TABLE 6. Permanent pasture, flood-irrigated, budgeted per acre costs and returns for an 80 acre farm,
         San Juan County, 2001.
              Harvesting dates: Year Round
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    PASTURE                  $12.00             12.00  AUMS                                                  $144.00
                                                                                                              ______
         TOTAL                                                                                               $144.00
---------------------------------------------------------------------------------------------------------------------
                                                               PURCHASED                               FIXED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                 COST    TOTAL
--------- ------              -----             -----------      ------                              ------   ------
    NITROGEN (N)              $0.42               100  LBS       $42.00                                       $42.00
    LIVESTOCK FAC & EQUIP                                                                             $5.00    $5.00
    ESTABLISHMENT: Principal                       15  YEARS                                         $13.97   $13.97
                 : Interest                                                                           $7.33    $7.33
    CANAL WATER                                    62  AC. IN.                                       $55.54   $55.54
    CANAL WATER (MAINTENANCE)                       1  ACRE                                           $8.00    $8.00
                                                                 ______                              ______   ______
         SUBTOTAL                                                $42.00                              $89.84  $131.84
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----    -----
    FERTILIZE              96 HP                 0.05  HR                  $0.34    $0.34    $0.04    $0.19    $0.91
    CORRUGATE              40 HP                 0.21  HR                  $1.42    $0.85    $0.37    $2.35    $4.98
    DITCHER (2X)           40 HP                 0.10  HR                  $0.68    $0.40    $0.02    $1.96    $3.06
    IRRIGATE (11X)                               5.50  HR                 $35.48                              $35.48
                                                _________                 ______   ______   ______   ______   ______
         SUBTOTAL                                5.86  HR                 $37.91    $1.59    $0.43    $4.50   $44.43
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.09  HR                  $0.61                               $0.61
    EMPLOYEE BENEFITS                                                      $6.82                               $6.82
    INSURANCE                                                     $0.76                                        $0.76
    LAND TAXES                                                                                        $2.04    $2.04
    SUPERVISION AND MANAGEMENT                                            $15.76                              $15.76
    OTHER EXPENSES                                              $127.67                                      $127.67
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.09  HR       $128.43   $23.19                      $2.04  $153.66
                                                ---------        ------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         5.95  HR       $170.43   $61.10    $1.59    $0.43   $96.39  $329.93
 
NET OPERATING PROFIT                                                                                        ($185.93)
 
    INTEREST ON OPERATING CAPITAL           (  $21.51     @        9.00%)                                      $1.94
    INTEREST ON EQUIPMENT INVESTMENT                                                                           $5.05
 
RETURN TO LAND AND RISK                                                                                     ($192.91)
=====================================================================================================================
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $144.00
  VARIABLE OPERATING EXPENSES        $172.45
RETURN OVER VARIABLE EXPENSES                 ($28.45)    (GROSS MARGIN)
  FIXED EXPENSES                      $96.39
NET FARM INCOME                              ($124.83)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $61.10
NET OPERATING PROFIT                         ($185.93)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                        $6.98
RETURN TO LAND AND RISK                      ($192.91)
===================================================================================================