2005 Red River Valley Farm Averages

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2005 Red River ValleyFarm Averages

• Ron Dvergsten, Dean Management Education
• Keith Torgerson, NDSCS

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Total Farm Assets

• Total farm assets were down 231,172 over last
  year. (Cost)
• 2000 899,742
• 2001 942,754
• 2002 933,533
• 2003 1,040,285
• 2004 1,303,278
• 2005 1.072,106

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Total Farm Liabilities

• Total farm liabilities decreased 52,947 from
  last year
• 2000 443,638
• 2001 450,197
• 2002 439,460
• 2003 522,892
• 2004 569,539
• 2005 516,592

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Net Worth Change

• This year we had a negative net worth change of
  1,326.
• Net Worth change per year
• 2000 69,207
• 2001 33,963
• 2002 56,960
• 2003 80,856
• 2004 40,762
• 2005 _ 1,326

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Farm Receipts

• Farm receipts decreased by 53,406 and were about
  equal to the 2003 number.
• 2000 475,233
• 2001 503,573
• 2002 462,678
• 2003 544,816
• 2004 599,921
• 2005 546,515

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Government Payments

• 2001 87,206
• 2002 21,952
• 2003 48,363
• 2004 36,881
• 2005 54,301
• Net increase of 17,420 from last year, but they
  are still 32,905 less than in 2001

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Farm Expenses

• Farm expenses were up from 2004 mainly due to the
  increased costs of energy.
• 2000 399,610
• 2001 394,945
• 2002 366,230
• 2003 433,152
• 2004 427,807
• 2005 454,623

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Net Farm Income

• This is the net cash farm income after being
  adjusted first for inventory change and than for
  depreciation
• This is the calculated profit for the year
• If more money than indicated on net farm income
  is spent on family living, personal taxes, and
  new investments, it must be taken from inventory
  sales, the capital replacement dollars, new
  borrowings, or from off farm income. It is also
  calculated under the cost balance sheet.

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Net Farm Income For Valley

• Net farm income for farms in the Valley averaged
  44,160 which was a decrease of 42,834 from
  2004.
• Net farm income for the low 20 of the farms
  averaged a Negative 52,158.
• Net farm income for the high 20 of the farms
  averaged 159,241 which is a 122,074 decrease
  from 2003.

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Net Farm Income Profit
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Crops and Feed Inventory Change

• The last two years have seen a negative
  inventory change. Last years change was a
  negative 21,583 and this years was a negative
  19,979.

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Expense/ Income

• This year and last year it cost a Valley farmer
  about 87 cents (accrual) to make a dollars worth
  of income compared to 74 cents in 2003

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Fuel Costs All Acres
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Farm Equipment Purchases, A Good Useful Pickup
is Tough to Beat.
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Non-Farm Income and Family Living Information
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Total Family Living ExpenseRed River Valley Farm
Business Mgmt.
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Non Farm Income

• Average Non Farm Income was 16,497, which is up
  1,374 from last year

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Net Return for Crops

• Does not include Government Transition Payments
• Does include LDP and Insurance which shows up in
  the price of the commodity and the other crop
  income

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Crop Acres
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Crop Yields, Costs and Returns
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Spring Wheat Yield

• This year the spring wheat yield was down 22
  bushels from last year.
• 1999 42 bu.
• 2000 49 bu
• 2001 47 bu
• 2002 36 bu
• 2003 61 bu
• 2004 64 bu
• 2005 42 bu

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Spring Wheat Fertilizer Costs Per Acre
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• Fertilizer Costs for both wheat and corn would
  have been higher if not for fall applied
  fertilizer in 2004. Most of this was put on
  before the large increase in costs.

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Spring Wheat Net Return/Acre

• The net return per acre of wheat on cash rented
  land was negative this year
• 2005
• Average - 50.48
• High 20 - 9.51
• Low 20 -52.54

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Barley Yield per Acre

• Average yield per acre.
• 1999 54 bu.
• 2000 59 bu.
• 2001 61 bu
• 2002 49 bu
• 2003 76 bu
• 2004 83 bu
• 2005 49 bu

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Barley Net Return per Acre

• Average net return per acre on cash rented land
  
• Average -61.57

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Soybeans Net Return/Acre

• Soybeans returned 25.13 per acre.
• Average yield was 38.54 bu per acre
• Average return was about the same as 2003

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Corn Yields Net Return per Acre

• Yield Net Return
• 1999 127 bu. -16.95
• 2000 114 bu. -23.22
• 2001 106 bu -10.10
• 2002 142 bu 60.46
• 2003 127 bu 21.84
• 2004 105 bu -11.63
• 2005 145 bu 37.54

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Corn Fertilizer Costs
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Current Ratio
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Current Ratio
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Working Capital Decreased
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Working Capital/Group
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Rate of Return on Equity/Year (Cost)
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Rate of Return on Equity/Group
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Capital Replacement Dollars/Year Decreased
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Capital Replacement Dollars/Group
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Operating Expense Ratio/Year
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Operating Expense Ratio Increased from Last Year
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Net Farm Income/Year
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Net Farm Income/Group
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Please do not inquire as to the apparent
inefficiency of my work. The nature of it
requires such a high degree of secrecy that I am
not permitted to know what I am doing.
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We will continue to use the same tax form as in
past years.
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For More Information
Farm Business Management
For more information call
1-800-959-6282 ext. 0797 1-800-342-4325 ext 2630
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A Educational Program of North Dakota Career and
Technical Education
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North Dakota Farm Business Management Education
Programs
North Central
RRV
West
South Central
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Thank You!