The growth of income generated by farming compared to the growth in farm 

 land value is another consideration. Many farms are transfered by older fam- 

 ily members to young members. The income from production is used to pay off 

 the older family members control of the farm. If the earning power of a farm 

 does not keep pace with the growth of the farm's value over time, it becomes 

 exceedingly more difficult to purchase the farm on a payback basis from farm 

 income. In 1954, the ratio percentage of cash receipts for agricultural pro- 

 ducts to value of land and buildings was 19.6% in Northwest Florida and 18.0% 

 for all of Florida. In 1978, the percentage of cash receipts was 14.2% and 

 19.8 respectively. 



Agricultural land is disappearing nationwide, in Florida, and the North- 

 west Florida. It is anticipated that this pattern will continue and the rate 

 of change in land use may even be accelerated as population growth increases 

 the demand for more land. 



FARM INCOME, EXPENSES, AND CONSUMER DEMAND 



This section explains many of the concepts that are important for analyz- 

 ing the value of agriculture and forestry in Florida and how they relate to 

 Northwest Florida. Historically farmers have earned less than the average 

 worker, but this breach is being rapidly closed. For example, farm income per 

 person once was 25% less than nonfarm income (Wilcox et al . 1974). Florida's 

 farm income rose steadily in 1954-79 to $4.1 billion. Since 1954, Florida's 

 total personal real income grew 454%, real farm income grew 145%, per capita 

 income grew 145%, but the cost of living increased 170%. 



Historically, farmers have, as an economic group, generally earned less 

 than the average American worker, but this breach is rapidly being closed. 

 For example, in 1970, farm income per person was 25% less than nonfarm income 

 (Wilcox et al. 1974). Farm income is based on cash receipts, government pay- 

 ment, nonmoney income, land rental, and farm services. 



The American farmer is finding it more and more difficult to make a living 

 at farming. Some are seeking second jobs or receive income from land rental 

 and farm services provided to others. Income from land rental and farm serv- 

 ices has helped soften erosion of farm income. 



Gross farm income depends on the quantity of output, and farm prices. 

 Farm output has risen, but real prices at the farm level, as opposed to the 

 retail level, have continued to fall, reflecting greater production and pro- 

 fits per acre. Yet any large increase in production brought about by new 

 technology helps lower prices. Farm prices are less stable than farm produc- 

 tion costs, and this tends to make net farm income fluctuate greater than 

 gross farm income. The trends in gross and real farm income in 1954-78 are 

 shown in Table 11. 



Information on total farm income for Southwest Florida is unavailable. 

 Because cash receipts from marketing farm products contribute a majority of 

 total income, they are, therefore, used as a proxy. In 1974-77, cash receipts 

 from farm products were about $471 million in current dollars in 1978, up 

 nearly 65% since 1974. The real dollar value of the cash receipts has not 



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