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AN INTRODUCTION TO THE TEXAS CROP AND LIVESTOCK BUDGETS*
Estimating the production costs and returns of farm enterprises for planning purposes is a
difficult, but important, task. Timely and accurate cost of production estimates are necessary:
(a) to make input use decisions, and to arrange for operating capital requirements, (b) for
enterprise selection, (c) to estimate the potential profitability of capital investment decisions,
and (d) to develop marketing strategies and assess their impact on costs and returns.
Budgeting is a deceivingly simple tool which can be used for analysis of problems ranging
from day-to-day detailed choices to major questions about the size and type of farm business.
Budgeting, as a management tool, is the testing and estimation of likely outcomes from
decisions before they are implemented. Enterprise budgets are both a product of and the basic
building block for the planning process.
The Texas Crop and Livestock Budgets are projected enterprise budgets jointly prepared by
the Texas Agricultural Extension Service (TAEX) and the Texas Agricultural Experiment Station
(TAES) to assist farmers and ranchers in estimating "real" economic costs and returns of
production, in current dollars.1 The information presented in the budgets is prepared as a
management planning guideline and therefore is not intended to recognize or predict the costs
and returns from any particular farm or ranch operation. It is suggested that users modify the
budgets to fit their individual situations by making changes in yields, input levels, prices and
other factors. A column titled "Your Estimate" is provided on each budget to make
modifications convenient. Furthermore, the expiration date on each budget indicates updating is
necessary.
* Prepared by Robert H. Jenson, Assistant for Management Analysis, Department of
Agricultural Economics, Texas A&M University, College Station, February, 1986. This paper is
designed to accompany the distribution of the Texas Crop and Livestock Budgets (TAEX).
1 Alternative procedures are mixed in their method of handling the impact of inflation on
costs, or attempt to estimate nominal cash costs of production either before or after relevant
taxes. In fact, most budgets are a mixed bag of nominal, real, before-tax, after-tax, cash
and non-cash concepts and procedures.
The 1987 crop budgets include the anticipated government deficiency payments for cotton,
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corn, sorghum, and wheat. To qualify for these payments producers must be in compliance
with the government program for the respective crops. In evaluating the whole farm situation
proper acreage adjustments and fallow acreage costs must be included when determining costs
and returns per acre.
Procedure
One of the major problems involved in enterprise budgeting is the lack of information
concerning the amount of production which will result from a particular combination of
inputs. Information for the Texas Crop and Livestock budgets is assembled from published and
unpublished sources. The data are obtained and continually revised with the cooperation of
farmers, ranchers, and agribusiness firms through informal surveys and personal contacts. Data
supplied by these sources are confidential and provide average values which are used in
developing and revising budgets. Scientific sampling techniques required to produce statistically
reliable estimates, however, are not used due to time and cost limitations. When possible,
published information from the Texas Statistical Reporting Service and published research from
the Texas Agricultural Experiment Station (TAES) are used in preparation of the budgets.
Regionally based agricultural economists provide leadership in assembling the data and
constructing the budgets.
The input levels used, the combination of inputs and machinery operations, and the type
and length of ownership of machinery and equipment are not necessarily profit-maximizing.
They are only believed to be representative or typical for the specified geographic area.
Budget preparation is a time consuming task involving numerous data and mathematical
calculations. A computer program has been developed to aid in budget preparation. The TAEX
budgets are prepared using the Microcomputer Budget Management System (MBMS).2 This
2 McGrann, James, M., Kent D. Olson, Timothy A. Powell and Ted R. Nelson,
"Microcomputer Budget Management System User Manual." DepL of Agricultural Economics,
Texas A&M University, College Station, February 11, 1986.
computerized tool stores and retrieves base data, prices, and other factors; calculates machinery,
capital, and labor costs; organizes the costs and returns in a variety of formats; and performs
a number of budgeting analyses.
Terminology Used in Budgets
An enterprise budget is an economic recipe for the production of a commodity usually
expressed in terms of the production unit (e.g., per bushel, per head, etc.) or by a common
resource (e.g., per acre of cropland). It is a statement of all expected revenues and expenses,
both actual and imputed.
There are three general types of costs that make up the total economic cost of producing
any farm commodity. These are variable costs, fixed costs, and overhead costs.
Variable costs (sometimes referred to as operating costs) are those short-run costs that may
change with changes in level of production and/or are controlled by the manager. They are
JS^N
generally the cost of items that will be used up during one production cycle. If the manager
decided to cease the production activity, these costs are avoidable. Examples are such operating
inputs as fuel, fertilizer, chemicals and some hired labor costs. In the long run, all production
costs are variable.
In the TAEX published budgets, variable costs are further divided into pre-harvest and
harvest costs where applicable. This separation is particularly useful for decisionmaking in
which crop abandonment or graze-out are common practices. Once variable costs are incurred
(e.g., seed after planting), they have the characteristics of fixed costs and are referred to as
"sunk" costs.
Income above variable costs serves to guide most farm management decisions, particularly
in the short run. If income over variable costs is negative, and since variable costs are by
definition avoidable, a producer will minimize his losses by ceasing production. Selecting
enterprises which maximize income over variable costs will lead to greater short-run profit
jfPN
Fixed costs may be defined as those costs that either do not change with the level of
production or cannot be controlled or avoided. Examples are items such as property taxes,
3
insurance, depreciation, and interest on investment Cash or fixed dollar land rents and owner- ^s^
operator labor may also be considered fixed costs.
Fixed and variable cost analysis is a useful tool in determining profitability of an
investment (e.g., machinery) based on its life or ownership period. It can aid in determining
the best replacement policies, whether to own or custom-hire services, and a host of other
decisions. However, fixed and variable cost analysis does not adequately explain the cash flow
and income tax effects of an investment. Cash flow analysis is directed more to the question
of fiscal feasibility, or the ability to meet the financial obligations of the investment than to
the question of profitability. Consequently, the two types of analysis must be used together in
order to present a clear and total picture of investment alternatives.
Overhead costs are costs of machinery, equipment, buildings, and management that cannot
be directly identified with an individual enterprise. Since these items are involved in the
overall farm operation, it is sometimes difficult to reasonably include them in enterprise
budgets. Examples of overhead costs might be telephone service, office supplies, general utilities >c%
and legal and secretarial expenses.
The allocation of fixed and overhead costs is not generally required for most farm
management decisionmaking. At best, it is an arbitrary procedure for shared resources (e.g., the
fixed costs are allocated by percentage of total annual use in the Texas budgets). However,
estimates of the fixed resource requirements and the relative efficiency at which alternative
enterprises use fixed and limiting resources is important to enterprise selection.
The concept of opportunity cost, rather than incidence of cost, is used in estimating a
number of production cost items. The opportunity cost of a production resource is its current
value in its next best alternative use. The opportunity cost concept is useful in estimating the
appropriate costs of inputs that are either not purchased or do not have a clear market value,
such as equity capital, land rents, returns to operator labor, and farm-produced feedstuffs.
Cost incidence versus opportunity cost is the primary difference between economic cost of
production and cost estimates derived from cost accounting records when all inputs to the )
^"^ production process are included.
The projected net return in the budgets (the "bottom line") is the residual returns
remaining after accounting for accrued and imputed costs to other factors of production. (The
variable and fixed costs discussed above.) In most cases, the net return is a projected return to
certain overhead, management and profit (risk) for the enterprise, the only remaining factors
of production for which returns have not been imputed.
Calculating Annual Capital Requirements
Annual operating capital is the short term capital required to finance cash variable and
fixed costs during the enterprise production cycle. The MBMS program allows for the
internally generated cash (e.g., from the sales of products of the enterprise) to offset the
operating input expenses. Any cash surplus is carried forward as savings and any deficit
constitutes an operating capital requirement The annual capital requirement is the weighted
>#^N
average net capital requirement (weighted by days outstanding). The annual operating capital is
not the minimum or maximum of short-term financing required by the enterprise. Annual
capital requirements may even be negative if accumulated monthly receipts are greater than
expenses over the production cycle.
