TABLE 7. Corn for grain, sprinkler-irrigated, budgeted per acre costs and returns for a 960 acre farm with above
         average management, Blackwater Draw area, Roosevelt County, 2001.
              Planting Dates: April 25 - May 30
              Harvest Dates: November 1 - November 30
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    CORN FOR GRAIN            $3.57            100.00  CWT                                                   $357.00
    ASCS DEFICIENCY           $0.46            100.00  CWT                                                    $46.00
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
    GRAZING                  $15.00              1.00  ACRE                                                   $15.00
                                                                                                             _______
         TOTAL                                                                                               $418.00
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              ------            -----------      ------                                       -------
    SEED                      $0.98                24  000       $23.55                                       $23.55
    NITROGEN (N)              $0.42               250 LBS       $105.00                                      $105.00
    PHOSPHATE (P205)          $0.39                80 LBS        $31.20                                       $31.20
    POTASH (K20)             $0.125                40 LBS         $5.00                                        $5.00
    TRACE ELEMENTS           $14.64                 1  X/ACRE    $14.64                                       $14.64
    HERBICIDE                $20.24                 1  X/ACRE    $20.24                                       $20.24
    INSECTICIDE (CUSTOM)     $23.50                 1  X/ACRE    $23.50                                       $23.50
    PUMP WATER*                                    30 AC. IN.
   CROP INSURANCE             $0.31                               $0.31                                        $0.31
         SUBTOTAL                                               $223.43                                      $223.43
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    DISC (2X)              185 HP                0.18  HR                  $1.36    $2.62    $2.35    $2.66    $8.99
    PLOW                   185 HP                0.29  HR                  $2.19    $4.21    $3.64    $4.03   $14.08
    CHISEL (2X)            185 HP                0.20  HR                  $1.51    $2.91    $2.51    $2.78    $9.71
    FERT SPREADER          140 HP                0.05  HR                  $0.38    $0.55    $0.46    $0.38    $1.77
    PRE-IRRIGATE (3X)                            0.30  HR                  $2.03   $21.11    $3.18    $8.21   $34.53
    LISTER (3X)            185 HP                0.27  HR                  $2.04    $3.92    $3.11    $3.32   $12.39
    ROD WEED               185 HP                0.08  HR                  $0.60    $1.16    $0.82    $1.20    $3.79
    PLANTER                185 HP                0.12  HR                  $0.91    $1.74    $2.37    $3.75    $8.77
    SAND FURROW (5X)       140 HP                0.50  HR                  $3.78    $5.50    $5.51    $5.49   $20.27
    IRRIGATE (12X)                               1.20  HR                  $8.10   $84.45   $12.72   $32.84  $138.11
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                3.19  HR                 $22.88  $128.17   $36.68   $64.65  $252.39
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                             $35.00                                       $35.00
    HAUL (CUSTOM)                                                $18.00                                       $18.00
                                                                 ______                                       ______
         SUBTOTAL                                                $53.00                                       $53.00
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.41  HR                  $3.10                               $3.10
    EMPLOYEE BENEFITS                                                      $4.12                               $4.12
    INSURANCE                                                     $0.46                                        $0.46
    LAND TAXES                                                                                        $0.63    $0.63
    SUPERVISION AND MANAGEMENT                                            $31.61                              $31.61
    OTHER EXPENSES                                               $34.51                                       $34.51
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.41  HR        $34.97   $38.82                      $0.63   $74.42
                                                ---------        ------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         3.60  HR       $311.41   $61.70  $128.17   $36.68   $65.29  $603.25
 
NET OPERATING PROFIT                                                                                        ($185.25)
 
    INTEREST ON OPERATING CAPITAL           ( $157.35     @        9.00%)                                     $14.16
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $18.76
 
RETURN TO LAND AND RISK                                                                                     ($218.17)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $418.00
  VARIABLE OPERATING EXPENSES        $476.26
RETURN OVER VARIABLE EXPENSES                 ($58.26)    (GROSS MARGIN)
  FIXED EXPENSES                      $65.29
NET FARM INCOME                              ($123.55)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $61.70
NET OPERATING PROFIT                         ($185.25)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $32.92
RETURN TO LAND AND RISK                      ($218.17)
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