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
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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) ===================================================================================================