research
Financial Characteristics of North Dakota Farms 2001-2010
- Publication date
- Publisher
Abstract
The performance of over 500 North Dakota farms, 2001-2010, is summarized using 16 financial measures. Farms are categorized by geographic region, farm type, farm size, gross cash sales, farm tenure, net farm income, debt-to-asset, and age of farmer to analyze relationships between financial performance and farm characteristics. Five-year averages, 2005-2009, are also presented. In 2010, median and average acreage per farm was 2,010 and 2,579, respectively. Median and average cash farm revenue was 469,023and631,920, respectively. Over 70% of farms were crop farms and 47 percent of farms had gross sales exceeding 500,000.Medianageoffarmoperatorswas47.Mediannetfarmincomein2010was174,010, up sharply from 47,547in2009.Financialmeasuresfor2010,2008and2007weremuchsuperiortothoseinotheryearsforthe2001−2010period.TheRedRiverValleyandcropfarmstypicallyhadstrongerprofitability,solvency,andrepaymentcapacityfrom2001to2010thanotherregionsandfarmtypes,respectively.Exceptionswere2007and2009whenthenorthcentralregionhadthebestregionalperformanceand2005whenthesouthcentralregionandlivestockfarmshadbetterperformance.The2010mediannetfarmincomewas239,426 for crop farms and 48,775forlivestockfarms.Farmswithsaleslessthan500,000 were over twice as likely to have debt-to-asset higher than 70 percent as farms with sales greater than $500,000. Farms that own some crop land, but less than 40 percent were more likely to be crop farms, farm more acreage, have larger sales, and be more profitable. As expected, solvency and percent of crop land owned increased with farmer age. Median net farm income as a percent of gross revenue was the highest of the decade in 2010, 33.1 percent, and the lowest in 2009, 13.4 percent. It was 24 percent in 2008 and 30.6 percent in 2007 after ranging from 22.4 to 14 percent between 2001 and 2006Farm financial management, farm management, farm income, liquidity, solvency, profitability, repayment capacity, financial efficiency, financial benchmarks, tenure, North Dakota., Agricultural Finance, Farm Management, Financial Economics,