TABLE 8. Grain sorghum, sprinkler-irrigated, budgeted per acre costs and returns for a 1,280 acre farm
         with above average management, Union County, 2001.
              Planting dates: May 15 - June 15
              Harvesting dates: October 15 - November 15
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         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    GRAIN SORGHUM             $3.00             45.00  CWT                                                   $135.00
    ASCS DEFICIENCY           $0.55             45.00  CWT                                                    $24.75
    ASCS DIVERSION            $0.00              0.00  CWT                                                     $0.00
    GRAZING                   $5.00              1.00  ACRE                                                    $5.00
                                                                                                             _______
         TOTAL                                                                                               $164.75
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------             ------             -----------      ------                                       ------
    SEED                      $1.04                 5  LBS        $5.20                                        $5.20
    NITROGEN (N)              $0.42               150  LBS       $63.00                                       $63.00
    PHOSPHATE (P205)          $0.39                50  LBS       $19.50                                       $19.50
    HERBICIDE                $21.55                 1  ACRE      $21.55                                       $21.55
    LIVESTOCK FAC & EQUIP                                                                             $5.00    $5.00
    PUMP WATER*                                    12  AC. IN.
   CROP INSURANCE             $0.39                             _______                             _______    $0.39
         SUBTOTAL                                               $109.25                               $5.00  $114.64
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------   -----    -----   -------   -----   ------
    DISC                   185 HP                0.07  HR                  $0.53    $1.02    $0.68    $2.70    $4.92
    CHISEL                 185 HP                0.09  HR                  $0.68    $1.31    $0.43    $2.67    $5.08
    DISC & SPRAY           185 HP                0.10  HR                  $0.76    $1.45    $1.18    $4.70    $8.08
    PLANTER                126 HP                0.12  HR                  $0.91    $1.12    $1.49    $4.79    $8.30
    ROLLING CULT.          126 HP                0.10  HR                  $0.76    $0.93    $0.73    $1.72    $4.14
    SIDEDRESS ANHYDROUS    185 HP                0.17  HR                  $1.28    $2.47    $0.69    $4.53    $8.97
    IRRIGATE (6X)                                0.60  HR                  $4.05   $33.26    $8.94   $12.07   $58.32
                                                _________                 ______   ______   ______   ______  _______
         SUBTOTAL                                1.25  HR                  $8.96   $41.56   $14.13   $33.17   $97.82
 
HARVEST OPERATIONS
------- ----------
    COMBINE                GRAIN TABLE           0.14  HR                  $1.06    $1.74    $3.19   $12.11   $18.09
    GRAIN CART             93 HP                 0.14  HR                  $1.06    $1.31    $0.40    $1.48    $4.24
    TRUCK                  2 T 18 FT             0.14  HR                  $1.06    $1.30    $0.45   $14.76   $17.58
                                                _________        _______  ______   ______   ______   ______   ______
         SUBTOTAL                                0.42  HR         $0.00    $3.17    $4.36    $4.03   $28.35   $39.91
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.23  HR                  $1.70                               $1.70
    EMPLOYEE BENEFITS                                                      $2.18                               $2.18
    INSURANCE                                                     $0.24                                        $0.24
    LAND TAXES                                                                                        $0.25    $0.25
    SUPERVISION AND MANAGEMENT                                            $12.79                              $12.79
    OTHER EXPENSES                                               $29.89                                       $29.89
                                                _________        _______  ______                     ______   ______
         SUBTOTAL                                0.23  HR        $30.13   $16.67                      $0.25   $47.05
                                                ---------       --------  ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         1.90  HR       $139.38   $28.80   $45.92   $18.16   $66.77  $299.42
 
NET OPERATING PROFIT                                                                                        ($134.67)
 
    INTEREST ON OPERATING CAPITAL           (  $69.44     @        9.00%)                                      $6.25
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $29.15
 
RETURN TO LAND AND RISK                                                                                     ($170.07)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $164.75
  VARIABLE OPERATING EXPENSES        $203.45
RETURN OVER VARIABLE EXPENSES                 ($38.70)    (GROSS MARGIN)
  FIXED EXPENSES                      $66.77
NET FARM INCOME                              ($105.47)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $28.80
NET OPERATING PROFIT                         ($134.28)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $35.40
RETURN TO LAND AND RISK                      ($169.68)
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