TABLE 8. Upland cotton (picker), flood-irrigated, budgeted per acre costs and returns for a 640 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 1200 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 $15.14 1 ACRE $15.14 $15.14 HERBICIDE (CUSTOM) $16.17 1 ACRE $16.17 $16.17 INSECTICIDE (CUSTOM) 2X $35.40 1 ACRE $35.40 $35.40 CROP INSURANCE $0.98 $0.98 PUMP WATER* 28 AC. IN. _______ _______ SUBTOTAL $107.93 $107.93 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 $1.22 $2.73 $7.37 PLOW 145 HP 0.48 HR $3.62 $6.07 $2.93 $6.05 $18.68 FLOAT 130 HP 0.16 HR $1.21 $1.63 $1.00 $1.23 $5.07 FERTILIZE DEALER APPLIED LISTER 130 HP 0.18 HR $1.36 $1.84 $1.28 $2.34 $6.81 PRE-IRRIGATE 0.75 HR $4.84 $9.77 $0.72 $3.23 $18.56 CULT & SPRAY 96 HP 0.26 HR $1.96 $1.82 $1.42 $1.83 $7.03 PLANTER 130 HP 0.26 HR $1.96 $2.65 $3.06 $5.73 $13.41 CULTIVATOR (3X) 96 HP 0.63 HR $4.76 $4.41 $1.85 $1.52 $12.54 HAND HOE (CUSTOM) $20.00 $20.00 DITCHER (2X) 130 HP 0.10 HR $0.76 $1.02 $0.62 $1.08 $3.47 IRRIGATE (3X) 1.50 HR $9.68 $29.32 $2.16 $9.69 $50.84 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 4.49 HR $20.00 $31.42 $60.69 $16.26 $35.41 $163.79 HARVEST OPERATIONS ------- ---------- COTTON PICKER (2X) 2-ROW 1.24 HR $9.36 $10.50 $38.80 $124.27 $182.93 HAUL (2X) 65 HP 1.00 HR $7.55 $7.00 $2.39 $6.13 $23.07 GIN COTTON (CUSTOM) $95.25 $95.25 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 2.24 HR $95.25 $16.91 $17.50 $41.19 $130.40 $301.25 POSTHARVEST OPERATIONS ----------- ---------- SHREDDER 96 HP 0.14 HR $1.06 $1.43 $0.96 $4.20 $7.65 _________ _______ _______ _______ _______ _______ SUBTOTAL 0.14 HR $1.06 $1.43 $0.96 $4.20 $7.65 OVERHEAD EXPENSES -------- -------- DOWNTIME 1.16 HR $8.72 $8.72 EMPLOYEE BENEFITS $8.89 $8.89 INSURANCE $0.99 $0.99 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $49.87 $49.87 OTHER EXPENSES $30.94 $30.94 _________ _______ _______ _______ _______ SUBTOTAL 1.16 HR $31.92 $67.48 $1.56 $100.97 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 8.03 HR $255.10 $116.87 $79.62 $58.41 $171.57 $681.58 NET OPERATING PROFIT ($33.58) INTEREST ON OPERATING CAPITAL ( 78.29 @ 9.00%) $7.05 INTEREST ON EQUIPMENT INVESTMENT $16.84 RETURN TO LAND AND RISK ($57.47) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $648.00 VARIABLE OPERATING EXPENSES $393.13 RETURN OVER VARIABLE EXPENSES $254.87 (GROSS MARGIN) FIXED EXPENSES $171.57 NET FARM INCOME $83.29 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $116.87 NET OPERATING PROFIT ($33.58) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $23.89 RETURN TO LAND AND RISK ($57.47) ===================================================================================================