South East Area Reports for 1999

                                                           S.E. Minnesota FBM                                                
                                               PROFITABILITY AND LIQUIDITY ANALYSIS, 1999                                    
                                                   (Farms sorted by Net Farm Income)                                         


                                                    Avg. Of     Avg. Of     Avg. Of       Avg. Of     Avg. Of     Avg. Of   
                                                   All Farms   High 20%      Low 20%     All Farms   High 20%      Low 20%  
                                                    
          Number of Farms                                374          76          71           383          77          77

          PROFITABILITY                           ------------- Cost ---------------    ------------ Market --------------
            Net farm income                            54940      181913      -23344         68933      183095       20417
            Labor and management earnings              36451      143536      -31575         45841      139523        7139
            Rate of return on assets                   8.3 %      14.5 %      -4.1 %         8.4 %      12.3 %       4.4 %
            Rate of return on equity                   9.4 %      21.5 %     -35.2 %        11.1 %      19.0 %       0.7 %
            Operating profit margin                   19.6 %      29.7 %     -13.5 %        25.1 %      30.0 %      20.6 %
            Asset turnover rate                       42.6 %      48.8 %      30.2 %        33.6 %      41.0 %      21.1 %

            Interest on farm net worth                 18489       38377        8231         23092       43572       13277
            Farm interest expense                      25246       45283       25094         25106       45116       24357
            Value of operator lbr and mgmt.            26643       44678       19364         26410       44773       18877
            Return on farm assets                      53543      182519      -17615         67629      183438       25897
            Average farm assets                       641522     1259131      433216        802875     1492874      595130
            Return on farm equity                      28297      137235      -42708         42523      138322        1540
            Average farm equity                       301815      639615      121171        384394      726202      219607
            Value of farm production                  273022      614242      130846        269664      612131      125802

                                                                   Average Of   Average Of   Average Of
                                                                    All Farms    High 20%      Low 20% 
                                                                   
          Number of Farms                                                 383           77           77

          LIQUIDITY (Cash)
            Net cash farm income                                        67127       162542        13478
            Net nonfarm income                                          20447        14071        34024
            Family living and taxes                                     40003        62535        29781
            Real estate principal payments                              10537        16004         7448
            Cash available for interm. debt                             37034        98075        10273
            Average intermediate debt                                   98741       217551        75712

            Years to turnover interm. debt                                2.7          2.2          7.4
            Expense as a % of income                                     80 %         78 %         93 %
            Interest as a % of income                                     7 %          6 %         13 %

          LIQUIDITY (Accrual)
            Total accrual farm income                                  337748       789524       167140
            Total accrual farm expense                                 261841       570825       168908
            Net accrual operating income                                75907       218699        -1768
            Net nonfarm income                                          20447        14071        34024
            Family living and taxes                                     40003        62535        29781
            Real estate principal payments                              10537        16004         7448
            Available for intermediate debt                             45814       154231        -4973
            Average intermediate debt                                   98741       217551        75712

            Years to turnover interm. debt                                2.2          1.4           **
            Expense as a % of income                                     78 %         72 %        101 %
            Interest as a % of income                                     7 %          6 %         15 %


            ** Income insufficient to meet debt servicing requirements

                                               -5-                                             

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