TABLE 8. Upland cotton (stripper), 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: November 1 - January 15
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
COTTON LINT $0.650 1,000 LBS $650.00
COTTON SEED $0.05 1,600 LBS $78.00
ASCS DEFICIENCY $0.0560 1,000 LBS $56.00
FARM LOAN DEFICIENCY $0.04 1,000 LBS $40.00
_______
TOTAL $824.00
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ------ ----------- ------ ------
SEED $0.56 25 LBS $14.00 $14.00
NITROGEN (N) $0.42 72 LBS $30.24 $30.24
PHOSPHATE (P2O5) $0.39 184 LBS $71.76 $71.76
HERBICIDE (CUSTOM) $19.00 1 X/ACRE $19.00 $19.00
INSECTICIDE (CUSTOM) $18.02 1 X/ACRE $18.02 $18.02
CROP INSURANCE FCIC $0.59 $0.59
PUMP WATER* 30 AC. IN.
_______ _______
SUBTOTAL $153.61 $153.61
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
PLOW 155 HP 0.48 HR $3.60 $6.36 $3.45 $12.85 $26.26
DISC (2X) 155 HP 0.28 HR $2.10 $3.71 $1.79 $6.03 $13.63
FLOAT (2X) 93 HP 0.32 HR $2.40 $3.00 $0.47 $0.85 $6.72
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. (4X) 93 HP 0.52 HR $3.90 $4.88 $1.67 $3.18 $13.64
HAND HOE (CUSTOM) $25.00 $25.00
IRRIGATE (6X) 3.00 HR $20.25 $58.88 $1.20 $15.57 $95.90
_________ ______ ______ ______ ______ ______ _______
SUBTOTAL 5.03 HR $25.00 $35.48 $82.54 $12.02 $53.81 $208.84
HARVEST OPERATIONS
------- ----------
COTTON STRIPPER 93 HP 0.62 HR $4.65 $5.82 $3.21 $9.91 $23.59
HAUL 93 HP 1.00 HR $7.50 $9.39 $1.75 $4.33 $22.97
GIN COTTON (CUSTOM) $164.20 $164.20
_________ ______ ______ ______ ______ ______ ______
SUBTOTAL 1.62 HR $164.20 $12.15 $15.20 $4.96 $14.25 $210.76
POST HARVEST OPERATIONS
----------- ----------
SHREDDER 93 HP 0.29 HR $2.18 $2.72 $0.59 $2.20 $7.68
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.91 HR $6.79 $6.79
EMPLOYEE BENEFITS $8.57 $8.57
INSURANCE $0.95 $0.95
LAND TAXES $2.97 $2.97
SUPERVISION AND MANAGEMENT $63.77 $63.77
OTHER EXPENSES $54.45 $54.45
_________ ______ ______ ______ ______
SUBTOTAL 0.91 HR $55.40 $79.13 $2.97 $137.50
--------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 7.85 HR $398.21 $128.93 $100.46 $17.57 $73.23 $718.39
NET OPERATING PROFIT $105.61
INTEREST ON OPERATING CAPITAL ( $102.12 @ 9.00%) $9.19
INTEREST ON EQUIPMENT INVESTMENT $34.93
RETURN TO LAND AND RISK $61.49
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $824.00 VARIABLE OPERATING EXPENSES $516.24 RETURN OVER VARIABLE EXPENSES $307.76 (GROSS MARGIN) FIXED EXPENSES $73.23 NET FARM INCOME $234.54 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $128.93 NET OPERATING PROFIT $105.61 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $44.12 RETURN TO LAND AND RISK $61.49 ===================================================================================================