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June 8, 2001
FEFO 01-12

FARM AND FAMILY LIVING INCOME AND EXPENSE FOR 2000

In 2000, noncapital living expenses of 1,087 farm families enrolled in the Illinois Farm Business Farm Management Association (FBFM) averaged $42,544 for the year or, in other words, $3,545 per month (Table 1). The average noncapital living expense in 2000 was 4.1 percent higher than 1999 and 6.1 percent higher than in 1998. Another $4,982 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 $47,526 for 2000 compared with $45,225 for 1999, or a $2,301 increase per family. The average amount spent per family for capital items was $611 more, while noncapital expenses increased $1,690 per family. The sample farms were mainly grain farms located primarily in central and northern Illinois.

Income and social security tax payments decreased slightly in 2000 due to lower farm earnings in 1998 and 1999. The amount of income taxes paid in 2000 averaged $10,998 compared to $11,046 in 1999. Medical expenses were slightly lower in 2000 compared to 1999. In 2000, medical expenses averaged $5,561. This is the first time since the 1970s that medical expenses did not increase as compared to the year before.

In the table, the averages per farm for total family living expenses are divided into five categories for 1997 through 2000. 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: /manage/enterprise_cost/family_living_2000.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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