DCB ND Farm Management Education Shares 2022 Averages

Dakota College at Bottineau (DCB) enrolls farmers and ranchers throughout the north central and western part of North Dakota to work one-on-one with their North Dakota Farm Management Education (NDFME) instructors. Enrollees do not sit in a traditional classroom setting. Since no two farm and ranch operations are the same, working one-on-one allows direction on a per-case basis. DCB – NDFME Instructors work with enrollees’ personal financial information to help understand and improve effectiveness in four main areas: Business & Family Goal Setting, Farm & Ranch Business Records, Financial Analysis, and Planning.

The information and data provided to instructors is completely confidential. Instructors establish relationships with each enrollee’s lender so that financial information can be communicated efficiently and discreetly. Once completed, each analysis is anonymously submitted to publish annual state and regional average reports. Submitted data is compiled and then sorted into applicable classifications. The separate categories are averaged to produce benchmarks for Average of All Farms, Low 20%, 40%-60%, and High 20% for a wide variety of financial measures and enterprises. This ensures that the enrollee’s exact information is never revealed but is only used in the calculation of the averages.

Lenders particularly find the information provided by the average book useful as it helps them to gauge how their client may compare to others throughout the state. An AgCountry Farm Credit Services lender says: “The annual reports published by the ND Farm Management team serve as a useful resource that allows farmers and ranchers to align their operation to the averages in their specific region.”
When asked why a farmer or rancher should consider being enrolled in NDFME, a First Western Bank & Trust lender said, “Well, I'd see the biggest benefit coming back to when they sit down with their ag lender at renewal time. They can make sure they're accurate and utilize different types of programming so they can see where they sit financially through the various analysis that the farm program does.”
Despite what others may perceive, being enrolled in NDFME does not mean that an operation is struggling financially, rather the enrolled farmer or rancher values the ability to continuously improve their operation by utilizing the tools provided by this program. To enroll in the program, enrollees must be currently engaged in managing their farms or ranches. Approximately 65% of participants have been enrolled in the program for over 10 years with nearly an additional 20% being enrolled for 6-10 years. The largest age demographic of enrollees in the program is 35-44 years old followed closely by 60-64 years old. Long-term participants benefit from years of collected data, generating more definitive trends that help compare year-to-year results and allow financial decisions to be made confidently.  
Some enrollees in NDFME may be required by FSA to complete training as part of a loan agreement. This is to help borrowers develop and improve important skills to help them be successful farm and ranch operators (the law directs FSA to determine a borrower’s need for training and require it when appropriate). The training helps FSA borrowers gain knowledge, address problems or operational weaknesses, and plan for financial success.

Many farmers and ranchers that enrolled originally to meet the FSA requirement continue to participate in the program because they find the information gained while working with their instructor to be incredibly valuable to their operation.

Understanding and updating an operation’s financial data regularly allows farmers and ranchers to make smart business decisions based on reliable data in a timely manner. Just like agronomists are consulted for their expertise on soil health and veterinarians are required to treat sick animals, NDFME is a tool in a farmer or rancher’s belt to ensure the long-term success of their operation. NDFME’s mission is to provide lifelong learning opportunities in economic and financial management for persons involved in the farming and ranching industry.
The 2022 Region 2 Averages will be presented at each of Dakota College at Bottineau’s Farm Management Education locations: Bottineau, Minot, and Rugby. Dr. Linda Burbidge, Bottineau will host on April 5, 2023, at 2:30 PM in the Centennial Alumni Center, on Dakota College at Bottineau’s campus. Lynsey Aberle, Minot will host on April 6, 2023, at 10:00 AM at the North Central Research Extension Center in Minot, ND. Morgan Stutrud, Rugby will host April 12, 2023, at 2:30 PM at Ag Country Farm Credit Services in Rugby. All three instructors will present along with guest speakers. All participants in the program, local lenders, and those curious about the ND Farm Management Education Program are invited to the presentations.

Questions may be directed to Dakota College at Bottineau Farm Management instructors or to ND Farm Management Education sponsored by the ND Department of Career and Technical Education.