TABLE 5. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 20 acre part-time farm,
         San Juan County, 2001.
              Harvesting dates: June 10 - October 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    ALFALFA HAY             $110.00              4.50  TONS (IN FIELD)                                       $495.00
    GRAZING                  $10.00              1.40  AUM                                                    $14.00
                                                                                                             _______
         TOTAL                                                                                               $509.00
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                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------              ------            -----------      ------                              ------   ------
    PHOSPHATE (P2O5)          $0.39                45  LBS       $17.55                                       $17.55
    ESTABLISHMENT: Principal                        6  YEARS                                         $47.45   $47.45
                 : Interest                                                                          $20.30   $20.30
    LIVESTOCK FAC & EQUIP                                                                             $5.00    $5.00
    CANAL WATER                                    60  AC. IN.                                       $53.75   $53.75
    CANAL WATER (MAINTENANCE)                       1 ACRE                                            $8.00    $8.00
                                                                 ______                              ______  _______
         SUBTOTAL                                                $17.55                             $134.51  $152.06
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------  ------   ------   -------  ------  -------
    FERTILIZE              65 HP                 0.05  HR                  $0.34    $0.33    $0.01    $0.22    $0.90
    DITCHER                65 HP                 0.10  HR                  $0.68    $0.66    $0.02    $0.44    $1.80
    CORRUGATE              65 HP                 0.41  HR                  $2.77    $2.69    $0.10    $2.81    $8.38
    IRRIGATE (10X)                               5.00  HR                 $32.25                              $32.25
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                5.56  HR                 $36.03    $3.68    $0.14    $3.48   $43.32
 
HARVEST OPERATIONS
------- ----------
    MOWER (3X)             65 HP                 1.35  HR                  $9.11    $8.86    $1.11   $20.74   $39.82
    RAKE (3X)              65 HP                 0.78  HR                  $5.27    $5.12    $0.36   $11.97   $22.71
    BALER (CUSTOM)                                              $147.60                                      $147.60
                                                _________        ______   ______   ______   ______   ______   ______
         SUBTOTAL                                2.13  HR       $147.60   $14.38   $13.98    $1.46   $32.72  $210.14
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.55  HR                  $3.68                               $3.68
    EMPLOYEE BENEFITS                                                      $6.05                               $6.05
    INSURANCE                                                     $0.60                                        $0.60
    LAND TAXES                                                                                        $2.04    $2.04
    SUPERVISION AND MANAGEMENT                                            $26.45                              $26.45
    OTHER EXPENSES                                              $122.80                                      $122.80
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.55  HR       $123.41   $36.18                      $2.04  $161.63
                                                ---------        ------   ------   ------   ------  -------  -------
TOTAL OPERATING EXPENSES                         8.24  HR       $288.56   $86.59   $17.66    $1.61  $172.74  $567.15
 
NET OPERATING PROFIT                                                                                         ($58.15)
 
    INTEREST ON OPERATING CAPITAL           (  $23.32     @        9.00%)                                      $2.10
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $38.65
 
RETURN TO LAND AND RISK                                                                                      ($98.90)
=====================================================================================================================
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $509.00
  VARIABLE OPERATING EXPENSES        $307.82
RETURN OVER VARIABLE EXPENSES                 $201.18     (GROSS MARGIN)
  FIXED EXPENSES                     $172.74
NET FARM INCOME                                $28.44     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $86.59
NET OPERATING PROFIT                          ($58.15)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $40.75
RETURN TO LAND AND RISK                       ($98.90)
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