Red River Valley Reports For 1998

                                                                TABLE 8                                                      
                                                  FINANCIAL GUIDELINES MEASURES, 1998                                        
                                        Minnesota and North Dakota Farm Business Mgmt Education                              
                                                            Red River Valley                                                 
                                                   (Farms sorted by Net Farm Income)                                         


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

          LIQUIDITY                                     Beginning      Ending   Beginning      Ending   Beginning      Ending
            Current ratio                                    1.32        1.18        1.21        0.72        1.50        1.71
            Working capital                                 53371       31985       47287      -78214      121832      167188

          SOLVENCY (Market)                             Beginning      Ending   Beginning      Ending   Beginning      Ending
            Farm debt to asset ratio                         54 %        56 %        60 %        66 %        51 %        50 %
            Farm equity to asset ratio                       46 %        44 %        40 %        34 %        49 %        50 %
            Farm debt to equity ratio                       118 %       127 %       149 %       193 %       103 %       101 %

          PROFITABILITY (Cost)
            Rate of return on farm assets                         2.8 %                  -7.2 %                   8.7 %
            Rate of return on farm equity                        -2.4 %                 -37.7 %                  10.2 %
            Operating profit margin                               6.5 %                 -16.2 %                  19.8 %
            Net farm income                                       20563                  -82783                  125193

          REPAYMENT CAPACITY                                     Accrual                 Accrual                 Accrual
            Term debt coverage ratio                               50 %                   -79 %                   147 %
            Capital replacement margin                           -29469                 -139112                   39910

          EFFICIENCY
            Asset turnover rate (cost)                           43.8 %                  44.2 %                  43.9 %
            Operating expense ratio                              80.9 %                 102.5 %                  70.0 %
            Depreciation expense ratio                            4.9 %                   5.4 %                   4.3 %
            Interest expense ratio                                8.9 %                  11.7 %                   7.3 %
            Net farm income ratio                                 5.3 %                 -19.6 %                  18.4 %

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