TABLE 7. Permanent pasture, flood-irrigated, budgeted per acre costs and returns for a 200 acre farm with above
         average management, Socorro County, 2001.
              Harvest dates: Year Round
---------------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE                YIELD                                                             TOTAL
---------------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    PASTURE                  $12.00                15.00  AUMS                                                     $180.00
                                                                                                                  _______
         TOTAL                                                                                                     $180.00
---------------------------------------------------------------------------------------------------------------------------
                                                                  PURCHASED                                 FIXED
PURCHASED INPUTS               PRICE               QUANTITY         INPUTS                                   COST     TOTAL
--------- ------              -----               ------ -----      ------                                ------   ------
    ANHYDROUS AMMONIA (NH3) $0.2000                  200  LBS         $40.00                                        $40.00
    ESTABLISHMENT: Principal                           7  YEARS                                           $20.84    $20.84
                 : Interest                                                                                $6.26     $6.26
    CANAL WATER                                       60  AC. IN.                                         $30.00    $30.00
                                                                    ______                                ______  _______
         SUBTOTAL                                                     $40.00                              $57.09    $97.09
 
                               POWER           ACCOMPLISHMENT     PURCHASED                FUEL             FIXED
PREHARVEST OPERATIONS           UNIT                 RATE              INPUTS    LABOR   & LUBE  REPAIRS     COST     TOTAL
---------- ----------      --------------        ------- ----     -----------  ------   ------   -------  ------  -------
    IRRIGATE (10X)                                  5.00  HR                   $25.75                               $25.75
                                                  ______ ___                   ______                              ______
         SUBTOTAL                                   5.00  HR                   $25.75                               $25.75
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                                                    $0.00                                $0.00
    EMPLOYEE BENEFITS                                                           $4.64                                $4.64
    INSURANCE                                                          $0.52                                         $0.52
    LAND TAXES                                                                                             $1.74     $1.74
    SUPERVISION AND MANAGEMENT                                                 $15.10                               $15.10
    OTHER EXPENSES                                                    $80.99                                        $80.99
                                                                    ______     ______                     ______   ______
         SUBTOTAL                                                     $81.51   $19.74                      $1.74   $102.98
                                                  ------ ---        ------     ------                    -------  -------
TOTAL OPERATING EXPENSES                            5.00  HR         $121.51   $45.49                     $58.83   $225.82
 
NET OPERATING PROFIT                                                                                               ($45.82)
 
    INTEREST ON OPERATING CAPITAL           (     $97.09     @          9.00%)                                       $4.95
    INTEREST ON EQUIPMENT INVESTMENT                                                                                 $0.00
 
RETURN TO LAND AND RISK                                                                                            ($50.77)
===========================================================================================================================
                                         BUDGET SUMMARY
 
GROSS RETURN                                     $180.00
  VARIABLE OPERATING EXPENSES          $121.51
RETURN OVER VARIABLE EXPENSES                     $58.49     (GROSS MARGIN)
  FIXED EXPENSES                        $58.83
NET FARM INCOME                                   ($0.34)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST             $45.49
NET OPERATING PROFIT                             ($45.82)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                          $4.95
RETURN TO LAND AND RISK                          ($50.77)
========================================================================================================