The Agricultural Resource Management Survey ARMS

1
The Agricultural Resource Management Survey (ARMS)

• Philip N. Fulton
• Economic Research Service
• U.S. Department of Agriculture

2
Background

• Annual national survey of about 18,500 U.S.
  farms.
• Conducted jointly by ERS and the National
  Agricultural Statistics Service (NASS).
• Current design since 1996, integrates into one
  survey separate cropping practice and farm cost
  and returns surveys dating back to 1975.

3
Background

• Data collected state by state by NASS state
  offices.
• Data collected via personal interview with farm
  operator.
• ARMS provides statistically reliable estimates
  for the U.S. and regions.

4
ARMS is the Primary Source of Information for the
U.S. Government About the Status of and Changes
in...

• financial conditions,
• production practices,
• chemical use,
• environmental impacts,
• use of resources,
• and household economic well being...of U.S. farms
  and farm families.

5
Key Uses of ARMS Data

• Underpin official annual estimates of U.S. net
  farm income used in National Accounts.
• Allow disaggregate analysis of different types of
  farms by different geographies.
• Form the foundation of research and analysis to
  answer key questions about differential impacts
  of alternative policies and programs across the
  farm sector and among farm families.

6
The 3-Phase Design of ARMS

• Phase I--Screening Phase (May-July of the
  reference year)
• Phase II--Commodity Phase (September-December of
  the reference year)
• Phase III--Financial Phase (February-April of the
  year following the reference year)

7
Phase I--Screening Phase (May-July of the
reference year)

• Farmers selected for the survey sample are
  contacted by phone or mail.
• To verify their operating status.
• To collect general data on crops grown, livestock
  inventory, value of sales.
• To determine if they are producing commodities
  targeted for that year.

8
Phase II--Commodity Phase (Sept.-Dec. of the
reference year)

• Farmers growing that years targeted commodities
  (3 or 4 commodities each year) are interviewed to
  collect information on production practices, cost
  of production, and chemical use.
• Corn, soybeans, wheat, and cotton covered every 3
  years.
• Oats, barley, sorghum, rice, tobacco, peanuts,
  sugarbeets, hogs, cow-calf production, poultry,
  and dairy covered on a less frequent interval.
• Data are for a randomly-selected field.

9
Phase III--Financial Phase (Feb.-April of the
year following the ref. year)

• National sample of farmers interviewed to obtain
  information on whole-farm costs and returns
  during the reference year.
• Farmers that reported for specific commodities in
  phase II are contacted to obtain information on
  their costs and returns associated with their
  production practices.
• Operators also provide information on off-farm
  employment and income and characteristics of
  themselves and their households.

10
Modular Design Enables ARMS To Reflect Complex
Farm Production, Organization, and Financial
Structure

• Phase II
• Field-level cultural practices, chemical use,
  and resource use
• Enterprise management practices and
  technology adoption
• Enterprise costs and returns

• Phase III
• Farm business and household finance and
  structure
• Whole-farm management practices and
  technology adoption
• Household labor and financial asset
  allocation decisions

11
Phase IIField Level (Crop)

• Field
• Characteristics
• Yield Rotation Land-Use NRCS
  Information

Seed Type Rate Cost
Acreage Tenure Rental Arrangements
Production Practices Costs
Crop Insurance
Irrigation
Fertilizer Nutrient Applications Amounts
Costs Tests Recommendations
Drying
Pesticide Applications
Field Operations Equipment Practices Labor
Custom Variable Rate Tech.
Pest ManagementPractices Scouting
Information Training
12
(No Transcript)
13
Phase III Content Land Use and Tenure
Land
Tenure
Land
Owned
rented
Owner
from
Tenant
others
Cash
Commodity share
Land operated
Land
rented to
Crop, land use,
others
Government commodity and environmental programs
Type of farm
Acres harvested
Size of farm (acreage)
Varieties
On-farm use
Yield or
Sale or storage
production
Landlord shares
14
Phase III Content Farm Business Income
Income
CCC
Crops
loans repaid/
from
previous year.
forfeited
Home
Livestock
Net cash
consumption
sales
Farm income Distribution
Traditional farm
operator
Other
Partners/shareholders
farm-related
Government
Contractors/integrators
income
payments
Other equity holders
Farm Income
Sale of
Marketing
equipment
contracts
Grazing
Production
contracts
Sale of
Machine
forestry
hire custom
products
work
15
Phase III Content Farm Business Expenses
Seeds

Hired
plants
Fertilizer.
Labor

lime
Other
Herb., pest.,
expenses
other
chemicals
Fuels,
Interest
general
on notes
farm
mortgage
supplies
Capital
Operating
expenditures
Taxes,
expenditures
Repairs and
insurance,
rent
maintenance
Land
improvements
Breeding
Machinery
Utilities
stock
hire
trucking
Feeder
Building
livestock
fence
purchase
construction
Feed
Vet.
Machinery
Breeding
livestock
purchase
fees, reg.
supplies
testing
16
Phase III Content Farm Business Financial
Structure
Farm Equity
Assets
Land and buildings
Liabilities
Machinery and equipment
Crop inventory
Outstanding balance
Livestock inventory
Interest rate
Input inventory
Term of loan
Accounts receivable
Investments in growing crops
Percent for farm use
Other assets (cash, checking
accounts, etc)
Owned ManagedAssets
Owners of production resources
Operator household ( of assets and debt)
Partners/share holders ( of assets and debt)
Non-operator landlord (land and buildings)
Contractor/integrator
Lessors
17
Phase III Content Farm Household Finances
Household Income
Farm
Non-Farm
Household Share of Net Farm Income
Income
gt All off-farm
gt All off-farm (cash wages,, etc.)
gt Net-cash income from another farm
Household Share of Farm Business Net Worth
gt Net-cash income from another business
gt Net income from land rentals
gt Interest and dividends
gt Disability, retirement, social services
gt Other non-farm services
Household Net Worth
Non-Farm Assets Owned by Operator
Household Non-Farm Debt Owed by Operator
Household
18
Farm Operator Information

• Major occupation
• Age
• Highest level of education
• Race/origin
• Sex
• Year began making day-to-day decisions
• Spouse also makes day-to-day decisions?
• Number of persons living in household

19
Farm Household Information

• Operator worked off farm for wages or salary in
  reference year weeks and hours per week worked
  off farm for pay.
• Spouse worked off farm for wages or salary in
  reference year weeks and hours per week worked
  off farm for pay.

20
ARMS Challenges

• Length of interview
• Response rates
• Respondent conditioning
• Competition with other surveys
• NASS priorities
• Dissemination of ARMS data to the public
• Access to ARMS microdata
• Insufficient funding--cuts in sample size and
  commodity coverage

21
ARMS Fiscal Year 2003 Initiative

• Restore the sample to historic level and cover 3
  commodities per year.
• Improve survey response.
• Improve the dissemination of ARMS data.
• Integrate ARMS with other data collections.
• Enhance the ARMS sample size to provide
  disaggregate data for the largest states in terms
  of value of agricultural production.