TABLE 9. Upland cotton (stripper), sprinkler-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 $0.04 700 LBS $28.00 _______ TOTAL $576.80 --------------------------------------------------------------------------------------------------------------------- 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) $45.68 1 X/ACRE $45.68 $45.68 INSECTICIDE (CUSTOM) $35.16 3 X/ACRE $35.16 $35.16 CROP INSURANCE FCIC $1.19 $1.19 PUMP WATER* 28 AC. IN. _______ _______ SUBTOTAL $102.28 $102.28 POWER ACCOMPLISHEMNT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ----------------------- -------------- ----------- --------- ----- ----- ------- ----- ----- DISC 145 HP 0.17 HR $1.24 $2.15 $0.78 $2.06 $6.23 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 FLOAT 145 HP 0.16 HR $1.17 $2.02 $0.55 $1.66 $5.41 PRE-IRRIGATE 0.25 HR $1.68 $9.17 $2.75 $6.42 $20.01 CULTIVATOR 65 HP 0.21 HR $1.53 $1.33 $0.41 $0.51 $3.78 PLANTER 70 HP 0.26 HR $1.90 $1.35 $1.65 $5.40 $10.30 SLED 70 HP 0.15 HR $1.10 $0.78 $0.18 $0.62 $2.67 CULTIVATOR (3X) 65 HP 0.63 HR $4.60 $3.98 $1.24 $1.52 $11.34 HAND HOE (CUSTOM) $20.00 $20.00 IRRIGATE (3X) 0.75 HR $5.03 $27.50 $8.25 $19.27 $60.04 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 3.40 HR $20.00 $24.22 $58.63 $20.06 $48.57 $171.48 HARVEST OPERATIONS ------- ------------ COTTON STRIPPER 70 HP 0.62 HR $4.53 $3.21 $2.56 $14.59 $24.89 HAUL 65 HP 0.75 HR $5.48 $4.74 $1.02 $5.47 $16.71 GIN COTTON (CUSTOM) $116.20 $116.20 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 1.37 HR $116.20 $10.00 $7.95 $3.59 $20.06 $157.80 POSTHARVEST OPERATIONS ------------------------ SHREDDER 70 HP 0.14 HR $0.56 $0.72 $0.29 $2.71 $4.28 _________ _______ _______ _______ _______ _______ SUBTOTAL 0.14 HR $0.56 $0.72 $0.29 $2.71 $4.28 OVERHEAD EXPENSES -------- ---------- DOWNTIME 0.98 HR $7.14 $7.14 EMPLOYEE BENEFITS $6.26 $6.26 INSURANCE $0.70 $0.70 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $43.01 $43.01 OTHER EXPENSES $39.26 $39.26 _________ _______ _______ _______ _______ SUBTOTAL 0.98 HR $39.96 $56.40 $1.56 $97.92 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 5.89 HR $278.43 $91.18 $67.31 $23.93 $72.90 $533.76 NET OPERATING PROFIT $43.04 INTEREST ON OPERATING CAPITAL ( 72.03 @ 9.00%) $6.48 INTEREST ON EQUIPMENT INVESTMENT $29.69 RETURN TO LAND AND RISK $6.87 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $576.80 VARIABLE OPERATING EXPENSES $369.67 RETURN OVER VARIABLE EXPENSES $207.13 (GROSS MARGIN) FIXED EXPENSES $72.90 NET FARM INCOME $134.23 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $91.18 NET OPERATING PROFIT $43.04 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $36.17 RETURN TO LAND AND RISK $6.87 ===================================================================================================