TABLE 4. Wheat, sprinkler-irrigated, budgeted per acre costs and returns for a 320 acre farm with above average
management, Portales Valley, Roosevelt County, 2001.
Planting Dates: August 20 - September 15
Harvest Dates: June 1 - June 25
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ITEM PRICE YIELD TOTAL
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GROSS RETURNS
WHEAT $3.00 60.00 BUSHELS $180.00
ASCS DEFICIENCY $0.46 60.00 BUSHELS $27.60
ASCS DIVERSION $0.00 $0.00
GRAZING $40.00 1.00 ACRE $40.00
_______
TOTAL $247.60
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PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ----- ----------- ------ ------
SEED $0.11 60 LBS $6.60 $6.60
NITROGEN (N) $0.42 120 LBS $50.40 $50.40
PHOSPHATE (P205) $0.39 40 LBS $15.60 $15.60
INSECTICIDE (CUSTOM) $19.07 1 X/ACRE $19.07 $19.07
PUMP WATER* 18 AC. IN.
CROP INSURANCE $0.61 $0.61 $0.61
SUBTOTAL $92.28 $92.28
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ------
DISC (2X) 185 HP 0.28 HR $2.11 $4.07 $1.54 $7.23 $14.95
FERT SPREADER 126 HP 0.05 HR $0.38 $0.45 $0.09 $0.33 $1.25
DRILL 126 HP 0.18 HR $1.36 $1.62 $0.73 $6.63 $10.34
IRRIGATE (6X) 0.60 HR $4.05 $54.43 $22.50 $37.63 $118.62
_________ ______ ______ ______ ______ ______
SUBTOTAL 1.11 HR $7.90 $60.57 $24.86 $51.83 $145.15
HARVEST OPERATIONS
------- ----------
COMBINE (CUSTOM) $22.30 $22.30
HAUL (CUSTOM) $9.60 $9.60
______ ______
SUBTOTAL $31.90 $31.90
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.13 HR $0.96 $0.96
EMPLOYEE BENEFITS $1.42 $1.42
INSURANCE $0.16 $0.16
LAND TAXES $0.63 $0.63
SUPERVISION AND MANAGEMENT $17.89 $17.89
OTHER EXPENSES $79.30 $79.30
_________ ______ ______ ______ ______
SUBTOTAL 0.13 HR $79.46 $20.27 $0.63 $100.37
--------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 1.24 HR $203.64 $28.17 $60.57 $24.86 $52.46 $369.70
NET OPERATING PROFIT ($122.10)
INTEREST ON OPERATING CAPITAL ( $70.16 @ 9.00%) $6.31
INTEREST ON EQUIPMENT INVESTMENT $15.46
RETURN TO LAND AND RISK ($143.88)
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* Pump water costs are shown under irrigation in the preharvest operations section.
BUDGET SUMMARY
GROSS RETURN $247.60 VARIABLE OPERATING EXPENSES $289.07 RETURN OVER VARIABLE EXPENSES ($41.47) (GROSS MARGIN) FIXED EXPENSES $52.46 NET FARM INCOME ($93.93) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $28.17 NET OPERATING PROFIT ($122.10) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $21.78 RETURN TO LAND AND RISK ($143.88) ===================================================================================================