Every year the Kansas Farm Management Association (KFMA) collects farm financial information from farmers in order to provide each member with guidance that can improve farm and family decisions. KFMA accomplishes this goal by having professional farm economists visit each farm several times during the year. These economists help with record keeping, tax analysis, year-end planning, benchmarking, and other decision making needs. KFMA has more than 80 years of experience serving producers in the state. KFMA has computerized records dating back to 1973.
A review of the net income summaries in any given year shows that some farms lose money. Even in a very profitable year like 2020, over 12% of the farms had a negative net farm income. In poor years like 2015, 44% of the farms had negative net farm income. Are the same farms losing money each year? The purpose of this article is to examine a longterm time frame of continuous farms to see if there is a set of farms that might have had an average net farm income less than zero.
Results indicate that it is a different set of farms that have negative NFI each year. There are only a handful of farms that have five or more years of negative NFI out of the ten years of the analysis. The majority of the farms have two or fewer years of negative NFI.