MICROCOMPUTER CROP COST AND RETURN GENERATOR VERSION 1.0. COPYRIGHT (C) 1984 by NEW MEXICO STATE UNIVERSITY BOARD OF REGENTS

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1 MICROCOMPUTER CROP AND RETURN GENERATOR BUDGET AREA... PORTALES VALLEY, ROOSEVELT COUNT FARM SIZE ACRES IRRIGATION TYPE. FLOOD NUMBER OF CROPS 5 VERSION 1.0 COPYRIGHT (C) 1984 by NEW MEXICO STATE UNIVERSITY BOARD OF REGENTS New Mexico State University is an equal opportunity employer. All programs are available to everyone regardless of race, color, religion, sex, age, handicap, or national origin. New Mexico State University and the U.S. Department of Agriculture Cooperating. * YOU MAY ENTER DATA IN ANY INPUT TABLE WITH HIGHLIGHTED CELLS OR YOU MAY STRIKE [ENTER] AND RETURN TO THE MENU ** BE SURE PRINTER IS ON AND PAPER IS ALIGNED BEFORE YOU PRINT

2 TABLE 1. Acreage Summary, Roosevelt County, BUDGET AREA PORTALES VALLEY, ROOSEVELT COUNTY FARM SIZE ACRES IRRIGATION TYPE FLOOD NUMBER OF CROPS 5 WATER USE LAND USE AC.IN. ACREAGE SUMMARY: (ACRES) PER AC. AC.IN. WHEAT ,700 ARP FLEX IN COTTON CORN ,938 ARP FLEX IN COTTON GRAIN SORGHUM ,020 ARP FLEX IN COTTON COTTON ARP FLEX IN COTTON PEANUTS ,440 ROADS, HOMESTEAD ,148 ACRE FEET PER ACRE OF WATER RIGHTS 1.86 TABLE 2. Basic cost information for the Portales Valley, Roosevelt County, Item Labor Wage Rate: Equipment operators General & Irrigators Purchased Inputs: Fertilizer: Nitrogen (N) Phosphate (P205) $/hour $/hour $8.55 $7.50 Seed: Wheat Corn Grain Sorghum Cotton Peanuts $/bag.44 $24 $1.32 $7.55 $1.10 Energy: Natural gas (Gas NM) Diesel fuel Gasoline Electricity (SWPS) LP Gas $/MCF $/gallon $/gallon cents/kwhr $/gallon $3.99 $ $2.75 Employee Liability Insurance $/$1,000 wages $2 Employee Benefits percent/wages 18.00% Labor Downtime percent 25.00% Financial Rates: Operating Capital Interest Rate Land Interest Rate Equipment Interest Rate Real Interest Rate percent percent percent percent 5.50% 5.00% 5.50% 3.00% Land Taxes $89.00 /acre (full value).68 Personal Property Tax Rate - NR - R $/$1,000 (Assessed Value) $23.08 $19.78 Supervision Factors Field Crop-Irrigation Field Crop-Equipment & General $/labor hour $/labor hour $ Management Rate percent 7.00% TABLE 3. Overhead cost information for the Portales Valley, Roosevelt County, Item Electricity (Domestic & Shop) Telephone Accounting & Legal Misc. Supplies & Hand Tools Pickup and Auto miles 26,162 Insurance - general liability (non-employee) - fire/theft Property Taxes - non-planted land - other than land & machinery Building repairs and maintenance Dues, fees, publications Farmstead $ $ per mile per month per month $3,048 $1,524 $1,861 $2,800 $13,081 $2,007 $1,588 $6,010 $1,524 $457 $191 Total $34,090 Total Per Planted Acre