The interest charge on borrowed capital and the interest savings on surplus cash are listed
separately on the budgets to allow for different interest rates. The TAEX budgets assume that
100% of the required capital is borrowed (0% equity capital is used to meet operating
requirements).
Calculating Machinery, Equipment and Livestock Ownership Costs
One of the more difficult tasks in estimating costs of production is estimating the cost of
owning and operating farm machinery. Coupled with this difficulty is the associated problem
of. how to allocate the cost of items (e.g., tractors) shared by a number of enterprises on a
farm. The MBMS program divides equipment and livestock into seven categories: tractors, selfpropelled machinery, implements, equipment auto and trucks, breeding, milking and working
livestock, and buildings and other improvements.
Current replacement values and capital budgeting techniques are used as the basis for
calculating projected ownership costs (depreciation, interest, taxes and insurance) in the TAEX
budgets. This projected (economic) cost may be more or less than the estimated cost based on
the book values and IRS-approved depreciation schedules of the various classes of equipment
and livestock (rather than current market value) for established farms or ranches that have a
combination of used and new machinery. This method, however, more closely reflects the
"real" earnings required to cover the "real" cost of recapturing equipment investment especially
during high rates of inflation. The depreciation method based on book value and used for
income tax purposes underestimates the total amount of capital needed for replacement of
machinery and equipment under inflation. Accelerated depreciation schedules, combined with
short accounting lives, may overestimate the real economic depreciation needed for long run
production. Users of the budgets should review their fixed costs closely and be conscious of
the differences in ownership cost based on current replacement values versus those developed /*^
from historical or accounting costs and used for income tax purposes.
Since detailed information on equipment fuel, lubrication, repair and labor requirements is
not generally available, MBMS uses a series of functional relationships and parameter settings
for each machinery and equipment item to estimate ownership and operating costs. (See
machinery and equipment data and parameters at the end of each budget set and formula
section that follows). The hourly cost calculated for each piece of machinery or equipment and
the per acre or or per mile cost of each fanning operation, including associated labor and
materials costs, is also printed at the end of each set of crop budgets.
Other Information Available
Budget analyses available from the budget generator are detailed line item reports, summary
reports and reports by stage, operation, resource, residual returns and expense type. The crop
budgets are printed using the report by stage. The livestock budgets use the residual returns
and operations reports. Also available is the ability to generate whole farm cash flow
6
summaries on the basis of enterprise budgets and the number of units of each in the farm
organization. Details concerning this information may be obtained from the economistmanagement serving the particular Extension district
Limitations
Careful evaluation of the resource situations must precede the drawing of inferences from
an enterprise budget Farms having resource situations (available land, machinery, capital, and
management, for example) that differ from the situation assumed by the budgets can come to
considerably different conclusions. Differences in assumed annual hours of use of machinery
and equipment because of farm size or other uses, or size of the machinery used, can make
significant differences in per unit costs and net returns. These differences in resources and
organization must be evaluated and accounted for adequately if reliable conclusions are to be
drawn.
The Texas Crop and Livestock Budgets are projected budgets, not historical or actual. It is
difficult to make accurate estimates of future prices, yields, or other production uncertainties.
Most of the budgets are prepared 12 to 18 months in advance of the crop harvest or the end
of the livestock production cycle. Therefore, the user should evaluate current production
outlook information and use his expectations to update the budgets in preparing to use them.
In addition, year-to-year comparisons of the published budgets are not advisable due to
changes in farm size, technology, and farming patterns.
Availability
The Texas Crop and Livestock Budgets are published annually and distributed in loose-leaf
form on a subscription basis. Various budgets are published for each of the fourteen Extension
Districts in the state. To subscribe send $100 to: Extension Farm Management Dept of
Agricultural Economics, Texas A&M University, College Station, Texas, 77843.
Individual copies of budgets for major enterprises in a particular Extension District may be
obtained at no cost through local county Extension offices.
APPENDIX I. FORMULAE FOR ESTIMATING MACHINERY COST4
TRACTOR, MACHINERY AND IMPLEMENT COST CALCULATION5
The tractor, self-propelled machinery, and implement calculation section is the major
computational part of MBMS. Several options are available to users to calculate both hourly
and per acre costs. The two major options are for calculation of repair, maintenance and
depreciation costs. Option one is based on user defined costs associated with an hourly use
base while option two duplicates the procedure and formulas in the 1983 ASAE Yearbook to
calculate repair, maintenance and depreciation costs. Nearly all of the published budgets are
calculated using option two, so that is what will be explained here.
Field Capacity Calculation
The field capacity of different implements and self-propelled equipment must be calculated
to determine tractor hours or self-propelled hours per acre.
Calculated capacity for tractors and self-propelled machinery is similar except that selfpropelled machinery has its own capacity estimate. A wheel tractor or a track layer relies on
the implements to determine capacity and power requirements.
Since multiple implements are allowed on one tractor the slowest implement should
determine the overall capacity. A tractor multiplier is used to convert the implement hours
per acre into tractor hours per acre.
The implement hours per acre is calculated from the implement information.
The capacity of self-propelled machinery, such as a combine, is calculated from the speed,
width and field efficiency information. The following equation is used to calculate capacity.
C = (S * W * FE) / 8.25
where
C = acres per hour calculated capacity
S = implement speed in miles per hour
W = swath width of the implement in feet
FE = field efficiency is the ratio of accomplishment in acres per hour compared
to theoretical maximum efficency
Speed is expressed in miles per hour, width in feet and field efficiency as the ratio of
actual capacity to theoretical capacity. The constant 8.25, is used to convert the units to
acres per hour.
The tractor and machine hours per acre are used to calculate operator hours per acre and
fuel per acre. They are also used to allocate the fixed costs of interest, depreciation and the
annual lease payment
The required operator's hours are a multiple of the tractor or machinery hours per acre.
We expect the operator to work longer than the machine due to pre-operation checkouts,
waiting, etc. This additional time is expressed as a percentage of the tractor or the machine
hours. The following equations are used to calculate operator's hours per acre for tractors or
self-propelled machinery.
JSS^S
4 For a complete listing of formulas used by MBMS see the "Microcomputer Budget
Management System User Manual", Chapter 9 (See footnote 2).
5 Irrigation equipment calculations are nearly identical except calculated on an acre-inch basis.
Operator's hours/acre = Tractor hours/acre * labor multiplier
Operator's hours/acre = Machine hours/acre * self-propelled labor multiplier
The operator wage is multiplied by the operator's hours per acre to calculate the cost of
operator labor per acre.
Operator cost/acre = operator's hours/acre * wage rate
Fuel Requirement and Cost Calculations
Fuel cost is calculated using equivalent PTO horsepower of the implements) and the
required fuel use multiplier of the fuel type. Equivalent PTO horsepower required varies
directly with implement width, tillage depth, soil texture, and speed of operation. All these
factors determine draft of an implement For tractors pulling two or more implements, the
required horsepower for that tractor is the sum of the required horsepower for each
implement The formulas for calculating fuel cost are shown below.
CFC = (F * HPR * FM)
where
CFC = calculated fuel use cost per hour
HPR = equivalent PTO horsepower required
FM = fuel use multiplier for each fuel type
FM^^e = .54X + .62 - .04 * (697X)05
FMdiesel = .52X + .77 - .04 * (738X + 173)05
FMLPG = .53X + .62 - .04 * (646X)05
X = HPR divided by the maximum PTO horsepower available
Lube Cost Calculation
Lube cost per hour is calculated as a percent of the fuel cost The multiplier is stored in
the parameter file.
where
LC = FC * (LM * .01)
LC = lube cost per hour
FC = fuel cost as defined for the two options
LM = lube multiplier
Repair and Maintenance
Repair, maintenance and depreciation calculation procedure duplicates the Agricultural
Engineers Yearbook of 1983, sections: ASAE EP391 and ASAE D230.3. The formulae for
these calculations are:
R = LP * RC#1 * ((HPU + AU)/1000)RC*2 - (HPU/1000)RC#2)/ AU
where
R = repair and maintenance cost per hour (R & M)
LP = current list price
RC#1 = repair coefficient #1
HPU = hours of previous accumulated use
AU = hours of annual use
RC#2 = repair coefficient #2
10
Z^^lk
Repair Coefficient #7
RC#1 is a variable that helps determine the shape of the repair curve for a specific
machine.
