Projections for Planning Purposes Only -- Not to be Used without Updating
2015 Estimated Costs and Returns per Acre
Dryland Alfalfa Hay - 100 Acres
Rolling Plains Extension District - 3
Crop Acres
100
REVENUE
Alfalfa Hay
Total Revenue
Quantity
3.25
Units
Ton
$/Unit
$275.00
Total
$893.75
$893.75
VARIABLE COSTS
Production Costs
Custom
Fertilizer Application
Herbicide Application
Insecticide Application
Custom Baling - Alfalfa
Fertilizer
Fertilizer (N)
Fertilizer (P)
Sulfur
Herbicide
Valpar
Butyrac
Insecticide
Insecticide - Alfalfa 1
Insecticide - Alfalfa 2
Gasoline
Pickup/General Use Equipment
Repairs & Maintenance
Pickup/General Use Equipment
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
Equipment Investment
Pickup/General Use Equipment
Allocated Establishment Cost
Cash Rent - Dryland Alfalfa
Total Fixed Costs
Total Specified Costs
1
2
2
3.25
Acre
Acre
Acre
Ton
$5.50
$5.50
$5.50
$25.00
$5.50
$11.00
$11.00
$81.25
$550.00
$1,100.00
$1,100.00
$8,125.00
20
50
12
Pound
Pound
Pound
$0.60
$0.42
$0.22
$12.00
$21.00
$2.64
$1,200.00
$2,100.00
$264.00
2
2
Pint
Pint
$8.61
$3.50
$17.22
$7.00
$1,722.00
$700.00
2
3
Pint
Pint
$4.12
$4.12
$8.24
$12.36
$824.00
$1,236.00
1
Acre
$4.50
$4.50
$450.00
1
Acre
$1.21
6.25%
$1.21
$4.36
$199.28
$694.47
$120.75
$436.13
$19,927.88
$69,447.12
$61.32
Quantity
Units
1
$20.13
1
1
Acre
Dollars
Acre
Acre
Ton
$/Unit
Total
Enterprise
Total
$1.68
$1.68
$167.64
5.50%
$328.00
$32.00
$1.11
$328.00
$32.00
$362.78
$562.06
$110.69
$32,800.00
$3,200.00
$36,278.33
$56,206.21
$331.69
$33,168.79
Returns Above Specified Costs
Breakeven Price to Cover Total Costs
Enterprise
Total
$89,375.00
$89,375.00
Enterprise
Total
$172.94
Ton
Example Breakeven Prices
Example
Yield
Percent
75%
90%
100%
110%
125%
Example
Yield
Ton
2.44
2.93
3.25
3.58
4.06
Price Needed to Cover Price Needed to Cover
Example Variable Costs Example Total Costs
Own/Rent ShareTenant Own/Rent ShareTenant
$81.76
$81.76
$230.59
$230.59
$68.13
$68.13
$192.16
$192.16
$61.32
$61.32
$172.94
$172.94
$55.74
$55.74
$157.22
$157.22
$49.05
$49.05
$138.35
$138.35
Landlord
$0.00
$0.00
$0.00
$0.00
$0.00
Developed by Stan Bevers, Professor and Extension Economist, Texas A&M AgriLife Extension Service.
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.