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ND Farm & Ranch Business Management 2010 Region 3 Annual Report

ND Farm & Ranch Business Management 2010 Region 3 Annual Report. Steve Metzger Carrington Research Extension Center and Carrington Public Schools Carrington, ND. Region III Farm Business Management Programs. Bismarck (Eastern) Carrington Jamestown Casselton (Western) Wahpeton (Western).

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ND Farm & Ranch Business Management 2010 Region 3 Annual Report

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  1. ND Farm & Ranch Business Management 2010 Region 3 Annual Report Steve Metzger Carrington Research Extension Center and Carrington Public Schools Carrington, ND

  2. Region IIIFarm Business Management Programs • Bismarck (Eastern) • Carrington • Jamestown • Casselton (Western) • Wahpeton (Western)

  3. North Dakota Farm Business Management Programs are located in four regions across North Dakota North Central RRV West South Central

  4. WHAT TYPE OF FARMSMAKE UP THEBASE OF INFORMATION?

  5. Average Farmer Age in Region III

  6. Crop Acres acres totaled 1,797 in 2010, Up 23% since 1997

  7. Total Farm Assets, Cost Basis Total farm assets for enrolled farms increased $167,025 from last year. An increase of 153% since 1997. • 1997 $535,015 • 1998 $554,459 • 1999 $631,196 • 2000 $626,692 • 2001 $699,536 • 2002 $657,201 • 2003 $693,493 • 2004 $758,314 • 2005 $747,601 • 2006 $892,986 • 2007 $1,007,440 • 2008 $1,218,736 • 2009 $1,188,358 • 2010 $1,355,383

  8. Growth of Farm Assets in Region 3, An increase of 153% since 1997

  9. Total Farm Liabilities Total average farm liabilities increased $55,970 from last year. Last decreased in 2009. This is an increase of 99% since 1997. • 1997 $ 287,493 • 1998 $ 294,261 • 1999 $ 319,213 • 2000 $ 317,231 • 2001 $ 347,138 • 2002 $ 338,736 • 2003 $ 317,242 • 2004 $ 356,357 • 2005 $ 361,193 • 2006 $ 432,110 • 2007 $ 453,700 • 2008 $ 521,883 • 2009 $ 517,110 • 2010 $ 573,080

  10. Growth of Farm Liabilities Region 3, An increase of 99% since 1997

  11. Comparing 1997 to 2010Cost Basis Values • Crop land acres, including haylands, have increased 334 acres per farm, up 23% • Asset value per acre has increased from $365.70 to $754.25 per acre of cropland, up 106% • Liabilities have increased from $196.51 to $318.91 per acre of crop land, up 62%

  12. Money Borrowed per Farm Region 3

  13. Principal Paid Per FarmRegion 3

  14. Money Borrowed & Repaid, Region 3

  15. CAPITAL ASSETS, REPLACEMENT and DEPRECIATION

  16. Capital Purchases of Machinery, Equipment & Farm Vehicles

  17. Capital Replacement Margin compared to Depreciation/Capital Adjustment

  18. Net Worth Change(Change in Retained Earnings) • This year we saw a positive net worth change of $199,176 as measured on a cost basis balance sheet. • 1997 $ -2,994 • 1998 $ 19,834 • 1999 $ 37,745 • 2000 $ 27,834 • 2001 $ 10,792 • 2002 $ 16,848 • 2003 $ 55,123 • 2004 $ 29,228 • 2005 $ 64,109 • 2006 $ 23,452 • 2007 $ 169,317 • 2008 $ 132,714 • 2009 $ 60,577 • 2010 $ 199,176

  19. Net Worth Change, (Retained Earnings Change) Region III

  20. Cash Farm Receipts Farm cash receipts increased approximately $53,142 on the enrolled farms. • 1997 $ 222,208 + 0.4% • 1998 $ 232,647 + 4.7% • 1999 $ 274,297 + 17.9% • 2000 $ 264,560 - 3.7% • 2001 $ 307,971 + 16.4% • 2002 $ 274,731 - 10.8% • 2003 $ 312,889 + 13.8% • 2004 $ 355,869 + 13.7% • 2005 $ 382,304 + 7.4% • 2006 $ 395,617 + 3.5% • 2007 $ 452,249 + 14.3% • 2008 $ 694,575 + 53.6% • 2009 $ 597,240 - 14.0% • 2010 $ 650,382 + 8.9% Total Change ’97 to ’10 = + 193%