3 ----- TABLE 4 Pumping costs and data for irrigation wells, Portales Valley, Roosevelt County, INPUT DATA DEPTH CHARACTERISTICS: STATIC.. 80 DRAW DOWN 20 HEAD CASING. 120 GALLONS PER MINUTE (GPM) 400 WORK HORSEPOWER 10 EFFICIENCY FACTOR: ELECTRICITY NATURAL GAS LP GAS DIESEL FUEL PER HOUR: ELECTRICITY CENTS/KwHr NATURAL GAS $3.99 $/MCF LP GAS $2.75 $/GAL DIESEL $/GAL PUMPING S ELECTRIC WELL: PER HOUR $2.08 PER ACRE INCH $2.35 NATURAL GAS WELL: PER HOUR.92 PER ACRE INCH $1.04 LP GAS WELL: PER HOUR $6.13 PER ACRE INCH $6.94 DIESEL WELL: PER HOUR $3.79 PER ACRE INCH $4.29 TABLE 5 Equipment summary for a 320 acre, flood-irrigated farm with above average management, Portales Valley, EQUIPMENT VARIABLE S S ANNUAL ITEM & SIZE FUEL, OIL, FUEL, OIL REPAIR PER HOURS OF NUMBER REPAIR DEPRECIATION TAXES VALUE LUBRICANT PER HR HR PER HR USE TRACTOR $33,917 $6,843 $1,372 $19.80 $3.97 $2,647 $255 $8.40 TRACTOR 175 HP $40,865 $9,859 $2,194 $24.21 $5.39 $5,985 $345 $15.54 COTTON STRIPPER M 2 ROW 43 1 $2,950 $40.92 $767 $44 $18.68 PLANTER 6 ROW 39 1 $4,250 $80 $2.04 $850 $33 $22.38 CULTIVATOR 6 ROW 60 1 $3,000 $224 $3.72 $400 $23 $ FT $3,000 $424 $3.72 $400 $23 $3.71 DRILL 13 FT 12 1 $2,150 $13 $430 $17 $36.48 LISTER 6 ROW 35 1 $2,150 $93 $2.67 $287 $17 $8.65 PLOW (MOLDBOARD 4-14 IN $4,000 $714 $4.96 $533 $31 $3.92 SHREDDER 4 ROW 10 1 $2,500 $4.40 $333 $19 $35.98 SPRAYER (MTD) 39 1 $1,400 $27.67 $187 $11 $5.01 DIG AND INVERT 2 ROW 14 1 $ $83 $5 $6.12 ROD WEEDER 6 ROW 24 1 $625 $19.78 $83 $5 $3.67 FERT SPREADER DEALER FURNISHE 15 1 PEANUT THRASHER 48 1 $29,000 $56 $1.16 $3,867 $223 $85.20 PEANUT TRAILER 48 1 $3,500 $7.14 $467 $27 $10.28 COTTON TRAILER 53 2 $2,400 $3.05 $240 $18 $4.92 ELECTRIC WELL 8,087 1 $8,400 $16,806 $ $672 $65.09 $144,731 $33,508 $5,269 $18,231 $1,160 EQUIPMENT LIST NEW USED YEARS EQUIP MAX FUEL LUBE ACCUM INTEREST ITEM VALUE VALUE LIFE CODE HOURS UNIT/HR COEF HOURS AGE EXPENSE TRACTOR TRACTOR 175 HP COTTON STRIPPER M 2 ROW PLANTER 6 ROW CULTIVATOR 6 ROW FT DRILL 13 FT LISTER 6 ROW PLOW (MOLDBOARD 4-14 IN SHREDDER 4 ROW SPRAYER (MTD) 16 FT DIG AND INVERT 2 ROW ROD WEEDER 6 ROW FERT SPREADER DEALER FURNISHED PEANUT THRASHER PEANUT TRAILER COTTON TRAILER ELECTRIC WELL USAGE LIST GRAIN UPLAND PER ACRE WHEAT CORN SORGHUM COTTON PEANUTS S hours per acre INTEREST PRORATION GRAIN UPLAND WHEAT CORN SORGHUM COTTON PEANUTS dollars per acre WHEAT ACRES: 68 PUMP WATER: POWER TIMES