Wheat
Production
Following
Grain
Sorghum
C8.57
^^
Wheat Production, Continuous with Grazing C8.59
Crop
Tractors,
Products
Implements
Operating
Auto
Report
and
Input
or
Custom
Resources
C8.70
C8.71
Resources
C8.72
Resources
Crop
or
C8.73
Resources
Improvements
Irrigation
C8.74
Resources
C8.75
Equipment
Cost
Parameters
TEXAS
Dairy
Dairy
Farrow
C8.76
Report
Production
Finishing
Feeder
>*%
C8.81
L8.1
Production
Production
to
C8.78
Report
DISTRICT
Cow-Calf
(with
Hog
Silage)
Production
Production
Hogs
Goat
L8.1
Silage)
(without
P1g
Market
L8.
Production
Sheep
Livestock
EAST
C8.69
Resources
Perennial
Budget
CENTRAL
C8.67
Resources
Operation
Land
Machinery
C8.62
Resources
Livestock
Buildings
Equipment
Truck
Labor
C8.61
L8.3
L8.5
L8.7
L8.9
11
L8.13
Production
L8.15
Stocker
Calf
Production
L8.17
Stocker
Calf
Production
L8.19
Products
TEXAS
Report
DISTRICT
xiv
L8.21
09.1
a*g\
1
J^N
Corn,
Dryland,
Typical
Corn,
Dryland,
Cotton,
High
Dryland,
Peanuts,
Peanuts,
Management
Dryland,
Irrigated,
Sorghum,
Sorghum,
Soybeans,
Southern
Sweet
Dryland,
Management
C9.7
Level
Management
Management
Level
Typical
Management
Management
Market),
Production,
Dryland
Pasture,
Bermuda-Clover,
Clover
Dryland
Dryland
Pasture,
Bermudagrass
Common
Crimson
Typical
(Fresh
Bahiagrass
Common
C9.5
High
Corn
C9.3
Management
Typical
Dryland,
Management
Typical
High
Dryland,
Peas
Level
C9.1
C 9 . 11
C9.13
C9.15
C9.17
C9.19
C9.21
Dryland
Dryland
Establishment,
C9.9
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
Arrowleaf
LA
S-1
Bermuda-Clover,
Summer
Christmas
Christmas
C9.37
Clover
Establishment,
Dryland
C9.39
Clover
Establishment,
Dryland
C9.41
Lovegrass
Small
Dryland
Pasture,
Grains
Pasture,
Te m p o r a r y
Tree
Tree
Dryland
Production
Peaches,
First
xv
Dryland
Pasture,
Production
C9.43
Dryland
(Wholesale)
(Choose
&
Ye a r
Cut)
C9.45
C9.47
C9.49
C9.53
C9.57
Peaches,
Second
Ye a r
C9.59
Third
Ye a r
C9.61
Fourth
Ye a r
C9.63
Fifth
Ye a r
C9.65
Peaches,
Peaches,
Peaches,
Peaches,
Crop
Tractors,
and
Input
or
Resources
Resources
Crop
or
C9.82
Resources
Improvements
Irrigation
Resources
Cost
Parameters
TEXAS
C9.86
Report
DISTRICT
C9.89
L9.1
Production
Dairy
C9.84
C9.85
Report
Cow-Calf
Livestock
SOUTH
C9.83
Equipment
Production
Stocker
C9.79
C9.81
Resources
Perennial
C9.78
C9.80
Resources
Land
C9.70
C9.76
Resources
Operation
C9.67
C9.69
Equipment
Truck
Livestock
Budget
EAST
Ye a r s
Resources
Labor
Machinery
Twelfth
Report
Implements
Custom
Buildings
through
Products
Operating
Auto
Sixth
Calf
Production
L9.1
L9.3
L9.5
Contract
Broilers
L9.7
Contract
Broilers
L9.9
Contract
Broiler
Contract
Breeder
Products
CENTRAL
TEXAS
xv 1
Breeder
