TABLE 5. Alfalfa hay, sprinkler-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) $32.98 2 X/ACRE $65.95 $65.95 HERBICIDE (CUSTOM) $39.00 1 X/ACRE $39.00 $39.00 INSECT SCOUTING $5.25 1 ACRE $5.25 $5.25 FERTILIZER (5-26-30) $0.19 200 LBS $38.00 $38.00 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 $9.94 $9.94 : Interest $19.38 $19.38 PUMP WATER* 48 AC. IN. _______ _______ _______ SUBTOTAL $219.41 $29.32 $248.73 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ------------ ---------- -------------- ----------- --------- ----- ----- ------- ----- ----- IRRIGATE (6X) 1.50 HR $10.05 $62.85 $18.86 $44.04 $135.79 _________ _______ _______ _______ _______ _______ SUBTOTAL 1.50 HR 10.05 62.85 18.86 44.04 135.79 HARVEST OPERATIONS ------- ---------- SWATHER (5X) 16 FT SP 0.55 HR $4.02 $2.88 $0.00 $9.17 $16.06 RAKE (5X) 40 HP 0.25 HR $1.83 $0.97 $0.87 $1.43 $5.09 BALER (5X) 96 HP 1.25 HR $9.13 $9.42 $2.63 $5.01 $26.18 BALE WAGON (5X) SP 1.00 HR $7.30 $10.08 $22.32 $7.52 $47.21 _________ ______ ______ ______ ______ _______ SUBTOTAL 3.05 HR $22.27 $23.36 $25.81 $23.12 $94.55 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.70 HR $5.11 $5.11 EMPLOYEE BENEFITS $5.82 $5.82 INSURANCE $0.65 $0.65 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $60.43 $60.43 OTHER EXPENSES $39.26 $39.26 _________ _______ _______ _______ _______ SUBTOTAL 0.70 HR $39.91 $71.35 $1.56 $112.82 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 5.25 HR $259.32 $103.67 $86.21 $44.67 $98.03 $591.89 NET OPERATING PROFIT $228.11 INTEREST ON OPERATING CAPITAL ( 134.23 @ 9.00%) $12.08 INTEREST ON EQUIPMENT INVESTMENT $21.96 RETURN TO LAND AND RISK $194.07 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $820.00 VARIABLE OPERATING EXPENSES $390.19 RETURN OVER VARIABLE EXPENSES $429.81 (GROSS MARGIN) FIXED EXPENSES $98.03 NET FARM INCOME $331.78 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $103.67 NET OPERATING PROFIT $228.11 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $34.04 RETURN TO LAND AND RISK $194.07 ===================================================================================================