TABLE 5. Grain sorghum, dryland, budgeted per acre costs and returns for an 800 acre farm with above
         average management, San Jon-Nara Visa area, Quay County, 2001.
              Planting dates: June 1 - July 4
              Harvesting dates: October 5 - November 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00                16  CWT                                                    $48.00
    ASCS DEFICIENCY           $0.55                16  CWT                                                     $8.80
    ASCS DIVERSION            $0.00                 0  CWT                                                     $0.00
    GRAZING                   $5.00                 1  ACRE                                                    $5.00
                                                                                                              ______
         TOTAL                                                                                                $61.80
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              -----             -----------      ------                                       ------
    SEED                      $1.04                 3  LBS        $2.60                                        $2.60
    HERBICIDE (CUSTOM)       $14.36                 1  ACRE      $14.36                                       $14.36
   CROP INSURANCE             $0.13                               $0.13                                        $0.13
         SUBTOTAL                                                $17.08                                       $17.08
 
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    SWEEP                  145 HP                0.10  HR                  $0.76    $1.26    $0.58    $1.84    $4.44
    ROD WEED               96 HP                 0.08  HR                  $0.60    $0.60    $0.12    $0.19    $1.52
    LISTER/PLANTER         96 HP                 0.18  HR                  $1.36    $1.36    $2.10    $2.86    $7.68
    CULTIVATOR (2X)        96 HP                 0.26  HR                  $1.96    $1.96    $0.70    $1.43    $6.05
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.62  HR                  $4.68    $5.19    $3.51    $6.32   $19.69
 
HARVEST OPERATIONS
------- ----------
    COMBINE                22 FT                 0.14  HR                  $1.06    $1.64    $3.23   $11.13   $17.06
    HAUL                   2 TON                 0.14  HR                  $1.06    $1.25    $0.61    $3.24    $6.16
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.28  HR                  $2.11    $2.88    $3.84   $14.37   $23.21
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.23  HR                  $1.70                               $1.70
    EMPLOYEE BENEFITS                                                      $1.53                               $1.53
    INSURANCE                                                     $0.14                                        $0.14
    LAND TAXES                                                                                        $0.33    $0.33
    SUPERVISION AND MANAGEMENT                                             $4.78                               $4.78
    OTHER EXPENSES                                               $22.16                                       $22.16
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.23  HR        $22.30    $8.00                      $0.33   $30.63
                                                ---------        ------   ------   ------   ------   ------   ------
TOTAL OPERATING EXPENSES                         1.35  HR        $24.90   $14.80    $8.07    $7.36   $21.01   $76.14
 
NET OPERATING PROFIT                                                                                         ($14.34)
 
    INTEREST ON OPERATING CAPITAL           (  $11.28     @        9.00%)                                      $1.01
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $12.67
 
RETURN TO LAND AND RISK                                                                                      ($28.02)
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                                         BUDGET SUMMARY
 
GROSS RETURN                                   $61.80
  VARIABLE OPERATING EXPENSES         $40.32
RETURN OVER VARIABLE EXPENSES                  $21.48     (GROSS MARGIN)
  FIXED EXPENSES                      $21.01
NET FARM INCOME                                 $0.46     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $14.80
NET OPERATING PROFIT                          ($14.34)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $13.69
RETURN TO LAND AND RISK                       ($28.02)
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