TABLE 8. Grain sorghum, flood-irrigated, budgeted per acre costs and returns for a 200 acre farm with above
         average management, Virden area, Hidalgo County, 2001.
              Planting dates: May 1 - June 15
              Harvesting dates: October 15 - November 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00                60  CWT                                                   $180.00
    ASCS DEFICIENCY           $0.55                60  CWT                                                    $33.00
    ASCS DIVERSION            $0.00                 0  CWT                                                     $0.00
    GRAZING                  $10.00                 1  ACRE                                                   $10.00
                                                                                                              _______
         TOTAL                                                                                               $223.00
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                                                                 PURCHASED                             FIXED
PURCHASED INPUTS               PRICE             QUANTITY          INPUTS                               COST    TOTAL
--------- ------               -----            -----------       --------                            -----     -----
    SEED                      $1.04                 8  LBS        $8.32                                        $8.32
    ANHYDROUS AMMONIA (NH3) $0.2000               200  LBS       $40.00                                       $40.00
    NITROGEN (N)              $0.42                32  LBS       $13.44                                       $13.44
    PHOSPHATE (P205)          $0.39                40  LBS       $15.60                                       $15.60
    HERBICIDE                $13.42                 1  ACRE      $13.42                                       $13.42
    INSECTICIDE              $10.77                 1  ACRE      $10.77                                       $10.77
    CANAL WATER                                    28  AC. IN.                                       $20.00   $20.00
    PUMP WATER*                                    12  AC. IN.
   CROP INSURANCE             $1.47                               $1.47                             _______    $1.47
         SUBTOTAL                                               $103.02                              $20.00  $123.02
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------    -----    -----  -------   -----     -----
    FERTILIZER             65 HP                 0.15  HR                  $1.13    $0.98    $0.33    $4.15    $6.60
    DISC                   145 HP                0.20  HR                  $1.51    $2.53    $0.85    $3.18    $8.07
    CHISEL                 145 HP                0.40  HR                  $3.02    $5.06    $1.50    $7.10   $16.68
    DISC                   145 HP                0.20  HR                  $1.51    $2.53    $0.85    $3.18    $8.07
    FLOAT                  145 HP                0.25  HR                  $1.89    $3.16    $0.73    $2.84    $8.62
    SPRAYER                65 HP                 0.20  HR                  $1.51    $1.31    $0.60    $1.80    $5.22
    LISTER                 65 HP                 0.50  HR                  $3.78    $3.28    $1.06    $3.08   $11.20
    PRE-IRRIGATE                                 0.75  HR                  $4.84    $2.08    $0.05    $0.96    $7.93
    MULCHER                145 HP                0.20  HR                  $1.51    $2.53    $1.12    $5.92   $11.08
    PLANTER                145 HP                0.25  HR                  $1.89    $3.16    $2.07    $7.27   $14.38
    SPRAYER                65 HP                 0.20  HR                  $1.51    $1.31    $0.60    $1.80    $5.22
    CULTIVATOR (2X)        65 HP                 0.60  HR                  $4.53    $3.94    $1.13    $1.82   $11.43
    ROTOBUCK (3X)          145 HP                0.25  HR                  $1.89    $3.16    $0.73    $4.98   $10.76
    IRRIGATE (5X)                                2.50  HR                 $16.13   $10.40    $0.27    $4.80   $31.60
                                                _________                 _______  _______  _______  _______  _______
         SUBTOTAL                                6.65  HR                 $46.63   $45.43   $11.90   $52.89  $156.85
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                             $25.20                                       $25.20
    HAUL (CUSTOM)                                                $11.40                                       $11.40
                                                _________        _______                                      _______
         SUBTOTAL                                0.00  HR         36.60                                        36.60
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.61  HR                  $4.62                               $4.62
    EMPLOYEE BENEFITS                                                      $8.39                               $8.39
    INSURANCE                                                     $0.93                                        $0.93
    LAND TAXES                                                                                        $2.96    $2.96
    SUPERVISION AND MANAGEMENT                                            $17.64                              $17.64
    OTHER EXPENSES                                               $74.16                                       $74.16
                                                _________        _______  _______                    _______  _______
         SUBTOTAL                                0.61  HR        $75.09   $30.65                      $2.96  $108.70
                                                ---------        -------  -------  -------  -------  -------  -------
TOTAL OPERATING EXPENSES                         7.26  HR       $214.71   $77.29   $45.43   $11.90   $75.85  $425.18
 
NET OPERATING PROFIT                                                                                        ($202.18)
 
    INTEREST ON OPERATING CAPITAL           (   68.89     @        9.00%)                                      $6.20
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $34.93
 
RETURN TO LAND AND RISK                                                                                     ($243.31)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operation section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $223.00
  VARIABLE OPERATING EXPENSES        $272.04
RETURN OVER VARIABLE EXPENSES                 ($49.04)    (GROSS MARGIN)
  FIXED EXPENSES                      $75.85
NET FARM INCOME                              ($124.89)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $77.29
NET OPERATING PROFIT                         ($202.18)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $41.13
RETURN TO LAND AND RISK                      ($243.31)
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