Repair Coefficient #2
RC#2 is an exponent variable which, in conjuction with RC#1, determines the shape of the
repair curve.
Repair and maintenance costs are highly variable and unpredictable as to time of
occurrence. These equations are but estimates of average values. A typical variation could be
expected to range from 50 percent to 200 percent of the estimated cost in this data.
Insurance
Insurance cost is based on a fixed percentage of market value. Insurance cost per hour is
calculated by the following formula:
INS = (INR * .01 * M) / HAU
where
INS = insurance cost per hour
INR = insurance rate based on current market value (%)
M = current market value
HAU = hours of annual use
Depreciation
Depreciation is based on equations to estimate the remaining value of the machine and on
-p^ the assumption of constant annual use of the machine. Two values that are specified are
(F^ factors used to calculate salvage value and hourly depreciation. DF#1 is the percentage of
original value that remains after the first year depreciation. DF#2 is a component of the
standard double declining balance equation. Values for both depreciation factors were taken
from the 1983 Agricultural Engineers Yearbook.
Depreciation cost calculation uses the two depreciation factors to calculate salvage value and
to adjust current market value. This value is then divided by the number of years of expected
ownership times annual use.
The formula for calculating depreciation (D) is:
D = M - SV / (HAU * YO)
where
D = depreciation per hour
M = current market price
SV = LP * DF#1 * (DF#2) ** YO
LP = list price
DF#1 = depreciation factor #1
DF#2 = depreciation factor #2
YO = years owned
HAU = hours of annual use
Interest on Investment
Interest on investment is calculated using the following formula.
IC = ((M + SV) * (IR * .01)) / (2 * HAU)
where
IC = hourly interest cost on capital investment
11
M = current market value, purchase price
SV = salvage value, defined in depreciation calculations
HAU= hours of annual use
IR = interest rate, annual percent
Note on Hours of Annual Use of Tractors, Machinery and Implements
Hours of annual use (HAU) is a key variable in all the equations. The machinery cost in
the budgets can be significantly different from an actual farm with different annual machinery
use.
EQUIPMENT COST CALCULATION PROCEDURE
The costs of equipment such as augers, livestock handling equipment etc. are calculated
with defined data. The option to have costs calculated does not exist as with tractors and
machinery. Depreciation, interest, insurance, taxes, fuel consumption, and repair and
maintenance costs are all calculated from defined data.
Fuel Costs
Fuel costs are calculated by multiplying the annual use by the fuel price. The annual use
is calculated by multiplying the specified gallons per hour of use by the annual hours of use.
Not all equipment uses fuel.
Repair and Maintenance Calculations
The hours of owner and hired on-farm labor and off-farm purchased parts and labor for a
specific repair and maintenance base hours of use level are defined. The formula for this
calculation is as follows:
R = ((FHL * CHL + FOL * COL + PLS) / BASE)
where
R = repair and maintenance cost per hour (R & M)
FHL = on-farm hired labor (hr)
CHL = cost of on-farm hired labor for R & M
FOL = on-farm owner labor for R & M (hr)
COL = cost of on-farm owner labor for R & M
PLS' = off-farm parts, labor and supplies for annual R & M
BASE = operating hours on which repair and maintenance cost is based
Hired Labor
The amount of hired operator labor is specified on an hourly basis when the enterprise
budget is defined. The hourly quantity is multiplied by the hourly labor wage stored in the
labor resource file to determine hourly hired labor cost This value is added to repair and
maintenance hired labor to determine total hired labor cost
Insurance
Insurance costs per hour are based on a fixed percentage of market value divided by hours
of annual use.
INS = (INR * .01 * M) / HAU
where
INS = insurance cost per hour
INR = insurance rate based on current market value
M = current market value
HAU = hours of annual use
12
Depreciation
Depreciation is a measure of the actual decline in value of the equipment in the current
year. It is dependent on the portion of remaining life used in the current year and on the
current market value adjusted for salvage value.
D = ((HAU / RL) * (M * (1 - (SV * .01)))) / HAU
where
D = current depreciation per hour
HAU = hours of annual use
RL = remaining life
M = current market value
SV = salvage value as a percent of current market value
Interest on Investment
Interest costs per hour are based on the average amount of investment (market value)
adjusted for one-half of depreciation in the current year. The total interest cost is then
divided by hours of annual use.
IC = ((M - D * HAU/2) * (IR * .01)) / HAU
where
IC = interest cost of capital
M = current markt value
D = depreciation as defined in depreciation calculations
HAU = hours of annual use
IR = interest rate (%)
AUTO AND TRUCK COST CALCULATION PROCEDURES
The costs of operating automobiles and trucks include both fixed ownership costs and
variable operating costs. Fixed costs include depreciation, interest on investment annual
insurance premium, license and tax. Operating costs include repair and maintenance costs, fuel
costs and owner operator labor costs. Costs are calculated on a per hour and per mile basis.
Fuel
Fuel costs are calculated on both a per hour basis and on a per mile basis. Both are
dependent on the efficiency of fuel use and on fuel costs.
FCMI = FUC / FU
FCHR= FCMI * MPH
where
FCMI= fuel cost per mile
FU = miles per gallon of fuel
FUC = fuel cost per gallon of fuel
FCHR= fuel cost per hour
MPH = average speed of operation in miles per hour
Repair and Maintenance Calculations
The hours of owner and hired on-farm and off-farm purchased parts and labor for a
specific repair and maintenance base hours of use level are defined. The formula for this
calculation is as follows:
13
R = ((FHL * CHL + FOL * COL +PLS) / BASE)
where
R = repair and maintenance cost per hour (R & M)
FHL = on-farm hired labor (hr)
CHL = cost of on-farm hired labor for R & M
FOL = on-farm owner labor for R & M (hr)
COL = cost of on-farm owner labor for R & M
PLS = off-farm parts, labor and supplies for annual R & M
BASE = operating hours on which repair and maintenance cost is based
Operator Labor
The number of hours of operator labor used for each vehicle is based on the number of
hours the vehicle is in operation. Hours of annual use is determined by multiplying the
number of miles the vehicle is driven annually by the average speed of operation.
OL = (1 / MPH) * MAU * LMULT
where
OL = hours of owner operator labor used annually
MPH = average speed of operation in miles per hour
MAU = miles of annual use
LMULT = labor multiplier
Insurance, License, and Taxes
The annual insurance premium and any applicable licensing fees and taxes paid for each
vehicle are defined values.
Depreciation
Depreciation is a measure of the actual loss of value in the auto or truck occurring in the
current year. Thus it may be different than depreciation used for tax purposes. The formula
takes the fraction of remaining life used in the current year (AU/RL) and multiplies it by the
current market value of the auto or truck (M) less salvage value (LP * SV * .01).
D = (AU / RL) * (M * (1 - (SV * .01)))
where
D = current annual depreciation
AU = annual use based on miles
RL = remaining life based on miles
M = current market value
SV = salvage value as a percent of current market value
Interest on Investment
Interest on investment is calculated as the opportunity cost of capital. Interest is calculated
on the actual market value of the vehicle less half the year's depreciation. This is justified by
thinking of interest in the following manner: the opportunity cost of capital is the rate of
return on capital which could be obtained in an alternative use. The alternative use of capital
in this case would be to sell the vehicle and use the receipts in another investment
IC = (M - D / 2) * IR * .01
where
IC = total interest cost or opportunity cost of investment
M = current market value
D = depreciation as defined in depreciation calculation
IR = interest rate
14
^^
BREEDING, MILKING AND WORKING LIVESTOCK
The cost of owning livestock depends on whether the animals were raised or purchased.
Raised animals must include all production inputs associated with raising the animal. Purchased
animals are treated like any other purchased asset so depreciation must be calculated.
