TABLE 8. Upland cotton (picker), sprinkler-irrigated, budgeted per acre costs and returns for a 320 acre farm with above average management, Roswell-Hagerman area, 2001. Planting dates: April 15 - June 1 Harvesting dates: October 1 - December 31 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS COTTON LINT $0.690 750 LBS $517.50 COTTON SEED $0.05 1,200 LBS $58.50 ASCS DEFICIENCY $0.0560 750 LBS $42.00 FARM LOAN DEFICIENCY $0.04 750 LBS $30.00 _______ TOTAL $648.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL --------- ------ ----- ----------- -------- ----- SEED $0.56 20 LBS $11.20 $11.20 NITROGEN (N) $0.42 32 LBS $13.44 $13.44 PHOSPHATE (P205) $0.39 40 LBS $15.60 $15.60 HERBICIDE $14.69 1 ACRE $14.69 $14.69 HERBICIDE (CUSTOM) $14.95 1 ACRE $14.95 $14.95 INSECTICIDE (CUSTOM) $18.61 2 X/ACRE $37.21 $37.21 CROP INSURANCE $1.47 $1.47 PUMP WATER* 28 AC. IN. _______ _______ SUBTOTAL $108.55 $108.55 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ----- DISC 145 HP 0.17 HR $1.28 $2.15 $1.38 $5.50 $10.32 PLOW 145 HP 0.48 HR $3.62 $6.07 $3.32 $12.23 $25.24 FLOAT 130 HP 0.16 HR $1.21 $1.63 $0.49 $4.12 $7.46 FERTILIZE DEALER APPLIED LISTER 130 HP 0.18 HR $1.36 $1.84 $0.80 $6.92 $10.91 PRE-IRRIGATE 0.25 HR $1.61 $25.25 $1.03 $5.88 $33.77 CULT & SPRAY 96 HP 0.26 HR $1.96 $1.82 $1.21 $4.56 $9.55 PLANTER 130 HP 0.26 HR $1.96 $2.65 $1.70 $15.60 $21.91 CULTIVATOR (3X) 96 HP 0.63 HR $4.76 $4.41 $1.83 $4.10 $15.10 HAND HOE (CUSTOM) $20.00 $20.00 DITCHER (2X) 130 HP 0.10 HR $0.76 $1.02 $0.32 $3.03 $5.12 IRRIGATE (3X) 0.75 HR $4.84 $75.74 $3.08 $17.65 $101.31 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 3.24 HR $20.00 $23.36 $122.58 $15.15 $79.59 $260.68 HARVEST OPERATIONS ------- ---------- COTTON PICKER (2X) 2-ROW 1.24 HR $9.36 $10.50 $34.37 $186.40 $240.63 HAUL (2X) 65 HP 1.00 HR $7.55 $7.00 $1.88 $9.82 $26.26 GIN COTTON (CUSTOM) $95.25 $95.25 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 2.24 HR $95.25 $16.91 $17.50 $36.25 $196.22 $362.14 POSTHARVEST OPERATIONS ----------- ---------- SHREDDER 96 HP 0.14 HR $1.06 $1.43 $0.53 $8.00 $11.01 _________ _______ _______ _______ _______ _______ SUBTOTAL 0.14 HR $1.06 $1.43 $0.53 $8.00 $11.01 OVERHEAD EXPENSES -------- -------- DOWNTIME 1.16 HR $8.72 $8.72 EMPLOYEE BENEFITS $7.44 $7.44 INSURANCE $0.83 $0.83 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $48.62 $48.62 OTHER EXPENSES $60.72 $60.72 _________ _______ _______ _______ _______ SUBTOTAL 1.16 HR $61.54 $64.78 $1.56 $127.89 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 6.78 HR $285.35 $106.11 $141.51 $51.92 $285.37 $870.27 NET OPERATING PROFIT ($222.27) INTEREST ON OPERATING CAPITAL ( 93.68 @ 9.00%) $8.43 INTEREST ON EQUIPMENT INVESTMENT $33.15 RETURN TO LAND AND RISK ($263.84) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $648.00 VARIABLE OPERATING EXPENSES $478.79 RETURN OVER VARIABLE EXPENSES $169.21 (GROSS MARGIN) FIXED EXPENSES $285.37 NET FARM INCOME ($116.16) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $106.11 NET OPERATING PROFIT ($222.27) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $41.58 RETURN TO LAND AND RISK ($263.84) ===================================================================================================