TABLE 8. Bermudagrass, flood irrigated, budgeted per acre costs and returns for a farm with above
average management, Arch Hurley Conservancy District, Quay County, 2001.
Harvesting dates: June 1 - October 1
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
BERMUDAGRASS $14.00 10.00 AUM $140.00
_______
TOTAL $140.00
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ------ ----------- ------ -------
FERTILIZER
(16-4-12-12) $0.12 235 LBS $27.26 $27.26
CANAL WATER: Assessment $7.00 1 ACRE $7.00 $7.00
Water $7.00 18 AC. IN. $10.50 $10.50
MANURE CREDIT $1.00 10 AUM $10.00 $10.00
_______ _______
SUBTOTAL $54.76 $54.76
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR &OIL REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------ ----- ------
HARROW 70 HP 0.10 HR $0.76 $0.52 $0.15 $0.25 $1.67
FERT SPREADER 70 HP 0.05 HR $0.38 $0.26 $0.22 $0.57 $1.42
DITCHER 70 HP 0.05 HR $0.38 $0.26 $0.08 $0.34 $1.06
IRRIGATE (3X) 1.50 HR $10.13 $10.13
_________ ______ ______ ______ ______ _______
SUBTOTAL 1.70 HR $11.64 $1.03 $0.45 $1.16 $14.28
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.05 HR $0.38 $0.38
EMPLOYEE BENEFITS $2.09 $2.09
INSURANCE $0.23 $0.23
LAND TAXES $0.81 $0.81
SUPERVISION AND MANAGEMENT $11.38 $11.38
OTHER EXPENSES $31.57 $31.57
_________ ______ ______ ______ _______
SUBTOTAL 0.05 HR $31.80 $13.85 $0.81 $46.46
--------- ------- ------- ------- ------- ------- -------
TOTAL OPERATING EXPENSES 1.75 HR $86.56 $25.48 $1.03 $0.45 $1.97 $115.49
NET OPERATING PROFIT $24.51
INTEREST ON OPERATING CAPITAL ( $27.75 @ 9.00%) $2.50
INTEREST ON EQUIPMENT INVESTMENT $0.86
RETURN TO LAND AND RISK $21.15
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BUDGET SUMMARY
GROSS RETURN $140.00 VARIABLE OPERATING EXPENSES $88.04 RETURN OVER VARIABLE EXPENSES $51.96 (GROSS MARGIN) FIXED EXPENSES $1.97 NET FARM INCOME $49.99 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $25.48 NET OPERATING PROFIT $24.51 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $3.36 RETURN TO LAND AND RISK $21.15 ===================================================================================================