North Dakota Farm Incomes Slide

FARGO - May 10/02 - SNS -- Average farm incomes for North Dakota producers located outside the Red River Valley region are down 40%, says North Dakota State University farm management specialist Andrew Swenson, from $54,000 in 2000 to just $32,400 last year.

"The primary reason for the drop in net income was a reduction in government subsidies," Swenson says. Total 2001 fixed government payments to all North Dakota farms was $183 million compared to $225 million in 2000, and the emergency legislated market loss assistance payments dropped to $205 from $241 million. Also, the determination of loan deficiency payments for wheat was less beneficial to producers compared to 2000. And, unlike the previous four years, there was not a disaster program for the 2001 crop year.

"The drop in net farm income was from a combination of higher costs and lower revenue," Swenson says. He notes that total fertilizer cost per acre for wheat increased more than 20% compared to 2000. Also, higher chemical, repair and fuel costs more than offset lower interest expense. Beef prices took a substantial drop in the fall of 2001 before most calves had been marketed. Net return per beef cow dropped from $124 in 2000 to $93 in 2001.

Net farm income was consistent among regions in the state, excluding the Red River Valley, in 2000 but varied considerably in 2001. Farms in the southern part of the state tended to fair much better than those in the north and parts of east central North Dakota. The north central region averaged $26,000 net income per farm and the combined average of 42 farms in Wells and Foster counties was about $10,000 compared to about $60,000 per farm in Stark and Ransom counties, in the southwest and southeast, respectively.

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