Financial Characteristics of North Dakota Farms 2004-2013

Abstract

The performance of over 500 North Dakota farms, 2004-2013, is summarized using 16 financial measures. Farms are categorized by geographic region, farm type, farm size, gross cash sales, farm tenure, net farm income, debt-to-asset, and age of farmer to analyze relationships between financial performance and farm characteristics. Five-year averages, 2008-2012, are also presented. In 2013, median and average acreage per farm was 1,865 and 2,581, respectively. Median and average cash farm revenue was $606,730 and $868,840, respectively. Over 70% of farms were crop farms and 60 percent of farms had gross sales exceeding $500,000. Median age of farm operators was 48. Median net farm income in 2013 was $90,629, the second lowest in the past 7 years, down from the 10 year high of $238,054 in 2012. Financial measures for 2012, 2011, 2010, 2008 and 2007 were much superior to those in other years for the 2004-2012 period. The Red River Valley and crop farms typically had stronger profitability, solvency, and repayment capacity from 2004 to 2013 than other regions and farm types, respectively. Exceptions were 2007, 2009 and 2013 when the north central region had the best regional performance and 2005 when the south central region and livestock farms had better performance. The 2013 median net farm income was $101,731 for crop farms and $39,827 for livestock farms. Farms with sales less than $500,000 were nearly three times as likely to have debt-to-asset higher than 70 percent as farms with sales greater than $500,000. Farms that own some crop land, but less than 40 percent of the land they operate were more likely to be crop farms, farm more acreage, have larger sales, and be more profitable. As expected, solvency and percent of crop land owned increased with farmer age. Median net farm income as a percent of gross revenue was 17.9 percent in 2013 and was the highest of the decade in 2012, 36.8 percent, and the lowest in 2009, 13.4 percent.