TABLE 5. Alfalfa hay, sprinkler-irrigated, budgeted per acre costs and returns for a 640 acre farm with above average management, Curry County, 2001. Harvesting Dates: May 15 - September 15 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS ALFALFA HAY $120.00 6.50 TONS (STACKED) $780.00 _______ TOTAL $780.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED FIXED PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL --------- ------ ----- ----------- -------- ----- ------- NITROGEN (N) $0.42 100 LBS $42.00 $42.00 PHOSPHATE (P205) $0.39 200 LBS $78.00 $78.00 TRACE ELEMENTS $13.02 1 ACRE $13.02 $13.02 HERBICIDE (CUSTOM) $18.78 1 ACRE $18.78 $18.78 INSECTICIDE (CUSTOM) $13.15 1 ACRE $13.15 $13.15 PLASTIC TWINE $18.25 170 FT/TON $5.04 $5.04 ESTABLISHMENT: Principal 6 YEARS $36.40 $36.40 : Interest $10.53 $10.53 PUMP WATER* 25 AC. IN. _______ _______ _______ SUBTOTAL $169.99 $46.92 $216.92 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR &OIL REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ------- IRRIGATE 2.00 HR $13.50 $100.40 $14.08 $34.49 $162.47 _________ _______ _______ _______ _______ _______ SUBTOTAL 2.00 HR $13.50 $100.40 $14.08 $34.49 $162.47 HARVEST OPERATIONS ------- ---------- SWATHER (5X) 16 FT 0.55 HR $4.15 $2.88 $0.00 $5.94 $12.98 RAKE (5X) 96 HP 0.60 HR $4.53 $4.52 $2.28 $1.77 $13.11 BALER (5X) 185 HP 0.25 HR $1.89 $3.63 $4.82 $22.32 $32.66 FRONT END LOADER (5X) 140 HP 0.50 HR $3.78 $5.50 $2.52 $7.12 $18.91 _________ ______ ______ ______ ______ ______ SUBTOTAL 1.90 HR $14.35 $16.54 $9.61 $37.16 $77.65 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.48 HR $3.59 $3.59 EMPLOYEE BENEFITS $5.01 $5.01 INSURANCE $0.56 $0.56 LAND TAXES $0.88 $0.88 SUPERVISION AND MANAGEMENT' $57.55 $57.55 OTHER EXPENSES $41.29 $41.29 _________ _______ _______ _______ _______ SUBTOTAL 0.48 HR $41.85 $66.15 $0.88 $108.88 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 4.38 HR $211.84 $93.99 $116.94 $23.69 $119.45 $565.92 NET OPERATING PROFIT $214.08 INTEREST ON OPERATING CAPITAL ( $121.06 @ 9.00%) $10.90 INTEREST ON EQUIPMENT INVESTMENT $31.73 RETURN TO LAND AND RISK $171.46 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $780.00 VARIABLE OPERATING EXPENSES $352.47 RETURN OVER VARIABLE EXPENSES $427.53 (GROSS MARGIN) FIXED EXPENSES $119.45 NET FARM INCOME $308.08 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $93.99 NET OPERATING PROFIT $214.08 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $42.63 RETURN TO LAND AND RISK $171.46 ===================================================================================================