TABLE 5. Upland cotton (picker), flood-irrigated, budgeted per acre costs and returns for a 400 acre
farm with above average management, Cotton City-Animas area, Hidalgo County, 2001.
Planting dates: April 15 - May 15
Harvesting dates: October 15 - January 1
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
COTTON LINT $0.690 600 LBS $414.00
COTTON SEED $0.05 960 LBS $46.80
ASCS DEFICIENCY $0.0560 600 LBS $33.60
FARM LOAN DEFICIENCY $0.04 600 LBS $24.00
_______
TOTAL $518.40
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ----- ------------ ------ ------
SEED $0.56 25 LBS $14.00 $14.00
NITROGEN (N) $0.42 32 LBS $13.44 $13.44
PHOSPHATE (P2O5) $0.39 40 LBS $15.60 $15.60
HERBICIDE $9.46 1 ACRE $9.46 $9.46
CROP INSURANCE $0.00 1 DOLLARS $0.00 $0.00
PUMP WATER* 28 AC. IN.
______ ______
SUBTOTAL $52.50 $52.50
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- -----
RIPPER 185 HP 0.10 HR $0.76 $1.45 $0.48 $2.79 $5.48
DISC 185 HP 0.14 HR $1.06 $2.03 $0.81 $3.95 $7.85
FERTILIZE 185 HP 0.05 HR $0.38 $0.73 $0.20 $1.22 $2.52
DRAG (2X) 96 HP 0.20 HR $1.51 $1.45 $0.44 $0.40 $3.81
DISC & SPRAY 185 HP 0.15 HR $1.13 $2.18 $1.28 $4.78 $9.38
LISTER 185 HP 0.18 HR $1.36 $2.62 $0.91 $5.00 $9.88
PRE-IRRIGATE 1.00 HR $6.75 $8.71 $0.33 $2.88 $18.67
ROLLING CULT. 96 HP 0.21 HR $1.59 $1.53 $0.70 $1.10 $4.91
PLANTER 96 HP 0.26 HR $1.96 $1.89 $2.77 $2.48 $9.11
CULTIVATOR (2X) 96 HP 0.42 HR $3.17 $3.05 $0.88 $1.17 $8.27
HAND HOE (CUSTOM) $15.00 $15.00
ROTO BUCK (5X) 96 HP 0.08 HR $0.57 $0.55 $0.18 $0.39 $1.68
IRRIGATE (4X) 4.00 HR $27.00 $34.85 $1.31 $11.52 $74.68
_________ ______ ______ ______ ______ ______ _______
SUBTOTAL 6.79 HR $15.00 $47.23 $61.04 $10.29 $37.69 $171.24
HARVEST OPERATIONS
------- ----------
COTTON PICKER (2X) 2 ROW 1.24 HR $9.36 $10.50 $57.35 $31.08 $108.29
COTTON TRAILER (2X) HALF TON 1.00 HR $7.55 $8.51 $2.79 $6.08 $24.92
GIN COTTON (CUSTOM) $65.52 $65.52
_________ ______ ______ ______ ______ ______ _______
SUBTOTAL 2.24 HR $65.52 $16.91 $19.00 $60.14 $37.16 $198.73
POSTHARVEST OPERATIONS
----------- ----------
SHREDDER 80 HP 0.14 HR $1.06 $1.02 $0.56 $1.05 $3.69
OVERHEAD EXPENSES
-------- --------
DOWNTIME 1.04 HR $7.86 $7.86
EMPLOYEE BENEFITS $11.74 $11.74
INSURANCE $1.30 $1.30
LAND TAXES $2.96 $2.96
SUPERVISION AND MANAGEMENT $43.37 $43.37
OTHER EXPENSES $49.73 $49.73
_________ ______ ______ ______ ______
SUBTOTAL 1.04 HR $51.03 $62.97 $2.96 $116.96
--------- ------- ------- ------- ------- ------- -------
TOTAL OPERATING EXPENSES 10.21 HR $184.05 $128.16 $81.06 $70.99 $78.86 $543.12
NET OPERATING PROFIT ($24.72)
INTEREST ON OPERATING CAPITAL ( $56.53 @ 9.00%) $5.09
INTEREST ON EQUIPMENT INVESTMENT $41.24
RETURN TO LAND AND RISK ($71.05)
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $518.40 VARIABLE OPERATING EXPENSES $336.10 RETURN OVER VARIABLE EXPENSES $182.30 (GROSS MARGIN) FIXED EXPENSES $78.86 NET FARM INCOME $103.44 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $128.16 NET OPERATING PROFIT ($24.72) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $46.33 RETURN TO LAND AND RISK ($71.05) ===================================================================================================