TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 200 acre farm with above average management, Carlsbad Basin, 2001. Harvesting dates: May 20 - October 15 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS ALFALFA HAY $120.00 6.00 TONS (STACKED) $720.00 GRAZING $10.00 1 ACRE $10.00 _______ TOTAL $730.00 --------------------------------------------------------------------------------------------------------------------- PURCHASED FIXED PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL --------- ------ ----- ----------- -------- ------ ------ NITROGEN (N) $0.42 36 LBS $15.12 $15.12 PHOSPHATE (P205) $0.39 92 LBS $35.88 $35.88 INSECTICIDE (CUSTOM) $26.24 1 X/ACRE $26.24 $26.24 HERBICIDE (CUSTOM) $24.59 1 X/ACRE $24.59 $24.59 WIRE $0.36 51 LBS $18.36 $18.36 ESTABLISHMENT: Principal 4 YEARS $69.14 $69.14 : Interest $13.65 $13.65 CANAL WATER 48 AC. IN. $47.00 $47.00 PUMP WATER* 0 AC. IN. $0.00 _______ _______ _______ SUBTOTAL $167.19 $82.79 $249.98 POWER ACCOMPLISHMENT PURCHASED FUEL FIXED PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL ---------- ---------- -------------- ----------- --------- ------ ----- ------- ------ ------- BORDER DISC (6X) 27 HP 0.30 HR $2.04 $0.82 $0.14 $0.49 $3.48 FERTILIZE DEALER APPLIED IRRIGATE (8X) 4.00 HR $25.40 $0.00 $0.00 $0.00 $25.40 _________ _______ _______ _______ _______ _______ SUBTOTAL 4.30 HR $27.44 $0.82 $0.14 $0.49 $28.88 HARVEST OPERATIONS ------- ---------- SWATHER (6X) 14 FT SP 0.80 HR $5.44 $4.19 $0.46 $15.57 $25.66 RAKE (4X) 96 HP 0.48 HR $3.26 $3.49 $0.40 $2.14 $9.29 BALER (6X) 145 HP 1.26 HR $8.57 $15.93 $3.24 $18.23 $45.97 BALEWAGON $57.60 $57.60 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 2.54 HR $57.60 $17.27 $23.61 $4.10 $35.93 $138.52 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.71 HR $4.83 $4.83 EMPLOYEE BENEFITS $8.05 $8.05 INSURANCE $0.89 $0.89 LAND TAXES $1.84 $1.84 SUPERVISION AND MANGEMENT $56.52 $56.52 OTHER EXPENSES $125.56 $125.56 _________ _______ _______ _______ _______ SUBTOTAL 0.71 HR $126.45 $69.40 $1.84 $197.69 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 7.55 HR $351.24 $114.11 $24.43 $4.24 $121.05 $615.08 NET OPERATING PROFIT $114.92 INTEREST ON OPERATING CAPITAL ( $86.14 @ 9.00%) $7.75 INTEREST ON EQUIPMENT INVESTMENT $27.97 RETURN TO LAND AND RISK $79.20 ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $730.00 VARIABLE OPERATING EXPENSES $379.92 RETURN OVER VARIABLE EXPENSES $350.08 (GROSS MARGIN) FIXED EXPENSES $121.05 NET FARM INCOME $229.03 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $114.11 NET OPERATING PROFIT $114.92 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $35.73 RETURN TO LAND AND RISK $79.20 ===================================================================================================