including tlie cost of custom application. The cost of 

 custom application was excluded from the 1982 and 

 1 978 data. 



Agricultural chemicals— These expenses include the 

 cost of all insecticides, herbicides, fungicides, and 

 other pesticides, including the cost of custom applica- 

 tion. Data exclude commercial fertilizer purchased. 

 The cost of custom application was excluded from the 

 1982 and 1978 data. The cost of lime was excluded 

 from the 1987 and 1982 data, but included in 1978. 



Customwork, machine hire, and rental of machinery 



and equipment— These expenses include costs incurred 

 for having customwork done on the place and for 

 renting machines to perform agricultural operations. 

 The cost of cotton ginning is excluded. The cost of 

 labor involved in the customwork service is included in 

 the customwork expense. The cost of custom applica- 

 tion of fertilizer and chemicals was included in the 

 1982 and 1978 customwork data, but is included in 

 expenditures for these items in 1 987. The cost of hired 

 labor for operating rented or hired machinery is included 

 as a hired farm and ranch labor expense. 



Interest— In 1987, separate data were collected for 

 interest paid on debts secured by real estate and 

 interest paid on debts not secured by real estate. In 

 1 982, only total interest expenses were collected. 



Market value of agricultural products sold— This 

 category represents the gross market value before taxes 

 and production expenses of all agricultural products sold 

 or removed from the place in 1987 regardless of who 

 received the payment. It includes sales by the operator as 

 well as the value of any shares received by partners, 

 landlords, contractors, or others associated with the oper- 

 ation. In addition, it includes receipts from placing com- 

 modities in the Commodity Credit Corporation (CCC) loan 

 program in 1987. It does not include payments received for 

 participation in federal farm programs nor does it include 

 income from farm-related sources such as customwork 

 and other agricultural services, or income from nonfarm 

 sources. 



The value of crops sold in 1987 does not necessarily 

 represent the sales from crops harvested in 1987. Data 

 may include sales from crops produced in earlier years and 

 exclude some crops produced in 1 987, but held in storage 

 and not sold. For commodities, such as sugar beets and 

 wool, sold through a co-op which made payments in 

 several installments, respondents were requested to report 

 the total value received in 1 987. 



The value of agricultural products sold was requested of 

 all operators. If the operator failed to report this informa- 

 tion, estimates were made based on the amount of crops 

 harvested, livestock or poultry inventory or number sold. 

 Extensive estimation was required for operators growing 

 crops or livestock under contract. 



1987 CENSUS OF AGRICULTURE 



Caution should be used when comparing sales in 1 987 

 with sales reported in earlier censuses. Sales figures are 

 expressed in current dollars and have not been adjusted 

 for inflation or deflation. 



Government payments— This category is limited to 

 direct cash or generic commodity certificate (PIK) pay- 

 ments received by the farm operator in 1987. It includes 

 deficiency and diversion payments; wool payments; pay- 

 ments from the Dairy Termination Program, the Conserva- 

 tion Reserve Program, other conservation programs, and 

 all other federal farm programs under which payments 

 were made directly to farm operators. 



Other farm-related income— The 1987 report form 

 included a new inquiry on income from farm-related sources. 

 These data consist of gross income in 1987 before taxes 

 and expenses from the sales of farm by-products and 

 other sales and services closely related to the principal 

 functions of the farm business. These data are for income 

 producing activities that are primarily a by-product or 

 supplemental to the farm operation. They exclude income 

 from business activities that are separate from the farm 

 business. 



Customwork and other agricultural services— This 

 income includes gross receipts received by farm oper- 

 ators for providing services for others such as planting, 

 plowing, spraying, and harvesting. Income from cus- 

 tomwork and other agricultural services is generally 

 included in the agriculture census if it is closely related 

 to the farming operation. However, it is excluded if it 

 constitutes a separate business or is conducted from 

 another location. 



Rental of farmland— This income includes gross cash 

 rent or share payments received from renting out 

 farmland; payments received from the lease or sale of 

 allotments for crops such as tobacco; and payments 

 received for livestock pastured on a per-head, per- 

 month, or per-pound basis. It excludes rental income 

 from nonfarm property. 



Sales of forest products— This income includes gross 

 receipts from the sales of Christmas trees, standing 

 timber, maple products, gum for naval stores, fire- 

 wood, and other forest products from the farm busi- 

 ness. It excludes income from nonfarm timber tracts 

 and sawmill businesses. 



Other farm-related income sources— This income 

 includes gross receipts from hunting leases, fishing 

 fees, camping, other recreational services, patronage 

 dividends of cooperatives, sales of farm by-products, 

 and other sales and services closely related to the 

 farm business. It excludes income from nonfarm busi- 

 nesses. 



Commodity Credit Corporations loans— This cate- 

 gory includes loans for corn, wheat, soybeans, sorghum, 

 barley, oats, cotton, peanuts, rye, rice, tobacco, and honey. 



APPENDIX A A-5 



