Projections for Planning Purposes Only -- Not to be Used without Updating
2016 Estimated Costs and Returns per Acre
Alamo Switchgrass, Full Season, Pivot Irrigated, Grazed - 122 Acres
Far West Extension District - 6
Crop Acres
122
REVENUE
AUM Grazing Lease
Total Revenue
Quantity
6.30
Units
AUM
$/Unit
$18.75
Cash
Total
$118.13
$118.13
VARIABLE COSTS
Production Costs
Fertilizer
N-32 in Water
Urea, Solid (46% N)
Herbicide
2,4-D Amine 4
Other Labor
Hand Labor
Irrigation
Energy Cost
Irrigation Labor
Machinery Labor
Tractors/Self-Propelled
Diesel Fuel
Tractors/Self-Propelled
Repairs & Maintenance
Irrigation 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
Irrigation Equipment
Tractors/Self-Propelled
Implements
Equipment Investment
Irrigation Equipment
Tractors/Self-Propelled
Implements
Allocated Establishment Cost
Trans Pecos Irrigated Land
Total Fixed Costs
Total Specified Costs
Quantity
Enterprise
Total
$14,411.25
$14,411.25
Enterprise
Total
20
0.45
Pound
CWT
$0.17
$19.75
$3.40
$8.89
$414.80
$1,084.28
40
Ounce
$0.12
$4.80
$585.60
0.14
Hour
$8.50
$1.19
$145.18
4.56
0.03
Mcf
Hour
$4.00
$11.00
$18.24
$0.29
$2,225.28
$35.43
0.31
Hour
$12.00
$3.72
$453.84
1.17
Gallon
$2.10
$2.46
$299.75
Acre
Acre
Acre
$12.02
$1.55
$0.49
6.50%
$12.02
$1.55
$0.49
$1.43
$58.47
$59.65
$1,466.07
$189.33
$59.83
$174.54
$7,133.93
$7,277.32
1
1
1
$9.28
Units
1
1
1
$364.78
$11.71
$3.89
1
1
AUM
$/Unit
Total
Enterprise
Total
Acre
Acre
Acre
$48.64
$1.50
$0.47
$48.64
$1.50
$0.47
$5,933.75
$183.40
$57.09
Dollars
Dollars
Dollars
Acre
Acre
6.50%
6.50%
6.50%
$41.84
$40.00
$23.71
$0.76
$0.25
$41.84
$40.00
$157.17
$215.65
$2,892.70
$92.87
$30.85
$5,104.48
$4,880.00
$19,175.14
$26,309.07
($97.52)
($11,897.82)
Returns Above Specified Costs
Breakeven Price to Cover Total Costs
$34.23
AUM
Example Breakeven Prices
Example
Yield
Percent
75%
90%
100%
110%
125%
Example
Yield
AUM
4.73
5.67
6.30
6.93
7.88
Price Needed to Cover
Your Variable Costs
$12.38
$10.31
$9.28
$8.44
$7.43
Price Needed to Cover
Your Total Costs
$45.64
$38.03
$34.23
$31.12
$27.38
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.