TABLE 4. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 10 acre part-time farm,
         Cibola County, 2001.
              Harvest Dates: June 15 - September 15
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    ALFALFA HAY             $110.00              3.50  TONS (IN FIELD)                                       $385.00
    GRAZING                  $10.00              1.00  ACRE                                                   $10.00
                                                                                                             _______
         TOTAL                                                                                               $395.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------               -----            -----------      ------                              ------   ------
    WIRE                      $0.36                30  LBS       $10.80                                       $10.80
    ESTABLISHMENT: Principal                       10  YEARS                                         $30.58   $30.58
                 : Interest                                                                          $24.54   $24.54
    CANAL WATER                                    48  AC. IN.    $9.00                                        $9.00
                                                                 ______                              ______  _______
         SUBTOTAL                                                $19.80                              $55.12   $74.92
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------  ------   ------   -------  ------  -------
    IRRIGATE (6X)                                3.75  HR                 $19.31                              $19.31
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                3.75  HR                 $19.31    $0.00    $0.00    $0.00   $19.31
 
HARVEST OPERATIONS
------- ----------
    SWATHER (CUSTOM) (3X)                                        $17.50                                       $17.50
    BALER (3X)             40 HP                 1.95  HR                 $10.04    $8.46    $0.45  $108.84  $127.79
                                                _________        ______   ______   ______   ______   ______   ______
         SUBOTOTAL                               1.95  HR        $17.50   $10.04    $8.46    $0.45  $108.84  $145.29
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.49  HR                  $2.51                               $2.51
    EMPLOYEE BENEFITS                                                      $3.52                               $3.52
    INSURANCE                                                     $0.35                                        $0.35
    LAND TAXES                                                                                        $0.31    $0.31
    SUPERVISION AND MANAGEMENT                                            $18.65                              $18.65
    OTHER EXPENSES                                              $181.56                                      $181.56
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.49  HR       $181.91   $24.68                      $0.31  $206.91
                                                ---------        ------   ------   ------   ------  -------  -------
TOTAL OPERATING EXPENSES                         6.19  HR       $219.21   $54.04    $8.46    $0.45  $164.27  $446.43
 
NET OPERATING PROFIT                                                                                         ($51.43)
 
    INTEREST ON OPERATING CAPITAL           (  $12.10     @        9.00%)                                      $1.09
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $98.66
 
RETURN TO LAND AND RISK                                                                                     ($151.18)
=====================================================================================================================
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $395.00
  VARIABLE OPERATING EXPENSES        $228.12
RETURN OVER VARIABLE EXPENSES                 $166.88     (GROSS MARGIN)
  FIXED EXPENSES                     $164.27
NET FARM INCOME                                 $2.61     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $54.04
NET OPERATING PROFIT                          ($51.43)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $99.75
RETURN TO LAND AND RISK                      ($151.18)
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