Famland investment for raising crops fed to the beef cows is not included as part of the beef cow profit center. Facilities and equipment investment is only that portion of the investment used by the beef cow herd. Cost Basis is where assets are valued at their acquisition costs minus depreciation taken to date. While this option is available, it has not yet been activated in North Dakota. Market Value is where the assets are valued at their current market value.
Market value is independent of asset cost or depreciation taken to date.
Debts are only the debts associated with beef cows, replacement heifers, beef cow facilities, beef cow equipment, the cows' share of machinery debt prorated by percentage used for cow herd, and pastureland. Debts on farmland and farm machinery to farm the land are not included. The beef cow profit center debts are then divided by the number of beef cows in the Jan. 1 inventory to get the debt per cow. Percent Ownership is the percent of the beef cow profit center assets that are owned by the ranch or farm family. Economic Performance Accrual Income is the sum of both cash income and capital gains income adjusted for inventory changes.