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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 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 Of course, thats impossible.

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

15 What Things Cost – 1973 vs nominal CPI adjusted to 2012 Gas Postage Bread Car House Income Family Living Land

16 What Things Cost – 1973 vs nominal CPI adjusted to 2012 Actual 2012 prices Gas Postage Bread Car House Income Family Living Land

17 How Much Did N.F.I. Buy in 1973? How Much Did N.F.I. Buy in 2012? Gas Gallons Postage Stamps Bread Loaves Car Cars House % of 1 unit Income X > aver. Family Living Years Land Acres

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