TABLE 3
            DEPRECIATION AND OTHER CAPITAL ADJUSTMENTS, 2003             
        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                   85,752       7,476     230,953
BREEDING LIVESTOCK
  Ending inventory                     61,295      56,668      48,196
  Capital sales                         5,037       8,027       2,702
  Beginning inventory                  62,040      59,539      49,837
  Capital purchases                     7,501       9,912       5,462
  Depreciation, capital adjust.        -3,209      -4,756      -4,400
MACHINERY AND EQUIPMENT
  Ending inventory                    187,366     113,478     368,919
  Capital sales                         3,326       3,295       6,543
  Beginning inventory                 168,349     108,919     319,750
  Capital purchases                    37,439      16,292      87,957
  Depreciation, capital adjust.       -15,095      -8,439     -32,244
BUILDINGS AND IMPROVEMENTS
  Ending inventory                     31,517      18,475      67,767
  Capital sales                            70          -          345
  Beginning inventory                  29,065      18,309      60,721
  Capital purchases                     3,859       1,588       9,906
  Depreciation, capital adjust.        -1,337      -1,422      -2,515
OTHER CAPITAL ASSETS
  Ending inventory                     14,623       8,971      32,923
  Capital sales                           690         138       1,506
  Beginning inventory                  14,230       8,618      31,316
  Capital purchases                     1,507         548       3,703
  Depreciation, capital adjust.          -423         -57        -590
Total depreciation, capital adj.      -20,064     -14,674     -39,750
Net farm income                        65,687      -7,197     191,203