TABLE 6. Barley, sprinkler-irrigated, budgeted per acre costs and returns for a 500 acre farm with above average management, Artesia-Lake Arthur area, 2001. Planting dates: August 20 - September 30 Harvesting dates: June 15 - July 1 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS BARLEY $2.70 35.00 CWT $94.50 ASCS DEFICIENCY $0.34 35.00 CWT $11.90 ASCS DIVERSION $0.00 $0.00 GRAZING $40.00 $40.00 _______ TOTAL $146.40 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL ------------------ ----- ----------- -------- ----- SEED $0.31 110 LBS $34.10 $34.10 NITROGEN (N) $0.42 150 LBS $63.00 $63.00 INSEC 0 $19.07 1 X/ACRE $19.07 $19.07 PUMP WATER* 28 AC. IN. CROP INSURANCE $5.88 $5.88 $5.88 SUBTOTAL $122.05 $122.05 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ----- PLOW 145 HP 0.48 HR $3.50 $6.07 $2.68 $7.00 $19.26 DISC (2X) 145 HP 0.34 HR $2.48 $4.30 $1.56 $4.11 $12.46 FERTILIZE DEALER APPLIED DRILL 70 HP 0.21 HR $1.53 $1.09 $0.85 $3.84 $7.30 IRRIGATE (4X) 1.00 HR $6.70 $36.66 $11.00 $25.69 $80.05 _________ ______ ______ ______ ______ _______ SUBTOTAL 2.03 HR $14.22 $48.12 $16.09 $40.64 $119.06 HARVEST OPERATIONS ------- ------------ COMBINE (CUSTOM) $17.91 $17.91 HAUL (CUSTOM) $7.00 $7.00 ______ ______ SUBTOTAL $24.91 $24.91 OVERHEAD EXPENSES -------- ---------- DOWNTIME 0.26 HR $1.88 $1.88 EMPLOYEE BENEFITS $2.56 $2.56 INSURANCE $0.28 $0.28 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $11.76 $11.76 OTHER EXPENSES $39.26 $39.26 _________ _______ _______ _______ _______ SUBTOTAL 0.26 HR $39.55 $16.20 $1.56 $57.31 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 2.29 HR $186.51 $30.42 $48.12 $16.09 $42.20 $323.33 NET OPERATING PROFIT ($176.93) INTEREST ON OPERATING CAPITAL ( 79.15 @ 9.00%) $7.12 INTEREST ON EQUIPMENT INVESTMENT $11.02 RETURN TO LAND AND RISK ($195.08) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $146.40 VARIABLE OPERATING EXPENSES $250.71 RETURN OVER VARIABLE EXPENSES ($104.31) (GROSS MARGIN) FIXED EXPENSES $42.20 NET FARM INCOME ($146.51) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $30.42 NET OPERATING PROFIT ($176.93) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $18.15 RETURN TO LAND AND RISK ($195.08) ===================================================================================================