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

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

Number of farms	77	15	16	16

Profitability (assets valued at cost)
Net farm income	203,139	22,851	171,430	470,226
Labor and management earnings	159,138	11,284	139,710	382,586
Rate of return on assets	14.1 %	4.7 %	13.7 %	18.8 %
Rate of return on equity	20.4 %	3.2 %	23.3 %	26.5 %
Operating profit margin	24.5 %	12.1 %	24.5 %	30.6 %
Asset turnover rate	57.4 %	38.6 %	55.9 %	61.6 %

Interest on farm net worth	44,000	11,567	31,720	87,640
Farm interest expense	45,800	10,035	49,723	70,142
Value of operator lbr and mgmt.	53,546	16,715	48,050	83,316
Return on farm assets	195,392	16,171	173,102	457,052
Average farm assets	1,388,848	346,194	1,262,750	2,424,904
Return on farm equity	149,593	6,136	123,380	386,910
Average farm equity	732,953	190,810	528,672	1,460,668
Value of farm production	797,889	133,513	705,466	1,494,050


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

Number of farms	77	15	16	16

Profitability (assets valued at market)
Net farm income	226,364	33,380	211,594	482,667
Labor and management earnings	169,840	13,244	170,661	375,668
Rate of return on assets	12.3 %	4.9 %	13.8 %	15.1 %
Rate of return on equity	18.4 %	5.0 %	24.0 %	22.4 %
Operating profit margin	27.4 %	20.0 %	30.2 %	31.4 %
Asset turnover rate	44.8 %	24.3 %	45.5 %	47.9 %

Interest on farm net worth	56,524	20,136	40,933	106,999
Farm interest expense	45,800	10,035	49,723	70,142
Value of operator lbr and mgmt.	53,546	16,715	48,050	83,316
Return on farm assets	218,618	26,700	213,266	469,494
Average farm assets	1,782,968	549,130	1,550,889	3,119,428
Return on farm equity	172,819	16,665	163,544	399,351
Average farm equity	939,854	335,597	682,213	1,783,312
Value of farm production	797,889	133,513	705,466	1,494,050