TABLE 7. Permanent pasture, flood-irrigated, budgeted per acre costs and returns for a 35 acre part-time farm,
         Hondo Valley, Lincoln County, 2001.
              Harvesting dates: March 1 - September 30
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         ITEM                  PRICE             YIELD                                                          TOTAL
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GROSS RETURNS
    PASTURE                  $12.00             10.00  AUMS                                                  $120.00
                                                                                                              ______
         TOTAL                                                                                               $120.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------              -----             -----------      ------                              ------   ------
    NITROGEN (N)              $0.24                50  LBS       $12.00                                       $12.00
    PHOSPHORUS (P2O5)         $0.20                20  LBS        $4.00                                        $4.00
    LIVESTOCK FAC & EQUIP                                                                            $12.00   $12.00
    ESTABLISHMENT: Principal                       10  YEARS                                         $31.71   $31.71
                 : Interest                                                                          $14.13   $14.13
    CANAL WATER                                    24  AC. IN.
    PUMP WATER*                                     6  AC. IN.
                                                                 ______                              ______   ______
         SUBTOTAL                                                $16.00                              $57.84   $73.84
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    FERT. SPREADER         30 HP                 0.30  HR                  $1.79    $0.65    $0.08    $0.76    $3.28
    DITCH MAINTENANCE                            0.25  HR                  $1.49                               $1.49
    IRRIGATE (5X)                                2.50  HR                 $14.88    $7.18    $0.61   $25.82   $48.49
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                3.05  HR                 $18.15    $7.83    $0.70   $26.58   $53.25
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.14  HR                  $0.86                               $0.86
    EMPLOYEE BENEFITS                                                      $2.18                               $2.18
    FARM INSURANCE                                                $0.22                                        $0.22
    LAND TAXES                                                                                        $1.59    $1.59
    SUPERVISION AND MANAGEMENT                                             $7.58                               $7.58
    OTHER EXPENSES                                              $115.61                                      $115.61
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.14  HR       $115.82   $10.61                      $1.59  $128.03
                                                ---------        ------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         3.19  HR       $131.82   $28.76    $7.83    $0.70   $86.02  $255.13
 
NET OPERATING PROFIT                                                                                        ($135.13)
 
    INTEREST ON OPERATING CAPITAL           ( $127.10     @        9.00%)                                      $4.52
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $21.83
 
RETURN TO LAND AND RISK                                                                                     ($161.48)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $120.00
  VARIABLE OPERATING EXPENSES        $144.87
RETURN OVER VARIABLE EXPENSES                 ($24.87)    (GROSS MARGINS)
  FIXED EXPENSES                      $86.02
NET FARM INCOME                              ($110.89)    (RETURNS TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $28.76
NET OPERATING PROFIT                         ($139.65)    (RETURNS TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $21.83
RETURN TO LAND AND RISK                      ($161.48)
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