MACHINE UNIT OVER RATE CUSTOM ROD WEEDER PLOW FERT SPREADER DRILL IRRIGATE (5X) COMBINE (CUSTOM) PER ACRE PER BUSHEL OVER HAUL (CUSTOM) PER BUSHEL 0.16 CORN FOR GRAIN ACRES: 51 PUMP WATER: POWER TIMES MACHINE UNIT OVER RATE CUSTOM PLOW FERT SPREADER SPRAY & LISTER TRACK PRE-IRRIGATE ROD WEED PLANT ER CULTIVATOR (2X) IRRIGATE (5X) COMBINE (CUSTOM) PER CWT 0.35 HAUL (CUSTOM) PER CWT 0.18 GRAIN SORGHUM ACRES: 51 PUMP WATER: POWER TIMES MACHINE UNIT OVER RATE CUSTOM PLOW FERT SPREADER & SPRAY LISTER TRACK PRE-IRRIGATE ROD WEED PLANTER CULTIVATOR (2X) IRRIGATE (3X) COMBINE (CUSTOM) [RATE PER ACRE] PER CWT OVER HAUL (CUSTOM) PER CWT 0.19 UPLAND COTTON ACRES: 70 PUMP WATER: POWER TIMES MACHINE UNIT OVER RATE CUSTOM PLOW FERT SPREADER & SPRAY LISTER TRACK PRE-IRRIGATE ROD WEEDER PLANTER CULTIVATOR (2X) HAND HOE (CUSTOM) 1 IRRIGATE (2X) COTTON STRIPPER MTD HAUL GIN C OTTON (CU STOM) PER LINT # 0.17 SHRED DER PEANUTS ACRES: 60 PUMP WATER: POWER TIMES MACHINE UNIT OVER RATE CUSTOM PLOW FERT SPREADER SPRAY & LISTE R TRACK PRE-IRRIGATE LISTE R ROD WEEDER PLANTER CULTIVATOR (2X) HAND HOE (CUSTOM) IRRIGATE (3X) DIG A ND INVERT COMBINE PEANUTS HAUL ANNUAL REPAIR S AS A PERCENT OF NEW VALUE Hours of Use * * * * ** ** ** ** ** * Based on unpublished data of D. R. Hunt, Department of Agricultural Engineering, University of Illinois. ** Based on "Agricultural Machinery Data" in Agricultural Engineers Yearbook, Codes tractors 2 balers, combines, forage harvesters, windrowers, pickups 3 rotary hoe, disks, moldboard plows, chisels, field cultivators row cultivators, laser plane 4 harrows, wagons, floats, roto buck, drag, roller, water furrow, bed shaper 5 balewagons, cotton pickers, cotton strippers, corn pickers corn heads, forage equipment, rotary mowers, stalk choppers, feed wagons, farm trucks 6 rakes, cutterbar mower 7 baler w/ engine, manure spreader 8 planters, drills, seeding equipment, mounted sprayers 9 fertilizer distributing equipment

4 TABLE 6. Wheat, flood-irrigated, budgeted per acre costs and returns for a 32O acre farm with above average management, Portales Valley, Roosevelt County, Planting Dates: August 20 - September 15 Harvest Dates: June 1 - June 25 ITEM WHEAT PRICE $ $4 YIELD 5 BUSHELS 5 BUSHELS 1.00 ACRE BASE 0.85 $ $4 $26 PRICE QUANTITY NITROGEN (N) PHOSPHATE (P205) INSECTICIDE (CUSTOM) PUMP WATER* CROP INSURANCE SUB LBS 100 LBS 40 LBS 25 AC. IN. $26.40 $31.00 $ $87.74 $26.40 $31.00 $ $87.74 PREHARVEST OPERATIONS POWER UNIT RATE LABOR FUEL & LUBE ROD WEEDER PLOW FERT SPREADER DRILL IRRIGATE (5X) 0.08 HR 0.48 HR 0.05 HR 0.18 HR 2.50 