TABLE 5. Alfalfa hay, sprinkler-irrigated, budgeted per acre costs and returns for a 480 acre farm with above
average management, Lea County, 2001.
Harvest dates: May 20 - October 15
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
ALFALFA HAY $120.00 6.00 TONS (STACKED) $720.00
_______
TOTAL $720.00
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PURCHASED FIXED
PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL
--------- ------ ----- ----------- ------ ------ ------
PHOSPHATE (P2O5) $0.39 90 LBS $35.10 $35.10
INSECTICIDE (CUSTOM) $13.42 1 ACRE $13.42 $13.42
HERBICIDE $12.20 1 ACRE $12.20 $12.20
WIRE $0.36 51 LBS $18.51 $18.51
ESTABLISHMENT: Principal 6 YEARS $43.74 $43.74
: Interest $13.25 $13.25
PUMP WATER* 42 AC. IN.
______ ______ _______
SUBTOTAL $79.23 $56.99 $136.22
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ------ ------ ------- ------ -------
FERT SPREADER 126 HP 0.05 HR $0.38 $0.47 $0.23 $0.14 $1.22
IRRIGATE 1.40 HR $9.45 $59.94 $9.12 $54.46 $132.97
_________ ______ ______ ______ ______ _______
SUBTOTAL 1.45 HR $9.83 $60.40 $9.35 $54.60 $134.18
HARVEST OPERATIONS
------- ----------
SWATHER (5X) 16 FT SP 0.55 HR $4.15 $2.88 $3.93 $23.67 $34.63
BALER 155 HP 1.25 HR $9.44 $14.32 $17.03 $14.31 $55.10
FRONT END LOADER (5X) 126 HP 1.25 HR $9.44 $11.65 $5.74 $5.77 $32.59
_________ ______ ______ ______ ______ ______
SUBTOTAL 3.05 HR $23.03 $28.85 $26.70 $43.75 $122.33
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.78 HR $5.85 $5.85
EMPLOYEE BENEFITS $5.91 $5.91
INSURANCE $0.66 $0.66
LAND TAXES $0.68 $0.68
SUPERVISION AND MANAGEMENT $53.35 $53.35
OTHER EXPENSES $48.03 $48.03
_________ ______ ______ ______ ______
SUBTOTAL 0.78 HR $48.69 $65.12 $0.68 $114.48
--------- ------ ------ ------ ------ ------- -------
TOTAL OPERATING EXPENSES 5.28 HR $127.92 $97.97 $89.25 $36.05 $156.02 $507.21
NET OPERATING PROFIT $212.79
INTEREST ON OPERATING CAPITAL ( $61.68 @ 9.00%) $5.55
INTEREST ON EQUIPMENT INVESTMENT $20.63
RETURN TO LAND AND RISK $186.60
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $720.00 VARIABLE OPERATING EXPENSES $253.23 RETURN OVER VARIABLE EXPENSES $466.77 (GROSS MARGIN) FIXED EXPENSES $156.02 NET FARM INCOME $310.76 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $97.97 NET OPERATING PROFIT $212.79 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $26.18 RETURN TO LAND AND RISK $186.60 ===================================================================================================