2. Farm/Ranch Business Management Education Year 2008 Jerry Tuhy, Instructor Dickinson ND at DREC

3. Gross Income (Accrual) Per farm for year

4. Net Income Ratio (%) percentage of gross $ that is net $

5. $ Net Farm Income “Profit”

6. $ Net “Non-Farm” Income

7. Family Living & Income Taxes $ spent/year

8. Change in Retained Earnings $ of equity gain per yr (cost basis)

9. Farm Debt/Asset Ratio (%) end year

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

11. Term Debt Coverage Ratio a 100% ratio means “we can make all debt payments”

12. Cash Flow 2008 AverageLow ProfitHigh Profit Gross Farm Income4573233857591057203 Non-Farm Income324103337627847 Cash Farm Expenses348463359452755158 Family Living483134732872161 Income, SS Tax401332314473 Net Capital Purchases9629192474202668 Money Borrowed288019378448443679 Principal Payments272368292852484073 For more info – see www.finbin.umn.edu

13. Crop and Pasture Acres

14. Spring Wheat Ave Yields and Net $ per Acre

15. Costs /acre for Spring Wheat comparing 06,07,08

16. Crop Contributions to Overheads Year 2008

17. All Crops combined in 2008 Ave Gross=$196 Cash rented crops, not hay, cost=$182/A

18. $ Net income /Beef Cow

19. Beef cow costs, returns 2008 per cow (fuel,repairs in OVHD) averagehigh profit $351$106 $24 $312 $84 $135

20. How are low profit and high profit Beef herds different ? For 2008 yr Low ProfitHigh Profit Value of calf/cow$470$595 Depreciation per cow$68$64 Direct cost/cow$408$312 Overhead expense/cow $141$84 Net Income per Cow-$146+$135