Projections for Planning Purposes Only -- Not to be Used without Updating 2016 Estimated Costs and Returns per Acre Alfalfa, Full Season, Baled - 7.5 Ton Goal, Flood Irrigated, El Paso Irrigation District Far West Extension District - 6 Crop Acres 122 Acres 122 REVENUE Alfalfa Hay - 3X4 Total Revenue Quantity 7.50 Units Ton $/Unit $250.00 Cash Total $1,875.00 $1,875.00 VARIABLE COSTS Production Costs Custom Soil Test Custom Apply Fertilizer Fertilizer Fertilizer 11-52-0 Herbicide Trifluralin Pursuit Crop Oil Concentrate Insecticide Warrior Z Intrepid Irrigation Water Cost Machinery Labor Tractors/Self-Propelled Diesel Fuel Tractors/Self-Propelled Gasoline Pickup/General Use Equipment Repairs & Maintenance Pickup/General Use Equipment Tractors/Self-Propelled Implements Interest on Credit Line Total Variable Costs Planned Returns Above Variable Costs: Breakeven Price to Cover Variable Costs Quantity Units $/Unit Total FIXED COSTS Machinery Depreciation Pickup/General Use Equipment Tractors/Self-Propelled Implements Equipment Investment Pickup/General Use Equipment Tractors/Self-Propelled Implements Allocated Establishment Cost Trans Pecos Irrigated Land Total Fixed Costs Total Specified Costs Quantity Enterprise Total $228,750.00 $228,750.00 Enterprise Total 0.5 1 Each Acre $5.00 $4.00 $2.50 $4.00 $305.00 $488.00 73 Pound $0.29 $21.17 $2,582.74 2 5 5 Pint Ounce Pint $3.13 $3.35 $1.98 $6.25 $16.73 $9.90 $762.50 $2,040.64 $1,207.80 7.04 2.31 Ounce Ounce $1.36 $1.98 $9.57 $4.57 $1,168.08 $558.14 48.00 AcreInch $1.75 $84.00 $10,248.00 2.48 Hour $12.00 $29.76 $3,630.72 13.49 Gallon $2.10 $28.33 $3,456.14 1 Acre $6.43 $6.43 $784.80 1 1 1 Acre Acre Acre $1.61 $14.29 $2.09 6.50% $1.61 $14.29 $2.09 $5.31 $246.51 $1,628.49 $196.20 $1,743.04 $254.72 $648.26 $30,074.76 $198,675.24 $32.87 Units 1 1 1 $25.13 $187.46 $45.82 1 1 Ton $/Unit Total Enterprise Total Acre Acre Acre $6.03 $26.25 $5.45 $6.03 $26.25 $5.45 $735.75 $3,202.59 $664.74 Dollars Dollars Dollars Acre Acre 6.50% 6.50% 6.50% $104.83 $40.00 $1.63 $12.18 $2.98 $104.83 $40.00 $199.36 $445.87 $199.27 $1,486.53 $363.37 $12,789.26 $4,880.00 $24,321.50 $54,396.27 $1,429.13 $174,353.73 Returns Above Specified Costs Breakeven Price to Cover Total Costs $59.45 Ton Example Breakeven Prices Example Yield Percent 75% 90% 100% 110% 125% Example Yield Ton 5.63 6.75 7.50 8.25 9.38 Price Needed to Cover Your Variable Costs $43.82 $36.52 $32.87 $29.88 $26.29 Price Needed to Cover Your Total Costs $79.27 $66.05 $59.45 $54.04 $47.56 Developed by Rob Hogan, Associate Professor and Extension Economist, Texas A&M AgriLife Extension. Information presented is prepared solely as a general guide and not intended to recognize or predict the costs and returns from any one operation. Brand names are mentioned only as examples and imply no endorsement.