TABLE 3. Wheat, dryland, budgeted per acre costs and returns for a 1,920 acre farm with above
         average management, Southeastern Quay County, 2001.
              Planting dates: August 20 - September 15
              Harvesting dates: June 15 - July 10
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    WHEAT                     $3.00             20.00  BUSHELS                                                $60.00
    ASCS DEFICIENCY           $0.46             20.00  BUSHELS                                                 $9.20
    ASCS DIVERSION            $0.00                                                                            $0.00
    GRAZING                   $5.00              1.00  ACRE                                                    $5.00
                                                                                                              ______
         TOTAL                                                                                                $74.20
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              -----             -----------       -----                                        -----
    SEED                      $0.11                25  LBS        $2.75                                        $2.75
   CROP INSURANCE             $0.04                               $0.04                                        $0.04
         SUBTOTAL                                                 $2.79                                        $2.79
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    SWEEP (2X)             185 HP                0.10  HR                  $0.76    $1.45    $0.74    $3.15    $6.10
    STUBBLE MULCHER        185 HP                0.05  HR                  $0.38    $0.73    $0.44    $2.09    $3.63
    RODWEED (2X)           96 HP                 0.10  HR                  $0.76    $0.75    $0.15    $0.57    $2.23
    DRILL                  185 HP                0.05  HR                  $0.38    $0.73    $1.03    $2.50    $4.64
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.30  HR                  $2.27    $3.66    $2.36    $8.31   $16.60
 
HARVEST OPERATIONS
------- ----------
    COMBINE                22 FT                 0.14  HR                  $1.06    $1.64    $0.00    $6.72    $9.42
    HAUL                   2 TON                 0.14  HR                  $1.06    $1.25    $3.04    $1.87    $7.21
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.28  HR                  $2.11    $2.88    $3.04    $8.59   $16.63
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.15  HR                  $0.54                               $0.54
    EMPLOYEE BENEFITS                                                      $0.66                               $0.66
    INSURANCE                                                     $0.09                                        $0.09
    LAND TAXES                                                                                        $0.31    $0.31
    SUPERVISION AND MANAGEMENT                                             $3.71                               $3.71
    OTHER EXPENSES                                               $18.02                                       $18.02
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.15  HR        $18.11    $4.91                      $0.31   $23.33
                                                ---------        ------   ------   ------   ------   ------   ------
TOTAL OPERATING EXPENSES                         0.73  HR        $20.86    $9.29    $6.54    $5.40   $17.22   $59.31
 
NET OPERATING PROFIT                                                                                          $14.89
 
    INTEREST ON  OPERATING CAPITAL          (   $3.39     @        9.00%)                                      $0.31
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $10.19
 
RETURN TO LAND AND RISK                                                                                        $4.39
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                                         BUDGET SUMMARY
 
GROSS RETURN                                   $74.20
  VARIABLE OPERATING EXPENSES         $32.80
RETURN OVER VARIABLE EXPENSES                  $41.40     (GROSS MARGIN)
  FIXED EXPENSES                      $17.22
NET FARM INCOME                                $24.18     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST            $9.29
NET OPERATING PROFIT                           $14.89     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $10.50
RETURN TO LAND AND RISK                         $4.39
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