TABLE 8. Peanuts, 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: May 10 - June 10
              Harvest Dates: October 10 - November 10
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    PEANUTS                  $0.274          2,600.00  LBS                                                   $712.40
                                                                                                             _______
         TOTAL                                                                                               $712.40
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------             ------             -----------     -------                                       ------
    SEED (PEANUT)             $0.85               100  LB        $85.00                                       $85.00
    NITROGEN (N)              $0.42                70  LB        $29.40                                       $29.40
    PHOSPHATE (P205)          $0.39                80  LB        $31.20                                       $31.20
    POTASH (K2O)             $0.135                30  LB         $4.05                                        $4.05
    TRACE ELEMENTS & MANURE  $10.61                 1  X/ACRE    $40.61                                       $40.61
    HERBICIDE                $20.19                 1  X/ACRE    $20.19                                       $20.19
    INSECTICIDE (CUSTOM)     $16.17                 1  X/ACRE    $16.17                                       $16.17
    FUNGICIDE               $104.43                 1  X/ACRE   $104.43                                      $104.43
    PUMP WATER                                     28  AC. IN.
                                                                _______                                      _______
         SUBTOTAL                                               $331.05                                      $331.05
 
                               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
    SPRAY & DISC           185 HP                0.00  HR                  $0.00    $0.00    $0.00    $0.00    $0.00
    PRE-IRRIGATE                                 0.30  HR                  $2.03   $29.52    $3.50    $9.03   $44.07
    LISTER                 185 HP                0.27  HR                  $2.04    $3.92    $3.11    $3.32   $12.39
    PLANTER                185 HP                0.12  HR                  $0.91    $1.74    $2.37    $3.75    $8.77
    APPLY FUNGICIDE (CUSTOM)                                     $27.00                                       $27.00
    CULTIVATOR (2X)        140 HP                0.20  HR                  $1.51    $2.20    $2.20    $2.20    $8.11
    HAND HOE (CUSTOM)                                            $10.00                                       $10.00
    IRRIGATE (7X)                                0.70  HR                  $4.73   $68.88    $8.16   $21.07  $102.84
                                                _________        ______   ______   ______   ______   ______  _______
         SUBTOTAL                                2.31  HR        $37.00   $16.64  $116.55   $28.32   $49.21  $247.72
 
HARVEST OPERATIONS
------- ----------
    DIG AND INVERT         185 HP                0.24  HR                  $1.81    $3.49   $29.79   $12.19   $47.28
    COMBINE PEANUTS        185 HP                0.80  HR                  $6.04   $11.62    $7.77   $15.02   $40.46
    HAUL                   140 HP                0.37  HR                  $2.79    $4.07    $3.48    $6.17   $16.51
                                                _________       _______   ______   ______   ______   ______  _______
         SUBTOTAL                                1.41  HR         $0.00   $10.65   $19.18   $41.04   $33.38  $104.24
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.68  HR                  $5.13                               $5.13
    EMPLOYEE BENEFITS                                                      $4.91                               $4.91
    INSURANCE                                                     $0.55                                        $0.55
    LAND TAXES                                                                                        $0.63    $0.63
    SUPERVISION AND MANAGEMENT                                            $52.23                              $52.23
    OTHER EXPENSES                                               $34.51                                       $34.51
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.68  HR        $35.06   $62.27                      $0.63   $97.97
                                                ---------       -------  -------  -------  -------  -------  -------
TOTAL OPERATING EXPENSES                         4.40  HR       $403.11   $89.56  $135.73   $69.35   $83.23  $780.98
 
NET OPERATING PROFIT                                                                                         ($68.58)
 
    INTEREST ON OPERATING CAPITAL           ( $206.76     @        9.00%)                                     $18.61
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $32.70
 
RETURN TO LAND AND RISK                                                                                     ($119.89)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $712.40
  VARIABLE OPERATING EXPENSES        $608.19
RETURN OVER VARIABLE EXPENSES                 $104.21     (GROSS MARGIN)
  FIXED EXPENSES                      $83.23
NET FARM INCOME                                $20.98     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $89.56
NET OPERATING PROFIT                          ($68.58)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $51.31
RETURN TO LAND AND RISK                      ($119.89)
===================================================================================================