TABLE 7. Upland cotton (picker), flood-irrigated, budgeted per acre costs and returns for a 200 acre farm with
average management, Virden area, Hidalgo County, 2001.
Planting dates: April 10 - April 30
Harvest dates: October 15 - December 15
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
LINT $0.690 600 LBS $414.00
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 FIXED
PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL
--------- ------ ----- ----------- -------- ----- -----
SEED $0.56 17 LBS $9.52 $9.52
NITROGEN (N) $0.42 80 LBS $33.60 $33.60
PHOSPHATE (P205) $0.39 60 LBS $23.40 $23.40
HERBICIDE $13.42 1 ACRE $13.42 $13.42
CANAL WATER 24 AC. IN. $0.00 $20.00 $20.00
PUMP WATER* 12 AC. IN.
CROP INSURANCE $0.74 $0.74 ______ $0.74
SUBTOTAL $80.68 $20.00 $100.68
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- -----
FERTILIZE 65 HP 0.05 HR $0.38 $0.33 $0.11 $1.38 $2.20
DISC 145 HP 0.17 HR $1.28 $2.15 $0.72 $2.70 $6.86
PLOW 145 HP 0.67 HR $5.06 $8.47 $3.28 $12.48 $29.30
DISC & SPRAY 145 HP 0.15 HR $1.13 $1.90 $0.93 $3.61 $7.57
FLOAT 65 HP 0.24 HR $1.81 $1.58 $0.27 $0.50 $4.16
LISTER 145 HP 0.18 HR $1.36 $2.28 $0.70 $2.78 $7.12
PRE-IRRIGATE 0.75 HR $4.84 $1.39 $0.04 $0.64 $6.90
MULCHER 145 HP 0.14 HR $1.06 $1.77 $0.78 $4.14 $7.75
PLANTER 145 HP 0.26 HR $1.96 $3.29 $2.15 $7.56 $14.96
CULTIVATOR (4X) 65 HP 0.84 HR $6.34 $5.51 $1.59 $2.55 $16.00
HOEING (CUSTOM) $24.00 $24.00
ROTOBUCK (3X) 145 HP 0.03 HR $0.23 $0.38 $0.09 $0.60 $1.29
IRRIGATE (8X) 4.00 HR $25.80 $11.09 $0.29 $5.12 $42.30
_________ _______ _______ _______ _______ _______ _______
SUBTOTAL 7.48 HR $24.00 $51.25 $40.12 $10.96 $44.08 $170.40
HARVEST OPERATIONS
------- ----------
COTTON PICKER (2X) 2 ROW 1.24 HR $9.36 $10.50 $22.45 $46.62 $88.93
COTTON TRAILER (2X) HALF TON 2.50 HR $18.88 $21.26 $1.08 $14.51 $55.73
GIN COTTON (CUSTOM) $68.52 $68.52
_________ _______ _______ _______ _______ _______ _______
SUBTOTAL 3.74 HR $68.52 $28.24 $31.76 $23.53 $61.13 $213.18
POSTHARVEST OPERATIONS
----------- ----------
SHREDDER 65 HP 0.29 HR $2.19 $1.90 $0.47 $2.84 $7.40
_________ _______ _______ _______ _______ _______
SUBTOTAL 0.29 HR $2.19 $1.90 $0.47 $2.84 $7.40
OVERHEAD EXPENSES
-------- --------
DOWNTIME 1.56 HR $11.76 $11.76
EMPLOYEE BENEFITS $14.70 $14.70
INSURANCE $1.63 $1.63
LAND TAXES $2.96 $2.96
SUPERVISION AND MANAGEMENT $43.40 $43.40
OTHER EXPENSES $74.16 $74.16
_________ _______ _______ _______ _______
SUBTOTAL 1.56 HR $75.79 $69.86 $2.96 $148.62
--------- ------- ------- ------- ------- ------- -------
TOTAL OPERATING EXPENSES 13.07 HR $248.99 $151.54 $73.79 $34.95 $131.01 $640.28
NET OPERATING PROFIT ($121.88)
INTEREST ON OPERATING CAPITAL ( 64.02 @ 9.00%) $5.76
INTEREST ON EQUIPMENT INVESTMENT $74.02
RETURN TO LAND AND RISK ($201.66)
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* Pump water costs are shown under irrigation in the preharvest operation section.
BUDGET SUMMARY
GROSS RETURN $518.40 VARIABLE OPERATING EXPENSES $357.73 RETURN OVER VARIABLE EXPENSES $160.67 (GROSS MARGIN) FIXED EXPENSES $131.01 NET FARM INCOME $29.66 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $151.54 NET OPERATING PROFIT ($121.88) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $79.78 RETURN TO LAND AND RISK ($201.66) ===================================================================================================