Table 9A. Income and Cash Operating Summary; Upland Cotton, 1998 COUNTY: Cochise CROP: Cotton, Upland AREA: Kansas Settlement INCOME ⇒ FARM: Cochise County 98 ACRES: 1.0 YIELD: 744.0 Lb / Acre Page 40 WATER SOURCE: Ks Settlement, NG IRRIGATION SYSTEM: Flood Furrow PREVIOUS CROP: Cotton, Upland Item Unit Quantity Price/ Unit Lint Cottonseed Pound Ton 744.00 0.66 $0.68 $133.60 CASH LAND PREPARATION AND GROWING EXPENSES (including sales tax) Paid Labor (including benefits) Tractor/Self Propelled Irrigation Chemicals and Custom Applications Fertilizer Insecticide Herbicide Other Chemicals Budgeted /Acre $505.92 $88.18 TILLAGE: Conventional SOIL: Sandy-Loam DATE: 2/4/99 Total /Acre $594.10 ____________ ____________ 41.38 ____________ ____________ ____________ 92.98 ____________ ____________ ____________ ____________ ____________ 28.86 ____________ ____________ ____________ ____________ ____________ ____________ 21.37 20.01 27.11 24.15 3.95 37.76 Farm Machinery and Vehicles Diesel Fuel Repairs and Maintenance Irrigation Water (excluding labor) Natural Gas/Pumping Repairs and Maintenance 110.90 18.90 Other Purchased Inputs & Seed/Transplants Other Services and Rentals 15.19 3.00 10.55 18.31 129.79 18.19 TOTAL CASH LAND PREPARATION AND GROWING EXPENSES Your Farm Budget -------------311.20 ____________ ____________ ____________ ____________ CASH HARVEST AND POST HARVEST EXPENSES Paid Labor (including benefits) Tractor/Self Propelled Other/Contract 1.49 21.83 Farm Machinery and Vehicles Diesel Fuel Repairs and Maintenance 10.49 60.00 Custom Harvest/Post Harvest Cotton Ginning Crop Assessment TOTAL HARVEST AND POST HARVEST EXPENSE OPERATING OVERHEAD ⇒ PICKUP USE OPERATING INTEREST AT 10.0% TOTAL CASH OPERATING EXPENSES RETURNS OVER CASH OPERATING EXPENSES 23.32 ____________ ____________ ____________ 70.49 ____________ ____________ ____________ 1.86 64.55 4.17 -------------164.39 15.45 18.47 ____________ ____________ ____________ ============= =================== $509.51 $84.58 ____________ ____________ ____________ ____________ ____________ Notes: The above figures do not include ownership costs, see table B for detailed cost allocation. ARIZONA COOPERATIVE EXTENSION Department of Ag and Resource Economics University of Arizona F 7 / 187 Table 9B. Allocations of Ownership Costs; Upland Cotton, 1998 COUNTY:Cochise CROP: Cotton, Upland AREA: Kansas Settlement Item TOTAL INCOME at Page 41 FARM: Cochise County 98 WATER SOURCE: Ks Settlement, NG ACRES: 1.0 IRRIGATION SYSTEM: Flood Furrow YIELD: 744.0 Lb / Acre PREVIOUS CROP: Cotton, Upland $0.68 / Lb TOTAL OPERATING EXPENSES RETURN OVER CASH OPERATING EXPENSES CASH OVERHEAD EXPENSES Taxes, Housing and Insurance, Farm Machinery Wells and Irrigation System General and Office Overhead (5.0% of Total Operating Exp.) General Farm Maintenance (3.0% of Total Operating Exp.) Total Cash Overhead Expenses Total Cash Operating and Overhead Cost RETURNS OVER CASH OPER. AND OVER. EXPENSES -- CASH COST BASIS ($/ACRE) -Income and Costs Net Returns $594.10 TILLAGE: Conventional SOIL: Sandy-Loam DATE: 2/4/99 -- TOTAL COST BASIS ($/ACRE) -Income and Costs Net Returns $594.10 $509.51 $509.51 $84.58 9.73 11.14 25.48 15.29 -------------61.63 $84.58 9.73 11.14 25.48 15.29 -------------61.63 571.14 