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
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    ALFALFA HAY             $120.00              2.00  TONS (STACKED)                                        $240.00
    GRAZING                  $10.00              1.00  AUM                                                    $10.00
                                                                                                             _______
         TOTAL                                                                                               $250.00
---------------------------------------------------------------------------------------------------------------------
                                                               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)
===================================================================================================