TABLE 8. Upland cotton (picker), flood-irrigated, budgeted per acre costs and returns for a 200 acre farm with above average management, Carlsbad Basin, 2001. Planting dates: April 15 - May 15 Harvesting dates: October 15 - January 15 --------------------------------------------------------------------------------------------------------------------- ITEM PRICE YIELD TOTAL --------------------------------------------------------------------------------------------------------------------- GROSS RETURNS COTTON LINT $0.690 675 LBS $465.75 COTTON SEED $0.05 1,080 LBS $52.65 ASCS DEFICIENCY $0.0560 675 LBS $37.80 FARM LOAN DEFICIENCY $0.04 675 LBS $27.00 _______ TOTAL $583.20 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL --------- ------ ----- ----------- -------- ----- SEED $0.56 20 LBS $11.20 $11.20 NITROGEN (N) $0.42 20 LBS $8.40 $8.40 PHOSPHATE (P205) $0.39 40 LBS $15.60 $15.60 HERBICIDE $12.60 1 ACRE $12.60 $12.60 INSECTICIDE (CUSTOM) $26.11 2 X/ACRE $52.22 $52.22 CROP INSURANCE FCIC $0.82 $0.82 CANAL WATER 22 AC. IN. $47.00 $47.00 PUMP WATER* 0 AC. IN. $0.00 _______ _______ SUBTOTAL $147.84 $147.84 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 145 HP 0.17 HR $1.16 $2.15 $0.89 $2.97 $7.16 DRAG 96 HP 0.17 HR $1.16 $1.24 $0.11 $0.56 $3.06 DISC & SPRAY 145 HP 0.20 HR $1.36 $2.53 $1.04 $3.49 $8.42 LISTER 96 HP 0.18 HR $1.22 $1.31 $0.47 $2.21 $5.21 FERTILIZE DEALER APPLIED PRE-IRRIGATE 0.75 HR $4.76 $0.00 $0.00 $0.00 $4.76 ROLLING CULTIVATOR 96 HP 0.21 HR $1.43 $1.53 $0.65 $5.11 $8.71 PLANTER 96 HP 0.26 HR $1.77 $1.89 $0.59 $6.14 $10.38 CULTIVATOR (4X) 27 HP 0.84 HR $5.71 $2.30 $1.63 $3.57 $13.21 HOEING $20.00 $20.00 IRRIGATE (3X) 1.50 HR $9.53 $0.00 $0.00 $0.00 $9.53 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 4.95 HR $20.00 $32.65 $21.41 $9.78 $36.09 $119.92 HARVEST OPERATIONS ------- ---------- COTTON PICKER (CUSTOM) $79.11 $79.11 HAUL 80 HP 0.50 HR $3.40 $3.64 $0.32 $9.23 $16.59 GIN COTTON (CUSTOM) $79.11 $79.11 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 0.50 HR $158.22 $3.40 $3.64 $0.32 $9.23 $174.81 POSTHARVEST OPERATIONS ----------- ---------- SHREDDER 80 HP 0.29 HR $1.97 $2.11 $0.24 $2.06 $6.38 _________ _______ _______ _______ _______ _______ SUBTOTAL 0.29 HR $1.97 $2.11 $0.24 $2.06 $6.38 OVERHEAD EXPENSES -------- -------- DOWNTIME 0.83 HR $5.64 $5.64 EMPLOYEE BENEFITS $6.84 $6.84 INSURANCE $0.76 $0.76 LAND TAXES $1.84 $1.84 SUPERVISION AND MANGEMENT $44.73 $44.73 OTHER EXPENSES $125.56 $125.56 _________ _______ _______ _______ _______ SUBTOTAL 0.83 HR $126.32 $57.22 $1.84 $185.38 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 6.57 HR $452.38 $95.24 $27.15 $10.34 $49.22 $634.33 NET OPERATING PROFIT ($51.13) INTEREST ON OPERATING CAPITAL ( $82.63 @ 9.00%) $7.44 INTEREST ON EQUIPMENT INVESTMENT $31.69 RETURN TO LAND AND RISK ($90.25) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $583.20 VARIABLE OPERATING EXPENSES $489.87 RETURN OVER VARIABLE EXPENSES $93.33 (GROSS MARGIN) FIXED EXPENSES $49.22 NET FARM INCOME $44.11 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $95.24 NET OPERATING PROFIT ($51.13) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $39.13 RETURN TO LAND AND RISK ($90.25) ===================================================================================================