What does 'farmer' mean to a community?
MITCHELL, S.D. -- In financial terms "farmer" means a lot. The average business purchases within South Dakota communities based on information proved by farmers enrolled in South Dakota's Farm/Business Management Program was $561,556 an increase ...
MITCHELL, S.D. -- In financial terms "farmer" means a lot. The average business purchases within South Dakota communities based on information proved by farmers enrolled in South Dakota's Farm/Business Management Program was $561,556 an increase of $9,126 over 2008.
Feed purchased topped the expense list in 2009 at $79,934 for the average enrolled farm. Much of this feed is produced and processed in South Dakota creating a multimillion dollar industry within the state.
Equipment repairs and purchases provide the basis for the ag equipment industry in local communities. The average farm generated $30,855 in repair bills. Gas and lubricant purchases added another $21,209 in dollars paid to local businesses.
The livestock health industry received an average of $17,414 per farm in 2009. The industries save the producer millions in livestock losses, creating more spending revenue within each community.
Crop input expenses also make up a large part of the farm purchases from local vendors. In 2009, the average farm spent $50,389 for fertilizers, $29,221 for chemicals and $66,592 for other crop expenses.
There are other farm expenses that benefit their communities. Hired labor cost were $17,308 per farm in 2009, providing jobs and income for employees within the community. Interest payments of $36,312 were paid per farm allowing lending agencies to raise funds for other area investments.
The average farm also generated $7,946 in property taxes. A great deal of the budget of community schools and local government is carried by taxes paid by each farm or ranch.
In addition to $561,556 spent on operating costs, ag operations spent another $111,928 on capital improvements expenses included $42,025 on new buildings and land, and $58,199 on new machinery and livestock equipment. An additional $11,704 was spent on the purchase of breeding livestock. Family living costs were $46,306 in 2009.
The average farm consisted of 1790 acres, of which 663 acres were farmer-owned and 1127 acres were rented. Total investment per farm is $1,707,644.
Editor's Note: Pietz is a farm business management instructor at Mitchell (S.D.) Technical Institute.