Central Arizona, Vegetable Crop Budgets ( ) (112 pp.) $8.00 for regional report

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1 Central Arizona Vegetable Crop Budgets Central Arizona, Vegetable Crop Budgets ( ) (112 pp.) $8.00 for regional report Introduction (includes title page, abstract, budget descriptions, etc.) 194 kb PDF Summary sheet 92 kb Tables (average yields and prices/farm descriptions) 17 kb PDF Vegetable budgets Beets 68 kb PDF Broccoli 59 kb PDF Carrots 23 kb PDF Cauliflower (transplant) 23 kb PDF Dry Onions 60 kb PDF Early Potatoes 20 kb PDF Fall Cabbage 60 kb PDF Fall Cantaloupes 60 kb PDF Fall Honeydews 60 kb PDF Fall Iceberg Lettuce 24 kb PDF Fall Leaf Lettuce 67 kb PDF Garlic 67 kb PDF Green Onions 20 kb PDF Spinach 20 kb PDF Spring Cantaloupes, Early 61 kb PDF Spring Cantaloupes, Late 60 kb PDF Spring Honeydews 60 kb PDF Squash 67 kb PDF Sweet Corn 19 kb PDF Turnips 67 kb PDF Watermelons Seedless 20 kb PDF

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3 Cooperative Extension Extension Bulletin #AZ1102 The University of Arizona College of Agriculture Tucson, Arizona Department of Agricultural and Resource Economics ARIZONA VEGETABLE CROP BUDGETS Central Arizona Maricopa County by Trent Teegerstrom Research Specialist and Kai Umeda Vegetable Crop Agent Maricopa County January 1999 Disclaimer: Neither the issuing individual, originating unit, Arizona Cooperative Extension, nor the Arizona Board of Regents warrant or guarantee the use or results of this publication issued by the Arizona Cooperative Extension and its cooperating Departments and Offices. Issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, James A. Christenson, Director, Cooperative Extension, College of Agriculture, The University ofarizona. The University of Arizona College of Agriculture is an equal opportunity employer authorized to provide research, educational information and other services only to individuals and institutions that function without regard to sex, race, religion, color, national origin, age, Vietnam Era VeteranÕ status, or disability.

4 Table of Contents Central Arizona Maricopa County Vegetables Abstract...ii Acknowledgments...ii Introduction...1 Budget Table Descriptions...1 Table 1 Five Year Average Yields and Prices, Maricopa Vegetables...7 Table 2 Representative Farm Descriptions...8 Crop Budget Tables...9 Tables 3 A-E Projected Costs for Fall Iceberg Lettuce...10 Tables 4 A-E Projected Costs for Early Potatoes...15 Tables 5 A-E Projected Costs for Broccoli...20 Tables 6 A-E Projected Costs for Spinach...25 Tables 7 A-E Projected Costs for Fall Honeydews...30 Tables 8 A-E Projected Costs for Watermelons Seedless...35 Tables 9 A-E Projected Costs for Green Onions...40 Tables 10 A-E Projected Costs for Fall Cantaloupes...45 Tables 11 A-E Projected Costs for Dry Onions...50 Tables 12 A-E Projected Costs for Spring Honeydews...55 Tables 13 A-E Projected Costs for Cauliflower (Transplant)...60 Tables 14 A-E Projected Costs for Sweet Corn...65 Tables 15 A-E Projected Costs for Fall Cabbage...70 Tables 16 A-E Projected Costs for Spring Cantaloupes, Late...75 Tables 17 A-E Projected Costs for Carrots...80 Tables 18 A-E Projected Costs for Spring Cantaloupes, Early...85 Tables 19 A-E Projected Costs for Fall Leaf Lettuce...90 i

5 Abstract This Vegetable Crop Budget Book is comprised of tables estimating the operating and ownership costs of producing vegetable crops in Central Arizona. The costs are computed for a representative farm using representative cropping operations and are not a statistical sample of farms in the area. These estimated costs are based on materials, custom services, labor, utilities, and machinery costs derived from surveys of input suppliers both within the county and throughout the state. Tables show individual operations required for producing the crop and estimate the cumulative costs of production. Monthly resource and cash flows are also estimated. Summary tables include information on the total operating and ownership costs of production. Acknowledgments The authors would like to acknowledge the cooperation of farmers, lenders, and input suppliers in providing information used in the cost estimates. DISCLAIMER ANY PRODUCTS, SERVICES, OR ORGANIZATIONS THAT ARE MENTIONED SHOWN, OR INDIRECTLY IMPLIED IN THIS PUBLICATION DO NOT IMPLY ENDORSEMENT BY THE UNIVERSITY OF ARIZONA. ii

6 Arizona Vegetable Crop Budgets INTRODUCTION The tables of this publication provide information on the costs of producing vegetable crops in Arizona. The crop production techniques and associated costs are to serve as general guides to the costs incurred by producers in the area. Operations and procedures vary with local conditions and farmer preference. Growers, lenders, and other users of this information should recognize the representative nature of these income and cost estimates. Some growers may be more efficient than others. Adjustments to yields, prices, and input requirements are probably needed to refine the estimates of income and costs for a particular grower and area within a county. The remainder of this publication is divided as follows: Descriptive narrative of budget tables, Tables of average yields and prices, Tables of farm descriptions, Budget tables for each crop, and Appendixes providing the support data for the cost estimates, including estimated costs of alternative water sources. This publication will not give the details of calculating each item within the budget since most calculations are evident. The table descriptions that follow give clarifying definitions and assumptions where such information is needed. DESCRIPTIONS OF BUDGET TABLES The Arizona Crop Budgeting System provides five tables to describe the details of each crop production system and the costs of production. These tables are labeled as follows: Table A. Table B. Table C. Table D. Table E. Income and Operating Cost Summary Allocation of Ownership Costs Variable Operating Costs Resource and Cash Flow Requirements Schedule of Operations All five tables are provided for each budgeted crop with the table number designating the budget and the following letter designating the table. These tables are ordered to provide: General summaries of cost, Detailed categorization of costs, and Technical information required to compute the costs. Each table is briefly described in the following paragraphs. Table Headings All tables have the same general heading immediately following the table number and title. This heading gives Yield and Price Assumptions Yield and price assumptions are very important in estimating the gross revenue of various cropping systems. For the purposes of this budget publication: Budgeted yields are based, in so far as possible, on five-year county average yields using the most recent five years available. Budgeted prices for each commodity are based on five-year state average prices since county level prices are not available. Due to the highly seasonal nature of most vegatable prices, particular caution is warranted in using these state level prices. 1

