Profitability Measures
Moorhead Farm Business Management
Northland Community and Technical College Farm Business Management
(Farms Sorted By Net Farm Income)

	Avg. Of
	All Farms	Low 20%	High 20%

Number of farms	72	14	15

Profitability (assets valued at cost)
Net farm income	112,493	14,525	250,524
Labor and management earnings	86,488	248	202,798
Rate of return on assets	12.2 %	2.9 %	16.7 %
Rate of return on equity	18.0 %	-1.5 %	25.2 %
Operating profit margin	21.1 %	6.2 %	30.8 %
Asset turnover rate	57.9 %	46.2 %	54.4 %

Interest on farm net worth	26,005	14,277	47,727
Farm interest expense	35,628	17,200	48,621
Value of operator lbr and mgmt.	34,915	18,050	50,412
Return on farm assets	113,206	13,675	248,733
Average farm assets	927,375	478,549	1,486,568
Return on farm equity	77,578	-3,525	200,112
Average farm equity	431,398	227,570	795,443
Value of farm production	537,319	221,301	808,175


	Avg. Of
	All Farms	Low 20%	High 20%

Number of farms	72	14	15

Profitability (assets valued at market)
Net farm income	57,710	11,295	128,059
Labor and management earnings	27,412	-5,478	73,967
Rate of return on assets	5.1 %	1.8 %	6.9 %
Rate of return on equity	4.5 %	-2.4 %	8.6 %
Operating profit margin	10.9 %	4.7 %	15.6 %
Asset turnover rate	47.0 %	37.5 %	44.3 %

Interest on farm net worth	30,298	16,773	54,092
Farm interest expense	35,628	17,200	48,621
Value of operator lbr and mgmt.	34,915	18,050	50,412
Return on farm assets	58,423	10,445	126,267
Average farm assets	1,142,797	590,563	1,826,172
Return on farm equity	22,795	-6,755	77,647
Average farm equity	504,691	278,121	901,535
Value of farm production	537,319	221,301	808,175