Dryland Cotton Enterprise Budget 1000 acres farmed, 160 acres for this budget Conventional Tillage 2008 marketing year price projection Total Quantity $/Acre 390.20 $ 257.53 6.63 $ 31.29 0 $ $ 288.83

PRODUCTION Cotton Lint Cotton Seed Other Income Total Receipts

Units Lbs Cwt Dollars

Price $ 0.66 $ 4.72 $ -

OPERATING INPUTS Seed Fertilizer Custom Harvest Pesticide Growth Regulators/Harvest Aids Crop Insurance Annual Operating Capital Machinery Labor Custom Hire Machinery Fuel, Lube, Repairs Ginning/Processing p Other Expense Total Operating Costs

Units Acre Acre Acre Acre Acre Acre Dollars Hrs. Acre Acre Acre Acre

Price Quantity $ 9.74 1 $ 36.58 1 $ 0 $ 27.26 1 $ 7.52 1 $ 9.91 1 8.50% 89.50 $ 8.25 1.84 $ 0 $ 109.68 1 $ 44.87 1 $ 12.04 1

Returns Above Total Operating Costs FIXED COSTS Units Machinery/Irrigation $/value Interest at Dollars Taxes at Dollars Insurance Dollars Depreciation Dollars Land $/acre Interest at Dollars Taxes at Dollars Total Fixed Costs Total Costs (Operating + Fixed): Returns Above All Specified Costs Tillman County - Southwest OK Owned equipment

$ $ $ $ $ $ $ $ $ $ $ $ $ $

8.44 $/Acre

$ $ $ $

21.42 4.43 1.61 35.14

$ $ $ $ $

62.60 342.99 (54.16)

Rate 8.00% 1.00% 0.60% $

0.00% 0.00%

$/Acre 9.74 36.58 27.26 7.52 9.91 7.61 15.18 109.68 44.87 12.04 280.39

Owner-Operator

Break-Even (B-E) Analysis B-E Yield at $/lb. 0.66 B-E Price at lbs./acre 390.20 Above Operating Costs (Lbs.) 377 Above Operating Costs $ 0.64 Above Total Costs (Lbs.) 472 Above Total Costs $ 0.80 Break-even yield is the yield needed to cover costs given the expected price, cotton seed income, and other income such as government payments. Break-even price is the price needed to cover costs given the expected yield, cotton seed income, and other income.

name: Cotton2.1 2008

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:07 PM

You can specify the yield and price for your enterprise or use the default for the area you selected. To view average lint yields and prices, click on the link below.

Cotton Reporting Lint District Default Southwest Your Value

Cotton Seed Area Default Southwest Your Value

Cotton2.1 2008

Yield Est. Harvest Harvest Sales Weighted lb/acre Price ($/lb) Month InformationAvg. Price 390.20 $ 0.46 11 $ 0.46 Month(s) $ 0.66 $ 0.66

Yield Est. Harvest Sale cwt/acre Price ($/cwt) Month 6.63 $ 4.72 11

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:08 PM

Specify any other income not accounted for in other sections. Include a description, the month the income will be received, and the income per acre. Use the first two lines for government payments.

Other Income Direct Payment Counter-Cyclical Payment

Month of Income Income per Acre 11 $ -

Total Other Income: $

e: Cotton2.1 2008

-

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:08 PM

You can specify the seeding rate, price of seed, and planting date for your enterprise or use the default values. Typical and recommended rates, prices, and planting dates can be viewed by clicking "More Info".

Seeding Rate Area Default State Your Value

: Cotton2.1 2008

Plant Pop. Seed cost Planting (000/acre) $/bag Month 49.50 $ 44.25 4

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:08 PM

Default fertilizer applications have been specified but can be modified to match your operation. Double-click anywhere in the fertilizer table yellow cells for a pop-up screen with fertilizer information. Adjust the fertilizer mixes and amounts to approximately meet the nitrogen (N), phosphorus (P), and potassium (K) requirements. The Fertilizer Calc button may be used to ensure N requirements are met using the fertilizer listed on the first line in the table below.

Fertilizer Dry Fertilizer

Month to Lbs. Applied Apply per Acre 4 139

Acreage Percent Percent Percent Price Custom App. Fertilizer Applied N P K per Ton Charge Price/Lb. 160 35% 18% 0% $ 525.00 $ $ 0.263 $ $ $ $ $ $ $ 49 25 0 Pounds/acre applied 0 Pounds of N/acre present per soil test results 49 25 0 Estimated pounds N, P and K required

Fertilizer cost/budget acre Prorated lime cost/budget g acre Total cost/budget acre Custom application cost/budget acre

otton2.1 2008

$ 36.58 $ $ 36.58 $ -

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:08 PM

Will this crop be harvested using your own equipment or using a custom harvester? Owned Harvest Equipment

Custom

If custom harvest is to be used, you need to specify the costs. Typical custom harvest costs are specified below in the default values. You can make any necessary changes in the "Your Value" specification.

