Living expenses $100/acre

[Jim Meade / Iowa City]

An Illinois Farm Business Farm Management group estimates that in 2010, farm families had about $100/acre of living expenses.  200 bushel corn has about 50 cents/acre in living expenses.  A market shift could have quite an impact.

The average family in the study spent about $67,606 in expenses and another $6604 in capital expenses such as furniture, automobiles, etc, for a total of $74209.

Income tax was 20064.

 The average off-farm income per family was $35967, so I suppose that offsets farm income.  The study doesn't say so but I'd think then you only have about $50/acre expenses more or less to make up from farm income.  Read the study and see how you understand it.

http://www.farmdocdaily.illinois.edu/2012/02/keep_in_mind_family_living_whe.html

[kraft-t]

wE SPEND TWICE THAT BUT WE DON'T HAVE MANY ACRES AND WE LIVE BETTER THAN WE SHOULD.

[Jim Meade / Iowa City]

I spend half of that and live as well as I need to.  But, if it will help you out, send me some of your money and I'll endeavor ot spend it.

[kraft-t]

You must have quite  a few acres. Thankfully most of ours are paid for.

[smokeyjay]

Interesting numbers.  Now comparing those numbers to median household income across the U.S., most farmers are very wealthy when compared to the average household.  $74,209 versus $50,740 median household income (2007 numbers, latest online figures) http://www.fedstats.gov/qf/states/20000.html  Even using the lower number before making capital purchases puts farm families above the median.