TABLE 7. Grass hay pasture, flood-irrigated, budgeted per acre costs and returns for a 200 acre farm with above
         with above average management, Eastern Slope, 2001.
              Harvest dates: May 1 - November 30
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         ITEM                  PRICE             YIELD                                                          TOTAL
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GROSS RETURNS
    GRASS HAY                $10.00                 2 TONS                                                    $20.00
    PASTURE                  $10.00              1.00  AUMS                                                   $10.00
         TOTAL                                                                                                $30.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
   PHOSPHATE                  $0.39                34            $13.26                                       $13.26
    NITROGEN                  $0.42                70  LBS       $29.40                                       $29.40
    ESTABLISHMENT: Principal                       20  YEARS                                         $14.57   $14.57
                 : Interest                                                                          $11.92   $11.92
    CANAL WATER                                    36  AC. IN.                                        $5.00    $5.00
                                                                 ______                              ______  _______
         SUBTOTAL                                                $42.66                              $31.49   $74.15
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
    FERTILIZE                40HP                0.05                      $0.26    $0.20    $0.02    $0.11    $0.59
    IRRIGATE (3X)                                5.00  HR                 $25.75                              $25.75
    CLEAN DITCHES CUSTOM                        _________         $5.00   ______   ______   ______   ______    $5.00
         SUBTOTAL                                5.00  HR         $5.00   $26.01    $0.20    $0.02    $0.11   $31.34
HARVEST OPERATIONS
    MOWER                  CUSTOM                                $30.00                                       $30.00
    BALER                  CUSTOM                                  4.15                                        $4.15
    RAKE                   CUSTOM                               $104.00                                      $104.00
    LOAD AND STACK         CUSTOM                                $78.40                                       $78.40
OVERHEAD EXPENSES                                               $216.55                                      $216.55
-------- --------
    DOWNTIME                                                               $0.00                               $0.00
    EMPLOYEE BENEFITS                                                      $3.12                               $3.12
    INSURANCE                                                     $0.52                                        $0.52
    LAND TAXES                                                                                        $2.43    $2.43
    SUPERVISION AND MANAGEMENT                                             $4.60                               $4.60
    OTHER EXPENSES                                               $19.35                                       $19.35
                                                                 ______   ______                     ______   ______
         SUBTOTAL                                                $19.87    $7.72                      $2.43   $30.02
                                                ---------        ------   ------   ------   ------  -------  -------
TOTAL OPERATING EXPENSES                         5.00  HR       $284.08   $33.73    $0.20    $0.02   $34.03  $419.59
 
NET OPERATING PROFIT                                                                                        ($389.59)
 
    INTEREST ON OPERATING CAPITAL           (  $74.15     @        9.00%)                                      $3.92
    INTEREST ON EQUIPMENT INVESTMENT                                                                           $3.92
 
RETURN TO LAND AND RISK                                                                                     ($397.42)
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                                         BUDGET SUMMARY
 
GROSS RETURN                                   $30.00
  VARIABLE OPERATING EXPENSES        $284.30
RETURN OVER VARIABLE EXPENSES                ($254.30)    (GROSS MARGIN)
  FIXED EXPENSES                      $34.03
NET FARM INCOME                              ($288.33)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $33.73
NET OPERATING PROFIT                         ($322.06)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                        $7.83
RETURN TO LAND AND RISK                      ($329.89)
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