TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 40 acre farm with above average
management, Northern Mountain Counties, 2001.
Harvest dates: June 10 - October 1
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
ALFALFA HAY $120.00 2.00 TONS (STACKED) $240.00
GRAZING $10.00 1.00 AUM $10.00
_______
TOTAL $250.00
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PURCHASED FIXED
PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL
--------- ------ ----- ----------- ------ ------ ------
NITROGEN (N) $0.42 0 LBS $0.00 $0.00
PHOSPHATE (P2O5) $0.39 55 LBS $21.45 $21.45
INSECTICIDE (CUSTOM) $0.00 0 ACRE $0.00 $0.00
WIRE $0.36 17 LBS $6.17 $6.17
ESTABLISHMENT: Principal 8 YEARS $13.02 $13.02
: Interest $5.28 $5.28
CANAL WATER 18 AC. IN. $7.00 $7.00
______ ______ _______
SUBTOTAL $27.62 $25.30 $52.92
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ------ ------ ------- ------ -------
IRRIGATE (3X) 2.25 HR $11.59 $11.59
_________ ______ ______
SUBTOTAL 2.25 HR $11.59 $11.59
HARVEST OPERATIONS
------- ----------
MOWER (3X) 40 HP 1.35 HR $6.95 $5.65 $1.24 $11.59 $25.43
BALER (5X) 40 HP 0.81 HR $4.17 $3.39 $0.47 $18.41 $26.44
RAKE (3X) 40 HP 0.78 HR $4.02 $3.27 $0.62 $18.81 $26.71
_________ ______ ______ ______ ______ ______
SUBTOTAL 2.94 HR $15.14 $12.32 $2.33 $48.80 $78.58
OVERHEAD EXPENSES
--------
DOWNTIME 0.74 HR $3.79 $3.79
EMPLOYEE BENEFITS $3.21 $3.21
INSURANCE $0.53 $0.53
LAND TAXES $3.26 $3.26
SUPERVISION AND MANAGEMENT $21.22 $21.22
OTHER EXPENSES $62.69 $62.69
_________ ______ ______ ______ ______
SUBTOTAL 0.74 HR $63.22 $28.21 $3.26 $94.70
--------- ------ ------ ------ ------ ------- -------
TOTAL OPERATING EXPENSES 5.93 HR $90.84 $54.94 $12.32 $2.33 $77.37 $237.79
NET OPERATING PROFIT $12.21
INTEREST ON OPERATING CAPITAL ( $15.03 @ 9.00%) $1.35
INTEREST ON EQUIPMENT INVESTMENT $37.37
RETURN TO LAND AND RISK ($26.51)
=====================================================================================================================
BUDGET SUMMARY
GROSS RETURN $250.00 VARIABLE OPERATING EXPENSES $105.48 RETURN OVER VARIABLE EXPENSES $144.52 (GROSS MARGIN) FIXED EXPENSES $77.37 NET FARM INCOME $67.15 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $54.94 NET OPERATING PROFIT $12.21 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $38.72 RETURN TO LAND AND RISK ($26.51) ===================================================================================================