nd farm & ranch business management 2010 region 3 annual report steve metzger carrington...
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ND Farm & Ranch Business Management 2010 Region 3 Annual Report
Steve Metzger
Carrington Research Extension Center and
Carrington Public Schools
Carrington, ND
Region IIIFarm Business Management
Programs
Bismarck (Eastern)
Carrington
Jamestown
Casselton (Western)
Wahpeton (Western)
North Dakota Farm Business Management Programs are located in four regions across North Dakota
WestSouth Central
North Central
RRV
WHAT TYPE OF FARMSMAKE UP THE
BASE OF INFORMATION?
Average Farmer Age in Region III
35
37
39
41
43
45
47
49
Ag
e
Crop Acres acres totaled 1,797 in 2010, Up 23% since 1997
0
200
400
600
800
1000
1200
1400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Own Cash Rent Crop Share
Total Farm Assets, Cost Basis Total farm assets for enrolled farms increased
$167,025 from last year. An increase of 153% since 1997.
1997 $535,0151998 $554,4591999 $631,1962000 $626,6922001 $699,5362002 $657,201 2003 $693,4932004 $758,3142005 $747,6012006 $892,9862007 $1,007,4402008 $1,218,7362009 $1,188,3582010 $1,355,383
Growth of Farm Assets in Region 3, An increase of 153% since 1997
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
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 $ 287,4931998 $ 294,2611999 $ 319,2132000 $ 317,2312001 $ 347,1382002 $ 338,7362003 $ 317,2422004 $ 356,3572005 $ 361,1932006 $ 432,1102007 $ 453,7002008 $ 521,8832009 $ 517,1102010 $ 573,080
Growth of Farm Liabilities Region 3, An increase of 99% since 1997
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
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%
Money Borrowed per Farm Region 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Principal Paid Per Farm Region 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
Money Borrowed & Repaid, Region 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
BorrowedPaid
CAPITAL ASSETS, REPLACEMENT and
DEPRECIATION
Capital Purchases of Machinery,
Equipment & Farm Vehicles
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000Ave. Low 20% High 20%
Capital Replacement Margin compared to Depreciation/Capital Adjustment
$0
$50,000
$100,000
$150,000
$200,000
$250,000Cap.Available
Cap. Deprec.
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 $ -2,9941998 $ 19,8341999 $ 37,7452000 $ 27,8342001 $ 10,7922002 $ 16,8482003 $ 55,1232004 $ 29,2282005 $ 64,1092006 $ 23,4522007 $ 169,3172008 $ 132,7142009 $ 60,5772010 $ 199,176
Net Worth Change, (Retained Earnings Change) Region III
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Cash Farm ReceiptsFarm 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%
Cash Farm Receipts Region 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
Where does the money come from? Where does the money come from? $650,382 Cash Income for 2010$650,382 Cash Income for 2010
All Wheats (18%)
Soybeans (25%)
Corn (10%)Barley (4%)
All Sunf. (4%)
Canola (2%)Flax (1%)
Edible Beans (2%)
Other Crops (1%)CRP (0%)
Direct & CC (3%)
LDP & Other (5%)
Bckgrd Beef (4%)
Finish Beef (2%)
Oth.Beef (2%)
All Dairy (4%)
Swine (0%)Cull Lvstk. (1%)
Insur. (5%)Other (2%)
Oth.Lvstk. 1%
Custom2%
Beef Calves 3%
All WheatsSoybeansCornBarleyAll Sunf.CanolaFlaxEdible BeansOther CropsCRPDirect & CCLDP & OtherBeef CalvesBckgrd BeefFinish BeefOth.BeefAll DairySwineCull Lvstk.Oth.Lvstk.CustomInsur.Other
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%
Cash Farm Expenses Region 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Where is the money spent ? Where is the money spent ? Cash Expenses of $475,020 in 2010Cash Expenses of $475,020 in 2010
Land Rent13%
Seed13%
Fertilizer14%
Chemical8%Interest
5%
Fuel & Oil7%
Repairs8%
Fdrs,Pur.5%
Feed5%
Crop Ins.5%
Custom3%
Labor4%
Farm Ins2%
Utilities1%
CCC Buy.0%
Lvstk.Oth.2%
RE Taxes1%
Misc.3%
Leases1% Land Rent
SeedFertilizerChemicalInterestFuel & OilRepairsFdrs,Pur.FeedCrop Ins.CustomLaborFarm InsUtilitiesCCC Buy.Lvstk.Oth.RE TaxesMisc.Leases
Gross Cash Income and Cash Expenses
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Receipts Expense
Total inventory change per farm, Region 3
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
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 yearIf 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.
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
Average Net Farm Income
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Net Farm Income by Profitability Groups
-$300,000
-$100,000
$100,000
$300,000
$500,000
$700,000
$900,000
Ave. Low 20% High 20%
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.
