TABLE 6. Grain sorghum, flood-irrigated, budgeted per acre costs and returns for a 320 acre farm
         with above average management, Portales Valley, Roosevelt County, 2001.
              Planting Dates: May 15 - June 10
              Harvest Dates: October 15 - November 15
-----------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE              YIELD                                                           TOTAL
-----------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00              55.00  CWT                                                    $165.00
    ASCS DEFICIENCY           $0.55              55.00  CWT                                                     $30.25
    ASCS DIVERSION            $0.00               0.00  CWT                                                      $0.00
    GRAZING                   $9.00               1.00  ACRE                                                     $9.00
                                                                                                               _______
         TOTAL                                                                                                 $204.25
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                                                                PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY         INPUTS                                          TOTAL
--------- ------              ------            ------------      ------                                        -------
    SEED                      $1.04                  6 LBS          $6.24                                        $6.24
    NITROGEN (N)              $0.42                100 LBS         $42.00                                       $42.00
    PHOSPHATE (P205)          $0.39                 40 LBS         $15.60                                       $15.60
    HERBICIDE                $15.14                  1 ACRE        $15.14                                       $15.14
    INSECTICIDE (CUSTOM)     $19.07                  1 ACRE        $19.07                                       $19.07
    PUMP WATER*                                     20 AC. IN.
   CROP INSURANCE             $0.98                                 $0.98                                        $0.98
         SUBTOTAL                                                  $99.03                                       $99.03
 
                               POWER         ACCOMPLISHHMENT    PURCHASED              FUEL,             FIXED
PREHARVEST OPERATIONS           UNIT               RATE             INPUTS    LABOR     LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      ------------     ----------   -----    -----   -------   -----    -----
    DISC                   185 HP                 0.14  HR                   $1.06    $2.03    $2.13    $2.69    $7.91
    PLOW                   185 HP                 0.48  HR                   $3.62    $6.97    $7.55    $9.31   $27.46
    DISC                   185 HP                 0.14  HR                   $1.06    $2.03    $2.13    $2.69    $7.91
    FERT SPREADER          126 HP                 0.05  HR                   $0.38    $0.45    $0.23    $0.14    $1.20
    DISC & SPRAY           185 HP                 0.17  HR                   $1.28    $2.47    $2.99    $4.11   $10.86
    LISTER                 126 HP                 0.12  HR                   $0.91    $1.08    $0.74    $1.37    $4.09
    TRACK                  126 HP                 0.40  HR                   $3.02    $3.59    $1.84    $1.13    $9.58
    PRE-IRRIGATE                                  0.75  HR                   $5.06    $7.83    $1.13    $4.81   $18.83
    ROD WEED               126 HP                 0.08  HR                   $0.60    $0.72    $0.40    $0.52    $2.25
    PLANTER                185 HP                 0.17  HR                   $1.28    $2.47    $3.45    $6.43   $13.63
    CULTIVATOR (2X)        126 HP                 0.26  HR                   $1.96    $2.34    $1.60    $2.25    $8.15
    IRRIGATE (3X)                                 1.50  HR                  $10.13   $23.48    $3.39   $14.43   $51.44
                                                __________                  ______   ______   ______   ______   ______
         SUBTOTAL                                 4.26  HR                  $30.36   $55.47   $27.58   $49.90  $163.31
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                               $26.18                                       $26.18
    HAUL (CUSTOM)                                                  $10.45                                       $10.45
                                                                  ______                                        ______
         SUBTOTAL                                                  $36.63                                       $36.63
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                      0.66  HR                   $4.95                               $4.95
    EMPLOYEE BENEFITS                                                        $5.47                               $5.47
    INSURANCE                                                       $0.61                                        $0.61
    LAND TAXES                                                                                          $0.63    $0.63
    SUPERVISION AND MANAGEMENT                                              $17.11                              $17.11
    OTHER EXPENSES                                                 $64.84                                       $64.84
                                                __________        ______    ______                     ______   ______
         SUBTOTAL                                 0.66  HR         $65.45   $27.52                      $0.63   $93.60
                                                ----------        ------    ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                          4.92  HR        $201.11   $57.88   $55.47   $27.58   $50.53  $392.57
 
NET OPERATING PROFIT                                                                                          ($188.32)
 
    INTEREST ON OPERATING CAPITAL           (   $73.33     @         9.00%)                                      $6.60
    INTEREST ON EQUIPMENT INVESTMENT                                                                            $21.99
 
RETURN TO LAND AND RISK                                                                                       ($216.91)
=======================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                   $204.25
  VARIABLE OPERATING EXPENSES        $284.16
RETURN OVER VARIABLE EXPENSES                  ($79.91)    (GROSS MARGIN)
  FIXED EXPENSES                      $50.53
NET FARM INCOME                               ($130.44)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $57.88
NET OPERATING PROFIT                          ($188.32)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $28.59
RETURN TO LAND AND RISK                       ($216.91)
=====================================================================================================