Projections for Planning Purposes Only -- Not to be Used without Updating
2015 Estimated Costs and Returns per Acre
Irrigated Alfalfa - 122 Acres
South Plains Extension District - 2
Crop Acres
122
REVENUE
Hay - Alfalfa
Total Revenue
Quantity
6.00
Units
Ton
$/Unit
$180.00
Total
$1,080.00
$1,080.00
VARIABLE COSTS
Production Costs
Custom
Custom Baling
Fertilizer Application - Liquid Low
Fertilizer
Fertilizer (P) - Liquid
Fertilizer (N) - Liquid
Sulfur
Herbicide
Herbicide and Application Alfalfa
Insecticide
Insecticide Application Alfalfa
Miscellaneous
Crop Insurance Alfalfa
Irrigation
Energy Cost
Irrigation Labor
Machinery Labor
Tractors/Self-Propelled
Diesel Fuel
Tractors/Self-Propelled
Repairs & Maintenance
Pickup/General Use Equipment
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
Equipment
Pickup/General Use Equipment
Irrigation Equipment
Tractors/Self-Propelled
Implements
Whole Farm Insurance
Management Fee, Ownwer/Operator Labor
Allocated Establishment Cost
Cash Rent - Alfalfa
Total Fixed Costs
Total Specified Costs
Quantity
6
1
Ton
Acre
$50.00
$3.50
$300.00
$3.50
$36,600.00
$427.00
65
30
12
Pound
Pound
Pound
$0.74
$0.58
$0.12
$47.78
$17.34
$1.44
$5,828.55
$2,115.48
$175.68
1
Acre
$21.47
$21.47
$2,619.34
1
Acre
$25.90
$25.90
$3,159.80
1
Acre
$2.50
$2.50
$305.00
24.00
0.96
AcreInch
Hour
$9.00
$12.00
$216.00
$11.52
$26,352.00
$1,405.44
0.13
Hour
$12.00
$1.56
$190.32
2.01
Gallon
$3.00
$6.03
$735.66
Acre
Acre
Acre
Acre
$0.50
$42.00
$3.00
$6.00
6.00%
$0.50
$42.00
$3.00
$6.00
$12.29
$718.83
$361.17
$61.00
$5,124.00
$366.00
$732.00
$1,499.77
$87,697.04
$44,062.96
1
1
1
1
$119.80
$17.89
$785.72
$171.40
$142.80
1
1
1
1
Units
Dollars
Dollars
Dollars
Dollars
Acre
Acre
Acre
Acre
Ton
$/Unit
Total
Enterprise
Total
7.00%
7.00%
7.00%
7.00%
$2.00
$30.00
$98.00
$130.00
$1.25
$55.00
$12.00
$10.00
$2.00
$30.00
$98.00
$130.00
$338.25
$1,057.07
$152.78
$6,710.01
$1,463.76
$1,219.51
$244.00
$3,660.00
$11,956.00
$15,860.00
$41,266.05
$128,963.10
$22.93
$2,796.90
Returns Above Specifiied Costs
Breakeven Price to Cover Total Costs
Enterprise
Total
$131,760.00
$131,760.00
Enterprise
Total
$176.18
Ton
Example Breakeven Prices
Example
Yield
Percent
75%
90%
100%
110%
125%
Example
Yield
Ton
4.50
5.40
6.00
6.60
7.50
Price Needed to Cover Price Needed to Cover
Example Variable Costs Example Total Costs
Own/Rent ShareTenant Own/Rent ShareTenant
$159.74
$159.74
$234.91
$234.91
$133.12
$133.12
$195.75
$195.75
$119.80
$119.80
$176.18
$176.18
$108.91
$108.91
$160.16
$160.16
$95.84
$95.84
$140.94
$140.94
Landlord
$0.00
$0.00
$0.00
$0.00
$0.00
Developed by Jackie Smith, 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.