Average Net Farm IncomeND Farm Business Management, Region 3
-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Avg NFI Excl Govt Pmts Excl Govt Pmts & Ins
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
Average Cost per Dollar of Income
0
10
20
30
40
50
60
70
80
90
100Cost per Dollar
Current Ratio by Profitability Group
0
0.5
1
1.5
2
2.5
3
3.5
Ave. Low 20% High 20%
% Return on Assets, Cost BasisND Farm Business Management, Region 3
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
35
Average Low 20% High 20%
% Return on Equity, Cost Basis
-50
-40
-30
-20
-10
0
10
20
30
40
50
Average Low 20% High 20%
Crop Yields, Costs and
Returns for 2010
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
HRSW Average Yields, Region 3
32 31.2
35.8
25.3
47.251.4
43.839.5
43.847.2
60.3
54.1
36.436.3
25.4
0
10
20
30
40
50
60
70HRSW
HRSW Net Return per Acre onCash Rented Land
26.35
-24.12
-11.96-9.55
9.07
-18.25
3.79
37.4138.03
10.06
22.04
110.69
141.56
65.5
136.96
-$30
-$10
$10
$30
$50
$70
$90
$110
$130
$150
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
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.
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 '94'95'96'97'98'99'00'0102''03'04'05'06'07'08'09'10
Barley Average Yields, Region 3
57.853.5
61.3
55 57.2 59.2
47.7
73.7 71.368
58.5 60.3
76.781.4
77.5
0
20
40
60
80
100
Barley Net Return per Acre onCash Rented Land
28.76
-10.743.46
17.78
-4.66-0.64
51.35
81.4
52.34
16.44
39.1
62.91
241.65
102.99109.32
-$50
$0
$50
$100
$150
$200
$250
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
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
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
'94'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10
Soybean Average Yields, Region 3
26.829.1
34.632.9 33.4 33.4
30.0
22.9
35.6
26.3
38.1
32.1 32.1
34.9
0
10
20
30
40
Soybean Net Return per Acre onCash Rented Land
2.1 0.8 1.4711
16.2517.07
56.3847.15
9.51
41.02
-6.22
157.49
77.92
66.69
132.95
-20
0
20
40
60
80
100
120
140
160
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
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.
Average Price Received for Cash Sales
Soybeans
1997 6.26
1998 5.24
1999 4.05
2000 4.19
2001 3.97 2002 4.75 2003 5.59 2004 5.84 2005 5.56 2006 5.45 2007 7.06 2008 9.73 2009 9.30 2010 9.64 $0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
'97'98'99'00'01'02'03'04'05'06'07'08'09'10
Corn Average Yields, Region 3
88.195.5
101.5
114105.6
98.3102.8
63.6
128.8
89.3
119.22
106.78107.7
130.5
108.2
0
20
40
60
80
100
120
140
Corn Net Return/Acre on Cash Rented Land
Average $ 234.21 at 134.2 Bu. Low 20% $ 29.83 at 118.1 Bu.
High 20% $ 411.94 at 146.7 Bu.
Corn Net Return per Acre onCash Rented Land
48.5
29.69
10.6919.34
9.5510.13
45.830.15
-62.24
33.2533.51
192.28
39.53
-32.63
234.21
-80.00
-40.00
0.00
40.00
80.00
120.00
160.00
200.00
240.00
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Average Price Received Cash Sales
Corn
1997 2.33
1998 1.91
1999 1.70
2000 1.64
2001 1.70 2002 1.90 2003 2.03 2004 2.18 2005 1.70 2006 2.09 2007 3.13 2008 4.31 2009 3.14 2010 3.46
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Oil Sunflower Average Yields, Region 3
1523
1378
1646
1066
147613591329
12611173
1841
14121473
160817281715
0
200
400
600
800
1000
1200
1400
1600
1800
2000
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Oil Sunflowers Net Return per Acre
Average $ 107.49 at 1739#
High Profit $ 186.77 at 1999#
Oil Sunflower Net Return per Acre onCash Rented Land
36.57
8.05
33.61
-13.66
15.9515.44
41.63
16.5615.61
75.19
33.34
108.47
121.64
12.46
107.49
-$20
$0
$20
$40
$60
$80
$100
$120
$140
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Average Price Received Cash Sales
Oil Sunflowers
1994 14.84
1995 10.65
1996 11.40 1997 10.94 1998
10.66 1999 8.90 2000
6.50 2001 7.73 2002 10.71 2003 11.32 2004 12.41 2005 12.94 2006 12.68 2007 16.74 2008 21.74 2009 18.18 2010 17.32
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
'94'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10
Canola Average Yields, Region 3
1369
12251160
1291 1318
1629
19451852
11901281
1198
1910
1782
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Canola Net Return per Acre onCash Rented Land
10.0815.1316.98
-2.53
-11.93-7.07
7.18
45.2547.13
30.03
-20.13
65.3958.2
74.2
118.33
-$40
-$20
$0
$20
$40
$60
$80
$100
$120
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Average Price Received Cash Sales
Canola
1997 11.20 1998 11.38 1999 8.78 2000 7.03 2001 7.98 2002 9.97 2003 10.34 2004 11.10 2005 9.95 2006 10.68 2007 13.52 2008 17.85 2009 19.57 2010 17.71
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
2010 Income, Expenses & Net Return/Acre on Cash Rented, Does not included direct or counter-cyclical payments.
617
431
378 373360
389
349363
302
164149
257
383
219241 240 241
271240
255237
107 112
221234
212
137 133118 118 109 107
65 5736 35
-50.000.00
50.00100.00150.00200.00250.00300.00350.00400.00450.00500.00550.00600.00650.00700.00
Income Expense Net Return
Return to Overhead per Cash Rented Acre without Direct or Counter-Cyclical Payments, Region 3, 2010
298
182 181172 168
160150
105
8477
6964
44 49 4454 59
42 43 4149
2132
256
$-
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00Return to Ovhd.
