TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 500 acre farm with above average management, Artesia-Lake Arthur area, 2001. Harvesting dates: May 5 - November 1 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS ALFALFA HAY $120.00 6.50 TONS (STACKED) $780.00 GRAZING $40.00 $40.00 _______ TOTAL $820.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED FIXED PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL --------- ------ ----- ------- -------- ----- ----- INSECTICIDE (CUSTOM) $23.85 2 X/ACRE $47.70 $47.70 HERBICIDE (CUSTOM) $34.66 1 ACRE $34.66 $34.66 INSECT SCOUTING $5.25 1 ACRE $5.25 $5.25 FERTILIZER (5-26-30) $0.21 200 LBS $42.00 $42.00 WIRE $0.36 56 LBS $20.05 $20.05 DRYING AGENT (AGRI-DRY) $7.87 1 /TON $51.15 $51.15 ESTABLISHMENT: Principal 5 YEARS $42.13 $42.13 : Interest $10.19 $10.19 PUMP WATER* 50 AC. IN. _______ _______ _______ SUBTOTAL $200.81 $52.32 $253.13 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ------------- --------- ----- ----- ----- ----- ----- IRRIGATE (7X) 3.50 HR $23.45 $40.79 $9.05 $29.14 $102.43 ____________ _______ _______ _______ _______ _______ SUBTOTAL 3.50 HR 23.45 40.79 9.05 29.14 102.43 HARVEST OPERATIONS ------- ---------- SWATHER (5X) 16 FT SP 0.55 HR $4.02 $2.88 $8.02 $11.16 $26.08 RAKE (5X) 40 HP 0.25 HR $1.83 $0.97 $0.83 $1.63 $5.25 BALER (5X) 96 HP 1.25 HR $9.13 $9.42 $6.27 $5.93 $30.75 BALE WAGON (5X) SP 1.00 HR $7.30 $10.08 $20.37 $9.13 $46.88 ____________ _______ _______ _______ _______ _______ SUBTOTAL 3.05 HR $22.27 $23.36 $35.48 $27.85 $108.96 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.70 HR $5.11 $5.11 EMPLOYEE BENEFITS $8.23 $8.23 INSURANCE $0.91 $0.91 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $62.43 $62.43 OTHER EXPENSES $45.94 $45.94 ____________ _______ _______ _______ _______ SUBTOTAL 0.70 HR $46.85 $75.76 $1.56 $124.18 ------------ ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 7.25 HR $247.67 $121.48 $64.15 $44.53 $110.87 $588.70 NET OPERATING PROFIT $231.30 INTEREST ON OPERATING CAPITAL ( 117.77 @ 9.00%) $10.60 INTEREST ON EQUIPMENT INVESTMENT $24.64 RETURN TO LAND AND RISK $196.06 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $820.00 VARIABLE OPERATING EXPENSES $356.35 RETURN OVER VARIABLE EXPENSES $463.65 (GROSS MARGIN) FIXED EXPENSES $110.87 NET FARM INCOME $352.78 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $121.48 NET OPERATING PROFIT $231.30 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $35.24 RETURN TO LAND AND RISK $196.06 ===================================================================================================