TOBACCO-LIVESTOCK FARMING, SI^UBGRASS AREA OF KENTUCKY ^ 

 FARM COSTS AND "RETURNS, 1954 ^ '" 



By ERLiag^le, Production Econcanics^^esearch Branch, Agricultxiral 

 Research Service, and Job& H. Bond urant, Department of 

 Agricultioral Econcanics, Ifentucky Agricultural 

 Experiment Station 



Net cash farm income on coanmercial family-operated tobacco-livestock 

 farms in the Bluegrass area of Kentucky increased moderately from 1953 "to 

 I95U. Cash receipts increased k percent and cash expenditures were a record 

 high in 195^. 



In I95U net farm income (net cash income, plus valvie of perqxilsites 

 and changes in inventories) averaged approximately $2,375 for small commercial 

 family-operated tobacco-livestock farms, $3^205 for medi\im-sized farms, and 

 $4,385 for large farms. It averaged about $3>440 for all commercial family- 

 operated tobacco-livestock farms. These returns were virtually the same as in 

 1953# lout they were about 3 percent greater than in 1947-49 and nearly 3 times 

 the average for 1937-41 (tables 1-4). 



Production of Burley tobacco set a new record in 195^# because of record 

 high yields. Yield per acre, averaging 1,670 pounds, was 290 pounds higher 

 than in 1953 • Production was about l4 percent larger although the acreage 

 hajnrested was smaller. Prices received for Burley tobacco averaged 3 cents a 

 pound lower than in 1953* As a result, receipts from the sale of tobacco in 

 1954 averaged about $4,015 P«r fann compared with $3,750 in 1953. Prices 

 received for livestock, except hogs, and livestock products were lower than in 

 1953* The ratio of prices received for products sold to prices paid, including 

 wages to hired labor (1947-49^100) was 81 for area-type farms in 1954 as 

 compared with 89 in 1953. 



Total cash production exx>endltures per farm were higher in 195^ than in 

 1953 for all groups of items except farm b\iildings. In 195^ wage rates paid 

 for hired labor averaged about 56 cents an hour, and estimated net cash returns 

 of croppers for labor performed averaged 6I cents an hour. Total cost per unit 

 of production in 1954 was lower than in 1953^ mainly because farm production 

 was larger in 195'*^ • 



Returns per hour for operator and family labor and management averaged 

 73 cents on small farms, 77 cents on medium-sized farms, 84 cents on large farms, 

 and 78 cents on average commercial family-operated farms. These returns were 

 nearly the same as in 1953. They were about 10 percent smaller than in 1947-49, 

 but they were more than 3 times the returns in 1937-41. 



1/ Information for earlier years oix these farms is available in Kentucky 

 Agr. Expt. Sta. Bui. 544, Farming in the Bluegrass Area of Kentucky, Deconber 

 1949; U. 3. Bur. Agr. Econ. F. M. 94, Farm Costs and Returns, 1951* with 

 Comparisons, Coomerclal Family-Operated Tobacco-Livestock Farms, Bluegrass 

 Area of Kentucky, May 1952; and U. S. Prod. Econ. Res. Br., ARS, PERB 2, Farm 

 Costs and Returns 1953# with Comparisons, Commercial Family-Operated Tobacco- fV^' 

 Livestock Farms, Bluegrass Area of Kentucky, June 1954. 



