TABLE 7. Oat hay, sprinkler-irrigated, budgeted per acre costs and returns for a 500 acre farm with above average management, Artesia-Lake Arthur area, 2001. Planting dates: February 1 - February 28 Harvesting Dates: June 1 - June 30 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS OAT HAY $80.00 3.50 TONS (STACKED) $280.00 _______ TOTAL $280.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL ------------------ ----- ----------- -------- ----- SEED $0.23 100 LBS $23.00 $23.00 FERTILIZER (16-20-0) $0.14 150 LBS $21.00 $21.00 PUMP WATER* 28 AC. IN. _______ _______ SUBTOTAL $44.00 $44.00 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 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 ------- ------------ SWATHER 14 FT 0.16 HR $1.17 $0.84 $0.00 $2.67 $4.67 BALER 145 HP 0.25 HR $1.83 $3.16 $0.83 $3.02 $8.83 BALE WAGON S. P. 0.20 HR $1.46 $2.02 $4.46 $1.50 $9.44 _________ _______ _______ _______ _______ _______ SUBTOTAL 0.61 HR $4.45 $6.02 $5.29 $7.19 $22.95 OVERHEAD EXPENSES -------- ---------- DOWNTIME 0.41 HR $2.99 $2.99 EMPLOYEE BENEFITS $3.36 $3.36 INSURANCE $0.37 $0.37 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $21.42 $21.42 OTHER EXPENSES $39.26 $39.26 _________ _______ _______ _______ _______ SUBTOTAL 0.41 HR $39.64 $27.77 $1.56 $68.97 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 3.05 HR $83.64 $46.45 $54.13 $21.38 $49.39 $254.98 NET OPERATING PROFIT $25.02 INTEREST ON OPERATING CAPITAL ( 38.99 @ 9.00%) $3.51 INTEREST ON EQUIPMENT INVESTMENT $16.30 RETURN TO LAND AND RISK $5.21 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $280.00 VARIABLE OPERATING EXPENSES $159.15 RETURN OVER VARIABLE EXPENSES $120.85 (GROSS MARGIN) FIXED EXPENSES $49.39 NET FARM INCOME $71.47 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $46.45 NET OPERATING PROFIT $25.02 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $19.81 RETURN TO LAND AND RISK $5.21 ===================================================================================================