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Table 4: Costs and Returns for Alfalfa Hay (Established Stand), Per Acre

Conventional Production Practices, Northeastern United States, 1996

ITEM UNIT PRICE QUANTITY TOTAL
         
Receipts        
Alfalfa ton $ 132.00 3.75 $ 495.00
         
Varia ble Costs        
Custom        
Soil Test acre $ 1.00 1 $ 1.00
Fertilizer        
P pound $ 0.32 60 $ 19.20
K pound $ 0.14 210 $ 29.40
Herbicides        
Butyrac 200 (2,4-DB) gallon $ 36.00 0.5 $ 18.00
Insecticides        
Cygon 400 gallon $ 34.66 0.07 $ 2.43
Malathion 57E gallon $ 29.18 0.25 $ 7.30
Labor        
Operator hour $ 14.48 5.65 $ 81.81
Seasonal Hired hour $ 7.24 0.75 $ 5.43
Diesel Fuel        
Tractors gallon $ 0.969 17.91 $ 17.35
Repair & Maintenance        
Tractors acre $ 8.96 1 $ 8.96
Implements acre $ 25.65 1 $ 25.65
Sub-Total     &nbs p; $ 216.53
Interest on Operating Capital a acre 10% 1 $ 6.28
Total Variable Costs acre   1 $ 222.81
Returns Above Variable Costs acre   1 $ 272.19
Fixed Costs        
Tractors acre $ 22.06 1 $ 22.06
Implements acre $ 38.20 1 $ 38.20
Land Charge acre $ 50.00 1 $ 50.00
Preproduction Cost Allocation acre 8% 1 $ 47.64
Total Fixed Costs acre &n bsp; 1 $ 157.90
Total Fixed & Variable Costs acre   1 $ 380.71
Management Fees a acre 7% 1 $ 23.15
Total Costs acre   1 $ 403.86
Net Returns acre   1 $ 91.14

a See text for calculation assumptions.

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