7 Important Assumptions for Operating Costs 1) A charge is included for all labor services (except management) including "non-paid" operator and family labor. 2) An interest charge is calculated for all operating costs irrespective of the source of operating funds (loan or equity funds). 3) Yields are estimated using historical averages and trends for the appropriate crop and technology. 4) Crop price estimates are based on commodity trend and outlook information. 5) Costs of individual input items are derived from extensive data surveys and are reported in the appendixes of this document. location and crop-specific descriptions that define the crop being budgeted. The data provided include information on the location, soil type, irrigation water source, and crop yield. Income and Cash Operating Cost Summary (Table A) Table A for each budget provides a summary of the estimated income and operating costs incurred in producing the specified crop. The total income estimate is the sum of the contributions toward projected income of all products produced by the cropping system, including possible subsidies. Income estimates are based on five-year county averages for yields for most crops and five-year state averages for commodity prices. These estimates are shown in Table 1. The income projection is followed by a summary of operating cost in several categories: Labor, Chemical and Custom Application, Farm Machinery and Vehicles, Irrigation Water, and Other Purchased Inputs and Services. These items are subtotaled as Total Cash Land Preparation Growing Expenses. In addition, itemized harvest costs are: Labor, Chemical and Custom Application, Farm Machinery and Vehicles, Custom Harvest/Post Harvest, Crop Assessments, and Other Materials. These items are subtotaled as Total Harvest and Post Harvest Expenses. Estimates of Operating Overhead for Pickup Use and Operating Interest are listed separately. Operating costs, including sales taxes where appropriate, are summed to provide an estimate of cash operating expenses. The final entry in the table provides an estimate of the Returns Over Cash Operating Expenses. The costs of this table are detailed in Table C described in a following section. Allocation of Ownership Costs (Table B) Table B provides a summary of the allocation of ownership costs and the resulting expected returns of the enterprise. The first three lines of this table are summaries of the information from Table A. Two sets of columns provide information on a ÒCash BasisÓ and on a ÒTotal Cost Basis.Ó The distinction is important. The long-term profitability of the enterprise requires that all cost (not just cash cost) be paid. An overview of the table shows that Cash Overhead Expenses include estimates for: Taxes, Housing, and Insurance on Farm Machinery (including vehicles), Taxes, Housing, and Insurance on Irrigation Equipment (excluding ditches), General and Office Overhead, and General Farm Insurance. The last two items are estimated as percentages of the Total Operating Expenses. Estimating procedures for Taxes, Housing, and Insurance are more complex and 2

