TABLE 4. Grain sorghum, dryland, budgeted per acre costs and returns for a 640 acre farm with above
average management, Union County, 2001.
Planting dates: May 15 - June 15
Harvesting dates: October 15 - November 15
---------------------------------------------------------------------------------------------------------------------
ITEM PRICE YIELD TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
GRAIN SORGHUM $3.00 15.00 CWT $45.00
ASCS DIVERSION $0.00 0.00 CWT $0.00
ASCS DEFICIENCY $0.55 15.00 CWT $8.25
_______
TOTAL $53.25
---------------------------------------------------------------------------------------------------------------------
PURCHASED
PURCHASED INPUTS PRICE QUANTITY INPUTS TOTAL
--------- ------ ----- ----------- ------ ------
SEED $1.04 3 LBS $3.12 $3.12
MANURE $2.75 5 TON $13.75 $13.75
HERBICIDE $15.25 1 X/ACRE $15.25 $15.25
______ ______
SUBTOTAL $32.12 $32.12
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
---------- ---------- -------------- ----------- --------- ----- ----- ------- ----- ------
SWEEPS 145 HP 0.10 HR $0.76 $1.26 $0.58 $1.46 $4.06
PLANTER 145 HP 0.17 HR $1.28 $2.15 $2.11 $3.77 $9.31
CULTIVATOR (2X) 145 HP 0.26 HR $1.96 $3.29 $1.23 $3.22 $9.70
_________ ______ ______ ______ ______ ______
SUBTOTAL 0.53 HR $4.00 $6.70 $3.92 $8.44 $23.06
HARVEST OPERATIONS
------- ----------
COMBINE (CUSTOM) $20.50 $20.50
HAUL (CUSTOM) $2.85 $2.85
_________ ______ ______
SUBTOTAL 0.00 HR $23.35 $23.35
OVERHEAD EXPENSES
-------- --------
DOWNTIME 0.13 HR $1.00 $1.00
EMPLOYEE BENEFITS $0.72 $0.72
INSURANCE $0.08 $0.08
LAND TAXES $0.08 $0.08
SUPERVISION AND MANAGEMENT $3.99 $3.99
OTHER EXPENSES $23.92 $23.92
_________ ______ ______ ______ ______
SUBTOTAL 0.13 HR $24.00 $5.71 $0.08 $29.80
--------- ------- ------ ------ ------ ------ -------
TOTAL OPERATING EXPENSES 0.66 HR $79.47 $9.71 $6.70 $3.92 $8.53 $108.33
NET OPERATING PROFIT ($55.08)
INTEREST ON OPERATING CAPITAL ( $20.66 @ 9.00%) $1.86
INTEREST ON EQUIPMENT INVESTMENT $4.95
RETURN TO LAND AND RISK ($61.89)
=====================================================================================================================
BUDGET SUMMARY
GROSS RETURN $53.25 VARIABLE OPERATING EXPENSES $90.09 RETURN OVER VARIABLE EXPENSES ($36.84) (GROSS MARGIN) FIXED EXPENSES $8.53 NET FARM INCOME ($45.37) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $9.71 NET OPERATING PROFIT ($55.08) (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $6.81 RETURN TO LAND AND RISK ($61.89) ===================================================================================================