TABLE 7. Peanuts, 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 10 - June 10
              Harvest Dates: October 10 - November 10
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    PEANUTS                  $0.274          2,600.00  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                60  LB        $25.20                                       $25.20
    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           $11.33                 1  X/ACRE    $11.33                                       $11.33
    PUMP WATER*                                    22  AC. IN.
                                                                _______                                      _______
         SUBTOTAL                                               $223.87                                      $223.87
 
                               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
    SPRAY & DISC           185 HP                0.17  HR                  $1.28    $2.47    $1.27    $5.56   $10.58
    PRE-IRRIGATE                                 0.10  HR                  $0.68    $6.05    $2.50    $4.18   $13.41
    LISTER                 126 HP                0.12  HR                  $0.91    $1.08    $0.42    $2.58    $4.98
    PLANTER                126 HP                0.17  HR                  $1.28    $2.47    $1.67    $8.89   $14.31
    APPLY FUNGICIDE (CUSTOM)                                     $27.00                                       $27.00
    CULTIVATOR (2X)        126 HP                0.26  HR                  $1.96    $2.34    $0.92    $3.78    $9.00
    HAND HOE (CUSTOM)                                            $12.00                                       $12.00
    IRRIGATE (10X)                               1.00  HR                  $6.75   $60.48   $25.00   $41.82  $134.05
                                                _________        ______   ______   ______   ______   ______  _______
         SUBTOTAL                                2.63  HR        $39.00   $18.98   $86.38   $36.40   $88.05  $268.81
 
HARVEST OPERATIONS
------- ----------
    DIG AND INVERT         185 HP                0.24  HR                  $1.81    $3.49    $0.92    $6.57   $12.79
    COMBINE PEANUTS        185 HP                0.80  HR                  $6.04   $11.62    $5.53   $49.01   $72.21
    HAUL                   126 HP                0.80  HR                  $6.04    $7.19    $1.50   $13.03   $27.75
                                                _________       _______   ______   ______   ______   ______  _______
         SUBTOTAL                                1.84  HR         $0.00   $13.89   $22.30    $7.95   $68.61  $112.75
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.61  HR                  $4.61                               $4.61
    EMPLOYEE BENEFITS                                                      $5.92                               $5.92
    INSURANCE                                                     $0.66                                        $0.66
    LAND TAXES                                                                                        $0.63    $0.63
    SUPERVISION AND MANAGEMENT                                            $51.72                              $51.72
    OTHER EXPENSES                                               $79.30                                       $79.30
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.61  HR        $79.96   $62.24                      $0.63  $142.83
                                                ---------       -------  -------  -------  -------  -------  -------
TOTAL OPERATING EXPENSES                         5.08  HR       $342.83   $95.11  $108.67   $44.35  $157.29  $748.26
 
NET OPERATING PROFIT                                                                                         ($35.86)
 
    INTEREST ON OPERATING CAPITAL           ( $145.15     @        9.00%)                                     $13.06
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $77.43
 
RETURN TO LAND AND RISK                                                                                     ($126.36)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $712.40
  VARIABLE OPERATING EXPENSES        $495.86
RETURN OVER VARIABLE EXPENSES                 $216.54     (GROSS MARGIN)
  FIXED EXPENSES                     $157.29
NET FARM INCOME                                $59.25     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $95.11
NET OPERATING PROFIT                          ($35.86)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $90.49
RETURN TO LAND AND RISK                      ($126.36)
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