TABLE 9. Upland cotton (stripper), 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 $0.650 750 LBS $487.50 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 $618.00 --------------------------------------------------------------------------------------------------------------------- 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 PHOSPHATE (P205) $0.39 40 LBS $15.60 $15.60 HERBICIDE $15.14 1 ACRE $15.14 $15.14 HERBICIDE (CUSTOM) $15.08 1 ACRE $15.08 $15.08 INSECTICIDE (CUSTOM) 2X $33.55 1 X/ACRE $33.55 $33.55 CROP INSURANCE $0.98 $0.98 PUMP WATER* 28 AC. IN. _______ _______ SUBTOTAL $106.54 $106.54 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 STRIPPER 96 HP 1.24 HR $9.36 $12.66 $12.63 $22.44 $57.09 HAUL 130 HP 1.50 HR $11.33 $10.50 $3.58 $9.19 $34.61 GIN COTTON (CUSTOM) $130.28 $130.28 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 2.74 HR $130.28 $20.69 $23.16 $16.21 $31.64 $221.97 POSTHARVEST OPERATIONS ----------- ---------- SHREDDER 130 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 1.28 HR $9.66 $9.66 EMPLOYEE BENEFITS $9.57 $9.57 INSURANCE $1.06 $1.06 LAND TAXES $1.56 $1.56 SUPERVISION AND MANAGEMENT $48.02 $48.02 OTHER EXPENSES $30.94 $30.94 _________ _______ _______ _______ _______ SUBTOTAL 1.28 HR $32.00 $67.25 $1.56 $100.82 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 8.65 HR $288.81 $120.42 $85.28 $33.43 $72.81 $600.77 NET OPERATING PROFIT $17.23 INTEREST ON OPERATING CAPITAL ( 75.99 @ 9.00%) $6.84 INTEREST ON EQUIPMENT INVESTMENT $44.24 RETURN TO LAND AND RISK ($33.84) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $618.00 VARIABLE OPERATING EXPENSES $407.53 RETURN OVER VARIABLE EXPENSES $210.47 (GROSS MARGIN) FIXED EXPENSES $72.81 NET FARM INCOME $137.66 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $120.42 NET OPERATING PROFIT $17.23 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $51.08 RETURN TO LAND AND RISK ($33.84) ===================================================================================================