DEPRECIATION AND OTHER CAPITAL ADJUSTMENTS, 1999                
                 North Dakota Farm Business Management Education Program            
                                       State Report                                  
                             (Farms sorted by Net Farm Income)                       
                                                Average Of   Average Of   Average Of
                                                 All Farms     Low 20%     High 20% 
     Number of Farms                                   467           93           93
     Net operating profit                            65879         6645       161162
     BREEDING LIVESTOCK
       Ending inventory                              56223        44496        64609
       Capital sales                                  2513         2879          949
       Beginning inventory                           53805        44036        60519
       Capital purchases                              6531         8295         5840
       Depreciation, capital adj.                    -1600        -4956         -800
     MACHINERY AND EQUIPMENT
       Ending inventory                             142820       108261       256663
       Capital sales                                  1685          693         2908
       Beginning inventory                          136261       102852       242454
       Capital purchases                             20815        15628        39487
       Depreciation, capital adj.                   -12571        -9526       -22370
     BUILDINGS AND IMPROVEMENTS
       Ending inventory                              23809        20091        36677
       Capital sales                                    56           -           228
       Beginning inventory                           22485        18217        35062
       Capital purchases                              2221         2571         3044
       Depreciation, capital adj.                     -842         -698        -1201
     OTHER CAPITAL ASSETS
       Ending inventory                              13820         6393        31059
       Capital sales                                   402          654          396
       Beginning inventory                           11762         6294        26524
       Capital purchases                              2144          187         4615
       Depreciation, capital adj.                      316          566          316
     Total depreciation, capital adj.               -14697       -14615       -24055
     Net farm income                                 51181        -7970       137107