571.14 $22.95 CAPITAL ALLOCATIONS (100% Equity) Capital Replacement, Machinery and Vehicles Wells and Irrigation System Interest on Equity, Machinery and Vehicles Wells and Irrigation System $22.95 72.30 41.47 32.97 21.15 -------------167.90 Total Capital Allocations RETURNS TO LAND, CAPITAL, MANAGEMENT AND RISK --------------------------------> $22.95 RETURNS TO LAND, MANAGEMENT AND RISK ---------------------------------------------------------------------------------------------> Land Cost / Ownership (100% Equity) Property Taxes ($368.00 X 16.0% X 0.144) Opportunity Interest on Land (100% X 6.0 X $368.00) 8.54 8.54 22.08 -------------30.62 -------------Total Land Costs 8.54 RETURNS TO CAPITAL, MANAGEMENT AND RISK ----------------------------------------> $14.42 RETURNS TO MANAGEMENT AND RISK -----------------------------------------------------------------------------------------------------> Management Services (8% of Total Operation Expenses) TOTAL OWNERSHIP COST -------------70.17 40.76 -------------300.90 ============= ============= TOTAL COST $579.68 $810.42 RETURNS TO CAPITAL, MANAGEMENT AND RISK ----------------------------------------> $14.42 RETURNS TO RISK (PROFITS) -----------------------------------------------------------------------------------------------------------------> BREAK-EVEN PRICE TO COVER OPERATING COST ( PER Lb ) BREAK-EVEN PRICE TO COVER OWNERSHIP COST BREAK-EVEN PRICE TO COVER TOTAL COST ($144.94) $0.57 $0.09 $0.66 ($175.56) ($216.32) $0.57 $0.40 $0.97 ARIZONA COOPERATIVE EXTENSION Department of Ag and Resource Economics University of Arizona F 7 / 187 Table 9C. Variable Operating Costs; Upland Cotton, 1998 COUNTY:Cochise CROP: Cotton, Upland AREA: Kansas Settlement No. First Month Operation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Jan Jan Jan Jan Feb Mar Mar Mar Apr Apr Apr Apr May May May Jun Jul Jul Oct Oct Oct Nov Oct Oct Dec Dec Dec Dec FARM: Cochise County 98 ACRES: 1.0 YIELD: 744.0 Lb / Acre ---- Hours * ---Machine Labor Plow Apply Soil Amendment Disk Landplane Apply Herbicide/Ground List Buck Rows Preirrigate Disk Ends Mulch Plant Remove Cap Irrigate Soil Fertility Cultivate/Side Dress Cultivate Apply Fungicide/Air Apply Insecticide/Air Cotton, First Pick Cotton, Make Modules Haul, Custom .1 Mu Cotton, Second Pick .1 Mu Cotton, Make Modules .1 Cotton Ginning 21.9 Cs Cotton Classing 1.5 Ba Crop Assessment 1.5 Ba Cut Stalks 1.5 Ba Disk Residue 1.5 Ba Pickup Use60 Mi/Acre Operating Interest at 10.0 0.360 Page 42 WATER SOURCE: Ks Settlement, NG IRRIGATION SYSTEM: Flood Furrow PREVIOUS CROP: Cotton, Upland ---- Operating Costs ($/ACRE *) Per Operation ---Fuel/Rps. Labor Cust/Serv. Materials Total 0.400 5.33 3.28 24.00 0.129 0.225 0.150 0.180 0.022 0.023 0.225 0.225 0.150 0.143 0.250 0.167 0.200 0.025 0.847 0.025 0.250 0.250 0.167 0.417 2.00 2.97 1.26 2.38 0.16 42.09 0.35 2.28 2.89 1.07 17.54 1.17 2.05 1.37 1.64 0.20 5.78 0.20 2.05 2.05 1.37 2.85 0.333 0.182 3.93 1.36 2.73 1.49 69.63 3.95 30.51 3.00 0.300 0.164 27.11 4.23 4.23 0.900 0.900 1.000 1.000 36.64 11.08 7.80 6.82 0.600 0.900 0.666 1.000 24.43 11.08 5.19 6.82 64.55 1.86 4.17 0.164 0.129 2.000 TILLAGE: Conventional SOIL: Sandy-Loam DATE: 2/4/99 0.182 0.143 1.46 2.00 15.45 1.49 1.17 5.44 13.44 Tot. Cash Expenses Times 8.60 93.63 3.18 5.02 6.58 4.02 0.37 47.87 0.56 4.33 35.45 2.44 20.39 3.00 33.77 2.85 9.67 17.67 44.44 17.91 1.0 0.3 1.0 1.0 1.0 1.0 2.0 1.0 3.0 1.0 1.0 1.0 5.