TABLE 4. Alfalfa hay, flood-irrigated, budgeted per acre costs and returns for a 30 acre part-time farm,
         Valencia and Southern Bernalillo Counties, 2001.
              Harvesting dates: June 1 - October 15
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         ITEM                  PRICE               YIELD                                                              TOTAL
---------------------------------------------------------------------------------------------------------------------------
GROSS RETURNS
    ALFALFA HAY             $115.00                4.00  TONS (IN FIELD)                                           $460.00
    GRAZING                  $10.00                1.00  ACRE                                                       $10.00
                                                                                                                  _______
         TOTAL                                                                                                     $470.00
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                                                                 PURCHASED                                  FIXED
PURCHASED INPUTS               PRICE              QUANTITY         INPUTS                                    COST     TOTAL
--------- ------              ------             ------------      ------                                 ------   ------
    PHOSPHATE (P2O5)          $0.39                  90  LBS       $35.10                                           $35.10
    WIRE                      $0.36                  30  LBS       $10.80                                           $10.80
    ESTABLISHMENT: Principal                          6  YEARS                                            $38.97    $38.97
                 : Interest                                                                               $11.88    $11.88
    CANAL WATER                                      44  AC. IN.   $30.00                                           $30.00
                                                                   ______                                 ______  _______
         SUBTOTAL                                                  $75.90                                 $50.86   $126.76
 
                               POWER          ACCOMPLISHMENT     PURCHASED                FUEL              FIXED
PREHARVEST OPERATIONS           UNIT                RATE            INPUTS     LABOR    & LUBE  REPAIRS      COST     TOTAL
---------- ----------      --------------       ------------     ---------  ------    ------    -------   ------  -------
    IRRIGATE (8X)                                  6.00  HR                  $30.90                                 $30.90
 
HARVEST OPERATIONS
------- ----------
    SWATHER (CUSTOM)                                               $23.33                                           $23.33
    BALER, PTO (4X)        65 HP                   1.08  HR                   $5.56     $7.11     $1.24   $22.35    $36.26
                                                 __________        ______   ______    ______    ______    ______   ______
         SUBOTOTAL                                 1.08  HR        $23.33     $5.56     $7.11     $1.24   $22.35    $59.59
 
OVERHEAD EXPENSES
-------- --------
    DOWNTIME                                       0.27  HR                   $1.39                                  $1.39
    EMPLOYEE BENEFITS                                                         $0.67                                  $0.67
    INSURANCE                                                       $0.07                                            $0.07
    LAND TAXES                                                                                             $4.88     $4.88
    SUPERVISION AND MANAGEMENT                                               $25.34                                 $25.34
    OTHER EXPENSES                                                $139.24                                          $139.24
                                                 __________        ______   ______                        ______   ______
         SUBTOTAL                                  0.27  HR       $139.30    $27.40                        $4.88   $171.58
                                                 ----------        ------   ------    ------    ------   -------  -------
TOTAL OPERATING EXPENSES                           1.35  HR       $238.53    $63.86     $7.11     $1.24   $78.09   $388.83
 
NET OPERATING PROFIT                                                                                                $81.17
 
    INTEREST ON OPERATING CAPITAL           (    $40.59     @        9.00%)                                          $3.65
    INTEREST ON EQUIPMENT                                                                                           $20.66
 
RETURN TO LAND AND RISK                                                                                             $56.87
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                                         BUDGET SUMMARY
 
GROSS RETURN                                    $470.00
  VARIABLE OPERATING EXPENSES         $246.88
RETURN OVER VARIABLE EXPENSES                   $223.12     (GROSS MARGIN)
  FIXED EXPENSES                       $78.09
NET FARM INCOME                                 $145.03     (RETURN TO CAPITAL, LABOR, LAND & RISK)
  LABOR AND MANAGEMENT COST            $63.86
NET OPERATING PROFIT                             $81.17     (RETURN TO CAPITAL, LAND & RISK)
  CAPITAL COSTS                        $24.31
RETURN TO LAND AND RISK                          $56.87
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