TABLE 4. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 100 acre farm with above average
management, Valencia and Southern Bernalillo Counties, 2001.
Harvesting dates: June 1 - October 15
-------------------------------------------------------------------------------------------------------------------------------
ITEM PRICE YIELD TOTAL
-------------------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
ALFALFA HAY $125.00 5.00 TONS (STACKED) $625.00
GRAZING $10.00 1.00 ACRE $10.00
_______
TOTAL $635.00
-------------------------------------------------------------------------------------------------------------------------------
PURCHASED FIXED
PURCHASED INPUTS PRICE QUANTITY INPUTS COST TOTAL
--------- ------ ----- ------ ----- ------ ------ ------
PHOSPHATE (P2O5) $0.39 90 LBS $35.10 $35.10
INSECTICIDE (CUSTOM) $20.69 1 X/ACRE $20.69 $20.69
WIRE $0.36 43 LBS $15.39 $15.39
ESTABLISHMENT: Principal 6 YEARS $47.57 $47.57
: Interest $12.98 $12.98
CANAL WATER 44 AC. IN. $30.00 $30.00
______ ______ _______
SUBTOTAL $101.19 $60.55 $161.73
POWER ACCOMPLISHMENT PURCHASED FUEL FIXED
PREHARVEST OPERATIONS UNIT RATE INPUTS LABOR & LUBE REPAIRS COST TOTAL
--------------------- -------------- --------------- ------------ ------ ------ ------- ------ -------
IRRIGATE (8X) 4.00 HR $20.60 $20.60
HARVEST OPERATIONS
---------------------
SWATHER (4X) 14 FT. 0.64 HR $3.30 $3.35 $2.04 $20.34 $29.03
BALER, PTO (4X) 50 HP 0.84 HR $4.33 $5.51 $2.60 $18.24 $30.68
BALE WAGON (CUSTOM) (2X) $23.40 $23.40
--------------- ------------ ______ ______ ______ ______ ______
SUBTOTAL 1.48 HR $23.40 $7.62 $8.87 $4.64 $38.58 $83.11
OVERHEAD EXPENSES
------------------
DOWNTIME 0.37 HR $1.91 $1.91
EMPLOYEE BENEFITS $5.08 $5.08
INSURANCE $0.56 $0.56
LAND TAXES $4.88 $4.88
SUPERVISION AND MANAGEMENT $49.19 $49.19
OTHER EXPENSES $107.56 $107.56
--------------- ------------ ------ ______ ______
SUBTOTAL 0.37 HR $108.12 $56.18 $4.88 $169.18
--------------- ------------ ------ ------ ------ ------- -------
TOTAL OPERATING EXPENSES 5.85 HR $232.71 $84.40 $8.87 $4.64 $104.00 $434.62
NET OPERATING PROFIT $200.38
INTEREST ON OPERATING CAPITAL ( $53.67 @ 9.00%) $4.83
INTEREST ON EQUIPMENT INVESTMENT $31.53
RETURN TO LAND AND RISK $164.02
===============================================================================================================================
BUDGET SUMMARY
GROSS RETURN $635.00 VARIABLE OPERATING EXPENSES $246.22 RETURN OVER VARIABLE EXPENSES $388.78 (GROSS MARGIN) FIXED EXPENSES $104.00 NET FARM INCOME $284.78 (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT COST $84.40 NET OPERATING PROFIT $200.38 (RETURN TO CAPITAL, LAND & RISK) CAPITAL COSTS $36.36 RETURN TO LAND AND RISK $164.02 =============================================================================================================