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	136,669	14,057	100,650	340,582
Labor and management earnings	104,760	-485	70,803	279,538
Rate of return on assets	11.7 %	0.8 %	9.8 %	16.0 %
Rate of return on equity	17.9 %	-2.6 %	13.2 %	26.5 %
Operating profit margin	21.6 %	2.0 %	18.6 %	29.6 %
Asset turnover rate	54.5 %	42.4 %	52.5 %	53.8 %

Interest on farm net worth	31,909	14,542	29,847	61,045
Farm interest expense	28,368	9,839	20,424	52,676
Value of operator lbr and mgmt.	41,484	20,342	35,036	71,399
Return on farm assets	123,553	3,554	86,039	321,860
Average farm assets	1,051,864	426,181	879,211	2,016,530
Return on farm equity	95,186	-6,285	65,615	269,183
Average farm equity	531,263	242,365	497,455	1,017,414
Value of farm production	573,159	180,516	461,986	1,085,829


	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	164,656	34,386	125,198	351,924
Labor and management earnings	126,309	18,088	92,371	271,223
Rate of return on assets	11.5 %	4.9 %	10.7 %	12.3 %
Rate of return on equity	19.3 %	5.2 %	16.5 %	20.9 %
Operating profit margin	26.4 %	13.2 %	23.9 %	30.7 %
Asset turnover rate	43.5 %	36.7 %	44.6 %	40.0 %

Interest on farm net worth	38,347	16,298	32,827	80,701
Farm interest expense	28,368	9,839	20,424	52,676
Value of operator lbr and mgmt.	41,484	20,342	35,036	71,399
Return on farm assets	151,540	23,884	110,587	333,201
Average farm assets	1,318,120	492,061	1,034,977	2,717,485
Return on farm equity	123,172	14,045	90,162	280,525
Average farm equity	639,120	271,641	547,113	1,345,017
Value of farm production	573,159	180,516	461,986	1,085,829