HR.68 $ $1.54 $18.75 $1.58 $ $3.56 $ $ $ $8.08 $2.58 $3.61 $30.03 $2.04 $14.08 $80.11 SUB 3.43 HR $26.70 $79.93 $7.72 $24.08 $ HARVEST OPERATIONS COMBINE (CUSTOM) HAUL (CUSTOM) $20.20 $8.00 $20.20 $8.00 SUB $28.20 $28.20 OVERHEAD EXPENSES DOWNTIME EMPLOYEE BENEFITS INSURANCE SUPERVISION AND MANAGEMENT 0.23 HR.53 $1.99 $4.81 $ $1.99 $ $21.17 SUB 0.23 HR $ $ $ OPERATING EXPENSES 3.66 HR $ $54.66 $79.93 $7.72 $24.76 $ NET OPERATING PROFIT ($137.18) ( 5.50% ) $3.75 $9.80 RETURN TO LAND AND RISK ($150.72) * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $26 VARIABLE OPERATING EXPENSES $ RETURN OVER VARIABLE EXPENSES ($57.76) (GROSS MARGIN) EXPENSES $24.76 NET FARM INCOME ($82.52) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT $54.66 NET OPERATING PROFIT ($137.18) (RETURN TO CAPITAL, LAND & RISK) CAPITAL S $13.54 RETURN TO LAND AND RISK ($150.72)

5 TABLE 7. Corn for grain, flood-irrigated, budgeted per acre costs and returns for a 320 acre farm with above average management, Portales Valley, Roosevelt County, Planting Dates: April 15 - May 15 Harvest Dates: November 1 - November 30 ITEM PRICE YIELD BASE CORN FOR GRAIN $ $ CWT CWT CWT 1.00 ACRE $ $ $15.00 PRICE QUANTITY NITROGEN (N) PHOSPHATE (P205) HERBICIDE INSECTICIDE (CUSTOM) PUMP WATER* CROP INSURANCE SUB $3.00 $ LBS 60 LBS 2 X/ACRE 38 AC. IN. $84.00 $46.50 $14.40 $ $ $84.00 $46.50 $14.40 $ $ PREHARVEST OPERATIONS POWER UNIT RATE LABOR FUEL & LUBE PLOW FERT SPREADER SPRAY & LISTER TRACK PRE-IRRIGATE ROD WEED PLANTER CULTIVATOR (2X) IRRIGATE (5X) 0.48 HR 0.05 HR 0.12 HR 0.40 HR 0.75 HR 0.08 HR 0.26 HR 2.50 HR $ $3.42 $ $2.22 $18.75 $ $2.38 $14.89 $1.94 $5.15 $74.45 $ $ $ $1.26 $ $ $ $1.54 $6.45 $4.01 $3.26 $30.03 $2.04 $11.36 $6.24 $16.29 $21.96 $4.65 $13.28 $13.38 $96.47 SUB 5.26 HR $42.35 $ $15.52 $40.59 $ HARVEST OPERATIONS COMBINE (CUSTOM) HAUL (CUSTOM) $22.75 $11.70 $22.75 $11.70 SUB $34.45 $34.45 OVERHEAD EXPENSES DOWNTIME EMPLOYEE BENEFITS INSURANCE SUPERVISION AND MANAGEMENT 0.36 HR.85 $3.06 $7.62 $ $3.06 $ $34.46 SUB 0.36 HR $ $ $ OPERATING EXPENSES 5.62 HR $ $87.48 $ $15.52 $41.28 $ NET OPERATING PROFIT ($178.77) ( 5.50% ) $7.60 $17.94 RETURN TO LAND AND RISK ($204.31) * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $ VARIABLE OPERATING EXPENSES $ RETURN OVER VARIABLE EXPENSES ($50.01) (GROSS MARGIN) EXPENSES $41.28 NET FARM INCOME ($91.29) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT $87.48 NET OPERATING PROFIT ($178.77) (RETURN TO CAPITAL, LAND & RISK) CAPITAL S $25.54 RETURN TO LAND AND RISK ($204.31)

