Financial Standards Measures                                                         
                                                          (Farms Sorted By Farm Type)                                                          

                                       Avg. Of                                                     Crop and    Crop and    Crop and            
                                      All Farms        Crop       Dairy         Hog        Beef      Dairy        Hog        Beef         Other

Number of farms                            2417        1244         449          61          38         111          93         102         316

Liquidity
  Current ratio                            1.94        2.06        1.72        1.35        1.16        2.43        2.12        1.69        1.86
  Working capital                       220,642     289,369      94,677     240,012      31,096     193,665     373,244     168,300     131,384
  Working capital to gross inc           31.4 %      41.6 %      12.5 %      10.8 %      10.8 %      34.8 %      37.2 %      34.4 %      29.1 %

Solvency (market)
  Farm debt to asset ratio                 47 %        46 %        48 %        58 %        58 %        39 %        44 %        46 %        49 %
  Farm equity to asset ratio               53 %        54 %        52 %        42 %        42 %        61 %        56 %        54 %        51 %
  Farm debt to equity ratio                0.87        0.84        0.93        1.37        1.40        0.63        0.78        0.85        0.96

Profitability (cost)
  Rate of return on farm assets          10.5 %      13.4 %       8.2 %      -2.9 %      -0.2 %       7.5 %       5.6 %       7.5 %       9.9 %
  Rate of return on farm equity          14.5 %      19.6 %      10.5 %     -14.8 %      -8.8 %       8.5 %       5.4 %       8.7 %      14.5 %
  Operating profit margin                21.8 %      25.4 %      17.4 %      -8.2 %      -0.8 %      16.7 %      14.2 %      20.3 %      24.6 %
  Net farm income                       140,566     188,282     110,039     -75,653       1,558     102,776     115,792      78,430      95,936
  EBIDTA                                207,359     254,777     178,391      51,065      36,601     155,862     207,987     131,501     156,086

Repayment Capacity
  Capital debt repayment capacity       155,831     200,159     127,575     -28,897      19,017     103,353     138,944      94,196     117,623
  Capital debt repayment margin          90,674     138,935      47,554    -138,389     -11,566      51,081      46,365      48,786      59,347
  Replacement margin                     79,613     126,696      39,969    -151,069     -16,244      36,688      29,213      39,704      49,755
  Term debt coverage ratio                 2.39        3.27        1.59       -0.26        0.62        1.98        1.50        2.07        2.02
  Replacement coverage ratio               2.04        2.72        1.46       -0.24        0.54        1.55        1.27        1.73        1.73

Efficiency
  Asset turnover rate (cost)             48.0 %      53.0 %      47.1 %      35.4 %      23.2 %      44.6 %      39.5 %      37.3 %      40.1 %
  Operating expense ratio                70.5 %      63.4 %      76.5 %      97.7 %      87.3 %      72.0 %      79.3 %      73.2 %      65.4 %
  Depreciation expense ratio              4.9 %       5.1 %       4.5 %       2.5 %       4.5 %       5.3 %       4.9 %       4.6 %       6.8 %
  Interest expense ratio                  4.8 %       4.8 %       4.5 %       3.1 %       6.9 %       4.4 %       4.5 %       6.2 %       6.6 %
  Net farm income ratio                  20.0 %      27.1 %      14.5 %      -3.4 %       0.5 %      18.5 %      11.5 %      16.0 %      21.3 %

A minimum of 10 farms required per column.  Some columns were omitted.

Copyright (c) 2005-2009, University of Minnesota
Data Source(s):  All Minnesota Groups, 2319 farms
                 Southwest Minnesota Farm Business Management Association, 98 farms

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Report Summary
1. Report number              142382
2. Location
   State:                     Minnesota
3. Farm Characteristics
   Year(s):                   2008