TABLE 5. Alfalfa hay, sprinkler-irrigated, budgeted per acre costs and returns for a 320 acre farm with above average management, Roswell-Hagerman area, 2001. Harvesting dates: May 20 - October 15 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS ALFALFA HAY $130.00 6.50 TONS (DELIVERED) $845.00 _______ TOTAL $845.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED FIXED PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL --------- ------ ----- ----------- -------- ----- ----- FERTILIZER (10-26-10) $0.20 200 LBS $40.00 $40.00 INSECTICIDE (CUSTOM) $18.61 2 X/ACRE $37.21 $37.21 HERBICIDE (CUSTOM) $24.86 1 X/ACRE $24.86 $24.86 PLASTIC TWINE $19.15 170 FT/TON $5.29 $5.29 ESTABLISHMENT: Principal 5 YEARS $53.37 $53.37 : Interest $12.38 $12.38 PUMP WATER* 54 AC. IN. _______ _______ _______ SUBTOTAL $107.36 $65.75 $173.12 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ----- IRRIGATE (6X) 1.50 HR $9.68 $194.76 $7.93 $45.38 $257.75 _________ _______ _______ _______ _______ _______ SUBTOTAL 1.50 HR 9.68 194.76 7.93 45.38 257.75 HARVEST OPERATIONS ------- ---------- SWATHER (5X) 16 FT 0.55 HR $4.15 $2.88 $5.14 $15.94 $28.12 RAKE (5X) 96 HP 0.25 HR $1.89 $1.75 $1.11 $2.47 $7.22 BALER 145 HP 0.35 HR $2.64 $4.43 $4.91 $39.85 $51.83 FRONT END LOADER (5X) 130 HP 0.25 HR $1.89 $2.55 $1.17 $6.48 $12.10 HAUL SEMI 0.50 HR $3.78 $3.68 $7.21 $14.92 $29.58 _________ _______ _______ _______ _______ _______ SUBTOTAL 1.90 HR $14.35 $15.29 $19.54 $79.67 $128.84 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.48 HR $3.59 $3.59 EMPLOYEE BENEFITS $4.32 $4.32 INSURANCE $0.48 $0.48 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $61.60 $61.60 OTHER EXPENSES $60.72 $60.72 _________ _______ _______ _______ _______ SUBTOTAL 0.48 HR $61.20 $69.51 $1.56 $132.27 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 3.88 HR $168.56 $93.53 $210.05 $27.47 $192.37 $691.98 NET OPERATING PROFIT $153.02 INTEREST ON OPERATING CAPITAL ( 107.26 @ 9.00%) $9.65 INTEREST ON EQUIPMENT INVESTMENT $68.70 RETURN TO LAND AND RISK $74.67 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $845.00 VARIABLE OPERATING EXPENSES $406.08 RETURN OVER VARIABLE EXPENSES $438.92 (GROSS MARGIN) FIXED EXPENSES $192.37 NET FARM INCOME $246.55 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $93.53 NET OPERATING PROFIT $153.02 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $78.35 RETURN TO LAND AND RISK $74.67 ===================================================================================================