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	78	15	15	16

Profitability (assets valued at cost)
Net farm income	136,558	22,313	122,619	283,725
Labor and management earnings	98,915	9,846	89,411	211,074
Rate of return on assets	10.2 %	3.5 %	9.6 %	11.9 %
Rate of return on equity	14.2 %	1.6 %	13.9 %	16.8 %
Operating profit margin	18.9 %	7.9 %	18.0 %	22.9 %
Asset turnover rate	53.6 %	44.4 %	53.2 %	51.8 %

Interest on farm net worth	37,644	12,467	33,208	72,651
Farm interest expense	27,951	9,572	25,622	46,937
Value of operator lbr and mgmt.	47,704	19,012	45,849	80,743
Return on farm assets	116,805	12,873	102,391	249,919
Average farm assets	1,149,561	368,040	1,065,785	2,107,291
Return on farm equity	88,855	3,301	76,769	202,982
Average farm equity	626,957	205,625	553,462	1,210,847
Value of farm production	616,563	163,423	567,319	1,091,758


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

Number of farms	78	15	15	16

Profitability (assets valued at market)
Net farm income	156,439	27,169	145,161	302,291
Labor and management earnings	112,843	11,017	103,902	222,677
Rate of return on assets	9.7 %	3.7 %	9.1 %	10.6 %
Rate of return on equity	15.0 %	3.0 %	14.4 %	16.7 %
Operating profit margin	22.2 %	10.8 %	22.0 %	24.6 %
Asset turnover rate	43.5 %	34.4 %	41.2 %	43.0 %

Interest on farm net worth	43,596	16,153	41,259	79,614
Farm interest expense	27,951	9,572	25,622	46,937
Value of operator lbr and mgmt.	47,704	19,012	45,849	80,743
Return on farm assets	136,686	17,729	124,933	268,486
Average farm assets	1,416,035	474,407	1,377,478	2,538,462
Return on farm equity	108,735	8,157	99,311	221,548
Average farm equity	726,597	269,210	687,651	1,326,893
Value of farm production	616,563	163,423	567,319	1,091,758