Southwest Minnesota Farm Business Management Association Annual Report released
April 11, 2008
Average net farm income was $242,267 for the 107 farms included in the 2007 report of the Southwestern Minnesota Farm Business Management Association, a 57% increase from 2006. The median income was $199,745. Adjusting for inflation, 2007 was the most profitable year for association members since 1973. Government payments (of all types) decreased by 48% to $17,033. The average rate of return on assets was 17%, up from 13% in 2006 (using assets valued at adjusted cost basis). Rate of return on equity was 25%, up from 19% the previous year. Using a market value basis, average total equity (of the 91 sole proprietors) was $1,224,181 at the end of 2007, an increase of $252,175. Expenses increased by 20% over the average for 2006.
Authors of the report are Dale Nordquist, CFFM, and Jim Kurtz, Rob Holcomb, and Garen Paulson of the Southwest Minnesota Farm Management Association.
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