TABLE 7
                  FINANCIAL STANDARDS MEASURES, 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

LIQUIDITY
  Current ratio                          1.56        0.89        2.22
  Working capital                      79,403     -13,914     251,715

SOLVENCY (cost)
  Farm debt to asset ratio               48 %        64 %        37 %
  Farm equity to asset ratio             52 %        36 %        63 %
  Farm debt to equity ratio              90 %       174 %        59 %

PROFITABILITY (cost)
  Rate of return on farm assets         6.2 %      -3.6 %      10.5 %
  Rate of return on farm equity         7.2 %     -20.9 %      13.5 %
  Operating profit margin              15.4 %      -9.6 %      25.0 %
  Net farm income                      57,988     -12,059     163,031

REPAYMENT CAPACITY
  Term debt coverage ratio              156 %        25 %       247 %
  Capital replacement margin           24,691     -28,796     100,892

EFFICIENCY
  Asset turnover rate (cost)           40.0 %      37.3 %      42.1 %
  Operating expense ratio              69.6 %      88.2 %      62.7 %
  Depreciation expense ratio            6.9 %       9.4 %       6.3 %
  Interest expense ratio                5.5 %       8.5 %       4.2 %
  Net farm income ratio                18.0 %      -6.0 %      26.8 %