Farm/Ranch Business Management Education Year 2009 Jerry Tuhy, Instructor

1. 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 yearcost basis

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

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

11. Cash Flow 2009

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

19. How are low profit and high profitBeef herds different ? For 2009 year.

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 .69. 30 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!