by Lynsey Aberle
In 2025, North Dakota producers experienced a relatively stable year, supported by government payments, steady yields and continued increases in livestock prices. The average net farm income for 2025 was $163,455, up from $118,688 in 2024.
Although net cash income declined by about $25,000, this was more than offset by a $65,451 increase in inventory values from the beginning to the end of the year. Inventory levels fluctuated throughout the year, but the most notable changes included producers holding more crops on inventory at year-end in anticipation of higher prices, rising livestock values and reduced accounts payable.
Overall, net farm income in 2025 remained comparable with the previous year, largely because producers maintained or achieved higher yields while commodity prices held relatively steady. Bridge payments, recorded in accounts payable, also helped prevent a decline in average net farm income. Without strong yields, government support and higher livestock prices, 2025 could have been weaker compared with 2024.
The average farm
In 2025, the average operation enrolled in the North Dakota Farm Management Program farmed 2,017 crop acres and grazed 252 pasture acres. The average operator was 46 years old and had about 21 years of farming experience.
In 2025, the average gross cash farm income was more than $1.12 million. Of that total, 72.4% came from crop sales, 9.9% from government payments, 9.3% from livestock sales, 3.4% from insurance indemnities and 5.0% from other farm income, as shown in the graph below.
Compared with 2024, crop sales decreased by $87,362, livestock sales increased by $31,799 and government payments increased by $93,500. In addition, insurance payments decreased by about $39,000.
In 2025, the average total cash farm expense was $924,761, an increase of $25,903 from 2024. Gross farm income rose only slightly, increasing by about $670 from the previous year. While interest rates remained relatively stable, producers experienced an average increase of $10,797 in interest expense, bringing total interest costs to about $69,000. This increase was driven by higher borrowing levels, with average money borrowed rising by about $80,000 in 2025.
Producers also made higher principal payments; however, increased borrowing contributed to a slight rise in the average debt-to-asset ratio, which increased from 33% in 2024 to 34% in 2025.
North Dakota producers experienced an increase in profitability measures in 2025. The rate of return on assets increased to 4.0% from 2.7% in 2024, while the rate of return on equity rose to 3.1% from 1.3%. This lower return on equity suggests that borrowed money wasn’t generating as much return for operations but was more than the previous year.
Additionally, the 2025 average term debt coverage ratio was 1.61, meaning farmers and ranchers produced enough income to cover intermediate and long-term debt payments about 1.6 times. This increased from 1.32 in 2024.
In 2025, the average operating expense ratio was 73.6%, and the average interest expense ratio was 6.3%. This indicates that for every dollar of gross income, about 74 cents went toward operating expenses and about 6 cents went toward interest. About 8 cents was allocated to depreciation, leaving about 12 cents of each dollar as profit.
Talking crops
Crop yields in 2025 were generally steady, with slight variations across commodities. The five most profitable crops grown on cash-rented land in North Dakota in 2025 were:
- canola, with a net return of $65.98 and yield of 24.16 cwt per acre
- oats, with a net return of $51.24 and yield of 108.99 bushels per acre
- sunflowers, with a net return of $39.59 and yield of 20.52 cwt per acre
- durum, with a net return of minus $2.53 and yield of 59.25 bushels per acre
- soybeans with a net return of minus $4.75 and yield of 37.61 bushels per acre
The top 10 crops produced in North Dakota in 2025 are outlined in the chart below, highlighting the average net return for each crop on cash-rented land. These net returns are calculated excluding bridge payments.
Livestock producers saw particularly strong gains in 2025. North Dakota cow-calf operations more than doubled profits compared with the previous year, with average net returns increasing to $1,109.01 per cow, up from $458.78 in 2024. Feed costs rose to $508.71 per cow, while weaning weights held steady at 520 pounds.
In comparison, producers who chose to enterprise their cow-calf with backgrounding calves through the end of the year also saw a significant increase in profits in 2025. The average net return was $1,063.51 per cow, about $414 higher than the previous year.
Feed cost was $660.84 per cow, about $150 higher than the regular cow-calf enterprise, which includes calves only until weaning. The average weaning weight was slightly higher at 530 pounds. In this specific enterprise, producers allocate backgrounding costs across the entire herd rather than separating them into distinct cow-calf and backgrounding enterprises.
The 2025 beef backgrounding enterprise reported an average net return of $387.48 per head, which was higher than the 2024 average net return of $98.34 per head. On average, backgrounders were sold at 732 pounds at $348.80 per cwt, totaling $2,553.21 per head, about $630 more than the previous year.
Overall, producers enrolled in the North Dakota Farm Management Program experienced a year similar to 2024 in terms of net farm income. While 2025 presented its own challenges, stable yields and commodity prices, along with government payments and stronger livestock markets, helped maintain financial stability for producers across the state of North Dakota.
The data within this article was gathered by 10 North Dakota Farm Management programs. Instructors were able to gather information from 223 farms in different regions throughout the state. If you’d like to see your region’s annual report or the full state average report, contact your local North Dakota Farm Management instructor or visit ndfarmmanagement.com/resources.
Aberle is a North Dakota Farm Management Education Program instructor at Dakota College at Bottineau and writes from Minot. The North Dakota Farm Management Education Program provides lifelong learning opportunities in economic and financial management for individuals involved in the farming and ranching business. Visit ndfarmmanagement.com or contact Madison Bodine, state supervisor for farm management education, at mbodine@nd.gov or 701-328-4567 for more information. The N.D. Farm Management Education Program is sponsored by the North Dakota Department of Agriculture.