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	75	15	15	15

Profitability (assets valued at cost)
Net farm income	38,995	-72,154	36,361	170,283
Labor and management earnings	-330	-116,425	12,573	91,881
Rate of return on assets	1.8 %	-4.7 %	3.5 %	6.6 %
Rate of return on equity	-1.6 %	-18.0 %	1.3 %	7.1 %
Operating profit margin	4.0 %	-12.3 %	8.6 %	14.3 %
Asset turnover rate	45.5 %	38.1 %	40.5 %	46.5 %

Interest on farm net worth	39,325	44,271	23,788	78,403
Farm interest expense	33,536	54,027	22,820	37,878
Value of operator lbr and mgmt.	49,594	60,741	31,010	77,393
Return on farm assets	22,938	-78,868	28,171	130,768
Average farm assets	1,255,704	1,679,295	809,912	1,972,070
Return on farm equity	-10,599	-132,895	5,351	92,890
Average farm equity	655,168	737,847	396,471	1,306,709
Value of farm production	571,095	640,266	328,172	916,102


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

Number of farms	75	15	15	15

Profitability (assets valued at market)
Net farm income	61,284	-3,182	46,069	160,678
Labor and management earnings	10,308	-65,351	13,991	65,844
Rate of return on assets	2.8 %	-0.4 %	3.6 %	4.8 %
Rate of return on equity	1.4 %	-6.2 %	2.8 %	5.3 %
Operating profit margin	7.9 %	-1.5 %	11.5 %	13.2 %
Asset turnover rate	35.3 %	29.1 %	31.5 %	36.1 %

Interest on farm net worth	50,976	62,169	32,079	94,834
Farm interest expense	33,536	54,027	22,820	37,878
Value of operator lbr and mgmt.	49,594	60,741	31,010	77,393
Return on farm assets	45,226	-9,896	37,880	121,163
Average farm assets	1,617,091	2,201,720	1,042,968	2,538,527
Return on farm equity	11,690	-63,923	15,059	83,285
Average farm equity	848,922	1,036,146	534,648	1,580,565
Value of farm production	571,095	640,266	328,172	916,102