Custom Harvest Default Your Value

Custom Harvest Per acre charge Hauling cost Total Custom Cost Total Share Cost

Flat rate per pound charge. $ 0.09

Cost for hauling cotton/lb. $ 0.04

Per Acre Cost $ 35.12 $ 15.61 $ 50.73 $ 50.73

Owned Harvest Machinery Costs If owned harvest equipment is to be used, you need to specify the following costs. Typical harvest equipment costs (stripper/picker only) are specified below in the default values. Default revisions may be determined by clicking on the "Harvester Cost Estimator" button. You can also make any necessary changes in the "Your Your Value

Default Variable costs Fuel Lube Repairs Total Fixed costs Depreciation Insurance Taxes Interest Total

$ $ $ $

14.26 2.14 39.12 55.52 $

55.52

$ $ $ $ $

19.41 0.75 2.23 10.04 32.43 $

32.43

0.35 2.92 90.87

2.92 90.87

Hours of labor $ Labor costs per acre $ Total costs $

$ $

For additional information, see: CR-205 Oklahoma Farm and Ranch Custom Rates AGEC-240 Machinery Ownership versus Custom Harvest View these and other OSU Publications at: OSU Fact Sheets

ton2.1 2008

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:09 PM

Specify any insurance associated with this crop. Include the premium payment month and the cost per acre. A crop insurance discription may be entered if desired. You may be able to access your policy information from your insurance carrier's web site. Contact your insurance agent for more information. If no insurance is desired, enter zero in the Cost of Insurance. Crop Insurance Specification Approved APH yield Yield coverage level Crop price election Value of coverage Month of Expense Cost of Insurance

$ $

12 9.91

For more information: AGEC-955 Using Cotton Crop Insurance to Set an Income Floor View these and other OSU Publications at: OSU Fact Sheets

Cotton2.1 2008

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:09 PM

Default pesticide practices have been specified. You can use the defaults or specify your own pesticide applications. Double-click anywhere in the pesticide table yellow cells to access a list of default pesticides.

Pesticide Treflan Caparol 4L Vydate LV

Month to Apply 3 5 6

Application Units Acreage Cost Custom App. Unit per Acre Applied per Unit Charge Pint 1.50 160 $ 2.61 $ Pint 3.50 160 $ 4.48 $ Lbs. A.I. 0.20 160 $ 38.30 $ -

Cost of Total App. Chemical Cost $ 3.92 $ 3.92 $ 15.68 $ 15.68 $ 7.66 $ 7.66 $ $ $ $ $ $ $ $ $ $ Total cost per budget acre $ 27.26 $ 27.26

For more information: AGEC-322 Pesticide Recordkeeping Requirements for Crop Productio BAE-1215 Selecting the Proper Nozzle Type and Size for Low Pressure Ground Sprayers BAE-1216 Calibrating a Low Pressure Ground Sprayer BAE-1217 The Low Pressure Ground Sprayer

Cotton2.1 2008

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:09 PM

Several default growth regulator/harvest aids applications have been specified. You can use the defaults or specify your own applications. Double-click anywhere in the Growth Regulators/Harvest Aids table yellow cells to access a list of default practices. Growth Regulators/ Month to Application Units Acreage Cost Custom App. Cost of Harvest Aids Apply Unit per Acre Applied per Unit Charge Chemical Pix 8 Oz. Rate 8 Fl.Oz. 8.00 160 $ 0.94 $ $ 7.52 $ $ $ $ $ $ $ Total cost per budget acre $ 7.52

Cotton2.1 2008

OSU Agricultural Economics Enterprise Budget Software

Total App. Cost $ 7.52 $ $ $ $ $ $ $ $ 7.52

9/9/2008 - 2:09 PM

Parameter Settings - Listed below are typical estimates for labor, fuel, interest rates and other items used in the budget calculations. You can use the defaults or specify values to be used in the "Your Value" column.

