TABLE 7. White corn, flood-irrigated, budgeted per acre costs and returns for a 640 acre farm
         with above average management, Dell City area, Otero County, 2001.
              Planting dates: April 15 - May 15
              Harvesting dates: October 1 - November 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    CORN                      $7.50             70.00  CWT                                                   $525.00
    GRAZING                  $20.00              1.00  ACRE                                                   $20.00
                                                                                                             _______
         TOTAL                                                                                               $545.00
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              -----             -----------      ------                                       ------
    SEED                      $0.79                25  000       $19.63                                       $19.63
    NITROGEN (N)              $0.42                30  LBS       $12.60                                       $12.60
    PHOSPHATE (P2O5)          $0.39                70  LBS       $27.30                                       $27.30
    TRACE ELEMENTS            $0.15                65  LBS        $9.75                                        $9.75
    ANHYDROUS (NH3)         $0.2000               175  LBS       $35.00                                       $35.00
    INSECTICIDE (CUSTOM)     $15.27                 3  ACRE      $45.82                                       $45.82
    HERBICIDE                 $9.00                 1  ACRE       $9.00                                        $9.00
    LIVESTOCK FAC & EQUIP                                                                             $5.00    $5.00
    PUMP WATER*                                    48  AC. IN.                                                 $0.00
                                                                _______                             _______  _______
         SUBTOTAL                                               $159.10                               $5.00  $164.10
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----   ------
    DISC                   155 HP                0.14  HR                  $1.06    $1.92    $0.89    $3.03    $6.90
    CHISEL                 155 HP                0.20  HR                  $1.51    $2.75    $0.98    $4.99   $10.23
    ANHYDROUS APPL         155 HP                0.20  HR         $7.00    $1.51    $2.75    $0.94    $3.67   $15.87
    DISC & SPRAY           155 HP                0.19  HR                  $1.43    $2.61    $1.50    $6.96   $12.51
    LISTER                 155 HP                0.12  HR                  $0.91    $1.65    $0.71    $3.64    $6.91
    PLANTER                93 HP                 0.17  HR                  $1.28    $1.60    $1.26    $5.62    $9.76
    ROLLING CULT (3X)      93 HP                 0.39  HR                  $2.94    $3.66    $1.25    $2.39   $10.25
    IRRIGATE (8X)                                4.00  HR                 $27.00   $94.21    $1.93   $24.92  $148.05
                                                _________        ______   ______   ______   ______   ______  _______
         SUBTOTAL                                5.41  HR         $7.00   $37.65  $111.15    $9.48   $55.21  $220.48
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                             $23.25                                       $23.25
    HAUL (CUSTOM)                                                $14.00                                       $14.00
                                                                 ______   ______   ______   ______   ______   _______
         SUBTOTAL                                                $37.25    $0.00    $0.00    $0.00    $0.00   $37.25
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.27  HR                  $2.06                               $2.06
    EMPLOYEE BENEFITS                                                      $6.78                               $6.78
    INSURANCE                                                     $0.75                                        $0.75
    LAND TAXES                                                                                        $2.97    $2.97
    SUPERVISION AND MANAGEMENT                                            $44.27                              $44.27
    OTHER EXPENSES                                               $53.75                                       $53.75
                                                _________        ______   ______                     _______  _______
         SUBTOTAL                                0.27  HR        $54.50   $53.10                      $2.97  $110.57
                                                ---------       -------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         5.68  HR       $257.86   $90.74  $111.15    $9.48   $63.18  $532.41
 
NET OPERATING PROFIT                                                                                          $12.59
 
    INTEREST ON OPERATING CAPITAL           ( $109.71     @        9.00%)                                      $9.87
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $21.08
 
RETURN TO LAND AND RISK                                                                                      ($18.36)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $545.00
  VARIABLE OPERATING EXPENSES        $378.48
RETURN OVER VARIABLE EXPENSES                 $166.52     (GROSS MARGIN)
  FIXED EXPENSES                      $63.18
NET FARM INCOME                               $103.34     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $90.74
NET OPERATING PROFIT                           $12.59     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $30.96
RETURN TO LAND AND RISK                       ($18.36)
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