TABLE 4. Alfalfa hay, dryland, budgeted per acre costs and returns for an 800 acre farm with above
         average management, San Jon-Nara Visa area, Quay County, 2001.
              Harvesting dates: June 15 - October 1
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    ALFALFA HAY             $110.00              1.50  TONS (IN FIELD)                                       $165.00
    GRAZING                  $12.00              1.00  ACRE                                                   $12.00
                                                                                                             _______
         TOTAL                                                                                               $177.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------               -----            -----------      ------                              ------   ------
    WIRE                      $0.36                13 LBS         $4.63                                        $4.63
    ESTABLISHMENT: Principal                        6  YEARS                                          $8.46    $8.46
                 : Interest                                                                           $2.66    $2.66
                                                                 ______                              ______  _______
         SUBTOTAL                                                 $4.63                              $11.12   $15.74
 

                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
HARVEST OPERATIONS              UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
------- ----------         --------------      -----------     ---------  ------   ------   -------  ------  -------
    SWATHER (3X)           14 FT SP              0.48  HR                  $3.62    $2.52    $0.84   $26.24   $33.22
    BALER (3X)             96 HP                 0.63  HR                  $4.76    $4.75    $1.11    $7.85   $18.46
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                1.11  HR                  $8.38    $7.27    $1.94   $34.09   $51.68
 

OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.28  HR                  $2.10                               $2.10
    EMPLOYEE BENEFITS                                                      $1.51                               $1.51
    INSURANCE                                                     $0.17                                        $0.17
    LAND TAXES                                                                                        $0.33    $0.33
    SUPERVISION AND MANAGEMENT                                            $12.95                              $12.95
    OTHER EXPENSES                                               $22.16                                       $22.16
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.28  HR        $22.33   $16.55                      $0.33   $39.20
                                                ---------        ------   ------   ------   ------  -------  -------
TOTAL OPERATING EXPENSES                         1.39  HR        $26.96   $24.93    $7.27    $1.94   $45.53  $106.63
 

NET OPERATING PROFIT                                                                                          $70.37
 

    INTEREST ON OPERATING CAPITAL           (   $3.08     @        9.00%)                                      $0.28
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $30.64
 

RETURN TO LAND AND RISK                                                                                       $39.46
=====================================================================================================================
                                         BUDGET SUMMARY
 

GROSS RETURN                                  $177.00
  VARIABLE OPERATING EXPENSES         $36.17
RETURN OVER VARIABLE EXPENSES                 $140.83     (GROSS MARGIN)
  FIXED EXPENSES                      $45.53
NET FARM INCOME                                $95.30     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $24.93
NET OPERATING PROFIT                           $70.37     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $30.91
RETURN TO LAND AND RISK                        $39.46
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