TABLE 16.  Red chile, flood-irrigated, budgeted per acre costs and returns for a farm with above average
          management, Dona Ana and Sierra Counties, 2001.
              Planting Dates: March 15 - April 10
              Harvest Dates: August 15 - November 30
------------------------------------------------------------------------------------------------------------------------------------------------
         ITEM                     PRICE                               YIELD                                                                TOTAL
------------------------------------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    RED                          $0.70                             3500.00  LBS                                                       $2,450.00
                                                                                                                                  _________
         TOTAL                                                                                                                        $2,450.00
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                                                                                    PURCHASED
PURCHASED INPUTS                  PRICE                       QUANTITY                INPUTS                                               TOTAL
--------- ------               ------                        -------       -----      -------                                        ------
    SEED                        $21.00                                   8  LBS       $168.00                                           $168.00
    NITROGEN (N)                 $0.42                                 250  LBS       $105.00                                           $105.00
    PHOSPHATE (P205)             $0.39                                  60  LBS        $23.40                                            $23.40
    HERBICIDE                   $70.63                                   1  X/ACRE     $70.63                                            $70.63
    INSECTICIDE                 $43.99                                   1  X/ACRE     $43.99                                            $43.99
    NEMATICIDE (CUSTOM)         $43.41                                   1  X/ACRE     $43.41                                            $43.41
    CROP INSURANCE                                                     600  DOLLARS    $40.00                                            $40.00
    PUMP WATER*                                                          0  AC. IN.
    CANAL WATER                                                         60  AC. IN.    $93.00                                            $93.00
                                                                                     _______                                       _______
         SUBTOTAL                                                                     $587.43                                           $587.43
 
                                  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
    PLOW                     140 HP                                   0.38  HR                   $2.26    $4.03    $2.76    $6.75        $15.81
    DISC (2X)                140 HP                                   0.28  HR                   $1.67    $2.97    $1.41    $4.40        $10.44
    LASER PLANE (CUSTOM)                                                               $73.33                                            $73.33
    FERTILIZE                140 HP                                   0.05  HR                   $0.30    $0.53    $0.25    $0.68         $1.76
    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
    PRE-IRRIGATE                                                      0.75  HR                   $4.46    $0.00    $0.00    $0.00         $4.46
    ROLLING CULT             40 HP                                    0.21  HR                   $1.25    $0.85    $0.11    $0.21         $2.42
    VEG PLANT-SHAPER         140 HP                                   0.26  HR                   $1.55    $2.76    $1.98    $5.62        $11.90
    ROLLING CULT (2X)        40 HP                                    0.42  HR                   $2.50    $1.70    $0.21    $0.43         $4.84
    CULTIVATOR (3X)          40 HP                                    0.63  HR                   $3.75    $2.54    $0.32    $0.64         $7.26
    CULT & SIDEDRESS (2X)    140 HP                                   0.66  HR                   $3.93    $7.00    $3.94   $10.54        $25.41
    THINNING (CUSTOM)                                                                  $70.00                                            $70.00
    HOEING (CUSTOM)                                                                    $80.00                                            $80.00
    ROTO BUCK (7X)           40 HP                                    0.11  HR                   $0.62    $0.42    $0.07    $0.65         $1.78
    IRRIGATE (11X)                                                    5.50  HR                  $32.73    $0.00    $0.00    $0.00        $32.73
                                                             _______       ___       _______   _______   ______   ______   ______   _______
         SUBTOTAL                                                     9.94  HR        $223.33   $59.11   $30.11   $15.44   $41.49       $369.49
 
HARVEST OPERATIONS
------- -----------
    HARVEST (CUSTOM)                                                                  $700.00                                           $700.00
    HAUL (TRAILER) (3X)      40 HP                                    0.80  HR                   $4.76    $3.23    $0.58    $1.91        $10.48
    FORK LIFT (3X)           RENTAL                                   0.30  HR         $10.00    $1.79                                   $11.79
    HAUL (CUSTOM)                                                                     $105.00                                           $105.00
                                                             _______       ___       _______   _______   ______   ______  _______   _______
         SUBTOTAL                                                     1.10  HR        $815.00    $6.55    $3.23    $0.58    $1.91       $827.26
 
POSTHARVEST OPERATIONS
----------- ----------
    SHREDDER                 40 HP                                    0.29  HR                   $1.73    $1.17    $0.44    $0.87         $4.20
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                                          1.27  HR                   $7.55                                    $7.55
    EMPLOYEE BENEFITS                                                                           $12.13                                   $12.13
    INSURANCE                                                                           $1.35                                             $1.35
    LAND TAXES                                                                                                              $9.38         $9.38
    SUPERVISION AND MANAGEMENT                                                                 $130.19                                  $130.19
    OTHER EXPENSES                                                                     $66.11                                            $66.11
                                                             _______       ___        ______   _______                    _______   _______
         SUBTOTAL                                                     1.27  HR         $67.46  $149.87                      $9.38       $226.71
                                                            --------       ---      ---------  -------  -------  -------  ------- ---------
TOTAL OPERATING EXPENSES                                             12.59  HR      $1,693.22  $217.25   $34.51   $16.46   $53.64     $2,015.09
 
NET OPERATING PROFIT                                                                                                                    $434.91
 
    INTEREST ON OPERATING CAPITAL              (                   $429.30     @         9.00%)                                          $38.64
    INTEREST ON EQUIPMENT INVESTMENT                                                                                                     $23.22
 
RETURN TO LAND AND RISK                                                                                                                 $373.06
================================================================================================================================================
   *Pump water costs are shown under irrigation in the preharvest operation section.
                                            BUDGET SUMMARY
 
GROSS RETURN                                                     $2,450.00
  VARIABLE OPERATING EXPENSES                   $1,744.19
RETURN OVER VARIABLE EXPENSES                                      $705.81     (GROSS MARGIN)
  FIXED EXPENSES                                   $53.64
NET FARM INCOME                                                    $652.16     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST                       $217.25
NET OPERATING PROFIT                                               $434.91     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                                    $61.86
RETURN TO LAND AND RISK                                            $373.06
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