Area Farm Businesses Financially Strong


Table of Contents:

Following are some additional key farm financial analysis figures from the 2010 Farm Business Management data:

  • The average farm business had $708,501 in gross farm income in 2010, which was an increase of 4% from 2009, and was comparable to 2008 gross income levels.
  • The average farm operating expenses for 2010 were $584,494, which were up slightly from 2009 expenses, and again were very close to 2008 operating expenses per farm.
  • The average net farm income for 2010, after crop and livestock inventory adjustments, capital adjustments, depreciation, etc., was at a record level of $183,808. The strong 2010 net farm income was almost 200% above the 2009 level of $61,350, and was well above the very good years for average net farm income of $139,986 in 2008 and $149,940 in 2007.
  • There was large variation in net farm income in 2010, with top 20% profitability farms averaging a net farm income of $513,631, and the low 20% profitability farms averaging a negative net farm income of ($116,856).
  • The average farm business showed a net worth improvement of +$156,172 in 2010, which was up considerably from the modest net worth improvement of +$33,598 in 2009.
  • Again there was a large variation in farm net worth improvement in 2010, with the 20% high profitability farms showing an average net worth increase of +$398,560, and the low 20% profitability farms showing a much smaller annual increase in net worth of $35,901.
  • Total assets and total liabilities (debt) have risen steadily for the average farm business in recent years; however the average debt-to-asset ratio, which measures the solvency of the farm business, has dropped from 56% in 2002 to about 43% in 2010.
  • In 2009, the average farm business borrowed about $390,000, which was an increase of $40,000 from 2009; however the amount of debt repaid in 2010 also increased by a similar amount.

Overall, crop operations were very profitable in 2010 – well above 2009 profit levels – due to higher grain prices and fairly steady crop input costs and land rents in 2010. Profits in the livestock sector improved significantly in 2010, compared to the previous two years, due to improved market prices and more stable operating expenses. The overall average financial health of the FBM farm businesses improved significantly in 2010, and is quite strong. Complete farm management results are available through the University of Minnesota Center for Farm Financial Management FINBIN Program.


Editor’s note: Kent Thiesse is a former University of Minnesota Extension educator and now is Vice President of MinnStar Bank, Lake Crystal, MN. You can contact him at 507-726-2137 or via e-mail at

Discuss this Blog Entry 1

on Aug 3, 2014

when your business use well management even if in agriculture you can multiple your profit each year
dapatkan cara berhubungan yang hot pasutri yang lengkap | cara memakai jilbab

Post new comment
or register to use your Corn and Soybean Digest ID
Blog Archive

Sponsored Introduction Continue on to (or wait seconds) ×