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Farm/Ranch Business Management Education Year 2008 Jerry Tuhy, Instructor Dickinson ND at DREC PowerPoint PPT Presentation


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Region 4 West ND. Farm/Ranch Business Management Education Year 2008 Jerry Tuhy, Instructor Dickinson ND at DREC. Gross Income (Accrual) Per farm for year. Net Income Ratio (%) percentage of gross $ that is net $. $ Net Farm Income “Profit”. $ Net “Non-Farm” Income.

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Farm/Ranch Business Management Education Year 2008 Jerry Tuhy, Instructor Dickinson ND at DREC

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Region 4 West ND

Farm/Ranch Business

Management Education

Year 2008

Jerry Tuhy, Instructor

Dickinson ND at DREC


Gross Income (Accrual)Per farm for year


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


$ Net Farm Income “Profit”


$ Net “Non-Farm” Income


Family Living & Income Taxes$ spent/year


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


Farm Debt/Asset Ratio (%) end year


Expense (oper+ Int) as % of Accrual Income


Term Debt Coverage Ratioa 100% ratio means “we can make all debt payments”


Cash Flow 2008


Crop and Pasture Acres


Spring Wheat Ave Yields and Net $ per Acre


Costs /acre for Spring Wheat comparing 06,07,08


Crop Contributions to Overheads Year 2008


All Crops combined in 2008 Ave Gross=$196Cash rented crops, not hay, cost=$182/A


$ Net income /Beef Cow


Beef cow costs, returns 2008per cow (fuel,repairs in OVHD)

average

high profit

$24

$135

$106

$351

$312

$84


How are low profit and high profitBeef herds different ? For 2008 yr


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