TABLE 9. Upland cotton (stripper), 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 $0.650 700 LBS $455.00 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 $632.80 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL --------- ------ ----- -------------- -------- ----- SEED $0.51 20 LBS $10.20 $10.20 FOLIAR FERTILIZER $4.80 1 X/ACRE $4.80 $4.80 INSECT SCOUTING $5.25 1 ACRE $5.25 $5.25 HERBICIDE (CUSTOM) $43.21 1 X/ACRE $43.21 $43.21 INSECTICIDE (CUSTOM) $32.38 3 X/ACRE $32.38 $32.38 CROP INSURANCE FCIC $0.74 $0.74 PUMP WATER* 30 AC. IN. CROP INSURANCE $0.00 $0.00 $0.00 SUBTOTAL $96.58 $96.58 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 LIST 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 STRIPPER 70 HP 0.62 HR $4.53 $3.21 $2.78 $12.84 $23.36 HAUL 65 HP 0.75 HR $5.48 $4.74 $1.00 $6.39 $17.61 GIN COTTON (CUSTOM) $122.29 $122.29 ____________ _______ _______ _______ _______ _______ _______ SUBTOTAL 1.37 HR $122.29 $10.00 $7.95 $3.78 $19.24 $163.26 POSTHARVEST OPERATIONS ----------- ---------- SHREDDER 70 HP 0.14 HR $0.56 $0.72 $0.32 $1.95 $3.56 ____________ _______ _______ _______ _______ _______ SUBTOTAL 0.14 HR $0.56 $0.72 $0.32 $1.95 $3.56 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.89 HR $6.52 $6.52 EMPLOYEE BENEFITS $8.00 $8.00 INSURANCE $0.89 $0.89 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $47.51 $47.51 OTHER EXPENSES $45.94 $45.94 ____________ _______ _______ _______ _______ SUBTOTAL 0.89 HR $46.83 $62.03 $1.56 $110.41 ------------ ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 7.23 HR $285.70 $106.50 $57.48 $20.12 $59.55 $529.34 NET OPERATING PROFIT $103.46 INTEREST ON OPERATING CAPITAL ( 65.73 @ 9.00%) $5.92 INTEREST ON EQUIPMENT INVESTMENT $25.01 RETURN TO LAND AND RISK $72.53 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operation section. BUDGET SUMMARY GROSS RETURN $632.80 VARIABLE OPERATING EXPENSES $363.29 RETURN OVER VARIABLE EXPENSES $269.51 (GROSS MARGIN) FIXED EXPENSES $59.55 NET FARM INCOME $209.95 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $106.50 NET OPERATING PROFIT $103.46 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $30.93 RETURN TO LAND AND RISK $72.53 ===================================================================================================