Parameter Settings Default Opportunity wage rate charged for labor $ 8.25 Average fuel price (Diesel) $ 4.00 Interest rate charged on operating capital (operating loan) 8.50% Interest rate charged on machinery loans 8.00% Percent taxes on machinery purchase price 1.00% Percent insurance on machinery average value 0.60% Annual capital month 11 Opportunity interest rate charged on land capital 0.00% Percent ad valorem tax rate on land 0.00% Per acre average value for land $ Percent of taxes and desired rate of return assigned to cotton 100%

Cotton2.1 2008

Your Value

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:09 PM

Non-Harvest Machinery Costs Default costs are representative for the farm size/organization and the machinery complement you initially specified, the level of custom service selected, and include non-harvest operations only. Any changes you make in the "Your Value" column will be used instead of the default value.

Your Value

Default Variable costs ($/acre) Fuel Lube Repairs Total Fixed costs ($/acre) Depreciation Insurance Taxes Interest Total

Select the appropriate machinery choice: Use Owned Equipment Only

$ $ $ $

32.36 4.85 16.94 54.15

Use Custom Work Only Use Owned Equipment and Custom Work

$

Owned

54.15

Custom

Fertilizer Operations Op erations

$ $ $ $ $

Hours of labor (Hrs/Acre) p) Tractor #1 ((hp) Tractor #2 (hp) Tractor #3 (hp) $ Labor costs per acre Total owned machinery cost $ Total custom machinery costs Total machinery costs

15.73 0.85 2.21 11.37 30.16

Pesticide Operations Planting Operations

All Other Operations

$

30.16

$ $ $ $

12.28 96.59 96.59

1.49 160 95 12.28 96.59

For additional information, see: CR-205 Oklahoma Farm and Ranch Custom Rates View these and other OSU Publications at: OSU Fact Sheets

otton2.1 2008

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:10 PM

Specified monthly field operations, machinery implement, and custom rate costs (see comment box for more information) Machinery Description Offset Disc Chisel Anhy. App. Sweep Plow M.B. Plow Field Cultivator Cultipacker Tandem Disk Springtooth S. Harrow Drill Planter Cultivator Rotary Hoe Sprayer S. Shreader Dry Fert. Spdr. Windrower Baler Operations/Month Custom Cost/Month $

otton2.1 2008

1

2

3

4

5

6

7

8

9

10

11

12

1.00 0.80

0.20 1.00

1.00

1.20 1.00 1.00 1.00

1.00

1.00

1.00

1.00 1.00

1.00

1.00 9.73

$

1.00 10.70

$

2.00 14.25

$

2.00 10.65

$

3.20 12.42

$

2.00 13.00

$

1.00 9.25

$

1.00 3.75

$

OSU Agricultural Economics Enterprise Budget Software

-

$

-

$

-

$

1.00 7.00

Times Over 1.00 0.80 0.20 1.00 1.00 1.20 2.00 1.00 4.00 1.00 1.00 14.20 Total

Custom Cost $ 9.73 $ 8.00 $ $ $ 2.70 $ 10.50 $ $ $ 7.25 $ $ $ $ 18.50 $ 8.67 $ 15.00 $ 7.00 $ 3.40 $ $ $ -

Cost/per Operation $ 9.73 $ 10.00 $ 13.50 $ 10.00 $ 13.50 $ 10.50 $ $ $ $

9.00 7.25 5.33 9.86

$ $ $ $ $

9.25 8.67 3.75 7.00 3.40

$ 90.75

9/9/2008 - 2:10 PM

The default information is based on the irrigation system and power source selection. To view the line-items for the default calculations, click the Irrigation Details button. Any changes you make in the "Your Value" column will be used instead of the default value. Will this crop be irrigated ? Irrigated

Type of Irrigation System:

Altus-Lugert Altus-Lugert District District

Irrigation Costs Application Efficiency

Pump Power Source:

Hours of irrigation labor per acre Labor cost per acre Total irrigation costs

Monthly Water Application January February March April May June July August September October November December

-

$

-

$

-

$ $

-

0.00

Default Annual Total: Your gross annual value:

Cotton2.1 2008

Your Value

Default

Inches of water required by crop Inches provided by rainfall Inches required from irrigation Inches required with efficiency Variable Cost ($/acre) Cost per acre inch of water Percent of cost related to repairs Water district charge/acre $ Total Fixed Cost ($/acre) Depreciation Insurance Taxes Interest Total

Natural Natural Gas Gas

Your Value

0.00 0.00

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:10 PM

Listed below are costs for post-harvest cotton. You can use the defaults or specify values to be used in the "Your Value" column.

