TABLE 3. Wheat, dryland, budgeted per acre costs and returns for a 1,600 acre farm with above average management, Curry County, 2001. Planting Dates: September 1 - October 15 Harvesting Dates: June 15 - July 15 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS WHEAT $3.00 18 BUSHELS $54.00 ASCS DEFICIENCY $0.46 18 BUSHELS $8.28 ASCS DIVERSION $0.00 $0.00 GRAZING $12.00 1 ACRE $12.00 _______ TOTAL $74.28 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL --------- ------ -------------- ----------- -------- ----- SEED $0.11 30 LBS $3.30 $3.30 HERBICIDE $6.72 1 ACRE $6.72 $6.72 CROP INSURANCE $0.08 $0.08 $0.08 SUBTOTAL $10.10 $10.10 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR &OIL REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ----- SWEEP (2X) 300 HP 0.10 HR $0.76 $2.44 $0.91 $4.36 $8.47 ROD WEEDER 300 HP 0.05 HR $0.38 $1.22 $0.30 $1.89 $3.79 DRILL 300 HP 0.05 HR $0.38 $1.22 $0.97 $3.25 $5.82 _________ _______ _______ _______ _______ _______ SUBTOTAL 0.20 HR $1.51 $4.88 $2.17 $9.51 $18.07 HARVEST OPERATIONS ------- ---------- COMBINE (CUSTOM) $9.25 $9.25 HAUL (CUSTOM) $2.88 $2.88 _______ _______ SUBTOTAL $12.13 $12.13 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.05 HR $0.38 $0.38 EMPLOYEE BENEFITS $0.27 $0.27 INSURANCE $0.03 $0.03 LAND TAXES $0.31 $0.31 SUPERVISION AND MANAGEMENT $5.30 $5.30 OTHER EXPENSES $15.05 $15.05 _________ _______ _______ _______ _______ SUBTOTAL 0.05 HR $15.08 $5.95 $0.31 $21.34 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 0.25 HR $37.32 $7.46 $4.88 $2.17 $9.82 $61.64 NET OPERATING PROFIT $12.64 INTEREST ON OPERATING CAPITAL ( $4.42 @ 9.00%) $0.40 INTEREST ON EQUIPMENT INVESTMENT $5.76 RETURN TO LAND AND RISK $6.48 ===================================================================================================================== BUDGET SUMMARY GROSS RETURN $74.28 VARIABLE OPERATING EXPENSES $44.37 RETURN OVER VARIABLE EXPENSES $29.91 (GROSS MARGIN) FIXED EXPENSES $9.82 NET FARM INCOME $20.10 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $7.46 NET OPERATING PROFIT $12.64 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $6.16 RETURN TO LAND AND RISK $6.48 ===================================================================================================