TABLE 9. Upland cotton (stripper), 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 $0.650 675 LBS $438.75 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 $556.20 --------------------------------------------------------------------------------------------------------------------- PURCHASED PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL --------- ------ ----- ----------- -------- ----- SEED $0.51 20 LBS $10.20 $10.20 NITROGEN (N) $0.42 20 LBS $8.40 $8.40 PHOSPHATE (P205) $0.39 40 LBS $15.60 $15.60 HERBICIDE $12.60 1 X/ACRE $12.60 $12.60 INSECTICIDE (CUSTOM) $24.73 2 X/ACRE $49.46 $49.46 CROP INSURANCE FCIC $8.69 $8.69 CANAL WATER 22 AC. IN. $47.00 $47.00 PUMP WATER* 0 AC. IN. $0.00 _______ _______ SUBTOTAL $151.95 $151.95 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 IRRIGATE (2X) 1.00 HR $6.35 $0.00 $0.00 $0.00 $6.35 _________ _______ _______ _______ _______ _______ SUBTOTAL 4.45 HR $29.47 $21.41 $9.78 $36.09 $96.74 HARVEST OPERATIONS ------- ---------- COTTON STRIPPER (CUSTOM) $118.40 $118.40 HAUL 96 HP 0.75 HR $5.10 $5.45 $0.48 $13.85 $24.89 GIN COTTON (CUSTOM) $118.40 $118.40 _________ _______ _______ _______ _______ _______ _______ SUBTOTAL 0.75 HR $236.79 $5.10 $5.45 $0.48 $13.85 $261.68 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 0.94 HR $6.36 $6.36 EMPLOYEE BENEFITS $6.58 $6.58 INSURANCE $0.73 $0.73 LAND TAXES $1.84 $1.84 SUPERVISION AND MANGEMENT $42.22 $42.22 OTHER EXPENSES $125.56 $125.56 _________ _______ _______ _______ _______ SUBTOTAL 0.94 HR $126.29 $55.16 $1.84 $183.28 --------- ------- ------- ------- ------- ------- ------- TOTAL OPERATING EXPENSES 6.43 HR $515.03 $91.70 $28.97 $10.50 $53.84 $700.03 NET OPERATING PROFIT ($143.83) INTEREST ON OPERATING CAPITAL ( $84.85 @ 9.00%) $7.64 INTEREST ON EQUIPMENT INVESTMENT $32.89 RETURN TO LAND AND RISK ($184.36) ===================================================================================================================== * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $556.20 VARIABLE OPERATING EXPENSES $554.49 RETURN OVER VARIABLE EXPENSES $1.71 (GROSS MARGIN) FIXED EXPENSES $53.84 NET FARM INCOME ($52.13) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $91.70 NET OPERATING PROFIT ($143.83) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $40.53 RETURN TO LAND AND RISK ($184.36) ===================================================================================================