Post-Harvest Expense Per Bale Hauling Ginning Costs Classing Freight to warehouse and insurance Bale wrap Warehouse receiving and storage Cotton, Inc. and National Cotton Council promotion

Cotton2.1 2008

Default $ $ 35.70 $ 1.30 $ 3.50 $ 7.50 $ 8.50 $ 1.00

Your Value

OSU Agricultural Economics Enterprise Budget Software

Month of Expense 11 11 11 11 11 11 11 Total Costs

Cost Per Acre $ $ 27.86 $ 1.01 $ 2.73 $ 5.85 $ 6.63 $ 0.78 $ 44.87

9/9/2008 - 2:10 PM

Specify any other expense not accounted for in other sections. Include a description, the month the expense will be incurred, and the cost per acre. Other Expense

Month of Cost Expense per Acre Boll Weevil Eradication 11 $ 4.54 Small grain seed 9 $ 7.50

Total Cost: $

me: Cotton2.1 2008

12.04

OSU Agricultural Economics Enterprise Budget Software

9/9/2008 - 2:10 PM

ENTERPRISE BUDGET WORKSHEET Enterprise: Dryland Cotton Enterprise Budget (lint) Number of acres: 160 Acres Harvested 160 Yield: 390.20 lb/ac Price: $ 0.66 /lb $ Operator's share 100.00 %

NAME:

DATE:

160 160 6.63 cwt/ac 4.72 /cwt 100 %

Qty. lint stored: Qty. seed stored:

price -----

> > > > >

price ----0.66 4.72

390.2 6.63

> Custom Hire (machine work) Feed Purchased Fertilizer, Lime, Chemicals Freight, Trucking Fuel, Lubricants Insurance Labor Hired Rent Repairs, Maintenance Seeds, Plants Storage, Warehousing Supplies Taxes Utilities Veterinary, Medicine Miscellaneous Ginning & Processing

> > TOTAL CASH OPERATING EXPENSES NET OPERATING (Rec - Exp) Operating interest expense Net Operating After Interest Contribut'n to Other Enterprise Contribut'n of Other Enterprise Net after contribution Land or Other Fixed Charges Net After Other Charges

File name: Cotton2.1 2008

0 lb. 0 cwt. 0.00 %

8.50 %

JAN

Error Check

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

0

NOV

DEC

0.00

0 0 0 0

257.53 31.29 288 83 288.83

41,205.12 5,006.98 46 212 10 46,212.10

71.36 53.62 11.52 15.18 56.06 9.74 4.43 12.04 44.87 -

11,417.00 8,578.55 1,842.58 2,428.80 8,970.04 1,558.40 709.39 1,925.81 7,179.68 -

278.81 10.01

44,610 1,602

2,024 (2,024)

1,163 (1,163)

2,175 (2,175)

8,569 (8,569)

3,859 (3,859)

2,639 (2,639)

1,005 (1,005)

1,611 (1,611)

1,200 (1,200)

6.89 3.12

1,103 499

14 (2,038)

23 (1,186)

38 (2,213)

99 (8,668)

126 (3,985)

145 (2,783)

152 (1,157)

163 (1,774)

172 (1,372)

0.00 3.12 56.56 (53.44)

0 0 499 9,050 (8,551)

(2,038) 754 (2,792)

(1,186) 754 (1,940)

(2,213) 754 (2,967)

(8,668) 754 (9,422)

(3,985) 754 (4,739)

(2,783) 754 (3,537)

(1,157) 754 (1,911)

(1,774) 754 (2,528)

(1,372) 754 (2,126)

quan. -----

(totals) (totals) (totals) TOTAL CASH OPERATING RECEIPTS

Livestock purchased for resale Description unit price - - - - - --------

CottonIffs

quan. -----

> > > > Crop sales: Description unit - - - - - ---Cotton lint lb Cottonseed cwt Government payments Other farm income

File:

Percent change in costs

Interest rate Interest Starting Month: January PER UNIT TOTAL > Livestock sales: Description unit - - - - - ----

FIELD:

(seed)

41,205.12 5,006.98

-

-

-

-

-

-

626.40

5,853.00

2,508.80

1,225.60

-

-

-

-

46 212 10 46,212.10

-

1,203.20

454.15 256.98 128.58

499.42

665.12

497.09

579.70

606.77

431.74

175.03

4,342.80

141.40

188.31

140.74

164.13

171.79

122.24

49.56

1,229.56

326.72 1,585.60 92.50

474.87

522.21

695.47

519.77 1,558.40

606.16

634.46

451.45

183.02

4,540.99

341.63

709.39

1,200.00

725.81 7,179.68

quan. -----

OSU Agricultural Economics Enterprise Budget Software

0 0

18,019 28,193

2,346 (2,346)

172 (172)

0 28,193

0 (2,346)

(172) 754 (926)

28,193 754 27,439

(2,346) 754 (3,101)

9/9/2008 - 2:11 PM