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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

  

Department of Agricultural and Consumer Economics    College of Agricultural, Consumer and Environmental Sciences
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