Spreadsheet: 2507349e-86da-4711-aefe-6460cab7359a
Sheet: Sheet1

Unnamed: 0 | 160 Acre Irrigation System | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | Unnamed: 5 | Unnamed: 6 | Unnamed: 7 | Unnamed: 8
 |  | *** CAPITAL COST AND LOAN INFORMATION ***
1 | Year Purchased? |  |  |  |  |  | 2004
2 | Purchase Price for Entire System Installed? |  |  |  |  |  | 160000
3 | [NAME] with out Irrigation |  |  |  |  |  | 165 | Per Irr. Acre Investment
4 | Irrigated Acres System Covers? |  |  |  |  |  | 156 | 1025.641025641026
5 | Life of System in Years and Assumptions? (25 years or less) |  |  |  |  |  | 20
6 | Salvage Value of Investment at End of Evaluated Time Period? |  |  |  |  |  | 30000
7 | Amount of Purchase Price Borrowed? |  |  |  |  |  | 100000
8 | Annual Interest Rate for Borrowed money? |  |  |  |  |  | 0.065
9 | Loan Terms in Years? (20 years or less) |  |  |  |  |  | 7
 |  | *** INCOME TAX INFORMATION ***
10 | Marginal Income Tax Rate? (Fed,State, & Soc Sec) |  |  |  |  |  | 0.25
11 | "MACRS" Property Class? (3,5,7,10,or 20yrs) |  |  |  |  |  | 7
12 | "ADS-SL" Years? (3,5,7,10,15,20,or 25yrs) |  |  |  |  |  | 10
13 | Depreciation Method ? (1=MACRS or 2=ADS-SL) |  |  |  |  |  | 1
14 | Additional First Year Depreciation? (Sec179,30%,50%) |  |  |  |  |  | 50000
15 | Opportunity Cost of Capital? |  |  |  |  |  | 0.1
 | This value should include 1. the desired Return on Assets, and 2. a Risk Premium
 |  |  |  |  |  | Net Present Value Discounted After Tax Cash Flow = | 52089.74997240251
 | A Positive NPV indicates that the investment (over the life of the investemnt) returned higher than the desired opportunity cost of capital
 | A negative NPV indicates a return less than the desired opportunity cost of capital
 |  |  |  |  |  | 0.1527079362626005 | Internal Rate of Return Before Tax
 |  |  |  |  |  | 0.1471732589508708 | Internal Rate of Return After Tax
 |  | *** CROP PRODUCTION INFORMATION ***
16 |  |  | Value of family and regular labor ($/hr) | 11
17 |  |  | Variable Cost per Acre Inch of Water | 5 | Includes Energy and Labor Cost
 |  |  | Dry Land Crop Rotation |  |  | With Irrigation Crop Rotation
 |  |  | Dryland | Dryland |  | Irrigated | Irrigated | Irrigated
 |  | Crops to be grown | Soybeans | Com. Corn |  | [NAME] | Seed Corn | Soys
18 |  | Rotation | 50 | 50 |  | 1 | 1 | 1
 |  | Percentage of Rotation | 0.5 | 0.5 |  | 0.3333333333333333 | 0.3333333333333333 | 0.3333333333333333
19 | Probability | Price per Bu | 5 | 1.95 |  | 2.25 | 2.1 | 5
 | Average Year
20 | 0.5 | Yields | 30 | 110 |  | 100 | 200 | 50
21 |  | Acre Inches |  |  |  | 9 | 9 | 4.5
 | Dry Year
22 | 0.3 | Yields | 20 | 90 |  | 100 | 200 | 52
23 |  | Acre Inches |  |  |  | 11 | 11 | 5.5
 | Wet Year
24 | 0.2 | Yields | 40 | 140 |  | 100 | 200 | 45
25 |  | Acre Inches |  |  |  | 6 | 6 | 3
 | 1 | Must = 100%
 | Average Year |  | Dryland | Dryland |  | Irrigated | Irrigated | Irrigated
 |  |  | Soybeans | Com. Corn |  | [NAME] | Seed Corn | Soys
 | Gross Income |  | 150 | 214.5 |  | 225 | 420 | 250
26 | Labor Hours(not including Irrigation hours) |  | 3 | 3.5 |  | 0 | 4 | 3.2
 | Variable Expenses | per Unit
27 | Seed |  | 19.29 | 29.25 |  | 0 | 0 | 21.43
28 | Fertilizer |  | 24.6 | 46.2 |  | 0 | 87.2 | 28.85
29 | Chemicals |  | 15 | 29.25 |  | 0 | 58 | 15
30 | Drying cost per Bu | 0.25 | 0 | 27.5 |  | 0 | 0 | 0
 | Irrigation Energy & Labor |  | 0 | 0 |  | 0 | 45 | 22.5
31 | Fuel & Oil |  | 6.38 | 8.63 |  | 0 | 0 | 7.33