Livestock costs include interest on investment insurance and property tax cost
Livestock Insurance
INS = INR * .01 * M
where
INS = insurance cost
INR = insurance rate based on current market value (%)
M = current market value
Depreciation (Purchased Livestock)
Depreciation is a measure of the actual loss of value in the purchased livestock occurring
in the current year. Thus it may be different than depreciation used for tax purposes. The
formula takes the fraction of remaining life used in the current year (1/RL) and multiplies it
by the current market value of the livestock (M) less salvage value .
D = (1/RL) * (M * (1 - (SV * .01)))
where
D = current annual depreciation
RL = remaining life
M = current market value
SV = salvage value as a percent of market value
Interest on Investment
Purchased and raised animals are treated as a capital asset There is an interest
opportunity cost of holding onto the animal. This cost is calculated by the following formula:
IC = (M-D/2) * IR * .01
where
IC = opportunity cost of holding the animal
M = current market value
D = depreciation as defined in depreciation calculation
IR = interest rate
BUILDING COST CALCULATION PROCEDURE
Building costs include both ownership costs and variable or operating costs. Ownership costs
include depreciation, interest on investment insurance and property tax. Operating costs include
repair and maintenance costs and annual fuel costs or utility payments. The procedures and
formulas to calculate these costs are given below.
Fuel or Utility Cost
Annual fuel or utility cost is defined.
J ^ \
Repair and Maintenance
The repair and maintenance cost calculation procedure requires the following data: off-farm
parts and labor cost and the number of hours of hired labor and operator labor which are
used for repair and maintenance.
15
R =
where
R =
FHL
CHL
FOL
COL
PLS
((FHL * CHL) + (FOL * COL) + PLS)
annual repair and maintenance
= on-farm hired labor
= cost of on-farm hired labor
= on-farm owner-operator labor
= cost of on-farm owner-operator labor
= off-farm parts and labor
Labor
The labor for operation of the building is specified when the enterprise budget is defined.
On-farm labor costs for maintenance and repair are calculated when repair and maintenance
costs are determined.
Property Tax
The calculation of property tax is also straightforward. Annual property tax is entered as a
$/yr value that appears in the fixed cost section of the budget
Insurance
Insurance is the cost of insuring the capital investment (building) against loss or damage.
Thus it is based on a percentage of the current market value of the building.
INS = INR * .01 * M
where
INS = insurance cost
INR = insurance rate based on current market value (%)
Depreciation
Depreciation is a measure of the actual loss of value in the building occurring in the
current year. Thus it may be different than depreciation used for tax purposes.
D = (1 / RL) * (M * (1 - (SV * .01)))
where
D = current annual depreciation
RL = remaining life (yrs)
M = current market value
SV = salvage value as a percent of current market value
Interest on Investment
Interest on investment is calculated as the opportunity cost of capital. Interest is calculated
on the actual market value of the building less half the year's depreciation.
IC = (M - D / 2) * IR * .01
where
IC = total interest cost or opportunity cost of investment
M = current market value
D = depreciation as defined above in depreciation calculation
IR = interest rate (%)
OPERATING CAPITAL COST CALCULATION PROCEDURE
Annual operating capital is the short term capital required to finance cash variable and
16
r^ fixed costs during the enterprise production cycle. The MBMS program allows for the
internally generated cash (e.g., from the sales of products of the enterprise) to offset the
operating input expenses. Any cash surplus is carried forward as savings and any deficit
constitutes an operating capital requirement The annual capital requirement is the weighted
average net capital requirement (weighted by the days outstanding). The annual operating
capital is not tie minimum or maximum of short-term financing required by the enterprise.
Annual capital requirements may even be negative if accumulative monthly receipts are greater
than expenses over the production cycle.
An example will illustrate how the annual operating capital interest borrowed and interest
earned are derived. Suppose you can borrow money at 12% interest and you can receive 12%
interest on any cash surplus (called operating capital borrowed and surplus cash flow in the
parameter file). Assume 100% of the operating capital is borrowed. The following table
shows the effect of three transactions.
Cash
Cash
Balance
Days
Annual
Interest
Date Receipts Expenses Difference to Date Outstanding Capital on OC
01/01/84
01/15/84
02/01/84
02/15/84
—
100
50
100
100
50
100
-100
-50
50
50
—
15
15
14
—.
4.167
2.083
-1.944
—.—
.50
.25
-.233
The annual capital is calculated as the outstanding balance times the days outstanding
divided by 360 (e.g., 100 X 15 / 360 = 4.167). This value times the interest rate yields
interest payed or received (e.g., 4.167 X .12 = .5). In the budgets annual capital and interest
will appear positive (+) for money borrowed and negative (-) for money earned, i.e., interest
earned is a negative cost
There are two operating capital interest rates in the budgets including: (1) interest rate on
borrowed capital and (2) interest rate on equity capital. Separating operating capital into these
categories allows for different interest rates.
17
CONTENTS
An
Introduction
Procedure
to
the
Te x a s
Te r m i n o l o g y
Used
Calculating
Annual
Capital
C a l c u l a t i n g M a c h i n e r y, E q u i p m e n t
Other
Information
Limitations
Availability
Appendix
I.
Formulae
for
Crop
and
Livestock
Budgets
1n
Budgets
Requirements
.
and Livestock Ownership
Available
Est1mating;Mach1nery
1
2
.
Costs
Gos't*
Tractor,
Machinery
and
Implement
Cost
Calculation5
Field
Capacity
Calculation
.
.
.
Fuel
Requirement
and
Cost
Calculations
Lube
Cost
Calculation
Repair
and
Maintenance
Insurance
;
3
5
5
6
7
7
g
9
9
10
10
10
11
Depredation
11
Interest
on
Investment
11
Note on Hours of Annual Use of Tractors, Machinery and Implements 12
Equipment
Fuel
Repair
and
Hired
Insurance
Depredation
Interest
Auto
and
Fuel
Repair
Operator
Insurance,
Depreciation
Interest
.^SpP^N
A
Cost
on
Truck
License,
Calculation
Maintenance
Labor
and
Ta x e s
on
Milking
Building
Fuel
Repair
Labor
Property
Insurance
Depredation
Interest
Cost
or
12
12
12
12
,12
13
13
Investment
Cost
and
Breeding,
Livestock
Depreciation
Interest
Operating
TEXAS
Calculation
Procedure
Costs
Maintenance
Calculations
....
Labor
Procedures
Calculations
.
.
,
Investment
and
Working
Insurance
.
(Purchased
on
Investment
Calculation
Utility
and
Livestock
.
Livestock)
-
Procedure
Cost
Maintenance
Ta x
on
Capital
Cost
PA N H A N D L E
Investment
Calculation
DISTRICT
Procedure
C1.
13
13
13
14
14
14
14
-15
15
15
15
15
15
15
16
16
16
16
16
16
1
Alfalfa
Establishment,
Alfalfa,
Furrow
Corn
Corn
B a r l e y,
B a r l e y,
for
for
Corn
Furrow
Grain,
Grain,
Silage,
Irri.
Irrigated,
Winter
Winter
Furrow
Dryland
Irrigated,
Sprinkler
Irrigated,
Sorghum,
Furrow
Irrigated,
Sorghum
for
Sprinkler
Irrigated,
(Natural
Sprinkler
C1.27
Gas)
C1.29
Gas)
C1.31
Gas)
C1
C1.35
Gas)
C1.41
Products
Sprinkler
Irrig
C1.43
(Natural
Gas)
C1.45
Irrig.
Report
and
Equipment
Resources
Truck
Resources
11
C1.37
Irrigated,.(Natural
Sprinkler.
Input
.33
C1.39
Pasture,
or
C1.25
Gas)
Permanent
Implements
C1.23
(Natural
Establishment,
Operating
Auto
Irrigated,
Pasture
Tractors,
Gas)
Irrigated
Permanent
Crop
C1.19
Dryland
Furrow
C1.13
C1.17
Dryland
(Natural
Beets,
C 1 . 11
C1.21
(Natural
(Natural
Irrigated,
Wheat,
Wheat,
Gas)
C1.9
C1.15
H a y,
Irrigated,
Sugar
Wheat,
Gas)
Dryland
Furrow
Soybeans,
C1.7
Dryland
Sorghum,
Sorghum,
Gas)
Irrigated
Sorghum,
C1.3
C1.5
Irrigated
Sprinkler
C1.1
.
