TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a farm with above average
management, Dona Ana and Sierra Counties, 2001.
Harvest Dates: June 1 - October 1
---------------------------------------------------------------------------------------------------------------------
ITEM PRICE YIELD TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
ALFALFA HAY $120.00 8.00 TONS (STACKED) $960.00
_______
TOTAL $960.00
---------------------------------------------------------------------------------------------------------------------
PURCHASED FIXED
PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL
--------- ------ ----- ----------- ------ ------ ------
NITROGEN (N) $0.42 35 LBS $14.70 $14.70
PHOSPHATE (P2O5) $0.39 90 LBS $35.10 $35.10
INSECTICIDE (CUSTOM) $13.73 1 X/ACRE $13.73 $13.73
WIRE $0.36 69 LBS $24.68 $24.68
ESTABLISHMENT: Principal 4 YEARS $88.17 $88.17
: Interest $17.20 $17.20
PUMP WATER* 0 AC. IN.
CANAL WATER 60 AC. IN. $93.00 $93.00
______ ______ _______
SUBTOTAL $181.21 $105.37 $286.58
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR &OIL REPAIRS COST TOTAL
---------- ---------- -------------- ------------ --------- ------ ------ ------- ------ -------
SPRAYER 140 HP 0.11 HR $0.65 $1.17 $0.93 $1.75 $4.51
FERTILIZE 140 HP 0.05 HR $0.30 $0.53 $0.25 $0.68 $1.76
IRRIGATE (10X) 5.00 HR $29.75 $0.00 $0.00 $0.00 $29.75
_________ ______ ______ ______ ______ ______
SUBTOTAL 5.16 HR $30.70 $1.70 $1.19 $2.43 $36.01
HARVEST OPERATIONS
------- ----------
SWATHER (5X) 14 FT 0.55 HR $3.27 $2.88 $3.93 $18.98 $29.07
BALER, PTO (5X) 140 HP 1.05 HR $6.25 $11.13 $6.82 $19.51 $43.71
BALELOADER (CUSTOM) 0 $60.80 $60.80
_________ ______ ______ ______ ______ ______ ______
SUBTOTAL 1.60 HR $60.80 $9.52 $14.02 $10.75 $38.49 $133.58
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.43 HR $2.54 $2.54
EMPLOYEE BENEFITS $7.24 $7.24
INSURANCE $0.80 $0.80
LAND TAXES $9.38 $9.38
SUPERVISION AND MANAGEMENT $73.08 $73.08
OTHER EXPENSES $66.11 $66.11
_________ ______ ______ ______ ______
SUBTOTAL 0.43 HR $66.92 $82.86 $9.38 $159.16
--------- ------ ------ ------ ------ ------- -------
TOTAL OPERATING EXPENSES 7.03 HR $308.93 $123.09 $15.71 $11.94 $155.67 $615.33
NET OPERATING PROFIT $344.67
INTEREST ON OPERATING CAPITAL ( $93.39 @ 9.00%) $8.41
INTEREST ON EQUIPMENT INVESTMENT $22.92
RETURN TO LAND AND RISK $313.34
=====================================================================================================================
*Pump water costs are shown under irrigation in the preharvest operation section.
BUDGET SUMMARY
GROSS RETURN $960.00 VARIABLE OPERATING EXPENSES $336.58 RETURN OVER VARIABLE EXPENSES $623.42 (GROSS MARGIN) FIXED EXPENSES $155.67 NET FARM INCOME $467.75 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $123.09 NET OPERATING PROFIT $344.67 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $31.33 RETURN TO LAND AND RISK $313.34 ===================================================================================================