TABLE 9. Upland cotton (stripper), 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 $0.610 750 LBS $457.50 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 $588.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL --------- ------ -------------- ----------- -------- ----- SEED $0.51 25 LBS $12.75 $12.75 NITROGEN (N) $0.42 32 LBS $13.44 $13.44 PHOSPHORUS (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) $14.16 2 X/ACRE $28.33 $28.33 CROP INSURANCE $1.47 $1.47 PUMP WATER* 28 AC. IN. _______ _______ SUBTOTAL $101.22 $101.22 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 STRIPPER 130 HP 1.24 HR $9.36 $12.66 $8.21 $48.66 $78.88 HAUL 96 HP 1.50 HR $11.33 $10.50 $2.83 $14.74 $39.39 GIN COTTON (CUSTOM) $130.28 $130.28 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 2.74 HR $130.28 $20.69 $23.16 $11.03 $63.39 $248.55 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 1.28 HR $9.66 $9.66 EMPLOYEE BENEFITS $8.12 $8.12 INSURANCE $0.90 $0.90 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $44.67 $44.67 OTHER EXPENSES $60.72 $60.72 _________ _______ _______ _______ _______ SUBTOTAL 1.28 HR $61.62 $62.45 $1.56 $125.63 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 7.40 HR $313.12 $107.56 $147.18 $26.71 $152.54 $747.10 NET OPERATING PROFIT ($159.10) INTEREST ON OPERATING CAPITAL ( 88.38 @ 9.00%) $7.95 INTEREST ON EQUIPMENT INVESTMENT $84.38 RETURN TO LAND AND RISK ($251.43) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $588.00 VARIABLE OPERATING EXPENSES $487.00 RETURN OVER VARIABLE EXPENSES $101.00 (GROSS MARGIN) FIXED EXPENSES $152.54 NET FARM INCOME ($51.54) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $107.56 NET OPERATING PROFIT ($159.10) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $92.34 RETURN TO LAND AND RISK ($251.43) ===================================================================================================