Gas)
(Natural
Sprinkler
Spanish,
•Forage
(Natural
(Natural
Irrigated,
Florunner1,
Sorghum,
.
Dryland
Forage
Forage
Gas)
(Natural
Furrow
Cotton
Peanuts,
Gas)
(Natural
Irrigated,
Furrow
Peanuts,
(Natural
C1.47
C1.48
C1.51
C1.52
0 *
Custom
Operation
Labor
Resources
Resources
Livestock
Buildings
C1.55
Resources
Crop
;
Resources
or
.
Parameters
PA N H A N D L E
Alfalfa
Report
DISTRICT
C1.62
L1.1
Irrigated
(Sprinkler)
.
Irrigated
(Heavier
Dryland
C2.
Irrigated
Sprinkler
Dryland
Cotton,
Budget
Irrigated"(Sprinkler)
Furrow
Corn,
Cotton,
Calf
L1.1
Report
DISTRICT
H a y,
Corn,
C1.59
C1.60
Stocker
Establishment,
Alfalfa
C1.58
Budget
Products
PLAINS
SOUTH
.
Report
Cow-Calf
Livestock
TEXAS
C1.57
'.'~\
Cost
Winter
.
Resources
Equipment
Machinery
C1.56
.
Improvements
Irrigation
Budget
TEXAS
C1.54
Resources
Land
Perennial
C1.53
Te x t u r e d
(Sandy
Soils)
Soils)
L1.3
L1.5
1
C2.1
C2.3
C2.5
C2.7
C2.9
C 2 . 11
C o t t o n , F u r r o w I r r i g a t e d ( H e a v i e r Te x t u r e d S o i l s ) C 2 . 1 3
Cotton,
Sprinkler
Irrigated
(Sandy
Soils)
C2.15
G r a i n S o r g h u m , D r y l a n d ( H e a v i e r Te x t u r e d S o i l ) C 2 . 1 7
Grain
Sorghum,
Dryland
(Sandy
Soil)
C2.19
S o r g h u m , F u r r o w I r r i g a t e d ( H e a v i e r Te x t u r e d S o i l s ) C 2 . 2 1
Sorghum,
Set
Sprinkler
Aside
Irrigated
Land
for
(Sandy
Row
Soils)
Crops
C2.23
C2.25
/f^N
Soybeans,
Furrow
111
Irrigated
C2.27
S u n fl o w e r s ,
Dryland
S u n fl o w e r s ,
Wheat,
Furrow
Dryland
Wheat.
Wheat,
Furrow
Wheat,
Wheat,
Pivot
Set
Crop
Tractors,
Auto
Custom
(Heavier
Irrigated
Irrigated
Aside
Soils)
Te x t u r e
(Heavier
Soils)
Soils)
Te x t .
for
Soil)
Wheat
Report
Implements
and
Input
or
C2.31
Soils)
(Sandy
Land
Products
Operating
Te x t u r e
(Sandy
Irrigated
Sprinkler
Center
Irrigated
(Heavier
Dryland
C2.29
C2.37
C2.39
C2.41
C2.43
C2.46
Resources
C2.48
Resources
Operation
C2.35
C2.45
Equipment
Truck
C2.33
Resources
C2.49
,
C2.50
Labor
Resources
C2.51
Land
Resources
C2.52
Perennial
Crop
Resources
Irrigation
Equipment
Machinery
Budget
TEXAS
Cost
Parameters
PA N H A N D L E
C2.54
Report
C2.55
Report
DISTRICT
C2.57
L1.1
Cow-Calf
Winter
Livestock
TEXAS
C2.53
ROLLING
Stocker
Products
PLAINS
Alfalfa
Budget
Calf
Alfalfa,
Alfalfa
Budget
Report
DISTRICT
Establishment,
L1.1
C3.
Dryland
Dryland
Establishment,
Alfalfa,
Irrigated
Irrigated
1v
L1.3
L1.5
1
C3.1
C3.3
C3.5
C3.7
^r^
Coastal
Bermudagrass
Establishment,
Coastal
Bermudagrass
Cotton,
Dryland
Cotton,
Cotton,
Dryland,
H a y,
(Solid
Dryland,
Irrigated
Irrigated
C 3 . 11
Rows)
C3.13
Row
C3.15
40"
Narrow
(2X2
C3.9
Planting
Pattern)
C3.17
Cotton, Dryland(2x1 Planting) Conservation Tillage C3.19
Cotton,
Guar,
Guar,
Sorghum,
Sorghum,
Sorghum,
Dryland,
Crop
Tractors,
Auto
Dryland,
C3.27
Irrigated
C3.29
Tillage
Tillage
Equipment
Resources
Resources
or
Resources
Equipment
v
C3.41
C3.42
C3.43
C3.47
C3.48
C3.49
Report
Parameters
ROLLING
PLAINS
C3.38
C3.45
Resources
Cost
C3.37
C3.46
Improvements
Irrigation
C3.35
C3.44
Resources
Crop
C3.31
C3.33
Resources
Perennial
Budget
TEXAS
Dryland
Resources
Land
Machinery
C3.25
Resources
Operation
Livestock
Buildings
and
Truck
Labor
Irrigated
Conservation
Input
Custom
C3.23
Report
Implements
or
Dryland
Dryland
Products
Operating
C3.21
Conservation
Wheat,
Wheat,
Irrigated
Report
DISTRICT
C3.50
C3.52
L3.1
Cow-Calf
Farrow
Production
to
Finish
Feeder
Hog
Pig
Finishing
Stocker
Livestock
NORTH
CENTRAL
Hay
Coastal
Overseeded
with
Hay
Pasture
after
after
Production,
&
Clover
C4.3
C4.5
C4.7
C4.9
C 4 . 11
Wheat
C4.13
Wheat
C4.15
Only
C4.17
Grazing
Cotton
Set
Aside
Land
with
Diversion
Payment
C4.19
Wheat
Set
Aside
Land
with
Diversion
Payment
C4.21
Set
Aside
Land
without
Sorghum
Sorghum
Wheat
for
after
Whole
after
Wheat
Grazing
Row
Farm
Products
with
Budgets
Report
Implements
and
v1
Equipment
C4.23
C4.25
Continuous
Continuous
Production
Payment
Hay
Production,
Production,
Wheat
Diversion
Production
Wheat
Tractors,
Ye a r
Ryegrass
Production
L 3 . 11
1
C4.1
Establishment
Production
Cotton
L3.9
C4.
Second
Bermudagrass
Corn
Crop
L3.7
Bermudagrass
Coastal
Wheat
Hogs
Report
DISTRICT
Bermudagrass
Bermudagrass
L3.5
Hay
Alfalfa
L3.3
Production
Budget
Alfalfa
Coastal
Production
Calf
Products
TEXAS
L3.1
Crop
C4.27
C4.29
C4.31
C4.33
C4.35
C4.37
C4.38
^
\
Operating
Auto
Input
or
Resources
Truck
Custom
C4.44
Resources
C4.45
Resources
Land
C4.46
Resources
Perennial
C4.47
Crop
or
Resources
Improvements
Irrigation
C4.48
Resources
C4.49
Equipment
Machinery
Cost
C4.50
Report
Parameters
CENTRAL
TEXAS
Dairy
(with
Production
Farrow
to
Hog
P1g
Silage)
Production
Production
Market
C4.53
1
L4.1
Silage)
(without
Finishing
Feeder
Stocker
L4.
