. Buy in 1973? How Much Did N.F.I. Buy in 2012? 19732012 Gas 11117471849 Gallons Postage 541975579584 Stamps Bread 160585138730 Loaves Car 13.58.5 Cars House.96.87 % of 1 unit Income 4.55.1 X > aver. Family Living 3.62.4 Years Land 93.052.2 Acres

18 How Much Did N.F.I. Buy in 1973? How Much Did N.F.I. Buy in 2012? 19732012 Fertilizer for Corn 19981322 acres Crop Chemicals 41977755 acres Seed Corn 32452239 acres Machinery Cost 17191591 acres

19 Other Factors: Farm size 1973 was 327 acres (includes pasture) Farm size 2012 was 642 acres Operators per farm in 1973 was about 1? Operators per farm in 2012 are more than 1, less than 2?

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24 A CAUTIONARY TALE

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28 2013 Will Be Another Interesting Year Are we on Step 3 going up? Or, are we on Step 1 going down? We Remain Eternally Optimistic


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