TABLE 6. Grain sorghum, sprinkler-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             65.00  CWT                                                   $195.00
    ASCS DEFICIENCY           $0.55             65.00  CWT                                                    $35.75
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
    GRAZING                   $9.00              1.00  ACRE                                                    $9.00
                                                                                                             _______
         TOTAL                                                                                               $239.75
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              ------            -----------      ------                                       -------
    SEED                      $1.04                 6 LBS         $6.24                                        $6.24
    NITROGEN (N)              $0.42               150 LBS        $63.00                                       $63.00
    PHOSPHATE (P205)          $0.39                40 LBS        $15.60                                       $15.60
    HERBICIDE                $16.17                 1 ACRE       $16.17                                       $16.17
    INSECTICIDE (CUSTOM)     $19.07                 1 ACRE       $19.07                                       $19.07
    PUMP WATER*                                    20 AC. IN.
   CROP INSURANCE             $0.95                               $0.95                                        $0.95
         SUBTOTAL                                               $121.02                                      $121.02
 
                               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    $0.77    $3.62    $7.48
    PLOW                   185 HP                0.48  HR                  $3.62    $6.97    $2.99   $13.68   $27.27
    DISC                   185 HP                0.14  HR                  $1.06    $2.03    $0.77    $3.62    $7.48
    FERT SPREADER          126 HP                0.05  HR                  $0.38    $0.45    $0.09    $0.33    $1.25
    DISC & SPRAY           185 HP                0.17  HR                  $1.28    $2.47    $1.27    $5.56   $10.58
    LISTER                 126 HP                0.12  HR                  $0.91    $1.08    $0.42    $2.58    $4.98
    PRE-IRRIGATE                                 0.10  HR                  $0.68    $5.50    $2.27    $3.80   $12.25
    ROD WEED               126 HP                0.08  HR                  $0.60    $0.72    $0.20    $1.36    $2.88
    PLANTER                185 HP                0.17  HR                  $1.28    $2.47    $1.67    $8.89   $14.31
    CULTIVATOR (2X)        126 HP                0.26  HR                  $1.96    $2.34    $0.92    $3.78    $9.00
    IRRIGATE (10X)                               1.00  HR                  $6.75   $54.98   $22.73   $38.01  $122.48
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                2.71  HR                 $19.58   $81.05   $34.10   $85.22  $219.95
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                             $29.28                                       $29.28
    HAUL (CUSTOM)                                                $12.35                                       $12.35
                                                                 ______                                       ______
         SUBTOTAL                                                $41.63                                       $41.63
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.39  HR                  $2.96                               $2.96
    EMPLOYEE BENEFITS                                                      $3.52                               $3.52
    INSURANCE                                                     $0.39                                        $0.39
    LAND TAXES                                                                                        $0.63    $0.63
    SUPERVISION AND MANAGEMENT                                            $18.07                              $18.07
    OTHER EXPENSES                                               $79.30                                       $79.30
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.39  HR        $79.70   $24.56                      $0.63  $104.88
                                                ---------        ------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         3.10  HR       $242.35   $44.14   $81.05   $34.10   $85.86  $487.49
 
NET OPERATING PROFIT                                                                                        ($247.74)
 
    INTEREST ON OPERATING CAPITAL           (  $92.77     @        9.00%)                                      $8.35
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $35.72
 
RETURN TO LAND AND RISK                                                                                     ($291.81)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $239.75
  VARIABLE OPERATING EXPENSES        $357.50
RETURN OVER VARIABLE EXPENSES                ($117.75)    (GROSS MARGIN)
  FIXED EXPENSES                      $85.86
NET FARM INCOME                              ($203.61)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $44.14
NET OPERATING PROFIT                         ($247.74)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $44.07
RETURN TO LAND AND RISK                      ($291.81)
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