Production
Production
Dairy
C4.51
Report
DISTRICT
Cow-Calf
Livestock
NORTHEAST
C4.43
Resources
Livestock
Budget
NORTH
Resources
Operation
Labor
Buildings
C4.41
Hogs
L4.3
L4.5
L4.7
L4.9
L 4 . 11
Goat
Production
L4.13
Sheep
Production
L4.15
Calf
Production
(Native
Pasture)
L4.17
Stocker
Calf
Production
(Wheat
Grazing
Nov-Feb)
L4.19
Stocker
Calf
Production
(Wheat
Grazing
Nov-May)
L4.21
Products
TEXAS
Corn,
Corn,
Report
DISTRICT
Typical
High
Level
Management
Management
L4.23
C5.1
C5.1
C5.3
/0^\
Cotton,
Typical
vii
Management
C5.5
Cotton,
High
Sorghum,
Sorghum,
Management
Typical
High
Coastal
Coastal
Level
Management
Level
Management
Bermudagrass
Bermudagrass
H a y,
Establishment
Typical
Management
C5.7
C5.9
C 5 . 11
C5.13
C5.15
C o a s t a l B e r m u d a g r a s s H a y, H i g h L e v e l M a n a g e m e n t C 5 . 1 7
Soybeans,
Typical
Soybeans,
Wheat
Wheat
High
Level
Production,
Production,
Management
Management
Typical
High
Management
Level
Southern
Coastal
Small
Yuchl
Christmas
Peas
Bermudagrass
Coastal
Tree
Tree
C5.33
Peaches,
Auto
(Wholesale)
(Choose
&
and
Input
C5.41
C5.45
C5.47
Third
Ye a r
C5.49
Fourth
Ye a r
C5.51
Fifth
Ye a r
C5.53
Twelfth
Equipment
Resources
viH
C5.37
Ye a r
Resources
Truck
Cut)
Ye a r
Report
Implements
C5.35
Second
through
Products
or
Establishment
First
Peaches,
Operating
Pasture
Production
Peaches,
Tractors,
C5.29
Grains
Peaches,
Crop
C5.25
C5.27
Pasture
Production
Sixth
C5.23
C5.31
Peaches,
Peaches,
C5.21
Bermudagrass-Clover
Clover
Christmas
Management
C5.19
Ye a r s
C5.55
C5.57
C5.58
C5.62
C5.65
#*N
Custom
Operation
Resources
Labor
Resources
Livestock
C5.67
Resources
Land
C5.68
Resources
Perennial
Buildings
C5.69
Crop
or
Resources
Improvements
Irrigation
Resources
Report
Parameters
TEXAS
Lease
Cow-Calf
Dairy
Dairy
Production
with
Hog
Stocker
Stocker
Replacement
Calf
Calf
Contract
Broiler
Contract
Breeder
L5.15
L5.17
L5.19
Pullet
Production
L5.21
Irrigated
Report
Equipment
Resources
1x
L 5 . 11
Production
Cotton,
Input
L5.9
Production
Report
DISTRICT
and
L5.7
L5.13
Dryland
Implements
L5.5
Breeder
Products
TEXAS
Products
L5.3
Production
Broilers
Upland
Operating
Replacement
Production
Cotton.
Tractors,
L5.1
Production
Contract
Crop
Production
Raised
P1g
Market
WEST
C5.76
1
Purchased
with
Feeder
Light
L5.
Production
Production
Heavy
C5.73
Report
DISTRICT
Cow-Calf
C5.71
C5.72
Cost
Budget
NORTHEAST
Livestock
FAR
C5.70
Equipment
Machinery
\
C5.66
L5.23
C6.1
C6.1
C6.3
C6.5
C6.6
C6.9
Auto
or
Truck
Custom
Operation
C6.12
Resources
Land
C6.13
Resources
or
C6.14
Improvements
Irrigation
Resources
Equipment
Machinery
Cost
WEST
Report
Parameters
TEXAS
Bermudagrass
Pasture,
Establishment,
Bermudagrass
Coastal
Hybrid
Establishment,
Bermudagrass
Coastal
Pasture,
Bermudagrass
Sudan-Sorghum
Kleingrass
Kleingrass
Hay
Spanish
Peanuts,
Cotton,
Cotton,
Crop
Products
Dryland
Establishment,
C7.5
Irrigated
C7.7
Grazing
Dryland
Dryland
Dryland
Grain
for
Irrigated,
C7.3
Dryland
Irrigated
and
Pasture,
C7.1
Irrigated
H a y,
Oats,
Small
L6.3
C7.1
Dryland
Bermudagrass
Coastal
L6.1
Report
DISTRICT
Sorghum,
Coastal
C6.19
L6.1
Production
TEXAS
Coastal
C6.17
Report
DISTRICT
Products
CENTRAL
C6.15
C6.16
Cow-Calf
Livestock
WEST
C 6 . 11
Resources
Livestock
Budget
FAR
C6.10
Resources
Labor
Buildings
Resources
C7.9
C 7 . 11
C7.13
C7.15
C7.17
C7.19
Grazing
Solid
Planting
C7.21
C7.23
Dryland
C7.25
Irrigated
C7.27
Report
C7.29
F
Tractors,
Implements
Operating
Input
Auto
or
and
Resources
Truck
Custom
C7.36
Resources
C7.37
Resources
Perennial
C7.38
Crop
or
Resources
Improvements
Irrigation
C7.39
Resources
Equipment
Machinery
Cost
Report
Parameters
CENTRAL
C7.42
Report
DISTRICT
TEXAS
Production
C7.45
L7.1
L7.1
Sheep
Production
L7.3
Goat
Production
L7.5
Ranch
Budget
Products
TEXAS
Coastal
C7.40
C7.41
Cow-Calf
Livestock
CENTRAL
C7.35
Resources
Land
Budget
WEST
C7.34
Resources
Livestock
C7.30
C7.33
Resources
Operation
Labor
Buildings
Equipment
Report
DISTRICT
Bermudagrass
Coastal
Coastal
Bermudagrass
Corn
C8.
Establishment,
Bermudagrass
H a y,
Silage,
Kleingrass
Dryland
H a y,
Kleingrass
Pasture,
Grass
xi
Dryland
Dryland
Establishment,
Kleingrass
Dryland
Dryland
Pasture,
Sorghum,
Native
L7.7
Pasture,
Dryland
Dryland
Dryland
Dryland
L7.9
1
C8.1
C8.3
C8.5
C8.7
C8.9
C 8 . 11
C8.13
C8.15
C8.17
Oats
Runner
Runner
Grazing,
Peanuts,
Peanuts,
Runner
Runner
for
Dryland,
Dryland,
Peanuts,
Peanuts,
Spanish
Skip-Row
Irrigated,
Peanuts,
Sudangrass
Peaches,
Peaches,
Corn
Set
Solid
Plant
C8.31
H a y,
Dryland
C8.33
Pasture,
Dryland
C8.35
Tractors,
Auto
Custom
Labor
Ye a r
Third
through
after
Previous
Ye a r s
after
without
Diversion
Production
after
Production
Following
Wheat
Production,
Grain
with
and
Input
Truck
Resources
Operation
Resources
Resources
x11
C8.43
C8.45
Wheat
C8.47
C8.49
Payment
C8.51
Wheat
C8.53
C8.55
Sorghum
C8.57
Grazing
C8.59
Equipment
Resources
C8.41
Wheat
Report
Implements
C8.39
Ye a r s
Hay
Continuous
Products
Ye a r
Fifteenth
Wheat
or
Ye a r
Second
for
Operating
C8.37
First
Irrigated,
Land
C8.27
Irrigated,
Sorghum
Crop
Planting
C8.25
C8.29
Production
Sorghum
Plant
Plant
Irrigated,
Production
Aside
C8.23
Dryland
Fourth
Cotton
Planting
Solid
Irrigated,
Irrigated,
C8.21
Dryland,
Wheat,
Peaches,
C8.19
Planted
Solid
Skip-Row
Sudan-Sorghum
Peaches,
Solid
Irrigated,
Peanuts,
Spanish
Dryland
C8.61
C8.62
C8.67
C8.69
C8.70
C8.71
Livestock
Resources
Land
Resources
Perennial
Buildings
C8.73
Crop
or
Resources
Improvements
Irrigation
Resources
Cost
Report
Parameters
TEXAS
Dairy
to
(with
Silage)
Hog
Pig
L8.1
Silage)
(without
Finishing
Feeder
Production
Production
Market
Hogs
L8.3
L8.5
L8.7
L8.9
L 8 . 11
Goat
Production
L8.13
Sheep
Production
L8.15
Stocker
Calf
Procuction
Products
Report
TEXAS
Dryland,
Dryland,
Cotton,
Dryland,
Irrigated,
Sorghum,
Sorghum,
Soybeans,
Southern
High
Dryland,
Peanuts,
Peanuts,
Typical
L8.19
1
Management
C9.1
Dryland,
C9.5
Typical
Management
C9.7
High
Level
Level
Typical
(Fresh
xiii
C9.3
Management
Typical
Dryland,
Management
Typical
High
Dryland,
Peas
Level
L8.17
C9.
