Press Release (for immediate release)
May 27, 2005
Contact: Steve Metzger, ND Farm Business Management Instructor 701-652-2951 Email : smetzger@ndsuext.nodak.edu
North Dakota Ag. Producers Impact Local Communities
by Steve Metzger - Region 3 Coordinator, ND Farm Business Management Program
CARRINGTON, N.D. - Agricultural producers across North Dakota have a major economic impact upon the communities in which they live and do business. An average farm outside of the Red River Valley and consisting of 1,799 crop and forage acres along with 763 acres of pasture spent $239,612 for basic farm operating expenses in 2004. The 434 farms supplying this information are enrolled in the North Dakota Farm Business Management Program which is operated at 13 sites within the state.
Those expenses topping the list for 2004 were land rent at $34,431, fertilizer at $28,581, crop chemicals at $24,008, repairs at $21,747 and seed at $18,880. While the value of fuel purchased increased from 2003 by $2,028 to a total of $15,364 interest paid actually showed a decrease of $1,078 to a total of $16,709 for the 2004 year.
Excluding pasture rent, livestock expenses totaled $25,370 for a decrease of $1,176 from the 2003 yearly total. Major expenses for livestock producers included feed purchased for $10,973 and feeder livestock for $8,267. Both of these items decreased approximately 4% from their 2003 expenditure level. Veterinary expenses and livestock supplies decreased approximately 8% from 2003 and for the 2004 year were listed at $2,219 and $1,814 respectively.
In addition to its annual operating expenses the average farm purchased $45,331 of replacement equipment and buildings in addition to $7,443 of replacement breeding stock. Including miscellaneous capital purchases, the average farm spent a grand total of $55,313 to maintain its capital structure.
In addition to the normal operating and capital expenditures cited, the average farm also paid out $39,886 in family living expenses, $5,133 for income and social security taxes and approximately $6,100 for non-farm capital items for a grand total of $51,119 in non-farm expenditures. This per farm average total expenditure of $346,044 then proceeds to turn over approximately four times in the local community.
Along with the operating, capital replacement and family living expenditures the average farm was also responsible for the repayment of $23,804 in principal on intermediate and long term farm debts. This means that the average farm needed to generate a total of $369,848 of income to meet all its financial obligations for the 2004 year. Some relief to the total outflow of dollars, particularly those in family living, was provided by an average of $20,419 of non-farm income generated per farm.
To evaluate your farm versus regional or state average farms or for further information on the NDFBM program please visit our website at www.ndfarmmanagement.com or contact Steve Zimmerman, State Supervisor for Agricultural Education at the state capitol, at 701-328-3162. The Farm Business Management program is sponsored by the State Department of Career and Technical Education.
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