Farm Enterprise Records

AG -CARES, Lamesa, TX 2001

John Farris, County Extension Agent - Agriculture

Dawson County



SUMMARY:

 

Five irrigated cropping systems, terminated rye-cotton, conventional continuous cotton, peanut/cotton, rotation terminated rye-cotton UNR and conventional tillage peanuts established at AG-CARES in 2001. Also, established a sorghum-cotton tillage rotation system and conventional tillage cotton on dryland only. Enterprise records were maintained on all seven production systems, with net returns per ground acre ranging from a high of $136.20 to a low of ($1.37). Enterprise records help to show the disparities between cropping enterprise rather than one overall farm net return of $71.19.

 

The multi-year average for net return per ground acre range from $183.98 to ($8.47) across all cropping systems. The overall average for the whole farm is $110.04. The top three cropping systems, based on the eleven year average of net income per land acre are:

 

1. Conventional Tillage Peanuts Solid Row - LEPA Irrigated (Seven year average). . . . . . .$183.98

         2. Terminated Rye-Cotton Rotation Solid Row - LEPA Irrigated. . . . . . . . . . . . . . . . . . . . . .$177.38

         3. Conventional Continuous Cotton Solid Row - LEPA Irrigated . . . . . . . . . . . . . . . . . . . . .$171.05

 

The availability of enterprise records showed a positive advantage of $124.87 per land acre between irrigated cropping systems. The irrigated cropping system averaged $24.82 and the dryland cropping system averaged ($2.87) per ground acre in 2001. Table 2 shows AG-CARES Cropping Systems Enterprise Analysis Per Ground Acre for 2001.

 

The maintaining of enterprise farming records may be one of the best tools available to producers to increase profits and sustain their farming operations. But even good records can not compensate for lack of moisture and low commodity prices.

 

OBJECTIVE:

 

Cotton producers face increasing economic decisions each year. An accurate set of farm enterprise records is needed to make meaningful decisions.

 

To maintain farm enterprise records on all cropping system at AG-CARES in a practical manner available to all producers, thereby showing the need to distinguish between cropping systems, farms, etc.


MATERIALS AND METHODS:

 

Actual cost per acre was maintained on Quicken Deluxe 2000 and Lotus 1-2-3® for windows for seven different enterprise cropping systems at AG-CARES during 2001.

 

Cost for fuel, labor and farming equipment were charged out at 75% of the most common custom rate as established by the Texas Agricultural Statistics Service. Cash land lease was charged at $21.40 per acre for dryland and $55.20 per acre for irrigated.

 

All farming operations were conducted by Texas Cooperative Extension or TAES personnel. Some spraying and harvesting operations were performed by custom operators and charged out at their normal rates per acre.

 

All chemicals or other inputs donated to AG-CARES Farm were charged out at the rate producers would have to pay for that product in Lamesa, Texas.

 

Cotton lint was sold for $54.00 per cwt and seed for $125 per ton.

 

Table 1 shows the AG-CARES Cropping Systems Enterprise Report By Expense Inputs Per Land Acre For 2001 Crop.

 

RESULTS AND DISCUSSION:

 

Five cropping systems and conventional tillage cotton were established in 2001. Circular rows were established for LEPA irrigation, with a 40" solid row pattern. These irrigated systems will be compared to conventional tillage cotton production in terms of cotton yield, fiber quality, and net returns per acre. Dryland cotton and grain sorghum were produced in a conventional cropping system on 101 acres in 2001.

 

The cropping systems being evaluated include:

            1)  Terminated rye-cotton in which rye is planted into cotton stalks following harvest and chemically terminated - 4 weeks prior to cotton planting and cotton is then planted into the rye residue.

            2)  Cotton-Peanut conventional tillage following peanuts.

            3)  Conventional tillage cotton system.

            4)  Peanut conventional tillage system following cotton.

            5)  Terminated rye-cotton planted UNR.

 

These systems attempt to limit tillage operations to reduce input costs while conserving soil moisture and maintaining crop residue on the soil surface as a means to protect young cotton plants.

 

Farm enterprise records of actual cost were maintained on all the different cropping systems during 2001.

 

Expense and income for each of the cropping systems varied greatly between enterprise records. Inputs were charged to each enterprise monthly as bills were paid using Quicken Deluxe 2000. Lotus 1-2-3® for windows was used to analyze records on a per acre and yield basis.