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

	Avg. Of
	All Farms	Low 20%	40 - 60%	High 20%

Number of farms	73	14	14	15

Profitability (assets valued at cost)
Net farm income	97,296	2,058	71,888	241,501
Labor and management earnings	67,881	-9,240	50,521	184,652
Rate of return on assets	9.4 %	0.3 %	9.1 %	13.1 %
Rate of return on equity	12.5 %	-11.5 %	11.7 %	19.5 %
Operating profit margin	17.7 %	0.6 %	13.8 %	23.7 %
Asset turnover rate	53.4 %	45.7 %	66.2 %	55.0 %

Interest on farm net worth	29,415	11,298	21,367	56,850
Farm interest expense	33,006	22,458	17,600	59,475
Value of operator lbr and mgmt.	36,186	22,922	30,324	56,825
Return on farm assets	94,116	1,594	59,164	244,152
Average farm assets	996,987	547,984	649,065	1,869,640
Return on farm equity	61,110	-20,863	41,564	184,677
Average farm equity	488,879	181,143	356,119	947,496
Value of farm production	532,463	250,320	429,567	1,028,564


	Avg. Of
	All Farms	Low 20%	40 - 60%	High 20%

Number of farms	73	14	14	15

Profitability (assets valued at market)
Net farm income	131,982	26,394	87,301	300,383
Labor and management earnings	97,009	13,202	63,548	228,792
Rate of return on assets	10.4 %	4.0 %	9.5 %	12.3 %
Rate of return on equity	16.4 %	1.6 %	14.4 %	20.4 %
Operating profit margin	24.2 %	10.4 %	17.4 %	29.5 %
Asset turnover rate	42.8 %	38.8 %	54.9 %	41.8 %

Interest on farm net worth	34,972	13,191	23,753	71,591
Farm interest expense	33,006	22,458	17,600	59,475
Value of operator lbr and mgmt.	36,186	22,922	30,324	56,825
Return on farm assets	128,801	25,930	74,577	303,034
Average farm assets	1,243,751	645,359	783,054	2,461,097
Return on farm equity	95,796	3,472	56,977	243,559
Average farm equity	582,794	219,457	395,887	1,193,188
Value of farm production	532,463	250,320	429,567	1,028,564