TABLE 4. Grain sorghum, dryland, budgeted per acre costs and returns for a 1,600 acre farm with above average
         management, Lea County, 2001.
              Planting dates: May 15 - June 10
              Harvest dates: October 15 - November 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00             12.00  CWT                                                    $36.00
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
    ASCS DEFICIENCY           $0.55             12.00  CWT                                                     $6.60
                                                                                                             _______
         TOTAL                                                                                                $42.60
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              -----             -----------      ------                                       ------
    SEED                      $1.04                 3  LBS        $3.12                                        $3.12
    NITROGEN (N)              $0.42                16  LBS        $6.72                                        $6.72
    PHOSPHATE (P205)          $0.39                20  LBS        $7.80                                        $7.80
    HERBICIDE                $17.64                 1  X/ACRE    $17.64                                       $17.64
   CROP INSURANCE             $0.08                               $0.08                                        $0.08
         SUBTOTAL                                                $35.36                                       $35.36
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----   ------
    FERT SPREADER          225 HP                0.05  HR                  $0.38    $0.89    $0.88    $0.94    $3.08
    CHISEL & SPRAY         225 HP                0.07  HR                  $0.53    $1.24    $1.80    $2.53    $6.10
    PLANTER                225 HP                0.08  HR                  $0.60    $1.42    $2.73    $4.21    $8.97
    CULTIVATOR (2X)        225 HP                0.12  HR                  $0.91    $2.13    $2.47    $3.34    $8.84
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.32  HR                   2.42     5.68     7.88    11.02    27.00
 
HARVEST OPERATIONS
------- ----------
    COMBINE                                      0.14  HR                  $1.06    $1.64    $3.89    $5.42   $12.00
    HAUL                   2 TON                 0.14  HR                  $1.06    $1.25    $1.09    $1.52    $4.91
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.28  HR                  $2.11    $2.88    $4.98    $6.93   $16.91
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.15  HR                  $1.13                               $1.13
    EMPLOYEE BENEFITS                                                      $0.82                               $0.82
    INSURANCE                                                     $0.09                                        $0.09
    LAND TAXES                                                                                        $0.23    $0.23
    SUPERVISION AND MANAGEMENT                                             $7.03                               $7.03
    OTHER EXPENSES                                               $14.77                                       $14.77
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.15  HR        $14.86    $8.98                      $0.23   $24.07
                                                ---------       -------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         0.75  HR        $50.22   $13.51    $8.56   $12.86   $18.18  $103.33
 
NET OPERATING PROFIT                                                                                         ($60.73)
 
    INTEREST ON OPERATING CAPITAL           (  $21.72     @        9.00%)                                      $1.96
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $10.73
 
RETURN TO LAND AND RISK                                                                                      ($73.42)
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                                         BUDGET SUMMARY
 
GROSS RETURN                                   $42.60
  VARIABLE OPERATING EXPENSES         $71.64
RETURN OVER VARIABLE EXPENSES                 ($29.04)    (GROSS MARGIN)
  FIXED EXPENSES                      $18.18
NET FARM INCOME                               ($47.22)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $13.51
NET OPERATING PROFIT                          ($60.73)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $12.69
RETURN TO LAND AND RISK                       ($73.42)
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