TABLE 3. Wheat, dryland, budgeted per acre costs and returns for a 640 acre farm with
         above average management, Union County, 2001.
              Planting dates: August 15 - September 15
              Harvesting dates: July 1 - July 15
---------------------------------------------------------------------------------------------------------------------
         ITEM                  PRICE             YIELD                                                          TOTAL
---------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    WHEAT                     $3.00             35.00  BUSHELS                                               $105.00
    ASCS DEFICIENCY           $0.46             35.00  BUSHELS                                                $16.10
    ASCS DIVERSION            $0.00                                                                            $0.00
    GRAZING                  $20.00              1.00  ACRE                                                   $20.00
                                                                                                             _______
         TOTAL                                                                                               $141.10
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                                                               PURCHASED
PURCHASED INPUTS               PRICE             QUANTITY        INPUTS                                         TOTAL
--------- ------              -----             -----------      ------                                       ------
    SEED                      $0.11                30  LBS        $3.30                                        $3.30
    MANURE                    $2.70                 5  TON       $13.50                                       $13.50
                                                                 ______                                      _______
         SUBTOTAL                                                $16.80                                       $16.80
 
                               POWER         ACCOMPLISHMENT    PURCHASED              FUEL             FIXED
PREHARVEST OPERATIONS           UNIT              RATE            INPUTS    LABOR   & LUBE  REPAIRS     COST    TOTAL
---------- ----------      --------------      -----------     ---------  ------   ------   -------  ------  -------
    SWEEPS (3X)            145 HP                0.30  HR                  $2.27    $3.79    $1.74    $4.38   $12.17
    DRILL                  145 HP                0.18  HR                  $1.36    $2.28    $1.26    $3.55    $8.45
                                                _________                 ______  _______   ______   ______  _______
         SUBTOTAL                                0.48  HR                  $3.62    $6.07    $3.00    $7.93   $20.62
 
HARVEST OPERATIONS
------- ----------
    COMBINE (CUSTOM)                                             $16.00                                       $16.00
    HAUL (CUSTOM)                                                 $5.60                                        $5.60
                                                                 ______                                       ______
         SUBTOTAL                                                $21.60                                       $21.60
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                     0.12  HR                  $0.91                               $0.91
    EMPLOYEE BENEFITS                                                      $0.65                               $0.65
    INSURANCE                                                     $0.07                                        $0.07
    LAND TAXES                                                                                        $0.08    $0.08
    SUPERVISION AND MANAGEMENT                                            $10.12                              $10.12
    OTHER EXPENSES                                               $23.92                                       $23.92
                                                _________        ______   ______                     ______   ______
         SUBTOTAL                                0.12  HR        $24.00   $11.68                      $0.08   $35.76
                                                ---------        ------   ------   ------   ------  -------  -------
TOTAL OPERATING EXPENSES                         0.60  HR        $62.40   $15.30    $6.07    $3.00    $8.01   $94.77
 
NET OPERATING PROFIT                                                                                          $46.33
 
    INTEREST ON OPERATING CAPITAL           (  $12.47     @        9.00%)                                      $1.12
    INTEREST ON EQUIPMENT INVESTMENT                                                                           $4.68
 
RETURN TO LAND AND RISK                                                                                       $40.53
 
=====================================================================================================================
                                         BUDGET SUMMARY
 
GROSS RETURN                                  $141.10
  VARIABLE OPERATING EXPENSES         $71.46
RETURN OVER VARIABLE EXPENSES                  $69.64     (GROSS MARGIN)
  FIXED EXPENSES                       $8.01
NET FARM INCOME                                $61.63     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST           $15.30
NET OPERATING PROFIT                           $46.33     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                        $5.80
RETURN TO LAND AND RISK                        $40.53
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