National Farm & Ranch Conference June 13-17, 2010 Characteristics of top producers Presented by: Al Brudelie.

National Farm & Ranch Conference June 13-17, 2010 Characteristics of top producers Presented by: Al Brudelie

FBM DatabaseAt a Glance Average age of farmer/student47.3 Years farming 24 Gross Farm Income 612,651 Total Cash Expense 508,273 Net Farm Income 53,704 Farm Assets (market) 1,761,595 Farm Liabilities (excl deferred) 684,253 Change in Net Worth 59,000 Number of operators 1.2 Spending in Greater Comm. 691,704

The State FBM Database includes: 2323 farms 50% Crop 20% Livestock 15% Livestock/Crop 15% Other/Diversified

What about the Top Producers?

Key Financial Factors and a look at the Top Producers

Net Farm Income (Ave)

Current Ratio (Liquidity) Current farm assets / current farm liabilities

Rate of Return on Farm Assets (Profitability) [Net farm income from operations + farm interest expense minus value of unpaid labor & mgmt] / avg. farm assets Mostly owned >5 % Green 1 % to 5 % Yellow 12 % Green 3 % to 12 % Yellow

Debt to Asset Ratio (Solvency) Total farm liabilities / total farm assets Green 70 % in Debt

Working Capital to Gross Income All Farms

Working Capital to Gross Income Crops

Working Capital to Gross Income Dairy

Working Capital to Gross Income Hogs

Term Debt Coverage Ratio >150 % Green 110 to 150 yellow

Operating Expense Ratio (Financial Efficiency) [Total operating expenses minus depreciation] / gross revenue >85 % is Red 75 % to 85 % Yellow

New Economic Realities- Financial Metrics Source Dr. Kohl MeasureCode Red Code Yellow Code Green Working Capital/Rev. 33% Debt/Asset Ratio >60%40-60%

National Farm & Ranch Conference June 13-17, 2010 Characteristics of top producers Presented by: Al Brudelie.

Documents

gross farm income

debt slide

farms slide

net farm income ave

otherdiversified slide

gross income dairy slide

operations farm

farm assets market