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12 9/28/99 Central Arizona Vegetable Crop Budget Summary County: Maricopa Fall Iceberg Early Broccoli Spinach Fall Watermelons Green Fall Dry Spring Cauliflower Sweet Fall Spring Carrots Late Spring Fall Leaf Lettuce Potatoes Honeydews Seedless Onions Cantaloupes Onions Honeydews Transplant Corn Cabbage Cantaloupes Cantaloupes Lettuce Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Flood Furrow Yield Price $8.63 $8.44 $35.00 $7.78 $6.72 $ $6.81 $18.77 $5.32 $5.81 $6.78 $4.06 $3.78 $12.90 $3.33 $12.90 $17.29 Other $18.00 Gross Income $2, $2, $ $3, $3, $2, $6, $3, $5, $3, $3, $ $1, $4, $3, $4, $5, Preharvest Operating Costs Labor Costs Machine Operation $44.63 $66.78 $68.74 $53.57 $54.90 $87.59 $53.57 $50.21 $58.38 $76.74 $29.08 $93.43 $47.75 $46.93 $51.00 $86.03 Irrigation $ $54.99 $40.94 $58.49 $52.02 $67.62 $70.24 $52.02 $58.49 $49.39 $93.59 $70.06 $68.24 $58.52 $68.46 $58.52 $ Other Labor $17.55 $24.37 $6.50 $3.90 $6.50 $6.50 $3.90 $9.75 $58.49 $6.50 $6.34 $18.52 $9.59 Total Labor Costs $ $ $40.94 $ $ $ $ $ $ $ $ $99.14 $ $ $ $ $ Chemical Costs (including custom application) Fertilizer $ $ $ $ $82.43 $94.97 $ $ $ $ $64.79 $ $ $68.53 $ $ Insecticide $ $11.63 $11.76 $23.90 $ $41.64 $27.97 $ $8.20 $ $78.22 $67.40 $ $41.90 $66.32 $41.90 $94.63 Herbicide $19.20 $4.95 $38.94 $50.39 $15.12 $39.21 $50.39 $74.33 $50.39 $3.30 $3.30 $4.93 $97.46 $30.41 $50.39 Other Chemicals $4.26 $19.03 $4.75 Total Chemical Costs $ $ $50.70 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Machinery Fuel and Repair Costs Diesel/Gasoline $15.96 $26.46 $11.76 $17.37 $18.20 $22.78 $21.97 $22.50 $19.76 $19.89 $23.04 $10.91 $24.85 $18.11 $21.26 $18.94 $20.23 Repairs $25.84 $44.95 $38.95 $26.42 $26.29 $33.42 $35.37 $35.64 $32.69 $29.88 $38.15 $16.17 $38.52 $26.68 $30.66 $27.48 $40.18 Total Machinery Costs $41.80 $71.41 $50.71 $43.79 $44.49 $56.20 $57.34 $58.14 $52.45 $49.77 $61.19 $27.08 $63.37 $44.79 $51.92 $46.42 $60.41 Pump Fuel and Repair Costs Other Costs Natural Gas $ Repairs $25.30 Total Pump Costs $ Surface Water Costs w/o Assessment $20.00 $ $96.00 $10.00 $ $17.50 $17.50 $13.33 $92.00 $10.00 $15.00 $25.00 $45.75 $25.00 $18.33 Total Water Costs $20.00 $ $96.00 $10.00 $ $17.50 $ $17.50 $13.33 $92.00 $10.00 $15.00 $25.00 $45.75 $25.00 $18.33 Seed/Services $ $ $ $ $ $ $ $ $ $ $ $ $ $49.53 $ $ Total Other Costs $ $ $ $ $ $ $ $ $ $ $ $ $ $49.53 $ $ Total Preharvest Costs $ $1, $ $ $ $1, $ $ $1, $ $ $ $ $ $ $1, $ Harvest Operating Costs Labor $0.32 $ $40.94 $0.49 $ $0.49 $0.49 $ $0.24 Machinery $0.48 $45.79 $61.05 $0.23 $64.75 $0.23 $0.47 $62.52 $0.20 Custom $ $1, $ $ $4, $ $3, $1, $1, $1, $ $1, $ $ Other $ $ $ $ $1, $ $ $ $ $ $ $ $ $ $ Total Harvest Costs $ $ $ $2, $1, $ $6, $ $4, $1, $2, $ $2, $ $1, $ $1, Pickup Use $15.29 $15.29 $10.19 $7.64 $7.64 $15.29 $7.64 $7.64 $15.29 $7.64 $10.19 $5.10 $15.29 $7.64 $12.74 $7.64 $12.74 Operating Interest $11.74 $32.97 $17.37 $9.04 $8.43 $50.04 $23.84 $10.51 $62.68 $12.75 $15.68 $5.26 $38.20 $18.86 $31.47 $33.16 $13.74 Total Operating Cost $1, $1, $ $2, $2, $2, $7, $1, $5, $2, $3, $1, $3, $1, $2, $2, $2, Net Cash Returns $ $1, $ $ $1, ($127.65) ($624.95) $1, ($350.82) $ $ ($220.92) ($1,434.74) $3, $ $2, $3, Ownership Costs Cash Overhead $ $ $34.29 $ $ $ $ $ $ $ $ $98.78 $ $ $ $ $ Capital Allocations $39.60 $ $ $41.77 $40.15 $90.42 $50.73 $ $54.60 $42.38 $54.34 $78.44 $56.75 $40.51 $43.27 $42.16 $62.10 Land Rent $35.56 $66.12 $71.12 $35.56 $35.56 $68.12 $35.56 $25.56 $71.12 $35.56 $33.06 $71.12 $35.56 $35.56 $35.56 $35.56 $35.56 Management $ $ $25.38 $ $ $ $ $ $ $ $ $90.43 $ $ $ $ $ Total Ownership Cost $ $ $ $ $ $ $1, $ $1, $ $ $ $ $ $ $ $ TOTAL COST $2, $1, $ $3, $2, $2, $8, $1, $6, $3, $4, $1, $3, $1, $3, $2, $2, Return To Risk $ $ $41.88 $ $ ($651.64) ($1,898.49) $1, ($1,354.05) $ ($262.07) ($559.69) ($2,070.74) $2, ($292.23) $2, $3, Resource Use Water (Acre-Inches) Labor Man-hours Diesel ( Gallons) Gasoline (Gallons) Natural Gas (Therms) Nitrogen (Pounds) Phosphorous (Pounds) Potassium (pounds)

13 Table 1. Five Year Average Yields and Prices, Maricopa Vegetables Fall Head Lettuce Leaf Lettuce Sweet Corn Cauliflower Broccoli Dry Onions Green Onions Spinach Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Acres (Cartons) Acres (Cartons) Acres (Cartons) Acres (Cartons) Acres (Cartons) Acres (Cartons) Acres (Cartons) Acres (Cartons) Maricopa County Acreage and Yields , , , , , , ,268 2, , , , , , , ,162 1, , , , ,142 1, Average , , , Arizona Prices ( Dollars per Carton ) Fall Head Lettuce Leaf Lettuce Sweet Corn Cauliflower Broccoli Dry Onions Green Onions Spinach Price per 47 Price per 47 Price per 50 Price per 21 Price per 22 Price per 50 Price per 18 Price per 25 pound carton pound carton pound carton pound carton pound carton pound sack pound sack pound carton 1993 $4.46 $20.73 $3.77 $6.83 $6.89 $8.20 $4.90 $ $11.37 $10.81 $3.75 $5.46 $4.64 $3.86 $7.30 $ $5.31 $23.08 $4.68 $7.71 $8.43 $3.97 $7.15 $ $6.77 $16.92 $4.40 $6.93 $5.65 $4.28 $7.20 $ $15.27 $14.90 $3.70 $6.97 $7.74 $6.30 $7.49 $10.11 Average $8.63 $17.29 $4.06 $6.78 $6.67 $5.32 $6.81 $7.78 Carrots Spring Honeydews Fall Honeydews Watermelons Spring Cantaloupe (late) Fall Cantaloupe Potatoes Cabbage Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Harvested Yield/Acre Acres (Cartons) Acres (Cartons) Acres (Cartons) Acres (cwt) Acres (Cartons) Acres (Cartons) Acres (cwt) Acres (Cartons) Maricopa County Acreage and Yields , , , , , , , , , , , ,900 1, , , , , ,250 1,088 1, , , , , ,400 1,060 1, , , , , , Average 1, , , , , Arizona Prices ( Dollars per Carton ) Carrots Spring Honeydews Fall Honeydews Watermelons Spring Cantaloupe (late) Fall Cantaloupe Potatoes Cabbage Price per 25 Price per 30 Price per 30 Price per 100 Price per 75 Price per 75 Price per 100 Price per 50 pound carton pound carton pound carton pound container pound carton pound carton pound sack pound carton 1993 $2.83 $6.42 $7.05 $7.29 $12.45 $13.95 $8.25 $ $2.93 $4.74 $9.21 $5.60 $10.80 $23.40 $7.35 $ $4.40 $7.74 $5.91 $11.40 $13.80 $20.10 $7.65 $ $3.18 $5.07 $5.43 $7.17 $14.70 $17.70 $10.20 $ $3.33 $5.10 $6.00 $7.77 $12.74 $18.68 $8.75 $3.46 Average $3.33 $5.81 $6.72 $7.85 $12.90 $18.77 $8.44 $3.78 7

