TABLE 5. Summary of per acre costs and returns for a 1,600 acre
         farm with above average management, Lea County, 2001.
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                                                          GRAIN
                                                 WHEAT  SORGHUM
                                             ------DRYLAND-----
---------------------------------------------------------------
 
                                                    BU      CWT
 
PRIMARY YIELD                                   20.00    12.00
PRIMARY PRICE                                    3.00     3.00
  GOVERNMENT PAYMENTS                            9.20     6.60
  SECOND INCOME                                  0.00     0.00
 
GROSS RETURN                                   $69.20   $42.60
 
 
VARIABLE OPERATING EXPENSES
     SEED                                       $3.30    $3.12
     FERTILIZER                                $14.52   $14.52
     CHEMICALS                                 $16.19   $17.64
     CROP INSURANCE                             $0.05    $0.08
     OTHER PURCHASED INPUTS
     CANAL WATER
     FUEL, OIL & LUBRICANTS-EQUIPMENT           $5.54    $8.56
     FUEL-IRRIGATION
     REPAIRS                                    $8.04   $12.86
     CUSTOM CHARGES                             $0.00    $0.00
     LAND TAXES                                 $0.23    $0.23
     OTHER EXPENSES                            $14.83   $14.86
                                              ________ ________
         TOTAL VARIABLE EXPENSES               $62.72   $71.87
 
RETURN OVER VARIABLE EXPENSES                   $6.48  ($29.27)
 
FIXED EXPENSES                                 $12.02   $17.95
 
         TOTAL EXPENSES                        $74.74   $89.82
 
RETURNS TO CAPITAL, LABOR, LAND & RISK         ($5.54) ($47.22)
 
LABOR AND MANAGEMENT COSTS                     $12.39   $13.51
 
RETURNS TO CAPITAL, LAND & RISK               ($17.93) ($60.73)
 
CAPITAL COSTS
     INTEREST ON OPERATING CAPITAL              $1.73    $1.96
     INTEREST ON EQUIPMENT INVESTMENT           $7.09   $10.73
                                              ________ ________
         TOTAL CAPITAL COSTS                    $8.82   $12.69
 
RETURN TO LAND AND RISK                       ($26.75) ($73.42)
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