6 TABLE 8. Grain sorghum, flood-irrigated, budgeted per acre costs and returns for a 320 acre farm with above average management, Portales Valley, Roosevelt County, Planting Dates: May 15 - June 10 Harvest Dates: October 15 - November 15 ITEM PRICE YIELD BASE GRAIN SORGHUM $ $ CWT CWT CWT 1.00 ACRE $ $ $9.00 PRICE QUANTITY NITROGEN (N) PHOSPHATE (P205) HERBICIDE INSECTICIDE (CUSTOM) PUMP WATER* CROP INSURANCE SUB $ LBS 100 LBS 40 LBS 1 ACRE 1 ACRE 20 AC. IN. $31.00 $ $85.39 $31.00 $ $85.39 PREHARVEST OPERATIONS POWER UNIT RATE LABOR FUEL & LUBE PLOW FERT SPREADER & SPRAY LISTER TRACK PRE-IRRIGATE ROD WEED PLANTER CULTIVATOR (2X) IRRIGATE (3X) 0.48 HR 0.05 HR 0.12 HR 0.40 HR 0.75 HR 0.08 HR 0.26 HR 1.50 HR $ $3.42 $ $2.22 $11.25 $ $2.38 $11.76 $1.58 $5.15 $35.27 $ $ $ $1.26 $ $ $ $6.45 $4.01 $1.55 $30.03 $2.04 $11.36 $6.24 $16.29 $17.90 $3.61 $13.28 $13.38 $48.06 SUB 4.26 HR $34.06 $91.67 $15.40 $38.16 $ HARVEST OPERATIONS COMBINE (CUSTOM) HAUL (CUSTOM) $26.18 $10.45 $26.18 $10.45 SUB $36.63 $36.63 OVERHEAD EXPENSES DOWNTIME EMPLOYEE BENEFITS INSURANCE SUPERVISION AND MANAGEMENT 0.66 HR.68 $5.60 $6.13 $ $5.60 $ $26.84 SUB 0.66 HR $ $ $ OPERATING EXPENSES 4.92 HR $ $72.63 $91.67 $15.40 $38.85 $ NET OPERATING PROFIT ($111.57) ( 5.50% ) $3.99 $16.71 RETURN TO LAND AND RISK ($132.27) * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $ VARIABLE OPERATING EXPENSES $ RETURN OVER VARIABLE EXPENSES (.09) (GROSS MARGIN) EXPENSES $38.85 NET FARM INCOME ($38.94) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT $72.63 NET OPERATING PROFIT ($111.57) (RETURN TO CAPITAL, LAND & RISK) CAPITAL S $20.70 RETURN TO LAND AND RISK ($132.27)

7 TABLE 9. Upland cotton (stripper), flood-irrigated, budgeted per acre costs and returns for a 320 acre farm with above average management, Portales Valley, Roosevelt County, Planting Dates: May 1 - May 15 Harvest Dates: November 15 - December 30 ITEM PRICE YIELD BASE LINT LBS 800 LBS 50 LBS 50 LBS $ $ $58.35 $ PRICE QUANTITY NITROGEN (N) PHOSPHATE (P205) HERBICIDE INSECTICIDE INSECTICIDE (CUSTOM) PUMP WATER* CROP INSURANCE SUB $7.55 $ LB 80 LB 60 LB 15 AC. IN. $ $24.80 $14.40 $ $ $ $24.80 $14.40 $ $ PREHARVEST OPERATIONS POWER UNIT RATE LABOR FUEL & LUBE PLOW FERT SPREADER & SPRAY LISTER TRACK PRE-IRRIGATE ROD WEED PLANTER CULTIVATOR (2X) HAND HOE (CUSTOM) IRRIGATE (2X) 0.48 HR 0.05 HR 0.12 HR 0.40 HR 0.75 HR 0.08 HR 0.26 HR 1.00 HR $1 $ $3.42 $ $2.22 $7.50 $ $2.38 $11.76 $1.58 $5.15 $23.51 $ $ $ $1.26 $ $ $ $6.45 $4.01 $30.03 $2.04 $11.36 $6.24 $16.29 $17.90 $3.61 $13.28 $13.38 $1 $32.04 SUB 3.76 HR $1 $30.31 $79.91 $15.40 $37.65 $ HARVEST OPERATIONS COTTON