14 Table 2. Representative Farm Description for Budget Estimation General Characteristics Maricopa Vegetables Farm Size 1,000 Acres Land Rent $160 / Acre Property Tax Rate (Average) $ / $100 Assessment Assessment Rate 16% of Appraised Value Appraised Land Value $619 / Acre Land Cash Value $2,000 / Acre Land Equity 100% Sales Tax 5.75% of Material Purchases General Overhead 3% of Operating Costs Office Overhead 2% of Operating Costs Maintenance Overhead 3% of Operating Costs Management Overhead 8% of Operating Costs Energy and Equipment Equipment Equity 100% Machine Hours 90% Unleaded Gasoline $1.135 / Gallon Diesel Fuel $0.788 / Gallon L P Gas $0.810 / Gallon Natural Gas $ / cu.ft. Electricity $ / kwh Lubrication Factor 15% of Fuel Costs Interest Rates Operating Credit 10% Long Term 6% Average Investment 10% Labor Benefits FICA Worker Compensation FUTA Fringe Benefits 7.65% of Cash Wages 8.45% of Cash Wages 1.56% of Cash Wages 13% of Cash Wages 8

15 Table 20A. Income and Cash Operating Summary; Beets, 1999 Page 95 COUNTY: Maricopa FARM: Maricopa Vegetable WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Beets ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Watermelons DATE: 8/9/99 Item Unit Quantity Price/ Budgeted Total Your Farm Unit /Acre /Acre Budget INCOME Beets Crtn $9.24 $2, $2, CASH LAND PREPARATION AND GROWING EXPENSES (including sales tax) Paid Labor (including benefits) Tractor/Self Propelled Irrigation Other/ Contract 2.44 Chemicals and Custom Applications Fertilizer Insecticide Other Chemicals Farm Machinery and Vehicles Diesel Fuel Gasoline 0.91 Repairs and Maintenance Irrigation Water (excluding labor) Water Assessment (See Note Below) ** Other Purchased Inputs & Seed/Transplants Other Services and Rentals 3.00 TOTAL CASH LAND PREPARATION AND GROWING EXPENSES CASH HARVEST AND POST HARVEST EXPENSES Paid Labor (including benefits) Other/Contract Custom Harvest/Post Harvest Other Materials TOTAL HARVEST AND POST HARVEST EXPENSE OPERATING OVERHEAD PICKUP USE OPERATING INTEREST AT 10.0% 7.60 TOTAL CASH OPERATING EXPENSES ============= =================== $2, RETURNS OVER CASH OPERATING EXPENSES $ Notes: The above figures do not include ownership costs, see table B for detailed cost allocation. ** A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. University of Arizona F 12 / 12

16 Table 20B. Allocations of Ownership Costs; Beets, 1999 Page 96 COUNTY:Maricopa FARM: Maricopa Vegetable WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Beets ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Watermelons DATE: 8/9/99 -- CASH COST BASIS ($/ACRE) TOTAL COST BASIS ($/ACRE) -- Item Income and Costs Net Returns Income and Costs Net Returns TOTAL INCOME at $9.24 / Ct $2, $2, TOTAL OPERATING EXPENSES $2, $2, RETURN OVER CASH OPERATING EXPENSES $ $ CASH OVERHEAD EXPENSES Taxes, Housing and Insurance, Farm Machinery General and Office Overhead (5.0% of Total Operating Exp.) General Farm Maintenance (3.0% of Total Operating Exp.) Total Cash Overhead Expenses Total Cash Operating and Overhead Cost 2, , RETURNS OVER CASH OPER. AND OVER. EXPENSES $ $ CAPITAL ALLOCATIONS (100% Equity) Capital Replacement, Machinery and Vehicles Interest on Equity, Machinery and Vehicles Total Capital Allocations RETURNS TO LAND, CAPITAL, MANAGEMENT AND RISK ----> $ RETURNS TO LAND, MANAGEMENT AND RISK > $ Land Cost / Rent or Lease Water Assessment Total Land Costs RETURNS TO CAPITAL, MANAGEMENT AND RISK > $ RETURNS TO MANAGEMENT AND RISK ---> $ Management Services (8% of Total Operation Expenses) TOTAL OWNERSHIP COST TOTAL COST ============= ============= $2, $2, RETURNS TO CAPITAL, MANAGEMENT AND RISK > $ RETURNS TO RISK (PROFITS) -> ($81.44) BREAK-EVEN PRICE TO COVER OPERATING COST ( PER Lb ) $7.57 $7.57 BREAK-EVEN PRICE TO COVER OWNERSHIP COST $1.18 $1.93 BREAK-EVEN PRICE TO COVER TOTAL COST $8.76 $9.51 University of Arizona F 12 / 12

17 Table 20C. Variable Operating Costs; Beets, 1999 Page 97 COUNTY:Maricopa FARM: Maricopa Vegetable WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Beets ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Watermelons DATE: 8/9/99 First ---- Hours * Operating Costs ($/ACRE *) Per Operation ---- Tot. Cash No. Month Operation Machine Labor Fuel/Rps. Labor Cust/Serv. Materials Total Times Expenses Class 1 Jun Plow L 2 Jun Disk L 3 Jun Landplane L 4 Jun Make Borders G 5 Jun Block Borders G 6 Jul Preirrigate G 7 Jul Knock Borders G 8 Jul List L 9 Jul Soil Fertility G 10 Aug Apply Fert/Ground G 11 Aug Shape Beds L 12 Sep Plant L 13 Sep Disk Ends G 14 Sep Buck Rows G 15 Sep Make Ditches G 16 Sep Irrigate G 17 Oct Apply Insect./Ground G 18 Oct Irrigate G 19 Oct Cultivate G 20 Oct Hand Weeding G 21 Oct Apply Fert/Ground G 22 Oct Apply Insect./Ground G 23 Nov Apply Insect./Ground G 24 Nov Irrigate G 25 Dec Harvest, Load & Haul H 26 Dec Process/Cooling 400 Ct P 27 Dec Disk Residue 400 Ct L Pickup Use40 Mi/Acre Operating Interest at ============= TOTAL CASH OPERATING EXPENSES (includes all times over): T *NOTES: Machine and labor hours and operating cost are for one time over the designated acreage. The "Tot. Cash Expense" column and the "TOTAL CASH OPERATING EXPENSES" row include all operations, all times over. Classes are defined below. A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. OPERATING COST SUMMARY BY CLASS SENSITIVITY OF THE NET REVENUES OVER TOTAL CASH EXPENSES ($/ACRE) Land Preparation (L) Prices - 25% - 10% Budgeted + 10% + 25% Growing (G) Yields $6.93 $8.32 $9.24 $10.16 $11.55 Break-even Price Harvest (H) 1, Post Harvest (P) % Marketing (M) % , Operating Overhead (O) Budgeted , ============= + 10% , Total (T) $2, Break-even Yield University of Arizona F 12 / 12

