TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 35 acre part-time farm,
         Hondo Valley, Lincoln County, 2001.
              Harvesting dates: June 15 - September 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
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GROSS RETURNS
    ALFALFA HAY             $118.00              4.00  TONS STACKED                                          $472.00
    GRAZING                  $15.00              1.00  ACRE                                                   $15.00
                                                                                                             _______
         TOTAL                                                                                               $487.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------              ------            -----------      ------                              ------   ------
    NITROGEN (N)              $0.24                20  LBS        $4.80                                        $4.80
    PHOSPHORUS (P2O5)         $0.20                90  LBS       $18.00                                       $18.00
    INSECTICIDE              $14.63                 1  ACRE      $14.63                                       $14.63
    WIRE                      $0.37                35  LBS       $12.98                                       $12.98
    ESTABLISHMENT: Principal                        5  YEARS                                         $37.60   $37.60
                 : Interest                                                                           $7.08    $7.08
    CANAL WATER                                    30  AC. IN.
    PUMP WATER*                                     6  AC. IN.
                                                                 ______                              ______  _______
         SUBTOTAL                                                $50.40                              $44.68   $95.08
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------  ------   ------   -------  ------  -------
    FERT. SPREADER         30 HP                 0.30  HR                  $1.88    $0.65    $0.08    $0.76    $3.37
    DITCH MAINTENANCE                            0.25  HR                  $1.56                               $1.56
    IRRIGATE (6X)                                3.00  HR                 $17.85    $7.18    $0.61   $25.82   $51.46
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                3.55  HR                 $21.29    $7.83    $0.70   $26.58   $56.39
 
HARVEST OPERATIONS
------- ----------
    MOWER (3X)             30 HP                 3.00  HR                 $18.75    $6.50    $3.53   $15.66   $44.45
    RAKE (3X)              30 HP                 1.50  HR                  $9.38    $3.25    $1.53   $17.65   $31.81
    BALER, PTO (3X)        30 HP                 1.50  HR                  $9.38    $3.25    $0.59   $17.11   $30.32
    HAUL (3X)              30 HP                 1.50  HR                  $9.38    $3.25    $0.32    $0.74   $13.69
                                                _________                 ______   ______   ______   ______   ______
         SUBOTOTAL                               7.50  HR                 $46.88   $16.25    $5.99   $51.16  $120.27
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     2.01  HR                 $12.58                              $12.58
    EMPLOYEE BENEFITS                                                      $8.18                               $8.18
    FARM INSURANCE                                                $0.82                                        $0.82
    LAND TAXES                                                                                        $1.59    $1.59
    SUPERVISION AND MANAGEMENT                                            $26.51                              $26.51
    OTHER EXPENSES                                              $115.61                                      $115.61
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                2.01  HR       $116.42   $47.26                      $1.59  $165.28
                                                ---------        ------   ------   ------   ------  -------  -------
TOTAL OPERATING EXPENSES                        13.06  HR       $166.83  $115.43   $24.08    $6.68  $124.01  $437.03
 
NET OPERATING PROFIT                                                                                          $49.97
 
    INTEREST ON OPERATING CAPITAL           ( $241.17     @        9.00%)                                      $6.34
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $67.76
 
RETURN TO LAND AND RISK                                                                                      ($24.13)
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    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $487.00
  VARIABLE OPERATING EXPENSES        $203.93
RETURN OVER VARIABLE EXPENSES                 $283.07     (GROSS MARGINS)
  FIXED EXPENSES                     $124.01
NET FARM INCOME                               $159.06     (RETURNS TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST          $115.43
NET OPERATING PROFIT                           $43.64     (RETURNS TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $67.76
RETURN TO LAND AND RISK                       ($24.13)
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