TABLE 8. Grain sorghum (short season), flood-irrigated, budgeted per acre costs and returns for a farm with
         above average management, Dona Ana and Sierra Counties, 2001.
              Planting Dates: July 1 - July 15
              Harvest Dates: September 1 - October 30
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       ITEM                    PRICE          QUANTITY                                                          TOTAL
_____________________________________________________________________________________________________________________
GROSS RETURNS
    GRAIN SORGHUM             $3.00             40.00  CWT                                                   $120.00
    ASCS DEFICIENCY           $0.55             40.00  CWT                                                    $22.00
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
                                                                                                             _______
         TOTAL                                                                                               $142.00
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              -----             -----------      ------                                       ------
    SEED                      $1.04                10  LBS       $10.40                                       $10.40
    HERBICIDE                $21.19                 1  X/ACRE    $21.19                                       $21.19
    INSECTICIDE              $31.81                 1  X/ACRE    $31.81                                       $31.81
    PUMP WATER*                                     0  AC. IN.
    CANAL WATER                                    24  AC. IN.   $45.00                                       $45.00
    CROP INSURANCE            $2.94                               $2.94                                        $2.94
         SUBTOTAL                                               $111.34                                      $111.34
 
                            POWER            ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS        UNIT                 RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      ---------         ------------      ---------   -----    -----    -----    -----   ------
    DISC                   140 HP                0.14  HR                  $0.83    $1.48    $0.70    $2.20    $5.22
    CHISEL                 140 HP                0.20  HR                  $1.19    $2.12    $1.15    $3.15    $7.61
    DISC & SPRAY           140 HP                0.17  HR                  $1.01    $1.80    $1.44    $3.08    $7.34
    LISTER                 140 HP                0.18  HR                  $1.07    $1.91    $1.08    $3.13    $7.19
    PLANTER                140 HP                0.26  HR                  $1.55    $2.76    $2.92    $7.43   $14.65
    ROTO BUCK (3X)         40 HP                 0.05  HR                  $0.27    $0.18    $0.03    $0.28    $0.76
    ROLLING CULT (2X)      40 HP                 0.42  HR                  $2.50    $1.70    $0.21    $0.43    $4.84
    IRRIGATE (4X)                                2.00  HR                 $11.90    $0.00    $0.00    $0.00   $11.90
                                                _________                 ______   ______   ______   ______    ______
         SUBTOTAL                                3.42  HR                 $20.32   $11.95    $7.54   $19.69   $59.50
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                              $9.60                                        $9.60
    HAUL (CUSTOM)                                                 $7.20                                        $7.20
                                                _________        ______   ______   ______   ______   ______    ______
         SUBTOTAL                                0.00  HR        $16.80    $0.00    $0.00    $0.00    $0.00   $16.80
 
POSTHARVEST OPERATIONS
----------- ----------
    SHREDDER               40 HP                 0.29  HR                  $1.73    $1.17    $0.44    $0.87    $4.20
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.43  HR                  $2.54                               $2.54
    EMPLOYEE BENEFITS                                                      $3.97                               $3.97
    INSURANCE                                                     $0.44                                        $0.44
    LAND TAXES                                                                                        $9.38    $9.38
    SUPERVISION AND MANAGEMENT                                            $14.81                              $14.81
    OTHER EXPENSES                                               $66.11                                       $66.11
                                                 _________       ______   ______                     ______    ______
         SUBTOTAL                                0.43  HR        $66.55   $21.32                      $9.38   $97.25
                                                 _________       ______   ______   ______   ______   ______   _______
TOTAL OPERATING EXPENSES                         4.13  HR       $194.69   $43.36   $13.12    $7.99   $29.93  $289.09
 
NET OPERATING PROFIT                                                                                        ($147.09)
 
    INTEREST ON OPERATING CAPITAL           (  $62.35     @        9.00%)                                      $5.61
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $11.15
 
RETURN TO LAND AND RISK                                                                                     ($163.86)
=====================================================================================================================
   *Pump water costs are shown under irrigation in the preharvest operation section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $142.00
  VARIABLE OPERATING EXPENSES        $215.80
RETURN OVER VARIABLE EXPENSES                 ($73.80)    (GROSS MARGIN)
  FIXED EXPENSES                      $29.93
NET FARM INCOME                              ($103.73)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $43.36
NET OPERATING PROFIT                         ($147.09)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $16.76
RETURN TO LAND AND RISK                      ($163.86)
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