Overhead Exp.
2009 Income, Expenses & Net Return/Acre on Cash Rented, Does not included direct or counter-cyclical payments.
491.14
333.37 325.78
297.29310.44
163.37
231.38
276.9252.03
332.09
298.11
230.38251.58
230.6244.94
100.46
207.68
264.43250.11
364.72
193.03
102.99
74.2 66.69 65.5 62.91
23.712.46 1.92
-32.63-50.00
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
500.00
550.00Income Expense Net Return
Return to Overhead per Cash Rented Acre without Direct or Counter-Cyclical Payments, Region 3, 2009
242.31
111.84 111.07101.99
86.02
63.9952.84
34.3419.55
49.2942.61 37.64 44.38
36.4823.11
40.29 40.3832.42
52.18
145.6
$-
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00Return to Ovhd.
Overhead Exp.
Machinery Costs per Acre
Fuel
Repairs
Custom Hire
Equipment Leases
Interest on Intermediate Debt (Machinery portion)
Machinery Depreciation (Crop portion only)
Small Grains at $50-$60, Row Crops $80-$110
Machinery Costs per acre, Cash Rented
66.5860.42
66.6357.63
71.39
54.87
102.58
64.8871.16
60.9852.32
$0.00$10.00$20.00$30.00$40.00$50.00$60.00$70.00$80.00$90.00
$100.00$110.00$120.00
Beef Production in 2010
Direct & Overhead Expenses per Cow, does not include inventory change of $45.72
$0
$100
$200
$300
$400
$500
$600
Other Beef Cow Items:
Total average costs are $524.99/cowAverage Profit per cow at $102.8720% High Profit netted $186.01 per cow20% Low Profit netted -$17.35 per cowAvg. weaning wt. 548 lbs. (20# less than 2009)Pounds weaned per exposed female 500 lbs.Avg. feed cost per cow of $300.88Avg. range or pasture cost per cow $106.65Avg. cost per aum was $16.41Avg. cost to produce a ton of grass hay $50.27Avg. cost to produce a ton of alfalfa hay $41.78Avg. cost to produce a ton of corn silage $24.52 wet, or approximately $60-65/ton for 90% dry matter
Net Return per Cow, Beef Cow Calf
Beef Cow/Calf
1994 47.67 1995 -40.46 1996 -50.16 1997 20.21 1998 8.52 1999 92.51 2000 114.80 2001 101.03 2002 62.82 2003 117.38 2004 187.63 2005 217.72 2006 98.40 2007 108.46 2008 37.75 2009 -11.35 2010 102.87 -$100
-$50
$0
$50
$100
$150
$200
$250
'94'95'96'97'98'99'00'01'02 '03'04'05'06'07'08'09'10
Beef Backgrounding, Net Return/Head
Per Calf
1994 39.35 1995 21.43 1996 .56 1997 26.71 1998 26.62 1999 34.56 2000 16.23 2001 15.52 2002 17.37 2003 -4.35 2004 4.29 2005 26.62 2006 28.90 2007 24.74 2008 .49 2009 11.54 2010 84.63
-$10.00
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
'94'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10
Net Return per Dairy Cow
Dairy Cow
1994 634.22 1995 640.49 1996 457.99 1997 409.67 1998 799.50 1999 497.41 2000 370.63 2001 403.94 2002 413.60 2003 422.63 2004 713.67 2005 501.60 2006 2007 2008 115.65 2009 -543.74 2010 -$600.00
-$400.00
-$200.00
$0.00
$200.00
$400.00
$600.00
$800.00
'94'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09
Non-Farm Income and
Family Living Information
Non-Farm Income Per Farm
$0$5,000
$10,000$15,000$20,000$25,000$30,000$35,000$40,000$45,000
Net Non-Farm
Average Family Living Expenditures and Income Taxes for Region 3
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Family Living Expenses Income Taxes
Family Living Expenses, 2.6 members, Based on itemization from 81 Farms
Food & Meals $ 7,222Medical Care $ 3,647Health Insur. $ 4,297Donations $ 1,506Household $ 5,021Clothing $ 1,577Personal $ 6,063Child Care $ 437Gifts $ 1,476Education $ 1,368
Utilities $ 2,332Veh. Exp. $ 3,034Household Rep $ 1,779NF Interest $ 576Life Insurance $ 1,703Miscellaneous $ 1,656Recreation $ 2,723 Prop. Insurance $ 79Other Items $ 650Total of all $47,146
The North Dakota Farm Business Management Education Program is sponsored by the
North Dakota Department of Career and Technical Education
Thank You!