TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 640 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) $42.40 1 ACRE $42.40 $42.40 HERBICIDE (CUSTOM) $26.79 1 ACRE $26.79 $26.79 PLASTIC TWINE $20.00 170 FT/TON $5.53 $5.53 ESTABLISHMENT: Principal 5 YEARS $47.24 $47.24 : Interest $11.57 $11.57 PUMP WATER* 54 AC. IN. _______ _______ _______ SUBTOTAL $114.71 $58.82 $173.53 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ----- IRRIGATE (6X) 3.00 HR $19.35 $75.40 $5.56 $24.91 $125.21 _________ _______ _______ _______ _______ _______ SUBTOTAL 3.00 HR 19.35 75.40 5.56 24.91 125.21 HARVEST OPERATIONS ------- ---------- SWATHER (5X) 14 FT 0.55 HR $4.15 $2.88 $0.00 $9.17 $16.20 RAKE (5X) 96 HP 0.25 HR $1.89 $1.75 $1.34 $1.36 $6.34 BALER 145 HP 0.35 HR $2.64 $4.43 $6.54 $22.68 $36.29 FRONT END LOADER (5X) 130 HP 0.25 HR $1.89 $2.55 $1.87 $2.17 $8.48 HAUL SEMI 0.50 HR $3.78 $3.68 $0.00 $8.35 $15.80 _________ _______ _______ _______ _______ _______ SUBTOTAL 1.90 HR $14.35 $15.29 $9.75 $43.73 $83.11 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.48 HR $3.59 $3.59 EMPLOYEE BENEFITS $6.07 $6.07 INSURANCE $0.67 $0.67 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $63.10 $63.10 OTHER EXPENSES $30.94 $30.94 _________ _______ _______ _______ _______ SUBTOTAL 0.48 HR $31.61 $72.75 $1.56 $105.92 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 5.38 HR $146.32 $106.45 $90.68 $15.31 $129.01 $487.78 NET OPERATING PROFIT $357.22 INTEREST ON OPERATING CAPITAL ( 79.68 @ 9.00%) $7.17 INTEREST ON EQUIPMENT INVESTMENT $37.06 RETURN TO LAND AND RISK $312.99 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $845.00 VARIABLE OPERATING EXPENSES $252.32 RETURN OVER VARIABLE EXPENSES $592.68 (GROSS MARGIN) FIXED EXPENSES $129.01 NET FARM INCOME $463.67 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $106.45 NET OPERATING PROFIT $357.22 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $44.23 RETURN TO LAND AND RISK $312.99 ===================================================================================================