STRIPPER MTD HAUL GIN COTTON (CUSTOM) 0.62 HR 0.75 HR $82.70 $5.30 $6.41 $15.01 $14.85 $3.91 $3.01 $21.22 $9.99 $45.44 $34.27 $82.70 SUB 1.37 HR $82.70 $11.71 $29.86 $6.92 $31.21 $ POSTHARVEST OPERATIONS SHREDDER $ $6.21 $10.79 OVERHEAD EXPENSES DOWNTIME EMPLOYEE BENEFITS INSURANCE SUPERVISION AND MANAGEMENT 0.92 HR.86 $7.84 $7.78 $ $7.84 $ $37.99 SUB 0.92 HR $ $ $ OPERATING EXPENSES 6.19 HR $ $96.84 $ $22.94 $75.76 $ NET OPERATING PROFIT ($288.76) ( 5.50% ) $9.46 $32.26 RETURN TO LAND AND RISK ($330.48) * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $ VARIABLE OPERATING EXPENSES $ RETURN OVER VARIABLE EXPENSES ($116.16) (GROSS MARGIN) EXPENSES $75.76 NET FARM INCOME ($191.92) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT $96.84 NET OPERATING PROFIT ($288.76) (RETURN TO CAPITAL, LAND & RISK) CAPITAL S $41.72 RETURN TO LAND AND RISK ($330.48)

8 TABLE 10. Peanuts, flood-irrigated, budgeted per acre costs and returns for a 320 acre farm with above average management, Portales Valley, Roosevelt County, Planting Dates: May 10 - June 10 Harvest Dates: October 10 - November 10 ITEM PRICE YIELD PEANUTS.23 2,60 LBS $ $ PRICE QUANTITY NITROGEN (N) PHOSPHATE (P205) HERBICIDE INSECTICIDE (CUSTOM) FUNGICIDE TRACE ELEMENTS PUMP WATER* $1.10 $16.96 $37.67 $ LB 50 LB 80 LB 24 AC. IN. $11 $15.50 $19.20 $16.96 $37.67 $11.92 $11 $15.50 $19.20 $16.96 $37.67 $11.92 SUB $ $ PREHARVEST OPERATIONS POWER UNIT RATE LABOR FUEL & LUBE PLOW FERT SPREADER SPRAY & LISTER TRACK PRE-IRRIGATE LISTER ROD WEEDER PLANTER CULTIVATOR (2X) HAND HOE (CUSTOM) IRRIGATE (3X) 0.48 HR 0.05 HR 0.12 HR 0.40 HR 0.75 HR 0.12 HR 0.08 HR 0.26 HR 1.50 HR $12.00 $ $3.42 $ $2.22 $11.25 $ $2.38 $14.11 $2.38 $1.58 $5.15 $42.32 $ $ $ $1.26 $ $ $ $6.45 $4.01 $1.85 $30.03 $2.04 $11.36 $6.24 $16.29 $20.35 $6.24 $3.61 $13.28 $13.38 $12.00 $55.43 SUB 4.38 HR $12.00 $35.09 $ $16.20 $40.62 $ HARVEST OPERATIONS DIG AND INVERT COMBINE PEANUTS HAUL 0.24 HR 0.80 HR 0.80 HR $6.84 $6.84 $5.81 $19.37 $15.84 $1.30 $5.24 $3.29 $5.20 $80.60 $14.94 $14.36 $ $40.91 SUB 1.84 HR.00 $15.73 $41.02 $9.82 $ $ OVERHEAD EXPENSES DOWNTIME EMPLOYEE BENEFITS INSURANCE SUPERVISION AND MANAGEMENT 0.81 HR $1.02 $6.90 $9.15 $ $6.90 $9.15 $ $47.32 SUB 0.81 HR $ $ $ OPERATING EXPENSES 7.03 HR $ $ $ $26.03 $ $ NET OPERATING PROFIT ($186.64) ( 5.50% ) $8.24 $58.89 RETURN TO LAND AND RISK ($253.76) * Pump water costs are shown under irrigation in the preharvest operations section. BUDGET SUMMARY GROSS RETURN $ VARIABLE OPERATING EXPENSES $ RETURN OVER VARIABLE EXPENSES $69.61 (GROSS MARGIN) EXPENSES $ NET FARM INCOME ($72.45) (RETURN TO CAPITAL, LABOR, LAND & RISK) LABOR AND MANAGEMENT $ NET OPERATING PROFIT ($186.64) (RETURN TO CAPITAL, LAND & RISK) CAPITAL S $67.12 RETURN TO LAND AND RISK ($253.76)

