TABLE 6. Barley, flood-irrigated, budgeted per acre costs and returns for a 200 acre farm
         with above average management, Carlsbad Basin, 2001.
              Planting dates: August 20 - September 30
              Harvesting dates: June 15 - July 1
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    BARLEY                    $2.70             25.00  CWT                                                    $67.50
    ASCS DEFICIENCY           $0.34             25.00  CWT                                                     $8.50
    ASCS DIVERSION            $0.00                                                                            $0.00
    GRAZING                  $40.00              1.00  ACRE                                                   $40.00
                                                                                                              _______
         TOTAL                                                                                               $116.00
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                                                                 PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY          INPUTS                                       TOTAL
--------- ------               -----            -----------       --------                                      -----
    SEED                      $0.25               110  LBS       $27.50                                       $27.50
    NITROGEN (N)              $0.42                40  LBS       $16.80                                       $16.80
    HERBICIDE                $13.44                 1  X/ACRE    $13.44                                       $13.44
    CANAL WATER                                    20  AC. IN.   $47.00                                       $47.00
    PUMP WATER*                                     0  AC. IN.                                                 $0.00
   CROP INSURANCE            $11.76                              $11.76                                       $11.76
         SUBTOTAL                                               $116.51                                      $116.51
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   ------   ------  -------   ------  -------
    PLOW                   145 HP                0.67  HR                  $4.56    $8.47    $4.40   $12.05   $29.48
    DISC (2X)              145 HP                0.34  HR                  $2.31    $4.30    $1.77    $5.93   $14.32
    DRAG                   96 HP                 0.17  HR                  $1.16    $1.24    $0.11    $0.56    $3.06
    BORDER DISC            27 HP                 0.05  HR                  $0.34    $0.14    $0.02    $0.08    $0.58
    DRILL                  96 HP                 0.21  HR                  $1.43    $1.53    $0.35    $6.49    $9.80
    IRRIGATE (5X)                                2.50  HR                 $15.88    $0.00    $0.00    $0.00   $15.88
                                             ____________                 _______  _______  _______  _______  _______
         SUBTOTAL                                3.94  HR                 $25.67   $15.67    $6.66   $25.11   $73.11
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                             $14.68                                       $14.68
    HAUL (CUSTOM)                                                 $7.80                                        $7.80
                                                               ---------                                    ---------
         SUBTOTAL                                                $22.48                                       $22.48
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.36  HR                  $2.45                               $2.45
    EMPLOYEE BENEFITS                                                      $4.62                               $4.62
    INSURANCE                                                     $0.51                                        $0.51
    LAND TAXES                                                                                        $1.84    $1.84
    SUPERVISION AND MANGEMENT                                              $7.95                               $7.95
    OTHER EXPENSES                                              $125.56                                      $125.56
                                                _________        _______  _______                    _______  _______
         SUBTOTAL                                0.36  HR       $126.07   $15.01                      $1.84  $142.92
                                                ---------        -------  -------  -------  -------  -------  -------
TOTAL OPERATING EXPENSES                         4.30  HR       $265.06   $40.68   $15.67    $6.66   $26.95  $355.02
 
NET OPERATING PROFIT                                                                                        ($239.02)
 
    INTEREST ON OPERATING CAPITAL           (  $65.71     @        9.00%)                                      $5.91
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $17.88
 
RETURN TO LAND AND RISK                                                                                     ($262.81)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $116.00
  VARIABLE OPERATING EXPENSES        $287.39
RETURN OVER VARIABLE EXPENSES                ($171.39)    (GROSS MARGIN)
  FIXED EXPENSES                      $26.95
NET FARM INCOME                              ($198.34)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $40.68
NET OPERATING PROFIT                         ($239.02)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $23.79
RETURN TO LAND AND RISK                      ($262.81)
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