This two-page spreadsheet provides a quick analysis of 2024 grain farm data for 18 farms participating in the Purchase area of the Kentucky Farm Business Management program.

Crop Yields and Performance

2024 saw mixed yield results compared to recent years:

• Corn yields averaged 186 bushels/acre (down from 199 in 2023 but above the 5-year average of 184)
• Full-season soybean yields dropped significantly to 50 bushels/acre (from 57 in 2023)
• Double-crop soybean yields fell to 44 bushels/acre (from 55 in 2023)
• Wheat yields declined sharply to 75 bushels/acre (from 95 in 2023)

About one-third of farms achieved above-average yields in corn and soybeans, while nearly half exceeded average wheat and double-crop soybean yields.

Financial Performance

2024 was a financially difficult year:

• Average net farm income was -$70,041, a dramatic reversal from $223,136 in 2023
• Only 33% of farms showed positive net income
• 39% of farms had losses between -$100,000 and -$1,050,000
• Crop returns averaged $754 per acre (down from $989 in 2023)

Key financial ratios indicate stress:

• Operating expense ratio: 88% (meaning expenses consumed most of revenue)
• Debt-to-asset ratio: 29%
• Return on farm assets: -0.8%

Commodity Prices

Prices declined across all crops from 2023 levels:

• Old crop corn: $4.68 (down from $6.68)
• Old crop soybeans: $12.90 (down from $14.74)
• New crop corn: $4.28 (down from $4.90)
• New crop soybeans: $10.73 (down from $13.26)
• Wheat: $5.62 (down from $7.16)

Production Costs and Land Tenure

• Average farms operated 2,438 acres with costs including:
• Seed, chemical, and fertilizer: $321.21/acre (down from $409.39 in 2023)
• Machinery and equipment: $221.27/acre
• Cash rent: $142.10/acre (down from $175.60 in 2023)
• Land ownership was split between cash rent (39%), crop share (32.2%), and owned acres (28.8%).

The analysis reveals that despite some input cost reductions, the combination of lower yields and significantly reduced commodity prices created substantial financial challenges for Purchase region grain farmers in 2024.

Family Living Expenses Summary

The document provides Kentucky state averages for family living expenses in 2023, broken down by farm income performance levels:

Income Sources:

• Net farm income varied dramatically by performance tier: high-performing farms averaged $23,681, middle tier $9,135, while low-performing farms had negative $42,419
• Non-farm income provided crucial support, averaging $48,894 overall, with higher-income farms earning $72,191 and lower-income farms still receiving $41,730

Major Expense Categories:

• Expendables were the largest expense at $64,776 average (ranging from $12,019 for low-income to $117,217 for high-income farms)
• Income and Social Security taxes averaged $35,981
• Capital expenses averaged $11,350
• Medical expenses averaged $9,879
• Charitable contributions averaged $7,560
• Life insurance averaged $5,239

Total Family Living Costs:

• Average: $98,804
• High-income farms: $164,311
• Low-income farms: $38,260

Comparing the crop farms in the Purchase Farm Analysis Group with statewide KFBM crop farm averages for 2024.

Key Performance Metrics

• Yields (2024 averages):
• Corn: Purchase region (186 bu/acre) vs Kentucky statewide (194 bu/acre)
• Full-season soybeans: Purchase region (50 bu/acre) vs Kentucky statewide (51 bu/acre)
• Double-crop soybeans: Purchase region (44 bu/acre) vs Kentucky statewide (43 bu/acre)
• Wheat: Purchase region (75 bu/acre) vs Kentucky statewide (81 bu/acre)

Financial Performance: The Purchase region experienced significantly worse financial outcomes in 2024:

• Net farm income: Purchase region averaged -$70,041 vs Kentucky statewide -$20,522
• Crop returns per acre: Purchase region $754 vs Kentucky statewide $812
• Only 33% of Purchase region farms had positive net income vs 48.4% statewide

Historical Context

Both regions show 2024 as a challenging year compared to recent history. The 5-year averages reveal much stronger performance:

• Purchase region 5-year average net income: $299,029
• Kentucky statewide 5-year average net income: $449,696

Cost Structure

• Per-acre costs in 2024:
• Seed, chemical, and fertilizer: Purchase region $321 vs Kentucky statewide $355
• Machinery and equipment: Purchase region $221 vs Kentucky statewide $236
• Cash rent: Purchase region $142 vs Kentucky statewide $199

The Purchase region operates with lower input costs and cash rents but also achieved lower yields and returns, suggesting regional differences in farming intensity and land values. Both regions faced significant financial stress in 2024 compared to the profitable years of 2021-2023.

Looking at these two Kentucky grain farm analysis reports, here are the key comparisons between the Purchase Farm Analysis Group (regional) and the statewide Kentucky data:

Sample Size Differences

• Purchase region: 18 farms in 2024
• Kentucky statewide: 155 farms in 2024

Yield Performance (2024)

The Purchase region generally underperformed compared to statewide averages:

• Corn: Purchase 186 bu/acre vs Statewide 194 bu/acre (-8 bu/acre)
• Full-season soybeans: Purchase 50 bu/acre vs Statewide 51 bu/acre (-1 bu/acre)
• Double-crop soybeans: Purchase 44 bu/acre vs Statewide 43 bu/acre (+1 bu/acre)
• Wheat: Purchase 75 bu/acre vs Statewide 81 bu/acre (-6 bu/acre)

Financial Performance Gap

The Purchase region had significantly worse financial outcomes:

• Net farm income: Purchase -$70,041 vs Statewide -$20,522 (Purchase lost $49,519 more)
• Income before depreciation: Purchase $74,329 vs Statewide $214,899
• Crop returns per acre: Purchase $754 vs Statewide $812

Farm Structure

• Average tillable acres: Purchase 2,438 acres vs Statewide 2,557 acres
• Cash rent rates: Purchase $142/acre vs Statewide $199/acre (Purchase pays 29% less)
• Land tenure patterns differ: Purchase has lower cash rent percentage (39% vs 49.6%) and higher crop-share percentage (32.2% vs 25.2%)

Cost Structure

The Purchase region operates with lower per-acre costs:

• Seed, chemical, fertilizer: Purchase $321 vs Statewide $355 (-$34/acre)
• Machinery costs: Purchase $221 vs Statewide $236 (-$15/acre)

Financial Health Indicators

Purchase region shows weaker financial ratios:

• Operating expense ratio: Purchase 88% vs Statewide 86%
• Current ratio: Purchase 1% vs Statewide 1.93 (significantly worse liquidity)
• Debt/asset ratio: Purchase 29% vs Statewide 25%

The data suggests the Purchase region represents a lower-input, lower-yield farming system with significantly worse 2024 financial performance than the statewide average, despite operating with lower costs and land rents.