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How ARMS Data is How ARMS Data is Used: An Illinois Used: An Illinois PerspectivePerspective

Gary SchnitkeyUniversity of Illinois

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ARMS data already ARMS data already used extensivelyused extensively

Research (primarily in finance group)

State-level data will enhance ARMS use and usefulness

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Linkages between Linkages between ARMS and already ARMS and already existing dataexisting data

Data already created at state, university, commodity group, other level– Budgets– State income estimates– Farm financial databases

Example: Illinois Farm Business Farm Management (FBFM)

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Costs per acre, corn, Costs per acre, corn, 20022002

ARMS ------ Illinois FBFM ------ Heartland North Central South

Seed $32 $35 $34 $35Fertilizer 39 51 55 54Chemicals 26 34 34 31Power 89 113 106 101Land 104 121 130 70Labor 25 35 37 40Other 12 22 20 19Total $327 $411 $416 $350

Yield/acre 142 154 152 97

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Income estimatesIncome estimates

USDA FBFM($ million) * NFI **

1997 2,109 $50,2001998 1,425 13,8001999 1,081

31,2002999 1,569 54,1002001 1,664 30,9002002 642

27,1002003E 51,800

* USDA estimates of aggregate Illinois net farm income

** FBFM estimate of net income per grain farm

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USDA and FBFM: Trends USDA and FBFM: Trends over timeover time

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1997 1998 1999 2000 2001 2002 2003

Year

Ind

ex

nu

mb

er

(1.0

= a

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rag

e)

FBFM

USDA

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Combinations between Combinations between ARMS and existing data ARMS and existing data likely to be highly likely to be highly usefuluseful

ARMS random sample, national coverage

“State” detailed information about production processes, longitudinal

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Additional Additional informationinformation

Cropping practices * Household income

Costs and returns