TABLE 8. Upland cotton (picker), flood-irrigated, budgeted per acre costs and returns for a 500 acre farm with above average management, Artesia-Lake Arthur area, 2001. Planting dates: April 15 - May 15 Harvesting dates: October 15 - January 15 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS COTTON LINT $0.690 700 LBS $483.00 COTTON SEED $0.05 1,120 LBS $54.60 ASCS DEFICIENCY $0.0560 700 LBS $39.20 FARM LOAN DEFICIENCY $0.12 700 LBS $84.00 _______ TOTAL $660.80 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL --------- ------ ----- ----------- -------- ----- SEED $0.56 15 LBS $8.40 $8.40 FOLIAR FERTILIZER $4.80 1 X/ACRE $4.80 $4.80 INSECT SCOUTING $5.25 1 ACRE $5.25 $5.25 HERBICIDE (CUSTOM) $77.12 1 X/ACRE $77.12 $77.12 INSECTICIDE (CUSTOM) $30.81 3 X/ACRE $30.81 $30.81 CROP INSURANCE FCIC $0.53 $0.53 PUMP WATER* 30 AC. IN. SUBTOTAL $126.90 $126.90 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ------------- --------- ----- ----- ----- ----- ----- DISC 145 HP 0.17 HR $1.24 $2.16 $0.95 $1.57 $5.93 PLOW 145 HP 0.48 HR $3.50 $6.10 $2.09 $5.22 $16.91 DISC (2X) 145 HP 0.34 HR $2.48 $4.32 $1.91 $3.14 $11.85 FLOAT 145 HP 0.16 HR $1.17 $2.03 $0.72 $1.31 $5.23 LISTER 145 HP 0.18 HR $1.31 $2.29 $0.98 $2.34 $6.92 PRE-IRRIGATE 0.75 HR $5.03 $6.12 $1.36 $4.37 $16.87 CULTIVATOR 65 HP 0.21 HR $1.53 $1.33 $0.45 $0.33 $3.63 PLANTER 70 HP 0.26 HR $1.90 $1.35 $1.97 $3.87 $9.09 SLED 70 HP 0.15 HR $1.10 $0.78 $0.18 $0.56 $2.61 CULTIVATOR (3X) 65 HP 0.63 HR $4.60 $3.98 $1.34 $0.99 $10.90 HAND HOE (CUSTOM) $20.00 $20.00 IRRIGATE (3X) 1.50 HR $10.05 $18.36 $4.07 $13.11 $45.59 ____________ _______ _______ _______ _______ _______ _______ SUBTOTAL 4.83 HR $20.00 $33.91 $48.80 $16.01 $36.81 $155.54 HARVEST OPERATIONS ------- ---------- COTTON PICKER (2X) 2-ROW 0.74 HR $5.40 $6.27 $42.90 $105.47 $160.03 HAUL (2X) 65 HP 1.00 HR $7.30 $6.32 $1.34 $8.53 $23.48 GIN COTTON (CUSTOM) $89.60 $89.60 ____________ _______ _______ _______ _______ _______ _______ SUBTOTAL 1.74 HR $89.60 $12.70 $12.59 $44.24 $113.99 $273.12 POSTHARVEST OPERATIONS ----------- ---------- SHREDDER 70 HP 0.14 HR $1.02 $0.72 $0.32 $1.95 $4.02 ____________ _______ _______ _______ _______ _______ SUBTOTAL 0.14 HR $1.02 $0.72 $0.32 $1.95 $4.02 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.95 HR $6.92 $6.92 EMPLOYEE BENEFITS $8.57 $8.57 INSURANCE $0.95 $0.95 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $50.40 $50.40 OTHER EXPENSES $45.94 $45.94 ____________ _______ _______ _______ _______ SUBTOTAL 0.95 HR $46.89 $65.89 $1.56 $114.34 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 7.66 HR $283.39 $113.52 $62.11 $60.57 $154.31 $673.91 NET OPERATING PROFIT ($13.11) INTEREST ON OPERATING CAPITAL ( 84.65 @ 9.00%) $7.62 INTEREST ON EQUIPMENT INVESTMENT $105.17 RETURN TO LAND AND RISK ($125.90) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operation section. BUDGET SUMMARY GROSS RETURN $660.80 VARIABLE OPERATING EXPENSES $406.08 RETURN OVER VARIABLE EXPENSES $254.72 (GROSS MARGIN) FIXED EXPENSES $154.31 NET FARM INCOME $100.41 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $113.52 NET OPERATING PROFIT ($13.11) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $112.79 RETURN TO LAND AND RISK ($125.90) ===================================================================================================