TABLE 8. Peanuts, 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 10 - June 10
              Harvest Dates: October 10 - November 10
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         ITEM                  PRICE              YIELD                                                           TOTAL
-----------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    PEANUTS                  $0.274              2,600  LBS                                                    $712.40
                                                                                                               _______
         TOTAL                                                                                                 $712.40
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                                                                PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY         INPUTS                                          TOTAL
 
    SEED                      $0.85                100  LB         $85.00                                       $85.00
    NITROGEN (N)              $0.42                 50  LB         $21.00                                       $21.00
    PHOSPHATE (P205)          $0.39                 80  LB         $31.20                                       $31.20
    HERBICIDE                $16.17                  1  X/ACRE     $16.17                                       $16.17
    INSECTICIDE (CUSTOM)     $19.07                  1  X/ACRE     $19.07                                       $19.07
    FUNGICIDE                $35.90                  1  X/ACRE     $35.90                                       $35.90
    TRACE ELEMENTS           $11.36                  1  X/ACRE     $11.36                                       $11.36
    PUMP WATER*                                     24  AC. IN.
                                                                 _______                                       _______
         SUBTOTAL                                                 $219.70                                      $219.70
 
                               POWER         ACCOMPLISHMENT     PURCHASED               FUEL             FIXED
PREHARVEST OPERATIONS           UNIT               RATE             INPUTS    LABOR     &OIL  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
    SPRAY & DISC           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    $9.39    $1.36    $5.77   $21.59
    LISTER                 126 HP                 0.12  HR                   $0.91    $1.08    $0.74    $1.37    $4.09
    ROD WEEDER             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
    HAND HOE (CUSTOM)                                              $12.00                                       $12.00
    IRRIGATE (3X)                                 1.50  HR                  $10.13   $28.18    $4.07   $17.32   $59.70
                                                __________        ______    ______   ______   ______   ______  _______
         SUBTOTAL                                 4.38  HR         $12.00   $31.27   $62.81   $29.22   $55.12  $190.42
 
HARVEST OPERATIONS
------- ----------
    DIG AND INVERT         185 HP                 0.24  HR                   $1.81    $3.49    $3.25    $5.18   $13.73
    COMBINE PEANUTS        185 HP                 0.80  HR                   $6.04   $11.62   $13.30   $45.76   $76.72
    HAUL                   126 HP                 0.80  HR                   $6.04    $7.19    $3.69   $10.46   $27.38
                                                __________       _______    ______   ______   ______   ______  _______
         SUBTOTAL                                 1.84  HR          $0.00   $13.89   $22.30   $20.24   $61.40  $117.84
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                      0.81  HR                   $6.10                               $6.10
    EMPLOYEE BENEFITS                                                        $8.13                               $8.13
    INSURANCE                                                       $0.90                                        $0.90
    LAND TAXES                                                                                          $0.63    $0.63
    SUPERVISION AND MANAGEMENT                                              $55.33                              $55.33
    OTHER EXPENSES                                                 $64.84                                       $64.84
                                                __________        ______    ______                     ______   ______
         SUBTOTAL                                 0.81  HR         $65.75   $69.55                      $0.63  $135.93
                                                ----------       -------   -------  -------  -------  -------  -------
TOTAL OPERATING EXPENSES                          7.03  HR        $297.44  $114.71   $85.11   $49.46  $117.16  $663.88
 
NET OPERATING PROFIT                                                                                            $48.52
 
    INTEREST ON OPERATING CAPITAL           (  $136.40     @         9.00%)                                     $12.28
    INTEREST ON EQUIPMENT INVESTMENT                                                                            $59.47
 
RETURN TO LAND AND RISK                                                                                        ($23.22)
=======================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                   $712.40
  VARIABLE OPERATING EXPENSES        $432.01
RETURN OVER VARIABLE EXPENSES                  $280.39     (GROSS MARGIN)
  FIXED EXPENSES                     $117.16
NET FARM INCOME                                $163.23     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST          $114.71
NET OPERATING PROFIT                            $48.52     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $71.74
RETURN TO LAND AND RISK                        ($23.22)
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