TABLE 6. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 60 acre farm with above average
management, Grant and Catron Counties, 2001.
Harvesting dates: June 15 - September 15
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
HAY $118.00 5.00 TONS (STACKED) $590.00
GRAZING $10.00 1.00 AUM $10.00
_______
TOTAL $600.00
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PURCHASED FIXED
PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL
--------- ------ ----- ----------- ------ ------ ------
WIRE $0.36 43 LBS $15.43 $15.43
ESTABLISHMENT: Principal 6 YEARS $45.13 $45.13
: Interest $10.04 $10.04
CANAL WATER 60 AC. IN. $10.00 $10.00
______ ______ _______
SUBTOTAL $25.43 $55.17 $80.60
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ------ ------ ------- ------ -------
IRRIGATE (8X) 6.00 HR $35.40 $35.40
_________ ______ ______
SUBTOTAL 6.00 HR $35.40 $35.40
HARVEST OPERATIONS
------- ----------
SWATHER, PTO (4X) 65 HP 1.12 HR $7.22 $5.72 $0.99 $23.31 $37.24
BALER, PTO (4X) 65 HP 1.08 HR $6.97 $5.51 $1.06 $8.40 $21.95
LOAD (4X) 3/4 TON 2.00 HR $12.90 $13.23 $4.40 $90.61 $121.14
_________ ______ ______ ______ ______ ______
SUBTOTAL 4.20 HR $27.09 $24.46 $6.46 $122.33 $180.33
OVERHEAD EXPENSES
-------- --------
DOWNTIME 1.05 HR $6.77 $6.77
EMPLOYEE BENEFITS $11.25 $11.25
INSURANCE $1.25 $1.25
LAND TAXES $2.31 $2.31
SUPERVISION AND MANAGEMENT $47.10 $47.10
OTHER EXPENSES $171.17 $171.17
_________ ______ ______ ______ ______
SUBTOTAL 1.05 HR $172.42 $65.12 $2.31 $239.86
--------- ------ ------ ------ ------ ------- -------
TOTAL OPERATING EXPENSES 11.25 HR $197.85 $127.61 $24.46 $6.46 $179.81 $536.19
NET OPERATING PROFIT $63.81
INTEREST ON OPERATING CAPITAL ( $15.29 @ 9.00%) $1.38
INTEREST ON EQUIPMENT INVESTMENT $69.71
RETURN TO LAND AND RISK ($7.28)
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BUDGET SUMMARY
GROSS RETURN $600.00 VARIABLE OPERATING EXPENSES $228.77 RETURN OVER VARIABLE EXPENSES $371.23 (GROSS MARGIN) FIXED EXPENSES $179.81 NET FARM INCOME $191.42 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $127.61 NET OPERATING PROFIT $63.81 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $71.09 RETURN TO LAND AND RISK ($7.28) ===================================================================================================