TABLE 4. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 300 acre farm with above average management, Cibola County, 2001. Harvesting Dates: June 15 - September 15 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS ALFALFA HAY $120.00 4.00 TONS (STACKED) $480.00 GRAZING $10.00 1.00 ACRE $10.00 _______ TOTAL $490.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED FIXED PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL --------- ------ ----- ----------- ------ ------ ------ PHOSPHATE (P2O5) $0.39 40 LBS $15.60 $15.60 WIRE $0.36 34 LBS $12.34 $12.34 GOPHER CONTROL $1.50 1 ACRE $1.50 $1.50 ESTABLISHMENT: Principal 8 YEARS $0.00 : Interest $0.00 CANAL WATER 42 AC. IN. $9.00 $9.00 ______ ______ _______ SUBTOTAL $38.44 $0.00 $38.44 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ------ ------ ------- ------ ------- FERT SPREADER 93 HP 0.05 HR $0.32 $0.50 $0.13 $1.26 $2.21 GOPHER CONTROL 40 HP 0.15 HR $0.97 $0.65 $0.06 $0.28 $1.96 IRRIGATE (6X) 3.00 HR $15.45 $15.45 _________ ______ ______ ______ ______ ______ SUBTOTAL 3.20 HR $16.74 $1.15 $0.19 $1.54 $19.62 HARVEST OPERATIONS ------- ---------- SWATHER (3X) 16 FT. 0.33 HR $2.13 $1.85 $2.36 $14.35 $20.69 BALER (3X) 65 HP 0.63 HR $4.06 $4.44 $0.51 $2.61 $11.63 BALEWAGON (3X) 93 HP 0.60 HR $3.87 $6.05 $5.57 $4.69 $20.17 _________ ______ ______ ______ ______ ______ SUBTOTAL 1.56 HR $10.06 $12.34 $8.44 $21.65 $52.49 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.43 HR $2.76 $2.76 EMPLOYEE BENEFITS $4.82 $4.82 INSURANCE $0.54 $0.54 LAND TAXES $0.31 $0.31 SUPERVISION AND MANAGEMENT $38.16 $38.16 OTHER EXPENSES $66.29 $66.29 _________ ______ ______ ______ ______ SUBTOTAL 0.43 HR $66.83 $45.74 $0.31 $112.88 --------- ------ ------ ------ ------ ------- ------- TOTAL OPERATING EXPENSES 5.19 HR $105.27 $72.54 $13.50 $8.62 $23.50 $223.43 NET OPERATING PROFIT $266.57 INTEREST ON OPERATING CAPITAL ( $21.29 @ 9.00%) $1.92 INTEREST ON EQUIPMENT INVESTMENT $20.32 RETURN TO LAND AND RISK $244.34 ===================================================================================================================== BUDGET SUMMARY GROSS RETURN $490.00 VARIABLE OPERATING EXPENSES $127.39 RETURN OVER VARIABLE EXPENSES $362.61 (GROSS MARGIN) FIXED EXPENSES $23.50 NET FARM INCOME $339.11 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $72.54 NET OPERATING PROFIT $266.57 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $22.24 RETURN TO LAND AND RISK $244.34 ===================================================================================================