By Scout Nelson
The North Dakota Farm Management Program published its 2025 Annual Report for South Central North Dakota, providing a detailed summary of farm and ranch financial data in the region. The report covered 20 counties in south central and eastern North Dakota, excluding the Red River Valley.
Average net farm income in 2025 was $215,636, compared to $312,866 in 2024. Income levels varied widely, ranging from a loss of $117,121 for the lowest-performing farms to $821,600 for the highest group. Over the past 11 years, net farm income fluctuated, reaching a peak in 2022 and showing a decline in recent years.
Gross cash farm income averaged $1,575,767. Larger farms did not always perform better, as some reported lower profits than mid-sized farms. This trend reflected the challenges of high costs and thin margins. Mid-sized farms often managed expenses more efficiently and carried less debt, helping them remain more stable.
The average net worth of farms was $3,658,820, which declined by 13.5% from 2024. The rate of return on assets was 3.6%, while the return on equity was 2.8%. This marked the third consecutive year where returns on assets were higher than returns on equity, showing that debt did not generate enough income.
Crop profitability remained low in 2025. Without government payments, few crops showed positive returns. Oil sunflowers were the most profitable at $102.60 per acre, while barley provided only a small return. Pinto beans showed the lowest return at a loss of $47.38 per acre. With government payments included, sunflowers remained the most profitable, followed by corn.
Livestock operations performed better. Beef cow-calf operations earned an average net return of $918.38 per cow, supported by steady revenue and controlled expenses.
Photo Credit: gettyimages-luc-pouliot
Categories: North Dakota, Crops