TABLE 6. 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                $26.84                 1  ACRE      $26.84                                       $26.84
    LIVESTOCK FAC & EQUIP                                                                             $5.00    $5.00
    PUMP WATER*                                    12  AC. IN.
   CROP INSURANCE             $0.19                             _______                             _______    $0.19
         SUBTOTAL                                               $114.54                               $5.00  $119.73
 
                               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    $0.47    $1.82    $3.83
    CHISEL                 185 HP                0.09  HR                  $0.68    $1.31    $0.69    $1.79    $4.46
    DISC & SPRAY           185 HP                0.10  HR                  $0.76    $1.45    $0.95    $3.07    $6.23
    PLANTER                126 HP                0.12  HR                  $0.91    $1.19    $1.69    $2.25    $6.04
    ROLLING CULT.          126 HP                0.10  HR                  $0.76    $0.99    $0.58    $1.32    $3.65
    SIDEDRESS              185 HP                0.17  HR                  $1.28    $2.47    $1.15    $3.02    $7.92
    IRRIGATE (6X)                                0.60  HR                  $3.99   $35.14    $8.94   $14.23   $62.30
                                                _________                 ______   ______   ______   ______  _______
         SUBTOTAL                                1.25  HR                  $8.90   $43.57   $14.47   $27.49   $94.43
 
HARVEST OPERATIONS
------- ----------
    COMBINE                GRAIN TABLE           0.14  HR                  $1.06    $1.74    $0.18    $7.82   $10.80
    GRAIN TABLE            93 HP                 0.14  HR                  $1.06    $1.31    $0.13    $0.59    $3.09
    HAUL                   2 TON                 0.14  HR                  $1.06    $1.30    $0.71    $7.11   $10.18
                                                _________        ______   ______   ______   ______   ______   ______
         SUBTOTAL                                0.42  HR         $0.00    $3.17    $4.36    $1.02   $15.52   $24.07
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.23  HR                  $1.70                               $1.70
    EMPLOYEE BENEFITS                                                      $2.17                               $2.17
    INSURANCE                                                     $0.24                                        $0.24
    LAND TAXES                                                                                        $0.25    $0.25
    SUPERVISION AND MANAGEMENT                                            $12.79                              $12.79
    OTHER EXPENSES                                               $25.83                                       $25.83
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.23  HR        $26.07   $16.66                      $0.25   $42.98
                                                ---------       -------   ------   ------   ------   ------  -------
TOTAL OPERATING EXPENSES                         1.90  HR       $140.61   $28.73   $47.93   $15.50   $48.26  $281.21
 
NET OPERATING PROFIT                                                                                        ($116.46)
 
    INTEREST ON OPERATING CAPITAL           (  $72.32     @        9.00%)                                      $6.51
    INTEREST ON EQUIPMENT INVESTMENT                                                                          $19.84
 
RETURN TO LAND AND RISK                                                                                     ($142.81)
=====================================================================================================================
    * Pump water costs are shown under irrigation in the preharvest operations section.
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $164.75
  VARIABLE OPERATING EXPENSES        $204.03
RETURN OVER VARIABLE EXPENSES                 ($39.28)    (GROSS MARGIN)
  FIXED EXPENSES                      $48.26
NET FARM INCOME                               ($87.54)    (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $28.73
NET OPERATING PROFIT                         ($116.27)    (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                       $26.35
RETURN TO LAND AND RISK                      ($142.62)
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