TABLE 3
           DEPRECIATION AND OTHER CAPITAL ADJUSTMENTS, 2004
        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                           434          86          87
Net operating profit                   80,307       6,641     201,466
BREEDING LIVESTOCK
  Ending inventory                     62,875      35,982      79,382
  Capital sales                         2,976       1,513       4,735
  Beginning inventory                  61,795      35,247      81,352
  Capital purchases                     7,443       5,817       6,531
  Depreciation, capital adjust.        -3,386      -3,569      -3,766
MACHINERY AND EQUIPMENT
  Ending inventory                    212,411     143,740     399,554
  Capital sales                         3,644       5,323       6,086
  Beginning inventory                 194,178     134,972     358,162
  Capital purchases                    39,989      29,310      79,849
  Depreciation, capital adjust.       -18,113     -15,219     -32,371
BUILDINGS AND IMPROVEMENTS
  Ending inventory                     35,316      21,369      76,130
  Capital sales                           161          -          414
  Beginning inventory                  31,366      18,313      67,653
  Capital purchases                     5,342       3,804      11,896
  Depreciation, capital adjust.        -1,230        -748      -3,006
OTHER CAPITAL ASSETS
  Ending inventory                     18,155      13,095      34,564
  Capital sales                           569       1,019         508
  Beginning inventory                  15,774      11,867      27,865
  Capital purchases                     2,539       1,410       6,500
  Depreciation, capital adjust.           410         837         707
Total depreciation, capital adj.      -22,319     -18,699     -38,435
Net farm income                        57,988     -12,059     163,031