TABLE 7. Upland cotton (stripper), 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 1 - May 15
Harvest Dates: November 15 - December 30
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
LINT $0.650 500 LBS $325.00
SEED $0.05 800 LBS $39.00
ASCS DEFICIENCY $0.0560 500 LBS $28.00
FARM LOAN DEFICIENCY $0.04 500 LBS $20.00
TOTAL $412.00
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ------ ------------ ------ ------
SEED $0.56 25 LB $14.00 $14.00
NITROGEN (N) $0.42 80 LB $33.60 $33.60
PHOSPHATE (P205) $0.39 60 LB $23.40 $23.40
HERBICIDE $15.14 1 X/ACRE $15.14 $15.14
INSECTICIDE $9.80 1 X/ACRE $9.80 $9.80
INSECTICIDE (CUSTOM) $19.07 1 X/ACRE $19.07 $19.07
PUMP WATER* 15 AC. IN.
CROP INSURANCE $0.71 $0.71 $0.71
SUBTOTAL $115.72 $115.72
POWER ACCOMPLISHMENT 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
HAND HOE (CUSTOM) $10.00 $10.00
IRRIGATE (2X) 1.00 HR $6.75 $15.66 $2.26 $9.62 $34.29
__________ ______ ______ ______ ______ ______ _______
SUBTOTAL 3.76 HR $10.00 $26.99 $47.64 $26.44 $45.09 $156.16
HARVEST OPERATIONS
------- ----------
COTTON STRIPPER MTD 126 HP 0.62 HR $4.68 $9.01 $10.57 $21.15 $45.41
HAUL 126 HP 0.75 HR $5.66 $6.74 $3.62 $6.94 $22.96
GIN COTTON (CUSTOM) $82.70 $82.70
__________ ______ ______ ______ ______ ______ ______
SUBTOTAL 1.37 HR $82.70 $10.34 $15.75 $14.20 $28.09 $151.08
POSTHARVEST OPERATIONS
----------- ----------
SHREDDER 126 HP 0.14 HR $1.06 $1.26 $0.74 $5.41 $8.47
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.92 HR $6.93 $6.93
EMPLOYEE BENEFITS $6.91 $6.91
INSURANCE $0.77 $0.77
LAND TAXES $0.63 $0.63
SUPERVISION AND MANAGEMENT $31.74 $31.74
OTHER EXPENSES $64.84 $64.84
__________ ______ ______ ______ ______
SUBTOTAL 0.92 HR $65.61 $45.57 $0.63 $111.82
---------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 6.19 HR $274.03 $83.96 $64.65 $41.38 $79.22 $543.24
NET OPERATING PROFIT ($131.24)
INTEREST ON OPERATING CAPITAL ( $86.27 @ 9.00%) $7.76
INTEREST ON EQUIPMENT INVESTMENT $42.38
RETURN TO LAND AND RISK ($181.38)
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $412.00 VARIABLE OPERATING EXPENSES $380.06 RETURN OVER VARIABLE EXPENSES $31.94 (GROSS MARGIN) FIXED EXPENSES $79.22 NET FARM INCOME ($47.28) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $83.96 NET OPERATING PROFIT ($131.24) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $50.14 RETURN TO LAND AND RISK ($181.38) =====================================================================================================