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yp3-5 4 _ UNITED STATES DEPARTMENT OF AGRICULTURE ARS 43-5) 
Agricultural Research Service June 1957 
oo a Farm Economics Research Division 
{ in cooperation with the 
KENTUCKY AGRICULTURAL EXPERIMENT STATION 
Department of Agricultural Economics 
UU 
TOBACCO-LIVESTOCK FARMING, BLUEGRASS AREA OF KENTUCKY Nox “ 
FARM COSTS AND RETURNS, 1956 1/ Sice 
By Erling Hole, Farm Economics Research Division, Agricultural 
Research Service, and John H,. Bondurant, Department 
of Agricultural Economics, Kentucky Agricultural 
Experiment Station 
Net cash farm income on commercial family-operated tobacco-livestock 
farms in the Bluegrass area of Kentucky increased 25 percent from 1955 to 1956. 
Cash receipts increased 11 percent and cash expenditures were 2 percent higher 
than in 1955 (fig. 1). 
In 1956, net farm incéme (net cash income plus value of perquisites and 
changes in Ae Aas armory approximately $2,160 for small commercial 
family-operated tobaccd=livestock farms, $2,980 for medium-sized farms, and 
$4,010 for large farms, It averaged about $3,200 for all commercial family- 
operated tobacco-livestock farms, These returns were 12 percent higher than 
in 1955; they were h percent lower than in 197-9, but more than 25 times the 
average for 1937-11 (tables 1-l:). 
Production of burley tobacco was higher in 1956 than in 1955 because of 
an 8-percent higher yield per acre. The yield in 1956 was the second highest 
of record, Because of excessive supplies of burley tobacco, acreage allotments 
under the administration of Public Law 21, enacted March 31, 1955, end approved 
by growers in a referendum held April 28, 1955, were reduced by 25 percent for 
1955. They remained the same for 1956, The yield per acre in 1956 averaged 
about 1,550 pounds and was 110 pounds higher than in 1955, Prices received 
for burley tobacco in 1956 averaged 6.8 cents per pound. This was a record 
high and |. cents a pound higher than in 1955, Auction sales warehouse 
charges were 20 percent higher in 1956 than in 1955 based on constant quantity 
ay Information for earlier years on these farms is available in Ky. Agr. 
Expt. Bul. Shi, Farming in the Bluegrass Area of Kentucky, December 199 
(1930-8); U. S. Bur. Agr. Econ. F.M. 94, Farm Costs and Returns, 1951, with 
Comparisons, Commercial Family-Operated Tobacco-Livestock Farms, Bluegrass 
Area of Kentucky, May 1952 (19h9)3 U. S. Prod. Econ. Res. Br., ARS, PERB 2, 
Farm Costs and Returns 1953, with Comparisons, Commercial Family-Operated 
Tobacco=Livestock Farms, Bluegrass Area of Kentucky, June 195 (1950); and 
U. S. Prod. Econ. Res. Br., ARS 3-16, Tobacco-Livestock Farming, Bluegrass 
Area of Kentucky, Costs and Returns, 195), June 1955 (1951-52). 
