TABLE 4. Wheat, flood-irrigated, budgeted per acre costs and returns for a 640 acre farm with above
average management, Deming area, Luna County, 2001.
Planting dates: January 1 - February 10
Harvest dates: June 15 - July 15
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
WHEAT $3.00 50.00 CWT $150.00
ASCS DEFICIENCY $0.77 50.00 CWT $38.50
ASCS DIVERSION $0.00 $0.00
_______
TOTAL $188.50
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ----- ----------- ------ ------
SEED $0.23 100 LBS $23.00 $23.00
ANHYDROUS AMMONIA (NH3) $0.2000 250 LBS $50.00 $50.00
NITROGEN (N) $0.42 30 LBS $12.60 $12.60
PHOSPHATE (P2O5) $0.39 80 LBS $31.20 $31.20
PUMP WATER* 20 ACRE IN.
CROP INSURANCE $0.74 $0.74 $0.74
SUBTOTAL $117.54 $117.54
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ------
DISC (2X) 185 HP 0.28 HR $2.11 $3.92 $3.23 $3.97 $13.24
LISTER 140 HP 0.12 HR $0.91 $1.27 $1.01 $1.16 $4.35
FERTILIZE 140 HP 0.05 HR $0.38 $0.53 $0.36 $0.30 $1.56
DRILL 140 HP 0.18 HR $1.36 $1.91 $1.58 $7.63 $12.48
IRRIGATE (4X) 2.00 HR $15.10 $55.75 $1.47 $18.08 $90.41
_________ ______ ______ ______ ______ ______
SUBTOTAL 2.63 HR $19.86 $63.38 $7.65 $31.15 $122.03
HARVEST OPERATIONS
------- ----------
COMBINE (CUSTOM) $26.00 $26.00
HAUL (CUSTOM) $9.50 $9.50
_________ ______ ______ ______ ______ ______ ______
SUBTOTAL 0.00 HR $35.50 $0.00 $0.00 $0.00 $0.00 $35.50
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.16 HR $1.19 $1.19
EMPLOYEE BENEFITS $3.57 $3.57
INSURANCE $0.40 $0.40
LAND TAXES $1.71 $1.71
SUPERVISION AND MANAGEMENT $15.51 $15.51
OTHER EXPENSES $53.11 $53.11
_________ ______ ______ ______ ______
SUBTOTAL 0.16 HR $53.51 $20.27 $1.71 $75.49
--------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 2.79 HR $206.54 $40.13 $63.38 $7.65 $32.85 $350.56
NET OPERATING PROFIT ($162.06)
INTEREST ON OPERATING CAPITAL ( $79.48 @ 9.00%) $7.15
INTEREST ON EQUIPMENT INVESTMENT $9.86
RETURN TO LAND AND RISK ($179.07)
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $188.50 VARIABLE OPERATING EXPENSES $277.58 RETURN OVER VARIABLE EXPENSES ($89.08) (GROSS MARGIN) FIXED EXPENSES $32.85 NET FARM INCOME ($121.93) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $40.13 NET OPERATING PROFIT ($162.06) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $17.02 RETURN TO LAND AND RISK ($179.07) ===================================================================================================