DISTRICT
Corn,
Corn,
C8.81
L8.1
Production
Production
Farrow
C8.78
Report
DISTRICT
Production
Dairy
C8.75
C8.76
Cow-Calf
Livestock
EAST
C8.74
Equipment
Machinery
Budget
CENTRAL
C8.72
Management
Management
Management
Management
Market),
Dryland
C9.9
C 9 . 11
C9.13
C9.15
C9.17
Sweet
Corn
Production,
Bahlagrass
Common
Dryland
Pasture,
Bermudagrass
Common
Dryland
Pasture,
Bermuda-Clover,
Crimson
Clover
C9.21
Dryland
Dryland
Establishment,
C9.19
Dryland
C9.23
C9.25
C9.27
Coastal Bermuda Est., Dryland, Typical Management C9.29
Coastal
Bermudagrass
Coastal
Bermuda
H a y,
Pasture,
Dryland
C9.31
Dryland
C9.33
Coastal Berm. Est., Dryland, High Level Management C9.35
Coastal
Bermuda-Clover,
Arrowleaf
LA
S-1
Establishment,
Dryland
C9.39
Clover
Establishment,
Dryland
C9.41
Tree
Tree
Production
Peaches,
Peaches,
Crop
C9.49
(Choose
&
and
Ye a r
Ye a r
C9.57
C9.59
C9.61
Fourth
Ye a r
C9.63
Fifth
Ye a r
C9.65
Twelfth
Equipment
Resources
xiv
C9.53
Ye a r
Resources
Truck
Cut)
Third
through
Input
or
(Wholesale)
Report
Implements
Operating
Auto
Sixth
Products
Tractors,
C9.47
Second
Peaches,
C9.45
Dryland
First
Peaches,
C9.43
Dryland
Pasture,
Production
Peaches,
Peaches,
Dryland
Pasture,
Te m p o r a r y
Christmas
Christmas
Pasture,
Grains
Summer
C9.37
Clover
Lovegrass
Small
Dryland
Ye a r s
C9.67
C9.69
C9.70
C9.76
C9.78
Custom
Operation
Labor
Resources
Resources
Livestock
C9.81
Resources
Perennial
Crop
or
C9.82
Resources
Improvements
Irrigation
Resources
C9.84
C9.85
Cost
Report
Parameters
TEXAS
Report
L9.1
Production
Stocker
Calf
L9.3
Production
L9.5
Contract
Broilers
L9.7
Contract
Broilers
L9.9
Contract
Broiler
Contract
Breeder
Breeder
Products
TEXAS
Pullet
L 9 . 11
Production
L9.13
C10.
Dryland
Cotton,
Brazos
Sorghum,
C10.3
Va l l e y
Dryland
Sorghum
H a y,
Pasture,
Wheat,
Bermudagrass
L9.15
1
C10.1
Dryland
Cotton,
Sorghum
Production
Report
DISTRICT
Corn,
Coastal
C9.89
1
L9.
Production
Dairy
CENTRAL
C9.86
DISTRICT
Cow-Calf
Livestock
SOUTH
C9.83
Equipment
Machinery
Budget
EAST
C9.80
Resources
Land
Buildings
C9.79
C10.5
C10.7
Dryland
C10.9
Dryland
C 1 0 . 11
Dryland
Establishment,
C10.13
Dryland
C10.15
J^N
Coastal
Bermudagrass
H a y,
Dryland
C10.17
Coastal
Bermudagrass
Winter
Crop
Tractors,
Auto
and
Truck
Resources
Crop
or
C10.35
Resources
Improvements
Management
Equipment
Machinery
Cost
Resources
C10.38
Report
Parameters
CENTRAL
TEXAS
Production
Production
Feeder
Pig
Production
Finishing
Hogs
Stocker
Calf
Products
UPPER
COAST
Cotton,
Rice,
Rice,
Dryland,
Dryland,
Irrigated,
Irrigated,
xv i
Production
Report
DISTRICT
Typical
High
Typical
High
Management
Level
Management
Management
Level
**%>
C10.40
Report
DISTRICT
Dairy
Cotton,
C10.37
C10.39
Cow-Calf
Livestock
TEXAS
C10.36
Resources
Irrigation
C10.31
C10.34
Resources
Perennial
C10.24
C10.33
Resources
Land
C10.21
C10.32
Resources
Livestock
/**%.
C10.29
Resources
Operation
C10.19
C10.23
Resources
Labor
Budget
SOUTH
Dryland
Equipment
Input
or
Dryland
Report
Implements
Custom
Buildings
Pasture,
Products
Operating
Pasture,
C10.43
L10.1
L10.1
L10.3
L10.5
L10.7
L10.9
L 1 0 . 11
C 11 . 1
C 11 . 1
C 11 . 3
C 11 . 5
Management
C 11 . 7
)
Sorghum,
Dryland,
Sorghum,
Dryland,
Soybeans,
Soybeans,
Crop
Tractors,
Custom
High
Dryland,
Dryland,
High
Management
C 11 . 9
Management
C 11 . 11
Management
Level
Management
Report
Implements
and
C 11 . 2 1
Resources
Operation
C 11 . 1 5
C 11 . 1 8
Resources
Truck
C 11 . 1 3
C 11 . 1 7
Equipment
Input
or
Level
Typical
Products
Operating
Auto
Typical
C 11 . 2 2
Resources
C 11 . 2 3
Labor
Resources
C 11 . 2 4
Land
Resources
C 11 . 2 5
Irrigation
Equipment
Machinery
Budget
TEXAS
Cost
Livestock
SOUTH
Report
Parameters
C O A S TA L
Cow-Calf
C 11 . 2 6
Report
DISTRICT
BEND
Production,
Partially
Products
TEXAS
Improved
Pasture
Cotton,
C12.3
Irrigated
C12.5
H a y,
Sorghum,
Dryland,
Conservation
Spanish,
C12.7
C12.9
Irrigated
Wheat,
XV11
Dryland
Dryland
Soybeans,
Peanuts,
C12.1
Dryland
Sorghum
Sorghum,
L14.1
L14.3
C12.1
Irrigated
Cotton,
Sorghum,
C 11 . 2 9
L14.1
Report
DISTRICT
Corn,
Forage
C 11 . 2 7
C 1 2 . 11
Tillage
C12.13
Irrigated
C12.15
Dryland
C12.17
Dryland
C12.19
Peanuts,
Spanish,
Irrigated
Broccoli,
Irrigated
C12.23
Cabbage,
Irrigated
C12.25
Cantaloupes,
Irrigated
Carrots,
C12.27
Irrigated
C12.29
Cucumbers,
Irrigated
C12.31
Honeydews,
Irrigated
C12.33
Lettuce,
Irrigated
Ye l l o w
Bell
Fresh
C12.35
Onions,
Irrigated
C12.37
Peppers,
Irrigated
C12.39
Jalapeno
Peppers,
Spring
Irrigated
To m a t o e s ,
Watermelons,
Watermelons,
Grapefruit
C12.21
Establishment
-
Ye a r
1
Irrigated
C12.41
C12.43
Dryland
C12.45
Irrigated
C12.47
(145
trees/acre)
C12.49
G r a p e f r u i t E s t a b l i s h m e n t - Ye a r 2 ( 1 4 5 t r e e s / a c r e ) . . . . . . . . C 1 2 . 5 1
Grapefruit
Establishment
-
Ye a r
3
(145
trees/acre)
C12.53
Grapefruit
Establishment
-
Ye a r
4
(145
trees/acre)
C12.55
Grapefruit,
Mature
Grove
(145
trees/acre)
C12.57
Oranges
Establishment
-
Ye a r
1
(200
trees/acre)
C12.59
Oranges
Establishment
-
Ye a r
2
(200
trees/acre)
C12.61
Oranges
Establishment
-
Ye a r
3
(200
trees/acre)
C12.63
Oranges
Establishment
-
Ye a r
4
(200
trees/acre)
C12.65
Oranges
-
Mature
Grove
Plant
Ratoon
Bermuda
Type
(200
trees/acre)
Cane
Cane,
Grasses,
xviii
C12.69
Irrigated
Establishment,
C12.67
Irrigated
C12.71
C12.73
Bermuda
Grass
Bermuda
B u f fl e
H a y,
Pasture,
Grass
Establishment,
Tractors,
Auto
Custom
C12.81
C12.83
Dryland
C12.85
Report
and
C12.87
Equipment
Input
C12.88
Resources
Truck
C12.92
Resources
Operation
Labor
C12.94
Resources
C12.95
Resources
Land
C12.96
Resources
Perennial
C12.97
Crop
Resources
Irrigation
C12.98
Equipment
Machinery
Budget
SOUTHWEST
C12.79
Dryland
Pasture,
Implements
or
Dryland
Establishment,
Products
Operating
C12.77
Dryland
Kleingrass
Crop
C12.75
Irrigated
B u f fl e g r a s s ,
Kleingrass
Irrigated
C12.99
Cost
Report
Parameters
TEXAS
Cow-Calf
Production,
Cow-Calf
Bermuda
Coastal
Coastal
Bermuda
Coastal
Coastal
1/3
Production,
Products
TEXAS
Coastal
C12.103
L13.1
Brush
Improved
Country
Pasture
Improved
Pasture
Report
DISTRICT
Pasture
Bermuda
Pasture,
Bermuda
Bermuda
....
