1. Bismarck State College at DREC
Region 4 West ND
Farm/Ranch Business
Management Education
Year 2009
Jerry Tuhy, Instructor
Bismarck State College at DREC

2. Gross Income (Accrual) Per farm for year

3. Net Income Ratio (%) percentage of gross $ that is net $

4. $ Net Farm Income “Profit”

5. $ Net “Non-Farm” Income

6. Family Living & Income Taxes $ spent/year

7. Change in Retained Earnings $ of equity gain per yr (cost basis)

8. Farm Debt/Asset Ratio (%) end year cost basis

9. Expense (oper+ Int) as % of Accrual Income

10. Term Debt Coverage Ratio a 100% ratio means “we can make all debt payments”

11. Cash Flow 2009 Average Low Profit High Profit Gross Farm Income 393111
309241
783227
Non-Farm Income
31265
37828
16849
Cash Farm Expenses
369086
302768
748578
Family Living
48043
36438
67711
Income, SS Tax
5893
3683
9594
Net Capital Purchases
101287
48219
251411
Money Borrowed
432389
356792
906069
Principal Payments
340912
317932
678329
For more info – see

12. Crop and Pasture Acres

13. Spring Wheat on Cash Rented (Bu.Yield/Acre)

14. Spring Wheat Ave Yields and Net $ per Acre

15. Costs /acre for Spring Wheat comparing 06,07,08.09

16. Crop Contributions to Overheads Year 2009

17. $ Net income /Beef Cow

18. Beef cow costs, returns 2009 per cow (fuel&repairs in OVHD)
average
high profit
$.05
$72
$101
$349
$308
$100

19. How are low profit and high profit Beef herds different ? For 2009 year.
Value of calf/cow
$469
$521
Depreciation per cow
$66
$64
Direct cost/cow
$465
$355
Overhead expense/cow
$79
$53
Cost per cwt (D&Ovhd)
$112
$78
Net Income per Cow
-$141
+$72

20. Observations from Dickinson/Glen Ullin combined Rankem- 50 Farms/Ranches
NFI median was $ 25,039, 19 farms were negative, 26 were less than $30K. Median FL exp reported was $43K
Current Ratio median 1.29, 11 farms had less than 1.00
WC/GR median was 17.1, 28 farms had less than 20%
Term Debt Coverage Ratio median was farms less than 1.00
Operating expense Ratio median was 85% .29 farms over 80%. Interest exp ratio median 6.5%
Net Farm Income Ratio median was 5.2%, 35 farms under 20%

21. … Be a student so long as you still have something to learn, and this will mean all your life. 
~Henry L. Doherty

22. Thank You!