TABLE 5. Alfalfa hay, sprinkler-irrigated, budgeted per acre costs and returns for a 960 acre farm with above average
management, Blackwater Draw area, Roosevelt County, 2001.
Harvest Dates: May 20 - October 15
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
HAY $120.00 6.00 TONS (STACKED) $720.00
GRAZING $50.00 1.00 ACRE $50.00
_______
TOTAL $770.00
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ----- ----------- ------ ------
PHOSPHATE (P2O5) $0.39 150 LBS $58.50 $58.50
PLASTIC TWINE $19.15 1,020 FT $4.88 $4.88
INSECTICIDE (CUSTOM) $19.07 1 X/ACRE $19.07 $19.07
HERBICIDE (CUSTOM) $16.17 1 X/ACRE $16.17 $16.17
ESTABLISHMENT: Principal 5 YEARS $40.50 $40.50
: Interest $9.98 $9.98
PUMP WATER* 30 AC. IN.
______ ______ ______
SUBTOTAL $98.62 $50.48 $149.10
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ------
IRRIGATE 1.00 HR $6.75 $105.56 $15.90 $41.05 $169.26
FERT SPREADER 140 HP 0.05 HR $0.38 $0.55 $0.46 $0.38 $1.77
_________ ______ ______ ______ ______ ______
SUBTOTAL 1.05 HR 7.13 106.11 16.36 41.43 171.02
HARVEST OPERATIONS
------- ----------
SWATHER (5X) S.P. 0.80 HR $6.04 $4.19 $4.41 $12.42 $27.07
RAKE (5X) 140 HP 0.40 HR $3.02 $4.40 $4.86 $5.94 $18.21
BALER (5X) 185 HP 0.35 HR $2.64 $5.09 $6.14 $51.86 $65.73
FRONT END LOADER (5X) 140 HP 1.25 HR $9.44 $13.74 $11.53 $11.64 $46.35
_________ ______ ______ ______ ______ ______ ______
SUBTOTAL 2.80 HR $0.00 $21.14 $27.42 $26.94 $81.86 $157.36
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.70 HR $5.29 $5.29
EMPLOYEE BENEFITS $5.09 $5.09
INSURANCE $0.14 $0.14
LAND TAXES $0.63 $0.63
SUPERVISION AND MANAGEMENT $56.33 $56.33
OTHER EXPENSES $34.51 $34.51
_________ ______ ______ ______ ______
SUBTOTAL 0.70 HR $34.66 $66.70 $0.63 $101.99
--------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 4.55 HR $133.27 $94.97 $133.53 $43.30 $174.39 $579.47
NET OPERATING PROFIT $190.53
INTEREST ON OPERATING CAPITAL ( $84.46 @ 9.00%) $7.60
INTEREST ON EQUIPMENT INVESTMENT $60.76
RETURN TO LAND AND RISK $122.17
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $770.00 VARIABLE OPERATING EXPENSES $310.11 RETURN OVER VARIABLE EXPENSES $459.89 (GROSS MARGIN) FIXED EXPENSES $174.39 NET FARM INCOME $285.50 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $94.97 NET OPERATING PROFIT $190.53 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $68.36 RETURN TO LAND AND RISK $122.17 ===================================================================================================