TABLE 3. Grain sorghum, dryland, budgeted per acre costs and returns for a 1,280 acre farm with above average
         management, Causey-Lingo area, Roosevelt County, 2001.
              Planting Dates: May 15 - May 30
              Harvest Dates: October 15 - November 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00             15.00  CWT                                                    $45.00
    ASCS DEFICIENCY           $0.55             15.00  CWT                                                     $8.25
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
    GRAZING                   $5.00                 1  ACRE                                                    $5.00
                                                                                                              _______
         TOTAL                                                                                                $58.25
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              ------            -----------      ------                                       -------
    SEED                      $1.04                 3 LBS         $3.12                                        $3.12
    INSECTICIDE              $15.14                 1  X/ACRE    $15.14                                       $15.14
   CROP INSURANCE             $0.14                               $0.14                                        $0.14
         SUBTOTAL                                                $18.40                                       $18.40
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR     &OIL  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    DISC                   165 HP                0.11  HR                  $0.83    $1.27    $1.35    $2.09    $5.54
    STUBBLE MULCH          165 HP                0.10  HR                  $0.76    $1.16    $1.20    $2.41    $5.52
    LISTER                 165 HP                0.09  HR                  $0.68    $1.04    $0.90    $1.53    $4.15
    ROD WEED               165 HP                0.05  HR                  $0.38    $0.58    $0.44    $0.70    $2.10
    PLANTER                93 HP                 0.12  HR                  $0.91    $1.13    $1.80    $1.28    $5.11
    CULTIVATOR             93 HP                 0.10  HR                  $0.76    $0.94    $0.36    $0.41    $2.47
    SPRAYER                93 HP                 0.06  HR                  $0.45    $0.56    $0.20    $0.60    $1.81
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.63  HR                  $4.76    $6.67    $6.25    $9.03   $26.70
 
HARVEST OPERATIONS
------- ----------
    COMBINE                                      0.14  HR                  $1.06    $1.52    $2.49   $11.74   $16.81
    HAUL                   2 TON                 0.14  HR                  $1.06    $1.25    $0.00    $0.88    $3.19
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                0.28  HR                  $2.11    $2.76    $2.49   $12.62   $19.99
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.12  HR                  $0.89                               $0.89
    EMPLOYEE BENEFITS                                                      $1.24                               $1.24
    INSURANCE                                                     $0.14                                        $0.14
    LAND TAXES                                                                                        $0.12    $0.12
    SUPERVISION AND MANAGEMENT                                             $4.45                               $4.45
    OTHER EXPENSES                                               $16.61                                       $16.61
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.12  HR        $16.75    $6.58                      $0.12   $23.45
                                                ---------        ------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         1.03  HR        $35.15   $13.45    $9.43    $8.74   $21.77   $88.54
 
NET OPERATING PROFIT                                                                                         ($30.29)
 
    INTEREST ON OPERATING CAPITAL           (  $12.87     @        9.00%)                                      $1.16
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $13.62
 
RETURN TO LAND AND RISK                                                                                      ($45.07)
=====================================================================================================================
                                         BUDGET SUMMARY
 
GROSS RETURN                                   $58.25
  VARIABLE OPERATING EXPENSES         $53.33
RETURN OVER VARIABLE EXPENSES                   $4.92     (GROSS MARGIN)
  FIXED EXPENSES                      $21.77
NET FARM INCOME                               ($16.85)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $13.45
NET OPERATING PROFIT                          ($30.29)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $14.77
RETURN TO LAND AND RISK                       ($45.07)
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