  21. Cash Farm Receipts Region 3

  22. Cash Farm Expenses • 1997 $ 183,110 + 11.8% • 1998 $ 193,613 + 5.7% • 1999 $ 212,058 + 9.5% • 2000 $ 220,003 + 3.7% • 2001 $ 242,972 + 10.4% • 2002 $ 220,044 - 9.4% • 2003 $ 241,392 + 9.7% • 2004 $ 270,147 + 11.9% • 2005 $ 305,543 + 13.1% • 2006 $ 314,372 + 2.9% • 2007 $ 376,242 + 19.7% • 2008 $ 540,226 + 43.6% • 2009 $ 444,962 - 17.6% • 2010 $ 475,020 + 9.8% Total increase ’97 to ’10 = + 159%

  23. Cash Farm Expenses Region 3

  24. Gross Cash Income and Cash Expenses

  25. Total inventory change per farm, Region 3

  26. Net Farm Income • This is the net cash farm income after being adjusted first for inventory change and then 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 to avoid the effects of inflation or deflation of asset values.

  27. Net Farm Income For Region III • Net farm income for farms in Region III averaged $273,012 • Net farm income for the low 20% of the farms averaged $18,966 • Net farm income for the high 20% of the farms averaged $812,055

  28. Average Net Farm Income

  29. Net Farm Income by Profitability Groups

  30. Profitability Based on Crop Acres Only • Average Profit, based on 1,797 acres is $151.93 per acre. • Low Profit, based on 581 acres is $32.64 per acre. • High Profit, based on 4,261 acres is $190.58 per acre.

  31. Average Net Farm IncomeND Farm Business Management, Region 3

  32. Cost to produce $1.00 of Accrued Income • This year it cost a Region 3 farmer $.60 (accrual) to produce a dollar’s worth of income, compared to $.77 last year. • High profit farms created a dollar of income for $.55 down from $.65 cents in 2009. • Low profit farms created a dollar of income for $.80 of expenses,down from $1.12 in 2009. These figures do not include depreciation $.05-$.07

  33. Average Cost per Dollar of Income

  34. Current Ratio by Profitability Group

  35. % Return on Assets, Cost BasisND Farm Business Management, Region 3

  36. % Return on Equity, Cost Basis

  37. Crop Yields, Costs and Returns for 2010

  38. Net Return for Crops • Does not include Direct or Counter-Cyclical Government Payments. • Does include LDP and Insurance which shows up in the price of the commodity and the other crop income

  39. HRSW Average Yields, Region 3

  40. HRSW Net Return per Acre onCash Rented Land

  41. Spring Wheat Net Return/Acreon Cash Rented Land • Average $ 136.96 at 55.7 Bu. High 20% $ 228.52 at 42.4 Bu. Low 20% - $ 3.40 at 62.1 Bu.

  42. Average Price Received, Cash Sales Spring Wheat • 1994 3.72 • 1995 4.04 • 1996 4.53 • 1997 3.87 • 1998 3.33 • 1999 3.05 • 2000 2.90 • 2001 2.99 • 2002 3.26 • 2003 3.46 • 2004 3.48 • 2005 3.34 • 2006 3.89 • 2007 5.05 • 2008 7.48 • 2009 6.14 • 2010 5.45

  43. Barley Average Yields, Region 3

  44. Barley Net Return per Acre onCash Rented Land

  45. Average Received for Cash Sales Barley • 1994 1.82 • 1995 2.46 • 1996 2.80 • 1997 2.13 • 1998 1.82 • 1999 1.91 • 2000 1.83 • 2001 1.85 • 2002 2.14 • 2003 2.70 • 2004 2.50 • 2005 1.95 • 2006 2.26 • 2007 3.12 • 2008 4.75 • 2009 5.32 • 2010 4.05

  46. Soybean Average Yields, Region 3

  47. Soybean Net Return per Acre onCash Rented Land

  48. Soybeans Net Return per Acre on Cash Rented Land Average $ 132.95 at 35.3 Bu. High 20% $ 249.07 at 38.8 Bu. Low 20% $ 2.10 at 30.2 Bu.

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