TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 200 acre farm with
above average management, Virden area, Hidalgo County, 2001.
Harvest dates: June 1 - October 10
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
ALFALFA HAY $110.00 6.50 TONS (IN FIELD) $715.00
GRAZING $15.00 1.00 ACRE $15.00
_______
TOTAL $730.00
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PURCHASED FIXED
PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL
--------- ------ ----- ----------- -------- ----- -----
WIRE $0.36 56 LBS $20.05 $20.05
ESTABLISHMENT: Principal 3 YEARS $76.32 $76.32
: Interest $11.86 $11.86
CANAL WATER 36 AC. IN. $20.00 $20.00
PUMP WATER* 18 AC. IN.
_______ _______ _______
SUBTOTAL $20.05 $108.18 $128.23
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- -----
IRRIGATE (9X) 4.50 HR $29.03 $18.72 $0.49 $8.65 $56.88
_________ _______ _______ _______ _______ _______
SUBTOTAL 4.50 HR 29.03 18.72 0.49 8.65 56.88
HARVEST OPERATIONS
------- ----------
SWATHER (5X) 14 FT 0.80 HR $6.04 $4.19 $1.04 $17.48 $28.76
BALER, PTO (5X) 145 HP 1.05 HR $7.93 $13.28 $3.93 $19.88 $45.01
_________ _______ _______ _______ _______ _______
SUBTOTAL 1.85 HR $13.97 $17.47 $4.98 $37.36 $73.77
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.46 HR $3.49 $3.49
EMPLOYEE BENEFITS $7.74 $7.74
INSURANCE $0.86 $0.86
LAND TAXES $2.96 $2.96
SUPERVISION AND MANAGEMENT $56.53 $56.53
OTHER EXPENSES $74.16 $74.16
_________ _______ _______ _______ _______
SUBTOTAL 0.46 HR $75.02 $67.76 $2.96 $145.73
--------- ------- ------- ------- ------- ------- -------
TOTAL OPERATING EXPENSES 6.81 HR $95.07 $110.75 $36.18 $5.47 $157.14 $404.61
NET OPERATING PROFIT $325.39
INTEREST ON OPERATING CAPITAL ( 16.70 @ 9.00%) $1.50
INTEREST ON EQUIPMENT INVESTMENT $24.21
RETURN TO LAND AND RISK $299.68
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* Pump water costs are shown under irrigation in the preharvest operation section.
BUDGET SUMMARY
GROSS RETURN $730.00 VARIABLE OPERATING EXPENSES $136.73 RETURN OVER VARIABLE EXPENSES $593.27 (GROSS MARGIN) FIXED EXPENSES $157.14 NET FARM INCOME $436.13 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $110.75 NET OPERATING PROFIT $325.39 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $25.71 RETURN TO LAND AND RISK $299.68 ===================================================================================================