Production
L 9 . 11
Pullet
Production
L9.13
Report
DISTRICT
L9.15
C10.1
Z^SfV
£m\
Corn,
Dryland
Cotton,
Dryland
Cotton,
Brazos
Sorghum,
Pasture,
Wheat,
Bermudagrass
Winter
Crop
Auto
Custom
and
Dryland
Dryland
Dryland
Resources
Operation
Resources
Resources
Crop
or
Resources
Resources
Resources
Irrigation
Parameters
CENTRAL
Cow-Calf
Report
DISTRICT
Production
Dairy
Production
xvii
C10.23
C10.24
C10.29
C10.31
C10.32
C10.36
C10.37
C10.39
Report
TEXAS
C10.21
C10.38
Equipment
Cost
C10.19
C10.35
Improvements
Management
C10.17
C10.34
Resources
Perennial
C10.15
C10.33
Resources
Land
Budget
SOUTH
Dryland
Equipment
Truck
Livestock
Machinery
C10.13
Resources
Labor
Buildings
C 1 0 . 11
Report
Input
or
Dryland
H a y,
Pasture,
Implements
Operating
C10.9
Pasture,
Products
Tractors,
Dryland
Establishment,
Bermudagrass
C10.5
C10.7
Dryland
Bermudagrass
Coastal
Va l l e y
H a y,
Sorghum
Coastal
C10.3
Dryland
Sorghum
Coastal
C10.1
C10.40
C10.43
L10.1
L10.1
L10.3
Feeder
P1g
Finishing
Stocker
Livestock
TEXAS
Dryland,
Cotton,
Dryland,
Rice,
R1ce,
Tractors,
Auto
Custom
Management
High
Level
Typical
High
and
Input
C 11 . 5
C 11 . 9
Management
C 11 . 11
Management
Resources
Resources
Operation
C 11 . 3
Management
Equipment
Truck
C 11 . 1
C 11 . 7
Management
Level
L 1 0 . 11
C 11 . 1
Management
Report
Implements
or
Management
Typical
Dryland,
Dryland,
Management
Level
Products
Operating
L10.9
Level
High
Dryland,
Soybeans,
Production
Typical
Dryland,
Soybeans,
Crop
High
Irrigated,
Sorghum,
L10.7
Typical
Irrigated,
Sorghum,
Hogs
Report
DISTRICT
COAST
Cotton,
L10.5
Steer
Products
UPPER
Production
Resources
C 11 . 1 3
0 11 . 1 5
C 11 . 1 7
C 11 . 1 8
C 11 . 2 1
0 11 . 2 2
C 11 . 2 3
Labor
Resources
C 11 . 2 4
Land
Resources
C 11 . 2 5
Irrigation
Machinery
Budget
TEXAS
Equipment
Cost
Report
Parameters
UPPER
COAST
Cow-Calf
Livestock
SOUTH
C 11 . 2 6
Products
TEXAS
Report
DISTRICT
Production
Report
DISTRICT
Corn,
Irrigated
XV111
0 11 . 2 7
C 11 . 2 9
L10.1
L10.1
L10.3
C12.1
C12.1
J^K
Cotton,
Cotton,
Forage
Dryland
C12.3
Irrigated
C12.5
Sorghum
H a y,
Sorghum,
Dryland
Sorghum,
Sorghum,
Dryland
C12.9
Irrigated
Dryland,
Conservation
Soybeans,
C 1 2 . 11
Tillage
Irrigated
Peanuts,
Spanish,
Peanuts,
Spanish,
C12.7
C12.13
C12.15
Dryland
C12.17
Irrigated
C12.19
Broccoli,
Irrigated
C12.21
Cabbage,
Irrigated
C12.23
Cantaloupes,
Irrigated
Carrots,
Irrigated
C12.25
C12.27
Cucumbers,
Irrigated
C12.29
Honeydews,
Irrigated
C12.31
Lettuce,
Irrigated
Ye l l o w
Bell
Onions,
Irrigated
C12.35
Peppers,
Irrigated
C12.37
Jalapeno
Fresh
C12.33
Peppers,
Spring
Irrigated
To m a t o e s ,
Watermelons,
Watermelons,
Irrigated
C12.39
C12.41
Dryland
C12.43
