TABLE 4
PROFITABILITY MEASURES
Minnesota and North Dakota Farm Business Mgmt. Education
Red River Valley, 2004
(Farms Sorted By Net Farm Income)
Avg. Of
All Farms Low 20% 40 - 60% High 20%
Number of farms 230 46 46 46
PROFITABILITY (assets valued at cost)
Net farm income 86,944 -17,512 72,654 219,640
Labor and management earnings 46,428 -42,994 39,615 141,266
Rate of return on assets 5.5 % -3.0 % 5.2 % 9.0 %
Rate of return on equity 6.1 % -12.1 % 5.4 % 11.4 %
Operating profit margin 12.2 % -7.4 % 10.8 % 19.8 %
Asset turnover rate 45.5 % 40.5 % 48.8 % 45.5 %
Interest on farm net worth 40,516 25,483 33,039 78,373
Farm interest expense 25,450 24,082 24,011 28,534
Value of operator lbr and mgmt. 46,081 33,993 42,976 70,542
Return on farm assets 66,313 -27,423 53,689 177,632
Average farm assets 1,195,760 914,096 1,024,058 1,973,530
Return on farm equity 40,863 -51,505 29,678 149,098
Average farm equity 673,880 424,699 550,648 1,306,223
Value of farm production 543,530 370,367 499,362 897,009
Avg. Of
All Farms Low 20% 40 - 60% High 20%
Number of farms 230 46 46 46
PROFITABILITY (assets valued at market)
Net farm income 113,267 12,242 96,055 249,366
Labor and management earnings 67,932 -15,260 61,199 166,122
Rate of return on assets 6.6 % 0.2 % 6.6 % 9.2 %
Rate of return on equity 8.9 % -4.7 % 9.1 % 12.9 %
Operating profit margin 17.0 % 0.6 % 15.4 % 23.1 %
Asset turnover rate 38.8 % 36.0 % 43.0 % 39.7 %
Interest on farm net worth 45,335 27,502 34,856 83,244
Farm interest expense 25,450 24,082 24,011 28,534
Value of operator lbr and mgmt. 46,081 33,993 42,976 70,542
Return on farm assets 92,636 2,331 77,091 207,357
Average farm assets 1,399,769 1,030,183 1,160,018 2,259,924
Return on farm equity 67,186 -21,751 53,080 178,824
Average farm equity 754,999 458,360 580,934 1,387,398
Value of farm production 543,530 370,367 499,362 897,009
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