 May
8, 2003
FEFO
03-09 FARM
AND FAMILY LIVING INCOME AND EXPENSES FOR 2002 In
2002 the total, noncapital, living expenses of 1,216 farm families enrolled in
the Illinois Farm Business Farm Management Association (FBFM) averaged $44,475--or
$3,706 a month for each family (Table 1). This average was 2.9 percent higher
than 2001 and 4.5 percent higher than in 2000. Another $4,380 was used to buy
capital items such as the personal share of the family automobile, furniture,
and household equipment. Thus, the grand total for living expenses averaged $48,855
for 2002 compared with $48,097 for 2001, or a $758 increase per family. The average
amount spent per family for capital items was $505 less, while noncapital expenses
increased $1,263 per family. The sample farms, which were mainly grain farms,
were located primarily in central and northern Illinois. INCOME
AND SOCIAL SECURITY TAXES PAID Income
and social security tax payments decreased in 2002 compared to the year before.
The amount of income taxes paid in 2002 averaged $9,867 compared to $11,475 in
2001. The amount of income taxes paid was at its lowest level since 1990. Medical
expenses were higher in 2002 compared to 2001. In 2002, medical expenses averaged
$6,335. This is the first year medical expenses averaged over $6,000. Medical
expenses include out-of-pocket costs for health insurance along with doctor and
hospital expenses. In
the table, the averages per farm for total family living expenses are divided
into five categories for 1999 through 2002. The "expendables" category
includes cash spent for food, operating expenses, clothing, personal items, recreation,
entertainment, education, and transportation. This category also includes selected
itemized deductions such as the personal share of real estate taxes. Cash spent
for capital improvements exceeding $250 is not included. The use of a rented house
on an estimated 40 to 50 percent of the farms in this sample is not included,
since these data cover only cash outlays. For
the complete narrative report, visit the management section at the farmdoc website:
http://www.farmdoc.uiuc.edu/manage/enterprise_cost/family_living_2002.PDF.
Issued
by: Dale
Lattz, Department of Agricultural and Consumer Economics
 
|