Irrigated
C12.45
Grapefruit
Establishment
-
Ye a r
1
(145
trees/acre)
C12.47
Grapefruit
Establishment
-
Ye a r
2
(145
trees/acre)
C12.49
Grapefruit
Establishment
-
Ye a r
3
(145
trees/acre)
C12.51
Grapefruit
Establishment
-
Ye a r
4
(145
trees/acre)
C12.53
Grapefruit,
Mature
x1x
Grove
(145
trees/acre)
012.55
Oranges
Establishment
-
Ye a r
1
(200
trees/acre)
C12.57
Oranges
Establishment
-
Ye a r
2
(200
trees/acre)
C12.59
Oranges
Establishment
-
Ye a r
3
(200
trees/acre)
C12.61
Oranges
Establishment
-
Ye a r
4
(200
trees/acre)
C12.63
Oranges
-
Mature
Grove
(200
Plant
Cane
Ratoon
Bermuda
Type
Cane,
Grasses,
Bermuda
Irrigated
H a y,
Grass
Irrigated
Establishment,
B u f fl e g r a s s ,
Kleingrass
Tractors,
Establishment,
Auto
and
Resources
Truck
Resources
Resources
Livestock
Crop
or
Resources
Resources
Equipment
Cost
Report
DISTRICT
xx
C12.75
C12.77
C12.79
C12.81
C12.83
C12.85
C12.86
C12.90
C12.92
C12.93
C12.98
C12.99
C12.100
Report
Parameters
TEXAS
C12.73
C12.97
Improvements
Irrigation
C12.71
C12.96
Resources
Perennial
C12.69
C12.95
Resources
Land
Budget
SOUTH
Resources
Operation
Labor
Machinery
Dryland
Equipment
Input
or
Dryland
Report
Implements
Custom
Buildings
Pasture,
Products
Operating
Dryland
Dryland
Kleingrass
Crop
Irrigated
Irrigated
Pasture,
C12.65
C12.67
Establishment,
Grass
Bermuda
B u f fl e
trees/acre)
C12.101
C12.104
L12.1
Cow-Calf
Production,
Cow-Calf
Production,
Cow-Calf
Livestock
SOUTHWEST
Unimproved
1/3
Production,
Coastal
Coastal
Coastal
Pasture
Bermuda
H a y.
Sorghum
Oats
For
Forage
Forage
H a y,
Corn
for
Irrigated
H a y,
H a y,
Silage,
Corn,
Corn
Irrigated
Grazing,
Sorghum
Irrigated
Irrigated
Grazing,
Sorghum
Irrigated
Irrigated
Establishment,
For
Dryland
Dryland
Pasture,
Bermuda
L12.5
C13.1
C13.3
C13.5
C13.7
C13.9
C 1 3 . 11
C13.13
C13.15
C13.17
Irrigated
C13.19
Irrigated
Food,
L12.3
Dryland
Dryland
for
L12.1
L12.7
C13.1
Establishment,
Bermuda
Forage
Pasture
Pasture,
Pasture,
Coastal
Pasture
Establishment,
Bermuda
Bermuda
Country
Report
DISTRICT
Bermuda
Coastal
Improved
Improved
Products
TEXAS
Coastal
Brush
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,
Peanuts,
Spanish,
xxi
Irrigated
C13.41
Dryland
C13.43
Soybeans,
Winter
Irrigated
Wheat,
Winter
Irrigated
C13.47
Dryland
C13.49
Irrigated
C13.51
Dryland
C13.53
Irrigated
C13.55
Wheat,
Spring
Wheat,
Spring
Wheat,
Processed
Beets,
Cabbage,
C13.45
Irrigated
C13.57
Cantaloupes,Irrigated
Carrots,
Carrots,
Cucumbers,
Cucumbers
Irrigated
(Pickles),
C13.63
C13.65
Irrigated
C13.67
Irrigated
Onions,
C13.69
Irrigated
Market
Processed
Pecan
C13.61
Irrigated
Lettuce,
Fresh
C13.59
Irrigated
Processed
Spinach,
Spinach,
Orchard,
A^%.