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 0.6 0.6 1.0 1.0 1.0 1.0 1.0 29.62 17.91 64.55 1.86 4.17 2.95 3.18 8.60 28.09 3.18 5.02 6.58 4.02 0.73 47.87 1.67 4.33 35.45 2.44 101.93 3.00 33.77 2.85 9.67 8.83 44.44 17.91 17.77 10.74 64.55 1.86 4.17 2.95 3.18 15.45 18.47 18.47 Class L L L L G L G G G L L G G G G G G G H H H H H P M M P L ============= TOTAL CASH OPERATING EXPENSES (includes all times over): 509.51 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. OPERATING COST SUMMARY BY CLASS Land Preparation (L) 91.86 Growing (G) 219.35 Harvest (H) 90.86 Post Harvest (P) 67.50 Marketing (M) 6.03 Operating Overhead (O) 33.92 ============= Total (T) SENSITIVITY OF THE NET REVENUES OVER TOTAL CASH EXPENSES ($/ACRE) Prices ⇒ - 25% - 10% Budgeted + 10% + 25% Yields $0.51 $0.61 $0.68 $0.75 $0.85 Break-even Price - 25% - 10% Budgeted + 10% 558.0 669.6 744.0 818.4 -184.92 -152.67 -131.16 -109.66 -128.01 -84.37 -55.27 -26.18 -90.06 -38.83 -4.68 29.47 -52.12 6.70 45.91 85.12 4.80 75.00 121.80 168.60 1,197.77 885.35 754.20 656.89 550.37 0.84 0.74 0.69 0.64 $509.51 Break-even Yield ARIZONA COOPERATIVE EXTENSION Department of Ag and Resource Economics University of Arizona F 7 / 187 Table 9D. Resource and Cash Flow Requirements; Upland Cotton, 1998 COUNTY:Cochise CROP: Cotton, Upland AREA: Kansas Settlement Month * Number Irrigations JAN C FEB C MAR C 1.0 APR C MAY C 1.0 JUN C 1.0 JUL C 2.0 AUG C 1.0 OCT C NOV C DEC C Pickup Use60 Mi/Acre Operating Interest at 10.0 Total % 6.0 FARM: Cochise County 98 ACRES: 1.0 YIELD: 744.0 Lb / Acre Water Applied (inches) Total Labor (Hrs) 12.0 5.0 5.0 10.0 5.0 37.0 -------------------------------------Purchased Fuel, Oil Water and Repairs 0.60 0.28 1.16 0.69 0.80 0.60 0.83 0.42 1.42 1.47 0.46 TOTAL RESOURCE REQUIREMENTS ( per Acre) Total N 92.0 Total P 0.0 Total K 0.0 Total Labor 8.7 Total Water 37.0 4.88 2.29 8.31 5.67 5.98 4.34 5.69 2.85 10.44 10.56 3.70 244.59 48.00 64.70 12.70 20.89 1.97 1.97 15.32 27.11 7.20 18.47 40.79 7.38 55.55 42.77 58.08 23.24 59.28 20.39 82.93 60.66 24.53 15.45 18.47 105.60 20.73 509.51 100.00 15.19 3.00 12.16 6.35 38.73 19.37 12.48 79.43 15.59 15.19 2.98 TOTAL ENERGY REQUIREMENTS ( per Acre) Diesel Fuel 26.9 Gal Unleaded Gas 6.0 Gal Nat Gas/Pumping 299.2 Therms All Direct Energy 34.4 M BTU EQUIPMENT REQUIREMENTS ( per Acre) Cotton Picker, 2 Row 1.26 Hr Lister, 5 Bottom 0.18 Hr Offset Disk, 16.5' 0.32 Hr Power Mulcher, 4 Rw 0.22 Hr Rowbuck, 10' 0.04 Hr Tractor, 80 PTO HP, 1.44 Hr Fert. Side Dress Unit, Module Builder Pickup Truck, 1/2 Ton Rolling Cultivator, 4 Rw Saddle Tk Sprayer, 2 Tk 8 Tractor, 100 PTO HP, MATERIALS REQUIREMENT ( per Acre) 46-00-00, Urea 46 200.00 Lb Mancozeb 2.00 Lb Upl Cotton Sd+NU-Flow 20.00 Lb Chlorpyrifos Phorate Water, Pump LABOR REQUIREMENT ( per Acre) Harvest 1.40 Hr Tractor 2.79 Hr TILLAGE: Conventional SOIL: Sandy-Loam DATE: 2/4/99 Operating Costs ($/ACRE *) -------------------------------------Other Labor Chemicals Purchases Services Total 7.82 3.12 45.27 6.59 21.98 18.90 35.08 17.54 33.76 30.74 8.35 15.45 8.72 Page 43 WATER SOURCE: Ks Settlement, NG