TABLE 6. Pima cotton, flood-irrigated, budgeted per acre costs and returns for a farm with above average
         management, Dona Ana and Sierra Counties, 2001.
              Planting Dates: April 15 - April 30
              Harvest Dates: November 15 - November 30
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    LINT                     $0.823            750.00  LBS                                                   $617.25
    SEED                      $0.05          1,200.00  LBS                                                    $58.50
    ASCS DEFICIENCY         $0.0000            750.00  LBS                                                     $0.00
                                                                                                            ---------
         TOTAL                                                                                               $675.75
---------------------------------------------------------------------------------------------------------------------
                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              -----             -----------      ------                                       ------
    SEED                      $0.39                25  LBS        $9.75                                        $9.75
    NITROGEN (N)              $0.42               120  LBS       $50.40                                       $50.40
    PHOSPHATE (P2O5)          $0.39                50  LBS       $19.50                                       $19.50
    HERBICIDE                $31.81                 1  X/ACRE    $31.81                                       $31.81
    CROP INSURANCE            $2.94                               $2.94                                        $2.94
    PUMP WATER*                                     0  AC. IN.
    CANAL WATER                                    33  AC. IN.   $57.00                                       $57.00
                                                                 ______                                       ______
         SUBTOTAL                                               $171.40                                      $171.40
 
                            POWER            ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS        UNIT                 RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      ------            ------------      ---------   -----    -----   -------   -----   ------
    DISC                   140 HP                0.14  HR                  $0.83    $2.03    $1.38    $2.23    $6.48
    CHISEL                 140 HP                0.20  HR                  $1.19    $2.91    $2.12    $3.19    $9.41
    PLOW                   140 HP                0.38  HR                  $2.26    $5.52    $4.61    $6.84   $19.23
    DISC                   140 HP                0.14  HR                  $0.83    $2.03    $1.38    $2.23    $6.48
    DISC & SPRAY           140 HP                0.15  HR                  $0.89    $2.18    $2.00    $2.75    $7.83
    FERTILIZE              140 HP                0.05  HR                  $0.30    $0.53    $0.25    $0.68    $1.76
    LISTER                 140 HP                0.18  HR                  $1.07    $2.62    $1.96    $3.17    $8.81
    PRE-IRRIGATE                                 0.75  HR                  $4.46    $0.00    $0.00    $0.00    $4.46
    HARROW                 40 HP                 0.32  HR                  $1.90    $1.29    $0.18    $0.27    $3.65
    ROLLING CULT           40 HP                 0.21  HR                  $1.25    $0.85    $0.11    $0.21    $2.42
    PLANTER                140 HP                0.26  HR                  $1.55    $2.76    $2.92    $7.43   $14.65
    HARROW                 40 HP                 0.32  HR                  $1.90    $1.29    $0.18    $0.27    $3.65
    ROLLING CULT (3X)      140 HP                0.63  HR                  $3.75    $6.68    $3.17    $8.98   $22.58
    ROTO BUCK (2X)         40 HP                 0.03  HR                  $0.18    $0.12    $0.02    $0.19    $0.51
    ROPEWICK               40 HP                 0.10  HR                  $0.60    $0.40    $0.05    $0.16    $1.21
    IRRIGATE (4X)                                2.00  HR                 $11.90    $0.00    $0.00    $0.00   $11.90
                                                _________                 ______   ______   ______   ______  _______
         SUBTOTAL                                5.86  HR                 $34.87   $31.22   $20.35   $38.60  $125.03
 
HARVEST OPERATIONS
------- ----------
    COTTON PICKER (2X)     2-ROW                 1.24  HR                  $7.38   $10.50    $0.00   $56.66   $74.54
    COTTON TRAILER (2X)    HALF TON              1.00  HR                  $5.95    $8.82    $0.17   $17.64   $32.58
    GIN COTTON (CUSTOM)                                          $99.38                                       $99.38
                                                _________        ______   ______   ______   ______   ______  _______
         SUBTOTAL                                2.24  HR        $99.38   $13.33   $19.32    $0.17   $74.30  $206.50
 
POSTHARVEST OPERATIONS
----------- ----------
    SHREDDER               40 HP                 0.29  HR                  $1.73    $1.17    $0.44    $0.87    $4.20
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     1.41  HR                  $8.39                               $8.39
    EMPLOYEE BENEFITS                                                      $6.28                               $6.28
    INSURANCE                                                     $1.00                                        $1.00
    LAND TAXES                                                                                        $9.38    $9.38
    SUPERVISION AND MANAGEMENT                                            $52.87                              $52.87
    OTHER EXPENSES                                               $66.11                                       $66.11
                                                 _________       ______   ______                     ______   ______
         SUBTOTAL                                1.41  HR        $67.11   $67.54                      $9.38  $144.03
                                                 _________      _______   ______   ______   ______   ______   _______
TOTAL OPERATING EXPENSES                         9.80  HR       $337.88  $117.46   $51.71   $20.96  $123.14  $651.15
 
NET OPERATING PROFIT                                                                                          $24.60
 
    INTEREST ON OPERATING CAPITAL           ( $148.78     @        9.00%)                                     $13.39
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $49.71
 
RETURN TO LAND AND RISK                                                                                      ($38.50)
=====================================================================================================================
   *Pump water costs are shown under irrigation in the preharvest operation section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $675.75
  VARIABLE OPERATING EXPENSES        $410.55
RETURN OVER VARIABLE EXPENSES                 $265.20     (GROSS MARGIN)
  FIXED EXPENSES                     $123.14
NET FARM INCOME                               $142.06     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST          $117.46
NET OPERATING PROFIT                           $24.60     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $63.10
RETURN TO LAND AND RISK                       ($38.50)
===================================================================================================