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                            2504        1142         462          98          68         134         127          96         371

Liquidity
  Current ratio                            1.62        1.55        1.49        2.14        1.43        1.79        1.89        1.55        1.56
  Working capital                       125,387     131,079      49,197     489,624      76,843     102,054     242,978     124,548      84,799

Solvency (market)
  Farm debt to asset ratio                 47 %        49 %        48 %        47 %        50 %        43 %        46 %        47 %        45 %
  Farm equity to asset ratio               53 %        51 %        52 %        53 %        50 %        57 %        54 %        53 %        55 %
  Farm debt to equity ratio                90 %        95 %        91 %        89 %       100 %        75 %        85 %        90 %        82 %

Profitability (cost)
  Rate of return on farm assets           9.3 %      10.8 %       5.7 %      13.4 %       2.9 %       6.5 %      11.7 %       7.6 %       8.0 %
  Rate of return on farm equity          12.2 %      15.0 %       5.1 %      19.4 %       0.5 %       6.8 %      16.2 %       8.6 %       9.8 %
  Operating profit margin                20.2 %      20.8 %      13.5 %      26.3 %      12.8 %      16.6 %      26.0 %      19.9 %      21.6 %
  Net farm income                        96,432     107,862      63,668     257,028      22,178      70,143     159,002      69,925      68,797

Repayment Capacity
  Term debt coverage ratio                185 %       215 %       111 %       263 %       137 %       151 %       245 %       195 %       159 %
  Capital replacement margin             51,926      65,637       7,769     162,134      11,585      27,466     110,187      43,649      34,413

Efficiency
  Asset turnover rate (cost)             46.0 %      51.7 %      42.2 %      50.8 %      22.9 %      39.5 %      44.9 %      38.3 %      37.3 %
  Operating expense ratio                71.9 %      67.7 %      76.5 %      81.4 %      81.7 %      71.4 %      70.0 %      73.5 %      67.8 %
  Depreciation expense ratio              4.8 %       4.8 %       4.8 %       2.8 %       5.3 %       5.4 %       5.1 %       4.9 %       6.7 %
  Interest expense ratio                  5.7 %       6.2 %       5.9 %       2.8 %       6.0 %       6.2 %       4.9 %       6.5 %       7.3 %
  Net farm income ratio                  17.7 %      21.3 %      12.8 %      13.1 %       7.0 %      16.9 %      20.0 %      15.1 %      18.3 %

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

Copyright (c) 2005-2007, University of Minnesota
Data Source(s):  Minnesota Farm Business Management Education, 2318 farms
                 Southwest Minnesota Farm Business Management Association, 109 farms
                 North Dakota Farm and Ranch Business Management - Red River Valley, 39 farms
                 Southeast Minnesota Farm Business Management Association, 38 farms

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Report Summary
1. Report number              88079
2. Location
   State:                     Minnesota
3. Farm Characteristics
   Year(s):                   2006