TABLE 3
                        DEPRECIATION AND OTHER CAPITAL ADJUSTMENTS, 2002                  
                    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                           431          86          87

            Net operating profit                   61,066      -1,304     164,487

            Breeding Livestock
              Ending inventory                     63,944      60,334      45,439
              Capital sales                         4,019       3,722       3,660
              Beginning inventory                  62,320      63,200      44,127
              Capital purchases                     6,577       6,035       4,154
              Depreciation, capital adjust.          -934      -5,180         818

            Machinery and Equipment
              Ending inventory                    170,132     126,596     297,476
              Capital sales                         2,773       1,184       4,598
              Beginning inventory                 161,563     122,133     276,122
              Capital purchases                    25,662      15,762      52,493
              Depreciation, capital adjust.       -14,320     -10,116     -26,541

            Buildings and Improvements
              Ending inventory                     29,235      24,998      46,303
              Capital sales                           132          -          161
              Beginning inventory                  27,607      23,125      44,154
              Capital purchases                     2,726       2,428       3,902
              Depreciation, capital adjust.          -966        -555      -1,592

            Other Capital Assets
              Ending inventory                     14,447       7,615      25,984
              Capital sales                           228         261         235
              Beginning inventory                  14,497       7,276      26,516
              Capital purchases                       489         661         832
              Depreciation, capital adjust.          -310         -61      -1,130

            Total depreciation, capital adj.      -16,530     -15,911     -28,444

            Net farm income                        44,536     -17,215     136,043