Red River Valley Reports For 1999

                                              TABLE - 4                                   
                             PROFITABILITY AND LIQUIDITY ANALYSIS, 1999                   
                       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                                   210           42           42

          PROFITABILITY (Cost)
            Net farm income                               87254        -1947       225351
            Labor and management earnings                 59086       -13486       167563
            Rate of return on assets                      9.1 %        0.5 %       12.8 %
            Rate of return on equity                     11.4 %      -12.3 %       17.8 %
            Operating profit margin                      18.5 %        1.1 %       25.6 %
            Asset turnover rate                          49.5 %       46.2 %       49.8 %

            Interest on farm net worth                    28168        11540        57789
            Farm interest expense                         37989        26382        61068
            Value of operator lbr and mgmt.               34259        21682        54796
            Return on farm assets                         90983         2753       231624
            Average farm assets                          995627       554907      1814628
            Return on farm equity                         52995       -23628       170556
            Average farm equity                          466317       191992       959740
            Value of farm production                     492628       256506       904556

          Number of Farms                                   211           42           42

          LIQUIDITY (Cash)
            Net cash farm income                          72988        20340       155840
            Net nonfarm income                            16283        23669         7016
            Family living and taxes                       47136        29560        68668
            Real estate principal payments                10004         6584        19030
            Cash available for interm. debt               32131         7866        75157
            Average intermediate debt                    178347       117973       248247

            Years to turnover interm. debt                  5.6         15.0          3.3
            Expense as a % of income                       84 %         93 %         81 %
            Interest as a % of income                       8 %          9 %          7 %

          LIQUIDITY (Accrual)
            Total accrual farm income                    493497       257625       908769
            Total accrual farm expense                   387396       244904       657334
            Net accrual operating income                 106101        12720       251436
            Net nonfarm income                            16283        23669         7016
            Family living and taxes                       47136        29560        68668
            Real estate principal payments                10004         6584        19030
            Available for intermediate debt               65244          245       170754
            Average intermediate debt                    178347       117973       248247

            Years to turnover interm. debt                  2.7        480.8          1.5
            Expense as a % of income                       79 %         95 %         72 %
            Interest as a % of income                       8 %         10 %          7 %

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