Red River Valley Reports For 1998

                                               TABLE 4                                    
                             PROFITABILITY AND LIQUIDITY ANALYSIS, 1998                   
                       Minnesota and North Dakota Farm Business Mgmt Education            
                                          Red River Valley                                
                                  (Farms sorted by Net Farm Income)                       


                                                     Average Of   Average Of   Average Of
                                                      All Farms     Low 20%    High 20% 
                                                     ----------   ----------   ----------
          Number of Farms                                   197           39           39

          PROFITABILITY (Cost)
            Net farm income                               20563       -82783       125193
            Labor and management earnings                 -3876      -101942        76676
            Rate of return on assets                      2.8 %       -7.2 %        8.7 %
            Rate of return on equity                     -2.4 %      -37.7 %       10.2 %
            Operating profit margin                       6.5 %      -16.2 %       19.8 %
            Asset turnover rate                          43.8 %       44.2 %       43.9 %

            Interest on farm net worth                    24439        19159        48517
            Farm interest expense                         34625        49585        49593
            Value of operator lbr and mgmt.               30259        35353        42352
            Return on farm assets                         24929       -68550       132434
            Average farm assets                          874898       955938      1526654
            Return on farm equity                         -9696      -118136        82841
            Average farm equity                          403863       312972       808617
            Value of farm production                     383590       422660       670234


          Number of Farms                                   197           39           39

          LIQUIDITY (Cash)
            Net cash farm income                          61061        37998       123158
            Net nonfarm income                            15088        19922         7612
            Family living and taxes                       48540        48920        73346
            Real estate principal payments                 9083        10656        16445
            Cash available for interm. debt               18526        -1657        40979
            Average intermediate debt                    156803       236952       191976

            Years to turnover interm. debt                  8.5           **          4.7
            Expense as a % of income                       85 %         92 %         81 %
            Interest as a % of income                       8 %          9 %          7 %

          LIQUIDITY (Accrual)
            Total accrual farm income                    388466       422899       679633
            Total accrual farm expense                   348940       482934       525523
            Net accrual operating income                  39527       -60036       154110
            Net nonfarm income                            15088        19922         7612
            Family living and taxes                       48540        48920        73346
            Real estate principal payments                 9083        10656        16445
            Available for intermediate debt               -3008       -99690        71931
            Average intermediate debt                    156803       236952       191976

            Years to turnover interm. debt                   **           **          2.7
            Expense as a % of income                       90 %        114 %         77 %
            Interest as a % of income                       9 %         12 %          7 %


            ** Income insufficiant to meet debt servicing requirements

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