18 Table 20D. Resource and Cash Flow Requirements; Beets, 1999 Page 98 COUNTY:Maricopa FARM: Maricopa Vegetable WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Beets ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Watermelons DATE: 8/9/99 Water Operating Costs ($/ACRE *) Number Applied Total Purchased Fuel, Oil Other Month * Irrigations (inches) Labor (Hrs) Water and Repairs Labor Chemicals Purchases Services Total JUN C JUL C AUG C SEP C OCT C NOV C DEC C Pickup Use40 Mi/Acre Operating Interest at Water Assessment ** Total % TOTAL RESOURCE REQUIREMENTS ( per Acre) TOTAL ENERGY REQUIREMENTS ( per Acre) Total N Diesel Fuel 25.3 Gal Total P Unleaded Gas 4.7 Gal Total K 0.0 All Direct Energy 4.1 M BTU Total Labor 44.3 Total Water 43.0 EQUIPMENT REQUIREMENTS ( per Acre) Bed Shaper, 4 Rw 0.22 Hr Blade Scraper, 10' 0.11 Hr Border Disk, 6' Disk 0.27 Hr Crew Bus, 44 Passenger 0.10 Hr Cultivator, Sweep, 4 Rw 0.90 Hr Fert. Side Dress Unit, 0.30 Hr Fertilizer Injector, 4 Row 0.45 Hr Landplane 12'X 45' 0.45 Hr Lister, 5 Bottom 0.22 Hr Moldboard Plow, Hr Offset Disk, 13.5' 0.90 Hr Offset Disk, 8' 0.02 Hr Pickup Truck, 1/2 Ton 1.33 Hr Planter, Planet Jr, 4 Row 0.22 Hr Rowbuck, 10' 0.02 Hr Saddle Tk Sprayer, 2 Tk Hr Tractor, 50 PTO HP, 0.86 Hr Tractor, 70 PTO HP, 1.44 Hr Tractor, 100 PTO HP, 0.99 Hr Tractor, 150 PTO HP, 1.80 Hr MATERIALS REQUIREMENT ( per Acre) , Dry Lb , URAN 32, Lqd Ga Beet Seed 9.00 Lb Boxes & Supplies Ct Chlorothalonil 2.00 Pt PARATHION/METHYL,4E, Pt Water, District AI LABOR REQUIREMENT ( per Acre) Hand Weeders Hr Irrigators 8.35 Hr Other 0.25 Hr Packer-Loader Hr Tractor 5.66 Hr *NOTE: P = Previous Year C = Current Year N = Next Year ** A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. University of Arizona F 12 / 12

19 Table 20E. Schedule of Operations; Beets, 1999 Page 99 COUNTY:Maricopa FARM: Maricopa Vegetable WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Beets ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Watermelons DATE: 8/9/99 First Equipment/ Custom Oper Job Rate Material Use and Cost Service Cost Labor No.Month Times Operation HP Self-Prop./ Implement Acres/Hr Name Appl. Rate $ / Unit $ / Unit Type 1 Jun 1.0 Plow 150 Moldboard Plow, Tractor 2 Jun 3.0 Disk 150 Offset Disk, 13.5' 4.00 Tractor 3 Jun 2.0 Landplane 150 Landplane 12'X 45' 4.00 Tractor 4 Jun 1.0 Make Borders 70 Border Disk, 6' Disk Tractor 5 Jun 1.0 Block Borders 100 Blade Scraper, 10' Tractor 6 Jul 1.0 Preirrigate 1.25 Water, District 5.00 AI 0.00 AF Irrigators 7 Jul 1.0 Knock Borders 70 Border Disk, 6' Disk 5.00 Tractor 8 Jul 1.0 List 100 Lister, 5 Bottom 4.00 Tractor 9 Jul 1.0 Soil Fertility CST Soil Analysis (Surface) 3.00 Ac 10 Aug 1.0 Apply Fert/Ground 50 Fert. Side Dress Unit, 4Row , Dry Lb Tn Tractor 11 Aug 1.0 Shape Beds 100 Bed Shaper, 4 Rw 4.00 Tractor 12 Sep 1.0 Plant 70 Planter, Planet Jr, 4 Row 4.00 Beet Seed 9.00 Lb 5.67 Lb Tractor 13 Sep 1.0 Disk Ends 70 Offset Disk, 8' Tractor 14 Sep 1.0 Buck Rows 50 Rowbuck, 10' Tractor 15 Sep 1.0 Make Ditches 70 Blade Scraper, 10' Tractor 16 Sep 1.0 Irrigate 0.28 Water, District AI 0.00 AF Irrigators 17 Oct 1.0 Apply Insect./Ground 50 Saddle Tk Sprayer, 2 Tk Pt Ga Tractor 18 Oct 1.0 Irrigate 0.42 Water, District AI 9.17 AF Irrigators 19 Oct 2.0 Cultivate 70 Cultivator, Sweep, 4 Rw 2.00 Tractor 20 Oct 1.0 Hand Weeding Crew Bus, 44 Passenger 0.05 Hand 21 Oct 1.0 Apply Fert/Ground 100 Fertilizer Injector, 4 Row , URAN 32, Ga Tn Tractor 22 Oct 1.0 Apply Insect./Ground 50 Saddle Tk Sprayer, 2 Tk Pt Ga Tractor Chlorothalonil 2.00 Pt Ga 23 Nov 1.0 Apply Insect./Ground 50 Saddle Tk Sprayer, 2 Tk Pt Ga Tractor 24 Nov 2.0 Irrigate 1.25 Water, District 4.00 AI AF Irrigators 25 Dec 1.0 Harvest, Load & Haul CST Harvest Beets 3.40 Ct 26 Dec 1.0 Process/Cooling 0.10 Boxes & Supplies Ct 0.95 Ct Packer-Loa 27 Dec 1.0 Disk Residue 150 Offset Disk, 13.5' 4.00 Tractor Pickup use 40 Mi/Ac Pickup Truck, 1/2 Ton 0.75 *NOTES: Machine times, labor times, and material rates are for one time over the designated acreage. University of Arizona F 12 / 12