9 TABLE 11. Summary of per acre costs and returns for a 320 acre farm with above average management, Roosevelt County, New Mexico, WHEAT CORN GRAIN SORGHUM STRIPPER COTTON PEANUTS BU CWT CWT LBS LBS PRIMARY YIELD ,60 PRIMARY PRICE $4.40 $6.61 $ GOVERNMENT PAYMENTS SECOND INCOME $4 $15.00 $9.00 $ GROSS RETURN $26 $ $ $ $ CASH OPERATING EXPENSES $26.40 $84.00 $ $11 FERTILIZER $40.60 $60.90 $40.60 $39.20 $34.70 CHEMICALS $49.80 $35.89 $46.17 $74.64 CROP INSURANCE OTHER $11.92 CANAL WATER FUEL, OIL & LUBRICANTS-EQUIPMENT $21.15 $45.00 $44.65 $77.28 $88.04 FUEL-IRRIGATION $58.78 $89.35 $47.02 $35.27 $56.43 $7.72 $15.52 $15.40 $22.94 $26.03 CUSTOM CHARGES $28.20 $34.45 $36.63 $92.70 $ $ $ $ $ $ CASH EXPENSES $ $ $ $ $ RETURN OVER CASH EXPENSES ($58.44) ($50.70) (.78) ($116.85) $68.92 EXPENSES $24.08 $40.59 $38.16 $75.07 $ EXPENSES $ $ $ $ $ NET FARM INCOME ($82.52) ($91.29) ($38.94) ($191.92) ($72.45) LABOR AND MANAGEMENT S $54.66 $87.48 $72.63 $96.84 $ NET OPERATING PROFIT ($137.18) ($178.77) ($111.57) ($288.76) ($186.64) CAPITAL S $3.75 $7.60 $3.99 $9.46 $8.24 $9.80 $17.94 $16.71 $32.26 $58.89 CAPITAL S $13.54 $25.54 $20.70 $41.72 $67.12 RETURN TO LAND AND RISK ($150.72) ($204.31) ($132.27) ($330.48) ($253.76) Flex Computation

10 TABLE 12. Whole farm summary, Portales Valley, Roosevelt County, WHEAT ACRES CROP CORN FOR GRAIN ACRES CROP GRAIN SORGHUM ACRES CROP UPLAND COTTON 7 ACRES LINT PEANUTS 6 ACRES CROP $14,960 $2,720 $21,903 $765 $17,050 $459 $25,550 $5,460 $35,880 GROSS RETURN $124,747 CASH OPERATING EXPENSES FERTILIZER CHEMICALS CROP INSURANCE OTHER CANAL WATER FUEL, OIL & LUBRICANTS-EQUIPMENT FUEL-IRRIGATION CUSTOM CHARGES $26,296 $12,763 $13,441 $200 $715 $16,702 $16,806 $5,269 $12,752 $205 $34,325 CASH EXPENSES $139,475 RETURN OVER CASH EXPENSES ($14,728) EXPENSES $19,391 EXPENSES $158,866 NET FARM INCOME ($34,119) LABOR AND MANAGEMENT S $25,513 NET OPERATING PROFIT ($59,632) CAPITAL S $2,002 $8,224 CAPITAL S $10,227 RETURN TO LAND AND RISK ($69,858) RETURN RETURN ON LAND VALUE TO RISK* INVESTMENT** $500 /ACRE ($74,658) % $750 /ACRE ($77,058) % $1,000 /ACRE ($79,458) % $1,250 /ACRE ($81,858) % $1,500 /ACRE ($84,258) -9.55% $1,750 /ACRE ($86,658) -8.46% $2,000 /ACRE ($89,058) -7.60% * RETURN TO LAND AND RISK MINUS (INTEREST RATE TIMES LAND VALUE TIMES ACREAGE) ** NET OPERATING PROFIT DIVIDED BY (MACHINERY AND EQUIPMENT VALUE PLUS LAND VALUE)