TABLE 9. Grain sorghum, 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: May 1 - June 15
              Harvesting dates: October 15 - November 15
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00             50.00  CWT                                                   $150.00
    ASCS DEFICIENCY           $0.55             50.00  CWT                                                    $27.50
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
    GRAZING                  $13.00                 1  ACRE                                                   $13.00
                                                                                                             _______
         TOTAL                                                                                               $190.50
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------             ------             -----------      ------                                       ------
    SEED                      $1.04                12  LBS       $12.48                                       $12.48
    ANHYDROUS (NH3)         $0.2000               150  LBS       $30.00                                       $30.00
    NITROGEN (N)              $0.42                18  LBS        $7.56                                        $7.56
    PHOSPHATE (P2O5)          $0.39                46  LBS       $17.94                                       $17.94
    INSECTICIDE              $14.36                 1  ACRE      $14.36                                       $14.36
    HERBICIDE                $11.69                 1  ACRE      $11.69                                       $11.69
    LIVESTOCK FAC & EQUIP                                                                             $5.00    $5.00
    PUMP WATER                                     36  AC. IN.    $0.00                                        $0.00
    CROP INSURANCE            $1.96                              ______                             _______    $1.96
         SUBTOTAL                                                $94.03                               $5.00  $100.99
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----   ------   -------  ------   ------
    DISC                   155 HP                0.14  HR                  $1.05    $1.86    $0.89    $3.02    $6.82
    CHISEL                 155 HP                0.20  HR                  $1.50    $2.65    $0.98    $4.96   $10.10
    ANHYDROUS APPL         155 HP                0.20  HR         $7.00    $1.50    $2.65    $0.94    $3.66   $15.75
    DISC & SPRAY           155 HP                0.19  HR                  $1.43    $2.52    $1.50    $6.94   $12.39
    LISTER                 155 HP                0.12  HR                  $0.90    $1.59    $0.71    $3.63    $6.83
    PLANTER                155 HP                0.17  HR                  $1.28    $2.25    $1.83    $8.68   $14.04
    ROLLING CULT (3X)      93 HP                 0.39  HR                  $2.93    $3.66    $1.25    $2.39   $10.23
    IRRIGATE (6X)                                3.00  HR                 $22.50   $70.66    $1.44   $18.68  $113.28
                                                _________        ______   ______   ______   ______   ______  _______
         SUBTOTAL                                4.41  HR         $7.00   $33.08   $87.84    $9.56   $51.96  $189.43
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)       14 FT SP                              $15.00                                       $15.00
                                                _________        ______   ______   ______   ______   ______   ______
         SUBTOTAL                                0.00  HR        $15.00    $0.00    $0.00    $0.00    $0.00   $15.00
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     1.10  HR                  $8.27                               $8.27
    EMPLOYEE BENEFITS                                                      $5.95                               $5.95
    INSURANCE                                                     $0.66                                        $0.66
    LAND TAXES                                                                                        $2.97    $2.97
    SUPERVISION AND MANAGEMENT                                            $15.54                              $15.54
    OTHER EXPENSES                                               $54.45                                       $54.45
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                1.10  HR        $55.11   $29.76                      $2.97   $87.84
                                                ---------       -------  -------  -------  -------  -------  -------
TOTAL OPERATING EXPENSES                         5.51  HR       $171.14   $62.84   $87.84    $9.56   $59.93  $393.26
 
NET OPERATING PROFIT                                                                                        ($202.76)
 
    INTEREST ON OPERATING CAPITAL           (  $74.84     @        9.00%)                                      $6.74
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $22.79
 
RETURN TO LAND AND RISK                                                                                     ($232.28)
=====================================================================================================================
 
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $190.50
  VARIABLE OPERATING EXPENSES        $268.53
RETURN OVER VARIABLE EXPENSES                 ($78.03)    (GROSS MARGIN)
  FIXED EXPENSES                      $59.93
NET FARM INCOME                              ($137.96)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $62.84
NET OPERATING PROFIT                         ($200.80)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $29.52
RETURN TO LAND AND RISK                      ($230.32)
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