TABLE 4. Wheat, flood-irrigated, budgeted per acre costs and returns for a 32O acre farm
         with above average management, Portales Valley, Roosevelt County, 2001.
              Planting Dates:  August 20 - September 15
              Harvest Dates:  June 1 - June 25
-----------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE              YIELD                                                           TOTAL
-----------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    WHEAT                     $3.00              55.00  BUSHELS                                                $165.00
    ASCS DEFICIENCY           $0.46              55.00  BUSHELS                                                 $25.30
    ASCS DIVERSION            $0.00                                                                              $0.00
    GRAZING                  $40.00               1.00  ACRE                                                    $40.00
                                                                                                               _______
         TOTAL                                                                                                 $230.30
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                                                                PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY         INPUTS                                          TOTAL
--------- ------              -----             ------------      ------                                        ------
    SEED                      $0.11                 60  LBS         $6.60                                        $6.60
    NITROGEN (N)              $0.42                100  LBS        $42.00                                       $42.00
    PHOSPHATE (P205)          $0.39                 40  LBS        $15.60                                       $15.60
    INSECTICIDE (CUSTOM)     $19.07                  1  X/ACRE     $19.07                                       $19.07
    PUMP WATER*                                     25  AC. IN.
   CROP INSURANCE             $0.74                                 $0.74                                        $0.74
         SUBTOTAL                                                  $84.00                                       $84.00
 
                               POWER         ACCOMPLISHMENT     PURCHASED              FUEL,             FIXED
PREHARVEST OPERATIONS           UNIT               RATE             INPUTS    LABOR     LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      ------------     ----------   -----    -----   -------   -----   ------
    ROD WEEDER             126 HP                 0.08  HR                   $0.60    $0.72    $0.40    $0.52    $2.25
    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
    DRILL                  126 HP                 0.18  HR                   $1.36    $1.62    $1.12    $7.06   $11.16
    IRRIGATE (5X)                                 2.50  HR                  $16.88   $39.14    $5.66   $24.05   $85.73
                                                __________                  ______   ______   ______   ______   ______
         SUBTOTAL                                 3.43  HR                  $23.90   $50.93   $17.09   $43.78  $135.69
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                               $21.25                                       $21.25
    HAUL (CUSTOM)                                                   $8.80                                        $8.80
                                                                  ______                                        ______
         SUBTOTAL                                                  $30.05                                       $30.05
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                      0.23  HR                   $1.76                               $1.76
    EMPLOYEE BENEFITS                                                        $4.30                               $4.30
    INSURANCE                                                       $0.48                                        $0.48
    LAND TAXES                                                                                          $0.63    $0.63
    SUPERVISION AND MANAGEMENT                                              $19.09                              $19.09
    OTHER EXPENSES                                                 $64.84                                       $64.84
                                                __________        ______    ______                     ______   ______
         SUBTOTAL                                 0.23  HR         $65.32   $25.14                      $0.63   $91.10
                                                ----------       -------    ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                          3.66  HR        $179.38   $49.04   $50.93   $17.09   $44.41  $340.85
 
NET OPERATING PROFIT                                                                                          ($110.55)
 
    INTEREST ON OPERATING CAPITAL           (   $61.51     @         9.00%)                                      $5.54
    INTEREST ON EQUIPMENT INVESTMENT                                                                            $14.28
 
RETURN TO LAND AND RISK                                                                                       ($130.36)
=======================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                   $230.30
  VARIABLE OPERATING EXPENSES        $247.40
RETURN OVER VARIABLE EXPENSES                  ($17.10)    (GROSS MARGIN)
  FIXED EXPENSES                      $44.41
NET FARM INCOME                                ($61.51)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $49.04
NET OPERATING PROFIT                          ($110.55)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $19.81
RETURN TO LAND AND RISK                       ($130.36)
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