TABLE 5. Grain sorghum, flood-irrigated, budgeted per acre costs and returns for a 640 acre farm with above
         average management, Deming area, Luna County, 2001.
              Planting dates: May 10 - July 10
              Harvest dates: October 15 - November 15
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00             70.00  CWT                                                   $210.00
    ASCS DEFICIENCY           $0.55             70.00  CWT                                                    $38.50
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
                                                                                                              _______
         TOTAL                                                                                               $248.50
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              ------            -----------      ------                                       -------
    SEED                      $1.04                 8  LBS        $8.32                                        $8.32
    ANHYDROUS AMMONIA (NH3) $0.2000               200  LBS       $40.00                                       $40.00
    NITROGEN (N)              $0.42                30  LBS       $12.60                                       $12.60
    PHOSPHATE (P2O5)          $0.39                70  LBS       $27.30                                       $27.30
    HERBICIDE                $14.81                 1  ACRE      $14.81                                       $14.81
    INSECTICIDE (AERIAL)     $18.02                 1  ACRE      $18.02                                       $18.02
    INSECTICIDE              $10.64                 1  DOLLARS   $10.64                                       $10.64
    PUMP WATER*                                    30  AC. IN.
   CROP INSURANCE             $0.53                               $0.53                                        $0.53
         SUBTOTAL                                               $132.22                                      $132.22
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    DISC                   185 HP                0.14  HR                  $1.06    $1.96    $1.62    $1.99    $6.62
    PLOW                   185 HP                0.48  HR                  $3.62    $6.73    $5.83    $6.94   $23.12
    DISC                   185 HP                0.14  HR                  $1.06    $1.96    $1.62    $1.99    $6.62
    DRAG                   80 HP                 0.20  HR                  $1.51    $1.62    $0.25    $0.15    $3.52
    LISTER & SPRAY         140 HP                0.13  HR                  $0.98    $1.38    $1.51    $1.60    $5.47
    FERTILIZE              140 HP                0.05  HR                  $0.38    $0.53    $0.36    $0.30    $1.56
    PRE-IRRIGATE                                 0.75  HR                  $5.66   $13.94    $0.37    $4.52   $24.49
    ROLLING CULT           80 HP                 0.13  HR                  $0.98    $1.05    $0.38    $0.73    $3.14
    PLANTER                140 HP                0.17  HR                  $1.28    $1.80    $3.03    $2.70    $8.82
    CULTIVATOR (2X)        80 HP                 0.26  HR                  $1.96    $2.10    $0.29    $0.47    $4.82
    ROTO BUCK (6X)         140 HP                0.18  HR                  $1.36    $1.91    $1.37    $1.33    $5.97
    IRRIGATE (5X)                                2.50  HR                 $18.88   $69.69    $1.84   $22.61  $113.01
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                5.13  HR                 $38.73  $104.66   $18.45   $45.31  $207.14
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                             $15.00                                       $15.00
    HAUL (CUSTOM)                                                $13.30                                       $13.30
                                                _________        ______   ______   ______   ______   ______   ______
         SUBTOTAL                                0.00  HR        $28.30    $0.00    $0.00    $0.00    $0.00   $28.30
 
POST HARVEST OPERATIONS
---- ------- ----------
    SHREDDER               126 HP                0.14  HR                  $1.06    $1.48    $1.30    $1.41    $5.25
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.51  HR                  $3.81                               $3.81
    EMPLOYEE BENEFITS                                                      $7.16                               $7.16
    INSURANCE                                                     $0.80                                        $0.80
    LAND TAXES                                                                                        $1.71    $1.71
    SUPERVISION AND MANAGEMENT                                            $21.66                              $21.66
    OTHER EXPENSES                                               $53.11                                       $53.11
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.51  HR        $53.91   $32.63                      $1.71   $88.24
                                                ---------        ------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         5.78  HR       $214.43   $72.42  $106.14   $19.75   $48.42  $461.16
 
NET OPERATING PROFIT                                                                                        ($212.66)
 
    INTEREST ON OPERATING CAPITAL           (  $99.94     @        9.00%)                                      $8.99
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $16.99
 
RETURN TO LAND AND RISK                                                                                     ($238.65)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $248.50
  VARIABLE OPERATING EXPENSES        $340.32
RETURN OVER VARIABLE EXPENSES                 ($91.82)    (GROSS MARGIN)
  FIXED EXPENSES                      $48.42
NET FARM INCOME                              ($140.25)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $72.42
NET OPERATING PROFIT                         ($212.66)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $25.99
RETURN TO LAND AND RISK                      ($238.65)
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