DISTRICT
Unimproved
Production,
Cow-Calf
Livestock
SOUTHWEST
Report
C12.100
H a y,
x1x
Pasture,
Dryland
Dryland
Establishment,
Establishment,
L13.3
L13.5
L13.7
C13.1
Establishment,
Pasture,
L13.1
Irrigated
Irrigated
Irrigated
C13.1
C13.3
C13.5
C13.7
C13.9
Coastal
Forage
Bermuda
Sorghum
Oats
For
For
Forage
H a y,
Grazing,
Grazing,
Sorghum
Forage
Sorghum
Corn
for
Irrigated
Dryland
C13.17
Irrigated
C13.19
Irrigated
Dryland
for
Food,
C13.13
C13.15
H a y,
Silage,
C 1 3 . 11
Irrigated
H a y,
Corn,
Corn
Irrigated
C13.21
C13.23
Irrigated
C13.25
Cotton,
Irrigated,
Long
Season
Va r i e t i e s
C13.27
Cotton,
Irrigated,
Short
Season
Va r i e t i e s
C13.29
Dryland,
Short
Season
Va r i e t i e s
C13.31
Cotton,
Sorghum,
Dryland
C13.33
Irrigated
C13.35
Dryland
C13.37
Irrigated
C13.39
Sorghum,
Guar,
Guar,
Peanuts,
Florunner,
Irrigated
C13.41
Spanish,
Dryland
C13.43
Peanuts,
Soybeans,
Winter
Irrigated
Wheat,
Winter
Irrigated
C13.47
Dryland
C13.49
Irrigated
C13.51
Wheat,
Dryland
C13.53
Beets,
Irrigated
C13.55
Wheat,
Spring
Wheat,
Spring
Processed
Cabbage,
Irrigated
Cantaloupes,Irrigated
Carrots,
Carrots,
xx
C13.57
C13.59
Irrigated
Processed
C13.45
Irrigated
C13.61
C13.63
J^^
Cucumbers,
Irrigated
Cucumbers
(Pickles),
Irrigated
C13.67
Lettuce,
Irrigated
C13.69
Onions,
Irrigated
C13.71
Fresh
Market
Processed
Pecan
Pecan
C13.65
Spinach,
Spinach,
Orchard,
Orchard,
Irrigated
Irrigated
Establishment
Pre-Production
C13.73
Phase
C13.75
Phase
( Ye a r s
C13.77
1-4)
C13.79
P e c a n O r c h a r d , E a r l y P r o d u c t i o n P h a s e ( Ye a r s 5 - 9 ) C 1 3 . 8 1
Pecan
Orchard,
Operational
Phase
( Ye a r s
10-20)
C13.83
P e c a n O r c h a r d , E a r l y P r o d u c t i o n P h a s e ( Ye a r s 5 - 9 ) C 1 3 . 8 5
Pecan
Crop
Tractors,
Operational
and
Truck
C13.89
C13.90
C13.94
Resources
Operation
C13.96
Resources
C13.97
Resources
Livestock
C13.98
Resources
Land
C13.99
Resources
Perennial
Crop
or
C13.100
Resources
Improvements
Management
C13.101
Resources
Resources
Irrigation
Cost
Cow-Calf
C13.104
Report
Parameters
TEXAS
C13.107
Report
DISTRICT
Production,
xx 1
C13.102
C13.103
Equipment
Machinery
Budget
SOUTHWEST
C13.87
Resources
Labor
/^Sf\
10-20)
Equipment
Input
or
( Ye a r s
Report
Implements
Custom
Buildings
Phase
Products
Operating
Auto
Orchard,
Unimproved
Brush
C 1 3 . 11 0
L13.1
Country
L13.1
Cow-Calf
Production,
Cow-Calf
Livestock
TEXAS
Production,
Products
C O A S TA L
Corn,
1/3
Coastal
Improved
Improved
(w/o
Program
Upland
Upland
Corn,
Coastal
(w/o
Program
Upland,
Set
Aside
Aside
Set
Tillage
Land
Tillage
Upland
Clean
with
Peanuts,
Peanuts,
Tilled
Cover
Crop
B u f fl e
Coastal
Coastal
Crop
Tractors,
Operating
Implements
C14.27
Dryland
Pasture,
Dryland
Establishment
Pasture,
Establishment,
Pasture,
Products
Dryland
Dryland
Dryland
Report
and
Input
Equipment
Resources
XX11
C14.19
C14.25
Bermudagrass
Kleingrass
C14.17
C14.23
Bermudagrass
Kleingrass
C14.15
Irrigated
Establishment,
Grass
C14.13
C14.21
Watermelons
Grass
C14.9
Dryland
Soybeans
B u f fl e
C14.5
C 1 4 . 11
Conservation
Land
Aside
Participation)
Land,
C14.1
C14.7
Upland
Sorghum,
L13.5
C14.3
Dryland
Sorghum,
Set
Participation)
Conservation
Plain
L13.3
L13.7
C14.1
Corn
Cotton,
Sorghum,
Pasture
Report
DISTRICT
BEND
Plain
Pasture
C14.29
C14.31
C14.33
C14.35
C14.37
C14.39
C14.41
C14.42
C14.47
c
Auto
or
Custom
Truck
Operation
Labor
C14.51
Resources
Crop
or
C14.52
Resources
Improvements
Irrigation
C14.53
Resources
C14.54
Equipment
Machinery
Cost
Parameters
C O A S TA L
Cow-Calf
Budget
C14.50
Resources
Perennial
Livestock
C14.49
Resources
Land
Budget
TEXAS
C14.48
Resources
Livestock
Buildings
Resources
C14.55
Report
BEND
Production,
Partially
Products
Report
DISTRICT
Improved
Report
Index
JPN
XX111
C14.56
C14.60
L14.1
Pasture
L14.1
L14.3
11