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	76	15	15	16

Profitability (assets valued at cost)
Net farm income	84,393	-6,542	62,187	208,016
Labor and management earnings	44,687	-28,634	30,981	135,562
Rate of return on assets	5.6 %	-1.9 %	4.7 %	9.7 %
Rate of return on equity	5.9 %	-9.6 %	3.4 %	12.0 %
Operating profit margin	11.9 %	-4.4 %	9.8 %	19.1 %
Asset turnover rate	47.1 %	42.1 %	47.8 %	50.9 %

Interest on farm net worth	39,707	22,092	31,206	72,454
Farm interest expense	28,966	20,571	36,416	30,388
Value of operator lbr and mgmt.	45,444	28,954	44,625	63,341
Return on farm assets	67,916	-14,925	53,978	175,064
Average farm assets	1,210,499	798,086	1,151,521	1,801,888
Return on farm equity	38,950	-35,496	17,561	144,676
Average farm equity	661,419	368,200	520,097	1,207,566
Value of farm production	569,791	336,301	550,440	917,094


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

Number of farms	76	15	15	16

Profitability (assets valued at market)
Net farm income	117,161	27,599	105,910	241,639
Labor and management earnings	69,473	2,294	69,174	159,693
Rate of return on assets	6.7 %	2.1 %	7.0 %	9.4 %
Rate of return on equity	9.0 %	-0.3 %	10.0 %	13.1 %
Operating profit margin	17.7 %	5.7 %	17.7 %	22.8 %
Asset turnover rate	37.8 %	36.4 %	39.7 %	41.2 %

Interest on farm net worth	47,688	25,305	36,736	81,946
Farm interest expense	28,966	20,571	36,416	30,388
Value of operator lbr and mgmt.	45,444	28,954	44,625	63,341
Return on farm assets	100,683	19,215	97,701	208,687
Average farm assets	1,505,606	923,569	1,386,634	2,228,205
Return on farm equity	71,717	-1,356	61,285	178,299
Average farm equity	794,798	421,749	612,269	1,365,766
Value of farm production	569,791	336,301	550,440	917,094