IRRIGATION SYSTEM: Flood Furrow PREVIOUS CROP: Cotton, Upland Irrigators 0.30 1.44 2.00 0.46 0.15 1.42 Hr Hr Hr Hr Hr Hr 1.00 Pt 6.66 Lb 37.00 AI 2.93 Hr Landplane 12'X 45' Moldboard Plow, 4-16 2 Planter, Drill Type, 4 Row Rotary Stalk Cutter, 4 Row Section Harrow, 3 Section Tractor, 125 PTO HP 0.22 0.36 0.22 0.16 0.15 1.09 Hr Hr Hr Hr Hr Hr Gypsum Trifluralin 0.60 Tn 1.20 Pt Other 1.60 Hr *NOTE: P = Previous Year C = Current Year N = Next Year ARIZONA COOPERATIVE EXTENSION Department of Ag and Resource Economics University of Arizona F 7 / 187 Table 9E. Schedule of Operations; Upland Cotton, 1998 COUNTY:Cochise CROP: Cotton, Upland AREA: Kansas Settlement First No.Month Times FARM: Cochise County 98 ACRES: 1.0 YIELD: 744.0 Lb / Acre Operation Equipment/ Custom Oper HP Self-Prop./ Implement 1 2 3 4 5 6 Oct Oct Dec Dec Dec Dec 0.6 1.0 1.0 1.0 1.0 1.0 7 8 9 10 11 12 13 14 15 16 17 Jan Jan Jan Jan Feb Mar Mar Mar Apr Apr Apr Cotton, Make Modules 80 Module Builder Cotton Ginning CST Gin Upland Cotton Cotton Classing CST Class Cotton, HVI Crop Assessment CST Upland (High Elev) Cut Stalks 100 Rotary Stalk Cutter, 4 Row Disk Residue 125 Offset Disk, 16.5' Pickup use 60 Mi/Ac Pickup Truck, 1/2 Ton 1.0 Plow 125 Moldboard Plow, 4-16 2 0.3 Apply Soil Amendment CST Grnd Apply Gypsum 1.0 Disk 125 Offset Disk, 16.5' 1.0 Landplane 125 Landplane 12'X 45' 1.0 Apply Herbicide/Ground 100 Saddle Tk Sprayer, 2 Tk 8 1.0 List 125 Lister, 5 Bottom 2.0 Buck Rows 100 Rowbuck, 10' 1.0 Preirrigate 3.0 Disk Ends 125 Offset Disk, 16.5' 1.0 Mulch 100 Power Mulcher, 4 Rw 1.0 Plant 100 Planter, Drill Type, 4 Row 18 19 20 21 Apr May May May 1.0 5.0 1.0 1.0 22 23 24 25 26 27 28 Jun Jul Jul Oct Oct Oct Nov 1.0 1.0 0.5 1.0 1.0 1.0 0.6 Remove Cap Irrigate Soil Fertility Cultivate/Side Dress Page 44 WATER SOURCE: Ks Settlement, NG IRRIGATION SYSTEM: Flood Furrow PREVIOUS CROP: Cotton, Upland 100 Section Harrow, 3 Section CST Soil Analysis (Surface) 100 Rolling Cultivator, 4 Rw Fert. Side Dress Unit, 4Row Cultivate 100 Rolling Cultivator, 4 Rw Apply Fungicide/Air CST Air Spray, 3 Gal Mix Apply Insecticide/Air CST Air Spray, 3 Gal Mix Cotton, First Pick Cotton Picker, 2 Row Cotton, Make Modules 80 Module Builder Haul, Custom CST Haul Cotton Modules Cotton, Second Pick Cotton Picker, 2 Row Job Rate Acres/Hr TILLAGE: Conventional SOIL: Sandy-Loam DATE: 2/4/99 ---------- Material Use and Cost ---------- Service Cost Name Appl. Rate $ / Unit $ / Unit 1.00 Labor Type Other 2.95 Cs 1.25 Ba 2.80 Ba 5.50 7.00 0.50 2.50 Tractor Tractor Tractor Gypsum 7.00 4.00 6.00 Trifluralin 5.00 40.00 1.18 Water, Pump 40.00 4.00 4.00 Upl Cotton Sd+NU-Flow Phorate 6.00 2.40 Water, Pump 2.00 Tn 33.00 Tn 1.20 Pt 24.95 Ga 12.00 AI 42.09 AF 20.00 Lb 6.66 Lb 72.00 Lb 2.18 Lb 5.00 AI 42.09 AF 24.00 Ac Tractor Tractor Tractor Tractor Tractor Irrigators Tractor Tractor Tractor Tractor Irrigators 3.00 Ac 3.00 46-00-00, Urea 46 200.00 Lb 257.00 Tn Tractor 5.50 Tractor Mancozeb Chlorpyrifos 2.00 Lb 2.00 Pt 2.58 Lb 50.95 Ga 4.23 Ac 4.23 Ac 1.00 1.00 Harvest Other 0.00Mu 1.50 Harvest *NOTES: Machine times, labor times, and material rates are for one time over the designated acreage. ARIZONA COOPERATIVE EXTENSION Department of Ag and Resource Economics University of Arizona F 7 / 187