C13.71
Irrigated
C13.73
Irrigated
Establishment
^*\
C13.75
Phase
C13.77
P e c a n O r c h a r d , P r e - P r o d u c t i o n P h a s e ( Ye a r s 1 - 4 ) C 1 3 . 7 9
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
P e c a n O r c h a r d , O p e r a t i o n a l P h a s e ( Ye a r s 1 0 - 2 0 ) C 1 3 . 8 3
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
P e c a n O r c h a r d , O p e r a t i o n a l P h a s e ( Ye a r s 1 0 - 2 0 ) C 1 3 . 8 7
Crop
Tractors,
Products
Implements
Operating
Auto
Custom
Report
and
Input
or
Equipment
Resources
Truck
Resources
Operation
Resources
XX11
C13.89
C13.90
C13.94
C13.96
C13.97
}
Labor
Resources
Livestock
Resources
Land
Crop
or
Improvements
C13.101
Resources
C13.102
Resources
Irrigation
C13.103
Equipment
Machinery
Cost
C13.104
Report
Parameters
TEXAS
Cow-Calf
Unimproved
Production,
Cow-Calf
1/3
Production,
Brush
Country
Improved
Improved
Pasture
Pasture
L13.1
L13.3
L13.5
Production
L13.7
Goat
Production
L13.9
Report
DISTRICT
BEND
Corn,
Coastal
Plain
Upland
Corn
Cotton,
Coastal
Sorghum,
Aside
Aside
Clean
Land
Peanuts,
Peanuts,
Soybeans
Watermelons
xxi 11
Plain
Tilled,
Clean
C14.1
C14.5
Upland
Land,
L 1 3 . 11
C14.1
C14.3
Dryland
Sorghum,
Set
C 1 3 . 11 0
L13.1
Sheep
Products
C O A S TA L
Set
C13.107
Report
DISTRICT
Production,
Cow-Calf
Livestock
TEXAS
C13.100
Resources
Management
Budget
SOUTHWEST
C13.99
Resources
Perennial
Buildings
C13.98
C14.7
C14.9
Upland
C 1 4 . 11
Tilled
C14.13
Dryland
C14.15
Irrigated
C14.17
C14.19
C14.21
B u f fl e
Grass
B u f fl e
Establishment,
Grass
Coastal
Pasture,
Bermudagrass
Coastal
Bermudagrass
Kleingrass
Tractors,
Auto
and
C14.46
•
C14.47
Resources
Improvements
Cost
Parameters
C O A S TA L
C14.48
Resources
C14.49
Cow-Calf
C14.50
Report
BEND
Production,
Improved
Report
Index
xx 1v
C14.51
Report
DISTRICT
Partially
Products
C14.33
C14.44
Equipment
Machinery
C14.31
C14.45
Resources
Irrigation
C14.29
C14.43
Resources
or
C14.27
C14.42
Resources
Crop
C14.25
C14.36
Resources
Perennial
C14.23
C14.35
Resources
Operation
Land
Budget
Dryland
Equipment
Truck
Livestock
Livestock
Dryland
Resources
Labor
Budget
TEXAS
Dryland
Report
Input
Custom
Buildings
Pasture,
Implements
or
Establishment
Pasture,
Products
Operating
Dryland
Establishment,
Kleingrass
Crop
Dryland
C14.55
L14.1
Pasture
L14.1
L14.3
I1
/**l|k
~
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) and
is reviewed and updated annually.
costs,
or attemptare
to estimate
cash
costs of production
either
before of
or after
relevant
rl Alternative
procedures
mixed nominal
in
method
handling
the
impact
inflation
on
taxes.
In fact, most budgets
aretheir
a mixed
bag ofofnominal,
real,
before-tax,
after-tax,
cash
and non-cash concepts and procedures.
The 1988 crop budgets include the anticipated government deficiency payments for cotton, ^^
corn, sorghum, barley, oats 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. Budgets for "set aside" land are included in several of
the districts. Some of the crop budgets include the cost from the "set aside" budgets. In using
budgets for crops that are in the government program, care must be taken to correctly account
for "set aside" land.
The budgets also include several enterprises that require an establishment that may include
one or more years of providing inputs before realizing any income. Enterprises that require
this type of establishment include pasture and hay enterprises and orchards or groves. Budgets
for these enterprises generally include a Perennial Crop line listed in the fixed cost section
and are usually preceded by an establishment budget. The cost of establishment is amortized at
an interest rate and number of years defined in the Perennial Crop. This works well for
enterprises like hay and pastures where a single year of establishment is required. Enterprises
with several years preceding production followed by some years of increasing production before
reaching a mature production level require budgeting techniques beyond the capabilities of most
enterprise budgeting analysis. Perennial crop values may provide an estimate of amortized
costs, but capital budgeting analysis using net present value or internal rate of return as well
as cash flow analysis would be required to adequately determine the profitability of these types
of enterprises.
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
2
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
I 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
2 McGrann, James, M., Kent D. Olson, Timothy A. Powell and Ted R. Nelson,
"Microcomputer Budget Management System User Manual." Dept of Agricultural Economics,
Texas A&M University, College Station, February 11, 1986.