32 | Repairs |  | 18 | 22 |  | 0 | 20 | 18
33 | Utilities |  | 1.5 | 5.5 |  | 0 | 1.5 | 1.5
34 | [NAME] |  | 0 | 0 |  | 0 | 25 | 0
35 | Trucking | 0.15 | 4.5 | 16.5 |  | 0 | 15 | 7.5
36 | Marketing | 0.05 | 1.5 | 5.5 |  | 0 | 10 | 2.5
 | Labor |  | 33 | 38.5 |  | 0 | 44 | 35.2
 | Total Variable |  | 123.77 | 228.83 |  | 0 | 305.7 | 159.81
 | Gross Margin Per Crop |  | 26.23 | -14.32999999999998 |  | 225 | 114.3 | 90.19
 | G. Margin Per Rotation |  | 13.115 | -7.164999999999992 |  | 75 | 38.1 | 30.06333333333333
 | Dry Year |  | Dryland | Dryland |  | Irrigated | Irrigated | Irrigated
 |  |  | Soybeans | Com. Corn |  | [NAME] | Seed Corn | Soys
 | Gross Income |  | 100 | 175.5 |  | 225 | 420 | 260
 | Labor Hours |  | 3 | 3.5 |  | 0 | 4 | 3.2
 | Variable Expenses | per Unit
 | Seed |  | 19.29 | 29.25 |  | 0 | 0 | 21.43
 | Fertilizer |  | 24.6 | 46.2 |  | 0 | 87.2 | 28.85
 | Chemicals |  | 15 | 29.25 |  | 0 | 58 | 15
 | Drying cost per Bu | 0.25 | 0 | 22.5 |  | 0 | 0 | 0
 | Irrigation Energy & Labor |  | 0 | 0 |  | 0 | 55 | 27.5
 | Fuel & Oil |  | 6.38 | 8.63 |  | 0 | 0 | 7.33
 | Repairs |  | 18 | 22 |  | 0 | 20 | 18
 | Utilities |  | 1.5 | 5.5 |  | 0 | 1.5 | 1.5
 | [NAME] |  | 0 | 0 |  | 0 | 25 | 0
 | Trucking | 0.15 | 3 | 13.5 |  | 0 | 15 | 7.8
 | Marketing | 0.05 | 1 | 4.5 |  | 0 | 10 | 2.6
 | Labor |  | 33 | 38.5 |  | 0 | 44 | 35.2
 | Total Variable |  | 121.77 | 219.83 |  | 0 | 315.7 | 165.21
 | Gross Margin Per Crop |  | -21.77 | -44.33000000000001 |  | 225 | 104.3 | 94.79000000000002
 | G. Margin Per Rotation |  | -10.885 | -22.16500000000001 |  | 75 | 34.76666666666667 | 31.59666666666667
 | Wet Year |  | Dryland | Dryland |  | Irrigated | Irrigated | Irrigated
 |  |  | Soybeans | Com. Corn |  | [NAME] | Seed Corn | Soys
 | Gross Income |  | 200 | 273 |  | 225 | 420 | 225
 | Labor Hours |  | 3 | 3.5 |  | 0 | 4 | 3.2
 | Variable Expenses | per Unit
 | Seed |  | 19.29 | 29.25 |  | 0 | 0 | 21.43
 | Fertilizer |  | 24.6 | 46.2 |  | 0 | 87.2 | 28.85
 | Chemicals |  | 15 | 29.25 |  | 0 | 58 | 15
 | Drying cost per Bu | 0.25 | 0 | 35 |  | 0 | 0 | 0
 | Irrigation Energy & Labor |  | 0 | 0 |  | 0 | 30 | 15
 | Fuel & Oil |  | 6.38 | 8.63 |  | 0 | 0 | 7.33
 | Repairs |  | 18 | 22 |  | 0 | 20 | 18
 | Utilities |  | 1.5 | 5.5 |  | 0 | 1.5 | 1.5
 | [NAME] |  | 0 | 0 |  | 0 | 25 | 0
 | Trucking | 0.15 | 6 | 21 |  | 0 | 15 | 6.75
 | Marketing | 0.05 | 2 | 7 |  | 0 | 10 | 2.25
 | Labor |  | 33 | 38.5 |  | 0 | 44 | 35.2
 | Total Variable |  | 125.77 | 242.33 |  | 0 | 290.7 | 151.31
 | Gross Margin Per Crop |  | 74.23 | 30.67000000000002 |  | 225 | 129.3 | 73.69
 | G. Margin Per Rotation |  | 37.115 | 15.33500000000001 |  | 75 | 43.1 | 24.56333333333333
 | Gross Margin With Rotation and Probability
 |  |  | DryLand Rotation |  |  |  | Irrigation Rotation
 | Average Year |  | 6.557500000000001 | -3.582499999999996 |  | 37.5 | 19.05 | 15.03166666666667
 | Dry Year |  | -3.265499999999999 | -6.649500000000002 |  | 22.5 | 10.43 | 9.479000000000001
 | Wet Year |  | 7.423000000000001 | 3.067000000000002 |  | 15 | 8.620000000000001 | 4.912666666666667
 |  | Sub Totals | 10.715 | -7.164999999999996 |  | 75 | 38.1 | 29.42333333333333
 |  |  | Totals | 3.550000000000008 |  |  |  | 142.5233333333333
 |  |  | 165 | 585.7500000000013 |  |  | 156 | 22233.64
 |  |  |  |  |  |  | Gross Margin Benefit with Irrigation
 |  |  |  |  |  |  | 21647.89 | All Acres
 |  |  |  |  |  |  | 138.7685256410256 | per irrigated Acre