TABLE 7.  Summary of per acre costs and returns for an 800 acre farm with above
          average management, San Jon-Nara Visa area, Quay County, 2001.
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                                               ALFALFA  ALFALFA  GRAIN
                                         ESTABLISHMENT      HAY  SORGHUM    WHEAT
                                             --------------DRYLAND---------------
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                                                           TONS      CWT       BU
 
PRIMARY YIELD                                             1.50    16.00    15.00
PRIMARY PRICE                                           110.00     3.00     3.00
  GOVERNMENT PAYMENTS                                     0.00     8.80     6.90
  SECOND INCOME                                          12.00     5.00     2.00
 
GROSS RETURN                                           $177.00   $61.80   $53.90
 
 
CASH OPERATING EXPENSES
     SEED                                      $29.50             $2.60    $2.75
     FERTILIZER                                 $3.30
     CHEMICALS
     CROP INSURANCE                                               $0.13    $0.15
     OTHER PURCHASED INPUTS                     $0.04    $4.80    $0.14    $0.12
     CANAL WATER
     FUEL, OIL & LUBRICANTS-EQUIPMENT           $2.55    $7.27    $8.07    $8.87
     FUEL-IRRIGATION
     REPAIRS                                    $1.07    $1.94    $7.36    $6.52
     CUSTOM CHARGES                             $4.50    $0.00
     LAND TAXES                                          $0.33    $0.33    $0.33
     OTHER EXPENSES                                     $22.16   $22.16   $22.16
                                              ________ ________ ________ ________
         TOTAL CASH EXPENSES                   $40.96   $36.49   $40.77   $40.90
 
RETURN OVER CASH EXPENSES                     ($40.96) $140.51   $21.03   $13.00
 
FIXED EXPENSES                                  $3.45   $45.21   $20.69   $23.75
 
         TOTAL EXPENSES                        $44.41   $81.70   $61.46   $64.65
 
NET FARM INCOME                               ($44.41)  $95.30    $0.34  ($10.75)
 
LABOR AND MANAGEMENT COSTS                      $6.33   $24.93   $14.80   $10.29
 
NET OPERATING PROFIT                          ($50.74)  $70.37  ($14.46) ($21.04)
 
CAPITAL COSTS
     INTEREST ON OPERATING CAPITAL                       $0.28    $1.01    $0.38
     INTEREST ON EQUIPMENT INVESTMENT                   $30.64   $12.67   $14.21
                                              ________ ________ ________ ________
         TOTAL CAPITAL COSTS                    $0.00   $30.91   $13.69   $14.59
 
RETURN TO LAND AND RISK                       ($50.74)  $39.46  ($28.15) ($35.63)
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