TABLE 5. Alfalfa hay, sprinkler-irrigated, budgeted per acre costs and returns for a 600 acre farm with above
         average management, Arch Hurley Conservancy District, Quay County, 2001.
              Harvesting dates: May 25 - October 15
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    ALFALFA HAY             $120.00              4.50  TONS (STACKED)                                        $540.00
    GRAZING                  $48.00              1.00  ACRE                                                   $48.00
                                                                                                             _______
         TOTAL                                                                                               $588.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------               -----            -----------      ------                              ------   ------
    PHOSPHATE (P205)          $0.39                60 LBS        $23.40                                       $23.40
    WIRE                      $0.36                39 LBS        $13.88                                       $13.88
    ESTABLISHMENT: Principal                        8 YEARS                                          $17.97   $17.97
                 : Interest                                                                           $7.48    $7.48
    CANAL WATER: Assessment   $7.00                 1 ACRE        $7.00                                        $7.00
                 Water        $7.00                24 AC. IN.    $14.00                                       $14.00
                                                                 ______                              ______  _______
         SUBTOTAL                                                $58.28                              $25.46   $83.74
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------  ------   ------   -------  ------  -------
    FERT SPREADER          70 HP                 0.05  HR                  $0.38    $0.26    $0.22    $0.57    $1.43
    IRRIGATE                                     1.20  HR                  $8.10   $30.05    $5.38    $6.04   $49.57
                                                _________                 ______   ______   ______   ______  _______
         SUBTOTAL                                1.25  HR                  $8.48   $30.31    $5.61    $6.61   $51.00
 
HARVEST OPERATIONS
------- ----------
    SWATHER (4X)           16 FT                 0.44  HR                  $3.32    $2.31    $3.51   $14.91   $24.05
    BALER (4X)             70 HP                 0.84  HR                  $6.34    $4.35    $1.29    $2.87   $14.84
    BALE WAGON, PTO (4X)   145 HP                0.80  HR                  $6.04   $10.11    $3.94    $9.73   $29.82
                                                _________      _________  ______   ______   ______   ______   ______
         SUBTOTAL                                2.08  HR         $0.00   $15.70   $16.77    $8.73   $27.51   $68.71
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.83  HR                  $6.29                               $6.29
    EMPLOYEE BENEFITS                                                      $5.48                               $5.48
    INSURANCE                                                     $0.08                                        $0.08
    LAND TAXES                                                                                        $0.81    $0.81
    SUPERVISION AND MANAGEMENT                                            $43.24                              $43.24
    OTHER EXPENSES                                               $32.45                                       $32.45
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.83  HR        $32.53   $55.01                      $0.81   $88.35
                                                ---------        ------   ------   ------   ------  -------  -------
TOTAL OPERATING EXPENSES                         4.16  HR        $90.82   $79.19   $47.08   $14.34   $60.39  $291.81
 
NET OPERATING PROFIT                                                                                         $296.19
 
    INTEREST ON OPERATING CAPITAL           (  $40.24     @        9.00%)                                      $3.62
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $26.29
 
RETURN TO LAND AND RISK                                                                                      $266.28
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                                         BUDGET SUMMARY
 
GROSS RETURN                                  $588.00
  VARIABLE OPERATING EXPENSES        $152.23
RETURN OVER VARIABLE EXPENSES                 $435.77     (GROSS MARGIN)
  FIXED EXPENSES                      $60.39
NET FARM INCOME                               $375.38     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $79.19
NET OPERATING PROFIT                          $296.19     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $29.91
RETURN TO LAND AND RISK                       $266.28
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