TABLE 7. Grass hay, flood-irrigated, budgeted per acre costs and returns for a 40 acre farm with
         with above average management, Northern Mountain Counties, 2001.
              Harvest dates: August 15 - September 30
 
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         ITEM                  PRICE                YIELD                                                                   TOTAL
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GROSS RETURNS
    GRASS HAY               $110.00                 2.00  TONS (IN FIELD)                                                $220.00
    GRAZING                  $10.00                 1.00  AUM                                                             $10.00
                                                                                                                         ______
         TOTAL                                                                                                           $230.00
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                                                                    PURCHASED                                     FIXED
PURCHASED INPUTS               PRICE               QUANTITY           INPUTS                                       COST     TOTAL
--------- ------              -----               ------ -----        ------                                     -----   ------
    SEED                      $0.40                   70  LBS           $28.00                                            $28.00
    PHOSPHATE                 $0.39                   35  LBS           $13.65                                            $13.65
    NITROGEN                  $0.42                   70  ACRE          $29.40                                            $29.40
    WIRE                      $0.36                   17  LBS            $6.17                                             $6.17
    CANAL WATER                                       30  AC. IN.                                               $25.00    $25.00
                                                                      ______                                    ______   ______
         SUBTOTAL                                                       $77.22                                  $25.00   $102.22
 
                               POWER           ACCOMPLISHMENT       PURCHASED                    FUEL             FIXED
PREHARVEST OPERATIONS           UNIT                 RATE                INPUTS      LABOR     & LUBE  REPAIRS     COST     TOTAL
---------- ----------      --------------        ------- ----       -----------   -----      -----     -------   -----    -----
    FERTILIZE                40HP                   0.05                            $0.26      $0.12    $0.12    $0.12     $0.62
    IRRIGATE (5X)                                   3.75  HR                       $19.31      $0.00    $0.00    $0.00    $19.31
    CLEAN DITCHES          CUSTOM                 ______ ___             $5.00      $0.00      $0.00    $0.00    $0.00     $5.00
         SUBTOTAL                                   3.80  HR              5.00      19.57       0.12     0.12     0.12    $24.94
 
HARVEST OPERATIONS
------- ----------
    SWATHER (2X)           40 HP                    0.32  HR                        $1.65      $0.00    $0.26    $1.96     $3.87
    BALER (2X)             40 HP                    0.42  HR                        $2.16      $1.76    $0.24    $9.54    $13.71
 
                                                  ______ ___                     ______     ______     ______   ______    ______
         SUBTOTAL                                   0.74  HR                        $3.81      $1.76    $0.50   $11.51    $17.58
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                        0.37  HR                        $1.91                                  $1.91
    EMPLOYEE BENEFITS                                                               $2.81                                  $2.81
    INSURANCE                                                            $0.47                                             $0.47
    LAND TAXES                                                                                                   $3.26     $3.26
    SUPERVISION AND MANAGEMENT                                                     $17.57                                 $17.57
    OTHER EXPENSES                                                      $62.69                                            $62.69
                                                  ______ ___          ______     ______                         ______   ______
         SUBTOTAL                                   0.37  HR            $63.16     $22.28                        $3.26    $88.70
                                                  ------ ---          ------     ------     ------     ------   ------  -------
TOTAL OPERATING EXPENSES                            4.91  HR           $145.38     $45.66      $1.88    $0.62   $39.89   $233.44
 
NET OPERATING PROFIT                                                                                                      ($3.44)
 
    INTEREST ON OPERATING CAPITAL           (     $38.86     @            9.00%)                                           $3.50
    INTEREST ON EQUIPMENT INVESTMENT                                                                                      $13.51
 
RETURN TO LAND AND RISK                                                                                                  ($20.45)
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