TABLE 3
                       DEPRECIATION AND OTHER CAPITAL ADJUSTMENTS, 2001             
                   North Dakota Farm Business Management Education Program             
                                         State Report                                  
                               (Farms Sorted By Net Farm Income)                       
                                                 Avg. Of                         
                                                All Farms    Low 20%    High 20% 
            Number of farms                           452          90          91
            Net operating profit                   49,164      -6,846     133,929
            BREEDING LIVESTOCK
              Ending inventory                     59,154      41,810      86,186
              Capital sales                         2,421       2,706       1,758
              Beginning inventory                  55,680      40,534      80,031
              Capital purchases                     8,412       8,275      11,035
              Depreciation, capital adjust.        -2,517      -4,294      -3,122
            MACHINERY AND EQUIPMENT
              Ending inventory                    164,587     162,163     263,171
              Capital sales                         1,624       1,146       1,790
              Beginning inventory                 151,065     157,357     231,395
              Capital purchases                    28,276      20,751      53,290
              Depreciation, capital adjust.       -13,130     -14,799     -19,724
            BUILDINGS AND IMPROVEMENTS
              Ending inventory                     26,467      25,799      44,850
              Capital sales                           215          -        1,057
              Beginning inventory                  23,554      24,637      34,925
              Capital purchases                     4,264       2,319      12,645
              Depreciation, capital adjust.        -1,136      -1,158      -1,663
            OTHER CAPITAL ASSETS
              Ending inventory                     16,380      15,719      23,394
              Capital sales                           474         106       1,087
              Beginning inventory                  15,829      15,009      21,883
              Capital purchases                       997       1,156       1,637
              Depreciation, capital adjust.            28        -341         961
            Total depreciation, capital adj.      -16,756     -20,591     -23,547
            Net farm income                        32,408     -27,437     110,382