When putting together customer cash flow projections for the coming year what amount of family living expense is appropriate?  Family living expense is unique to every household, but averages can be used as a starting point.  The FINBIN farm financial database is a great resource to assist with this question.  (The FINBIN database summarizes actual farm data from thousands of agricultural producers who use FINPACK for their farm business analysis.  The data in FINBIN is contributed by farm management education programs across the country.)

So, let’s take a look at the numbers.  Over 750 farm families keep track of detailed family living expenses in the database.  In 2017, a family of 3 spent $63,648 on cash family living expenses.  This amount includes expenses like food, health insurance, medical care, clothing, household supplies, utilities, and recreation to name a few.  Family living expenses obviously vary depending on family size, stage of life, spending habits, and benefits provided by non-farm employment.  When income taxes paid and personal capital purchases are added, an additional $21,508 was consumed in 2017, bringing total cash family living costs to $85,156 for that same family of 3.