May 22, 2020 at 11:04 AM
Kansas net farm income rose in 2019. This was largely due to government support payments intended to cushion the effect of trade negotiations and lower commodity prices, according to the annual summary by the Kansas Farm Management Association.
Net farm income among KFMA members averaged a little more than $110,000 in 2019, up from slightly more than $101,000 in 2018. This according to KFMA, is above the five-year average of approximately $66,000. Net farm income has risen every year since 2015.
The data was compiled for the 2019 KFMA Executive Summary.
“We are continuing in a period of tight margins and cash flow constraints as we move forward into 2020,” said Kevin Herbel, KFMA executive director, in a news release.
Even though moisture was heavy during planting season, some areas experienced good yields.
“Strong yields in many parts of the state were a significant factor in 2019,” Hervel said, citing good dryland fall crop yields in northwest and north central Kansas and impressive wheat yields in southwest areas.
Similar to a year earlier, the increase in 2019 net farm income was primarily due to crop insurance and government payments. The total of all government payments received by KFMA farms last year was more than 70% of net farm income. Without those payments, the 2019 average net farm income would have been slightly more than $30,000 per farm.
“It just indicates the importance of a strong safety net program that allows farmers to keep producing in order to help feed the world,” said Mark Dikeman, KFMA associate director, in the release.
Farms in four areas of the state showed stronger net farm income compared with 2018. Net farm income in south central and southeast Kansas fell compared to the prior year, at least partially because of more precipitation than usual during the critical planting and growing seasons. Northwest, southwest and north central farmers experienced an increase in profit.
“There is much producers can’t control, but there are things they can control,” Herbel said. “A good set of records will help identify production costs, can provide a starting point for market planning, and can help a farm manager understand their farm business better than anyone else.
“The investment of time into this process is important to manage today’s economic environment successfully.”