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Calculate the Rate of Return on Farm Equity for 2020 using the following facts: The following information is for the year 2020: Total revenue (total

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Calculate the Rate of Return on Farm Equity for 2020 using the following facts: The following information is for the year 2020: Total revenue (total gross revenue) Value of farm production $785,000 $667,000 Income from operations $100,000 Farm Interest (expense) $18,000 Depreciation expense $50,000 $30,000 Value (opportunity cost) of operator labor Value (opportunity cost) of operator management Opportunity Interest Rate $20,000 4% $1,000,000 Total farm asset value: Beginning (1/1/20) Ending (12/31/20) Farm equity: Beginning (1/120) Ending (12/31/20) $1,100,000 $700,000 $750,000 4.41% 4.27% 4.57% 4.76%

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