20 Table 5A. Income and Cash Operating Summary; Broccoli, 1998 Page 20 COUNTY: Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Broccoli ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 7/16/99 Item Unit Quantity Price/ Budgeted Total Your Farm Unit /Acre /Acre Budget INCOME Broccoli Crtn $6.67 $2, $2, CASH LAND PREPARATION AND GROWING EXPENSES (including sales tax) Paid Labor (including benefits) Tractor/Self Propelled Irrigation Other/ Contract 6.50 Chemicals and Custom Applications Fertilizer Insecticide Herbicide 3.30 Farm Machinery and Vehicles Diesel Fuel Repairs and Maintenance Irrigation Water (excluding labor) Water Assessment (See Note Below) ** Other Purchased Inputs & Seed/Transplants Other Services and Rentals TOTAL CASH LAND PREPARATION AND GROWING EXPENSES CASH HARVEST AND POST HARVEST EXPENSES Paid Labor (including benefits) Tractor/Self Propelled Farm Machinery and Vehicles Diesel Fuel 5.46 Repairs and Maintenance Custom Harvest/Post Harvest Other Materials TOTAL HARVEST AND POST HARVEST EXPENSE OPERATING OVERHEAD PICKUP USE OPERATING INTEREST AT 10.0% TOTAL CASH OPERATING EXPENSES ============= =================== $2, RETURNS OVER CASH OPERATING EXPENSES $ Notes: The above figures do not include ownership costs, see table B for detailed cost allocation. ** A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. University of Arizona F 11 / 14

21 Table 5B. Allocations of Ownership Costs; Broccoli, 1998 Page 21 COUNTY:Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Broccoli ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 7/16/99 -- CASH COST BASIS ($/ACRE) TOTAL COST BASIS ($/ACRE) -- Item Income and Costs Net Returns Income and Costs Net Returns TOTAL INCOME at $6.67 / Ct $2, $2, TOTAL OPERATING EXPENSES $2, $2, RETURN OVER CASH OPERATING EXPENSES $ $ CASH OVERHEAD EXPENSES Taxes, Housing and Insurance, Farm Machinery General and Office Overhead (5.0% of Total Operating Exp.) General Farm Maintenance (3.0% of Total Operating Exp.) Total Cash Overhead Expenses Total Cash Operating and Overhead Cost 2, , RETURNS OVER CASH OPER. AND OVER. EXPENSES ($2.04) ($2.04) CAPITAL ALLOCATIONS (100% Equity) Capital Replacement, Machinery and Vehicles Interest on Equity, Machinery and Vehicles Total Capital Allocations RETURNS TO LAND, CAPITAL, MANAGEMENT AND RISK ----> ($2.04) RETURNS TO LAND, MANAGEMENT AND RISK > ($77.01) Land Cost / Ownership (100% Equity) Property Taxes ($ X 16.0% X 0.141) Opportunity Interest on Land (100% X 6.0 X $619.00) Water Assessment Total Land Costs RETURNS TO CAPITAL, MANAGEMENT AND RISK > ($19.03) RETURNS TO MANAGEMENT AND RISK ---> ($112.57) Management Services (8% of Total Operation Expenses) TOTAL OWNERSHIP COST TOTAL COST ============= ============= $3, $3, RETURNS TO CAPITAL, MANAGEMENT AND RISK > ($19.03) RETURNS TO RISK (PROFITS) -> ($333.38) BREAK-EVEN PRICE TO COVER OPERATING COST ( PER Lb ) $6.16 $6.16 BREAK-EVEN PRICE TO COVER OWNERSHIP COST $0.55 $1.25 BREAK-EVEN PRICE TO COVER TOTAL COST $6.71 $7.41 University of Arizona F 11 / 14

22 Table 5C. Variable Operating Costs; Broccoli, 1998 Page 22 COUNTY:Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Broccoli ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 7/16/99 First ---- Hours * Operating Costs ($/ACRE *) Per Operation ---- Tot. Cash No. Month Operation Machine Labor Fuel/Rps. Labor Cust/Serv. Materials Total Times Expenses Class 1 Jul Rip L 2 Jul Plow L 3 Jul Disk L 4 Jul Laser Level L 5 Aug Apply Herbicide/Ground G 6 Aug List L 7 Sep Plant L 8 Sep Apply Insect./Ground G 9 Sep Buck Rows G 10 Sep Irrigate G 11 Sep Disk Ends G 12 Sep Thinning G 13 Sep Cultivate G 14 Sep Soil Fertility G 15 Sep Apply Fert/Ground G 16 Sep Apply Insect./Ground G 17 Sep Hand Weeding G 18 Oct Apply Fert/Ground G 19 Nov Apply Insect./Ground G 20 Nov Harvest 448 Ct H 21 Nov Field Transport 448 Ct H 22 Nov Haul, Custom 448 Ct H 23 Nov Disk Residue 448 Ct L Pickup Use60 Mi/Acre Operating Interest at ============= TOTAL CASH OPERATING EXPENSES (includes all times over): T *NOTES: Machine and labor hours and operating cost are for one time over the designated acreage. The "Tot. Cash Expense" column and the "TOTAL CASH OPERATING EXPENSES" row include all operations, all times over. Classes are defined below. A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. OPERATING COST SUMMARY BY CLASS SENSITIVITY OF THE NET REVENUES OVER TOTAL CASH EXPENSES ($/ACRE) Land Preparation (L) Prices - 25% - 10% Budgeted + 10% + 25% Growing (G) Yields $5.00 $6.00 $6.67 $7.34 $8.34 Break-even Price Harvest (H) 1, Post Harvest (P) % Marketing (M) % Operating Overhead (O) Budgeted ============= + 10% , Total (T) $2, Break-even Yield University of Arizona F 11 / 14

