TABLE 6. Wheat, sprinkler-irrigated, budgeted per acre costs and returns for a 480 acre farm with above average
management, Lea County, 2001.
Planting dates: August 15 - October 30
Harvest dates: June 20 - July 5
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
WHEAT $3.00 48.00 BUSHELS $144.00
ASCS DEFICIENCY $0.46 48.00 BUSHELS $22.08
ASCS DIVERSION $0.00 $0.00
GRAZING $50.00 1.00 ACRE $50.00
_______
TOTAL $216.08
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ----- ----------- ------ ------
SEED $0.11 90 LBS $9.90 $9.90
PHOSPHATE (P205) $0.39 70 LBS $27.30 $27.30
ANHYDROUS AMMONIA (NH3) $0.1250 200 LBS $25.00 $25.00
PUMP WATER* 20 ACRE IN.
CROP INSURANCE $0.47 $0.47 $0.47
SUBTOTAL $62.67 $62.67
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ------
CHISEL 155 HP 0.15 HR $1.13 $1.72 $1.78 $2.94 $7.57
DISC 155 HP 0.14 HR $1.06 $1.60 $1.76 $1.85 $6.27
ANNHYDROUS APPL 155 HP 0.17 HR $1.28 $1.95 $2.14 $3.29 $8.66
FERT SPREADER 126 HP 0.05 HR $0.38 $0.47 $0.23 $0.14 $1.22
DISC 155 HP 0.14 HR $1.06 $1.60 $1.76 $1.85 $6.27
DRILL 126 HP 0.18 HR $1.36 $1.68 $1.31 $4.02 $8.37
IRRIGATE (12X) 1.20 HR $8.10 $28.54 $4.34 $25.93 $66.92
_________ ______ ______ ______ ______ ______
SUBTOTAL 2.03 HR $14.37 $37.56 $13.32 $40.03 $105.28
HARVEST OPERATIONS
------- ----------
COMBINE (CUSTOM) $12.67 $12.67
HAUL (CUSTOM) $7.68 $7.68
______ ______
SUBTOTAL $20.35 $20.35
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.21 HR $1.57 $1.57
EMPLOYEE BENEFITS $2.59 $2.59
INSURANCE $0.29 $0.29
LAND TAXES $0.68 $0.68
SUPERVISION AND MANAGEMENT $16.74 $16.74
OTHER EXPENSES $48.03 $48.03
_________ ______ ______ ______ ______
SUBTOTAL 0.21 HR $48.32 $20.89 $0.68 $69.89
--------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 2.24 HR $131.34 $35.26 $37.56 $13.32 $40.72 $258.19
NET OPERATING PROFIT ($42.11)
INTEREST ON OPERATING CAPITAL ( $45.75 @ 9.00%) $4.12
INTEREST ON EQUIPMENT INVESTMENT $6.10
RETURN TO LAND AND RISK ($52.33)
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $216.08 VARIABLE OPERATING EXPENSES $182.22 RETURN OVER VARIABLE EXPENSES $33.86 (GROSS MARGIN) FIXED EXPENSES $40.72 NET FARM INCOME ($6.85) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $35.26 NET OPERATING PROFIT ($42.11) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $10.22 RETURN TO LAND AND RISK ($52.33) ===================================================================================================