TABLE 6. Permanent pasture, flood-irrigated, budgeted per acre costs and returns for a 300 acre farm with
         above average management, Cibola County, 2001.
              Harvesting Dates: September 30 - June 30
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    PASTURE                  $12.00              6.00  AUMS                                                   $72.00
                                                                                                              ______
         TOTAL                                                                                                $72.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------              -----             -----------      ------                              ------   ------
    LIVESTOCK FAC & EQUIP                                                                             $3.00    $3.00
    ESTABLISHMENT: Principal                       20  YEARS                                          $5.70    $5.70
                 : Interest                                                                           $5.86    $5.86
    CANAL WATER                                    30  AC. IN.    $9.00                                        $9.00
                                                                 ______                              ______   ______
         SUBTOTAL                                                 $9.00                              $14.56   $23.56
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    IRRIGATE (5X)                                2.50  HR                 $12.88                              $12.88
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                2.50  HR                 $12.88                              $12.88
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.00  HR                  $0.00                               $0.00
    EMPLOYEE BENEFITS                                                      $2.32                               $2.32
    INSURANCE                                                     $0.26                                        $0.26
    LAND TAXES                                                                                        $0.31    $0.31
    SUPERVISION AND MANAGEMENT                                             $7.54                               $7.54
    OTHER EXPENSES                                               $66.29                                       $66.29
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.00  HR        $66.55    $9.86                      $0.31   $76.72
                                                ---------        ------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         2.50  HR        $75.55   $22.73    $0.00    $0.00   $14.87  $113.16
 
NET OPERATING PROFIT                                                                                         ($41.16)
 
    INTEREST ON OPERATING CAPITAL           (   $4.50     @        9.00%)                                      $0.41
    INTEREST ON EQUIPMENT INVESTMENT                                                                           $0.00
 
RETURN TO LAND AND RISK                                                                                      ($41.56)
=====================================================================================================================
                                         BUDGET SUMMARY
 
GROSS RETURN                                   $72.00
  VARIABLE OPERATING EXPENSES         $75.55
RETURN OVER VARIABLE EXPENSES                  ($3.55)    (GROSS MARGIN)
  FIXED EXPENSES                      $14.87
NET FARM INCOME                               ($18.42)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $22.73
NET OPERATING PROFIT                          ($41.16)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                        $0.41
RETURN TO LAND AND RISK                       ($41.56)
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