23 Table 5D. Resource and Cash Flow Requirements; Broccoli, 1998 Page 23 COUNTY:Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Broccoli ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 7/16/99 Water Operating Costs ($/ACRE *) Number Applied Total Purchased Fuel, Oil Other Month * Irrigations (inches) Labor (Hrs) Water and Repairs Labor Chemicals Purchases Services Total JUL C AUG C SEP C OCT C NOV C Pickup Use60 Mi/Acre Operating Interest at Water Assessment ** Total % TOTAL RESOURCE REQUIREMENTS ( per Acre) TOTAL ENERGY REQUIREMENTS ( per Acre) Total N Diesel Fuel 50.1 Gal Total P Unleaded Gas 6.0 Gal Total K 0.0 All Direct Energy 7.7 M BTU Total Labor 19.3 Total Water 42.0 EQUIPMENT REQUIREMENTS ( per Acre) Bed Shaper, 4 Rw 0.60 Hr Cultivator, Sweep, 3 Rw 2.81 Hr Directed Spray Rig, Hr Directed Spray Rig, Hr Drag Scraper, 14' 0.22 Hr Fert. Side Dress Unit, 0.90 Hr Fertilizer Broadcaster, 1.13 Hr Laser, Complete System 0.22 Hr Lister, 5 Bottom 0.22 Hr Moldboard Plow, Hr Offset Disk, 10.5' 0.23 Hr Offset Disk, 16.5' 0.90 Hr Pickup Truck, 1/2 Ton 2.00 Hr Planter, Stanhay, 2 Row 0.60 Hr Rowbuck, 10' 0.23 Hr Tractor, 70 PTO HP 1.80 Hr Tractor, 80 PTO HP 5.89 Hr Tractor, 100 PTO HP 1.05 Hr Tractor, 150 PTO HP, 1.69 Hr V-Ripper, 5 Shnk 0.11 Hr Vegetable Trailer Flat Bed 1.80 Hr MATERIALS REQUIREMENT ( per Acre) , Dry Lb , Amm. Nitrate, Lb Broccoli Boxes Ct Broccoli Seed (Hybrid) Th BT 4.00 Lb Imidacloprid Oz Methomyl 4.50 Pt Trifluralin 1.00 Pt Water, District AI LABOR REQUIREMENT ( per Acre) Irrigators 7.00 Hr Other 0.67 Hr Tractor Hr *NOTE: P = Previous Year C = Current Year N = Next Year ** A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. University of Arizona F 11 / 14

24 Table 5E. Schedule of Operations; Broccoli, 1998 Page 24 COUNTY:Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Broccoli ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 7/16/99 First Equipment/ Custom Oper Job Rate Material Use and Cost Service Cost Labor No.Month Times Operation HP Self-Prop./ Implement Acres/Hr Name Appl. Rate $ / Unit $ / Unit Type 1 Jul 0.5 Rip 150 V-Ripper, 5 Shnk 4.00 Tractor 2 Jul 1.0 Plow 150 Moldboard Plow, Tractor 3 Jul 3.0 Disk 150 Offset Disk, 16.5' 4.00 Tractor 4 Jul 0.5 Laser Level 150 Drag Scraper, 14' 2.00 Tractor Laser, Complete System 5 Aug 1.0 Apply Herbicide/Ground 100 Fertilizer Broadcaster, 4.00 Trifluralin 1.00 Pt Ga Tractor 6 Aug 1.0 List 100 Lister, 5 Bottom 4.00 Tractor 7 Sep 1.0 Plant 100 Planter, Stanhay, 2 Row 1.50 Broccoli Seed (Hybrid) Th 2.70 Th Tractor Bed Shaper, 4 Rw Other 8 Sep 1.0 Apply Insect./Ground 80 Directed Spray Rig, 16 Row 6.00 Imidacloprid Oz Ga Tractor 9 Sep 5.0 Buck Rows 80 Rowbuck, 10' Tractor 10 Sep 7.0 Irrigate 1.00 Water, District 6.00 AI 4.29 AF Irrigators 11 Sep 5.0 Disk Ends 80 Offset Disk, 10.5' Tractor 12 Sep 1.0 Thinning CST Thinning Ac 13 Sep 5.0 Cultivate 80 Cultivator, Sweep, 3 Rw 1.60 Tractor 14 Sep 1.0 Soil Fertility CST Soil Analysis (Surface) 3.00 Ac 15 Sep 2.0 Apply Fert/Ground 80 Fert. Side Dress Unit, 4Row , Dry Lb Tn Tractor 16 Sep 2.0 Apply Insect./Ground 80 Directed Spray Rig, 8 Row 4.00 Methomyl 1.50 Pt Ga Tractor 17 Sep 2.0 Hand Weeding CST Hand Weeding Ac 18 Oct 2.0 Apply Fert/Ground 80 Fertilizer Broadcaster, , Amm. Nitrate, Lb Tn Tractor 19 Nov 1.0 Apply Insect./Ground 80 Directed Spray Rig, 8 Row 4.00 Methomyl 1.50 Pt Ga Tractor BT 4.00 Lb 0.96 Lb 20 Nov 1.0 Harvest CST Cut/Pack/Load Broccoli Broccoli Boxes Ct 0.80 Ct 2.75 Ct 21 Nov 1.0 Field Transport 70 Vegetable Trailer Flat Bed 0.50 Tractor 22 Nov 1.0 Haul, Custom CST Haul Broccoli 0.20 Ct 23 Nov 1.0 Disk Residue 150 Offset Disk, 16.5' 4.00 Tractor Pickup use 60 Mi/Ac Pickup Truck, 1/2 Ton 0.50 *NOTES: Machine times, labor times, and material rates are for one time over the designated acreage. University of Arizona F 11 / 14

