TABLE 4. Upland cotton (stripper), 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 1 - June 10
Harvest Dates: October 15 - November 15
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
LINT $0.650 250 LBS $162.50
SEED $0.05 400 LBS $19.50
ASCS DEFICIENCY $0.0560 250 LBS $14.00
FARM LOAN DEFICIENCY $0.04 250 LBS $10.00
TOTAL $206.00
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ------ ----------- ------ ------
SEED $0.56 15 LBS $8.40 $8.40
INSECTICIDE (CUSTOM) $19.07 1 X/ACRE $19.07 $19.07
CROP INSURANCE $0.09 $0.09 $0.09
SUBTOTAL $27.56 $27.56
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR &OIL REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ------
CHISEL 165 HP 0.15 HR $1.13 $1.73 $1.33 $2.07 $6.27
DISC 165 HP 0.11 HR $0.83 $1.27 $1.35 $2.09 $5.54
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 165 HP 0.12 HR $0.91 $1.39 $2.60 $2.63 $7.52
CULTIVATOR (2X) 93 HP 0.20 HR $1.51 $1.88 $0.73 $0.82 $4.94
HAND HOE (CUSTOM) $6.00 $6.00
_________ ______ ______ ______ ______ ______ _______
SUBTOTAL 0.72 HR $6.00 $5.44 $7.88 $7.35 $9.85 $36.52
HARVEST OPERATIONS
------- ----------
COTTON STRIPPER 93 HP 0.58 HR $4.38 $5.44 $0.80 $1.63 $12.26
HAUL 2 TON 0.50 HR $3.78 $4.45 $0.00 $3.15 $11.38
GIN COTTON (CUSTOM) $33.53 $33.53
_________ ______ ______ ______ ______ ______ ______
SUBTOTAL 1.08 HR $33.53 $8.15 $9.89 $0.80 $4.79 $57.16
POST HARVEST OPERATIONS
---- ------- ----------
SHREDDER 93 HP 0.25 HR $1.89 $2.35 $0.98 $0.71 $5.92
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.47 HR $3.57 $3.57
EMPLOYEE BENEFITS $2.79 $2.79
INSURANCE $0.31 $0.31
LAND TAXES $0.12 $0.12
SUPERVISION AND MANAGEMENT $15.37 $15.37
OTHER EXPENSES $16.61 $16.61
_________ ______ ______ ______ ______
SUBTOTAL 0.47 HR $16.92 $21.72 $0.12 $38.76
--------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 2.52 HR $84.01 $37.20 $20.12 $9.13 $15.47 $165.92
NET OPERATING PROFIT $40.08
INTEREST ON OPERATING CAPITAL ( $19.31 @ 9.00%) $1.74
INTEREST ON EQUIPMENT INVESTMENT $8.87
RETURN TO LAND AND RISK $29.47
=====================================================================================================================
BUDGET SUMMARY
GROSS RETURN $206.00 VARIABLE OPERATING EXPENSES $113.26 RETURN OVER VARIABLE EXPENSES $92.74 (GROSS MARGIN) FIXED EXPENSES $15.47 NET FARM INCOME $77.28 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $37.20 NET OPERATING PROFIT $40.08 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $10.61 RETURN TO LAND AND RISK $29.47 ===================================================================================================