25 Table 17A. Income and Cash Operating Summary; Carrots, 1998 Page 80 COUNTY: Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Carrots ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 12/10/98 Item Unit Quantity Price/ Budgeted Total Your Farm Unit /Acre /Acre Budget INCOME Carrots Crtn $3.33 $3, $3, CASH LAND PREPARATION AND GROWING EXPENSES (including sales tax) Paid Labor (including benefits) Tractor/Self Propelled Irrigation Other/ Contract Chemicals and Custom Applications Fertilizer Herbicide Other Chemicals Farm Machinery and Vehicles Diesel Fuel Repairs and Maintenance Irrigation Water (excluding labor) Water Assessment (See Note Below) ** Other Purchased Inputs & Seed/Transplants Other Services and Rentals 3.00 TOTAL CASH LAND PREPARATION AND GROWING EXPENSES CASH HARVEST AND POST HARVEST EXPENSES Paid Labor (including benefits) 0.24 Tractor/Self Propelled 0.24 Farm Machinery and Vehicles 0.20 Diesel Fuel 0.08 Repairs and Maintenance 0.12 Custom Harvest/Post Harvest Other Materials TOTAL HARVEST AND POST HARVEST EXPENSE OPERATING OVERHEAD PICKUP USE OPERATING INTEREST AT 10.0% ============= =================== TOTAL CASH OPERATING EXPENSES $2, RETURNS OVER CASH OPERATING EXPENSES $ Notes: The above figures do not include ownership costs, see table B for detailed cost allocation. ** A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. University of Arizona F 11 / 16

26 Table 17B. Allocations of Ownership Costs; Carrots, 1998 Page 81 COUNTY:Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Carrots ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 12/10/98 -- CASH COST BASIS ($/ACRE) TOTAL COST BASIS ($/ACRE) -- Item Income and Costs Net Returns Income and Costs Net Returns TOTAL INCOME at $3.33 / Ct $3, $3, TOTAL OPERATING EXPENSES $2, $2, RETURN OVER CASH OPERATING EXPENSES $ $ CASH OVERHEAD EXPENSES Taxes, Housing and Insurance, Farm Machinery General and Office Overhead (5.0% of Total Operating Exp.) General Farm Maintenance (3.0% of Total Operating Exp.) Total Cash Overhead Expenses Total Cash Operating and Overhead Cost 2, , RETURNS OVER CASH OPER. AND OVER. EXPENSES $ $ CAPITAL ALLOCATIONS (100% Equity) Capital Replacement, Machinery and Vehicles Interest on Equity, Machinery and Vehicles Total Capital Allocations RETURNS TO LAND, CAPITAL, MANAGEMENT AND RISK ----> $ RETURNS TO LAND, MANAGEMENT AND RISK > $ Land Cost / Ownership (100% Equity) Property Taxes ($ X 16.0% X 0.141) Opportunity Interest on Land (100% X 6.0 X $619.00) Water Assessment Total Land Costs RETURNS TO CAPITAL, MANAGEMENT AND RISK > $ RETURNS TO MANAGEMENT AND RISK ---> $ Management Services ( 8% of Total Operation Expenses) TOTAL OWNERSHIP COST ============= ============= TOTAL COST $2, $3, RETURNS TO CAPITAL, MANAGEMENT AND RISK > $ RETURNS TO RISK (PROFITS) -> ($3.42) BREAK-EVEN PRICE TO COVER OPERATING COST ( PER Lb ) $2.79 $2.79 BREAK-EVEN PRICE TO COVER OWNERSHIP COST $0.25 $0.54 BREAK-EVEN PRICE TO COVER TOTAL COST $3.04 $3.33 University of Arizona F 11 / 16

27 Table 17C. Variable Operating Costs; Carrots, 1998 Page 82 COUNTY:Maricopa FARM: Maricopa Veg 98 WATER SOURCE: Salt River Project TILLAGE: Double Crop CROP: Carrots ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow SOIL: Sandy-Loam AREA: Salt River Project YIELD: Ct / Acre PREVIOUS CROP: Wheat, Winter DATE: 12/10/98 First ---- Hours * Operating Costs ($/ACRE *) Per Operation ---- Tot. Cash No. Month Operation Machine Labor Fuel/Rps. Labor Cust/Serv. Materials Total Times Expense Class 1 Jul Rip L 2 Jul Plow L 3 Jul Disk L 4 Jul Laser Level L 5 Aug Soil Fertility G 6 Aug Apply Fert/Ground G 7 Aug List/Inject L 8 Aug Plant L 9 Aug Set Sprinklers G 10 Aug Irrigate/Sprinkler G 11 Aug Remove Sprinklers G 12 Aug Apply Herbicide/Ground G 13 Aug Buck Rows G 14 Aug Irrigate G 15 Aug Disk Ends G 16 Aug Cultivate G 17 Oct Apply Fert/Ground G 18 Nov Prepare Ends H 19 Nov Harvest 915 Ct H 20 Nov Haul, Custom 915 Ct H 21 Dec Disk Residue 915 Ct L Pickup Use50 Mi/Acre Operating Interest at ============= TOTAL CASH OPERATING EXPENSES (includes all times over): T *NOTES: Machine and labor hours and operating cost are for one time over the designated acreage. The "Tot. Cash Expense" column and the "TOTAL CASH OPERATING EXPENSES" row include all operations, all times over. Classes are defined below. A water assessment charge of $10.00 per Acre is included as an ownership cost in Table B. OPERATING COST SUMMARY BY CLASS SENSITIVITY OF THE NET REVENUES OVER TOTAL CASH EXPENSES ($/ACRE) Land Preparation (L) Prices - 25% - 10% Budgeted + 10% + 25% Growing (G) Yields $2.50 $3.00 $3.33 $3.66 $4.16 Break-even Price Harvest (H) 1, Post Harvest (P) % Marketing (M) % , Operating Overhead (O) Budgeted , ============= + 10% 1, , Total (T) $2, Break-even Yield 1, University of Arizona F 11 / 16