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Convert 11, 000 acres of dryland sugar beet to irrigated green beans Irrigation equip. loan annual interest $6,000.00 Current revenue on dryland $110,000 Depreciation $650.00

Convert 11, 000 acres of dryland sugar beet to irrigated green beans

Irrigation equip. loan annual interest

$6,000.00

Current revenue on dryland

$110,000

Depreciation

$650.00

Current costs to dryland farm

$12,500.00

Insurance costs for new venture

$1,500.00

Revenue from bean sales

$18,000

Fertilizer & soil supplements

$25,000.00

Machinery VC

$2,000.00

Pesticide

$1,450.00

Irrigation VC

$12,750.00

Interest on VC

$1,650.00

Bean seeds

$110.00

Partial Budget

Alternative: Convert 11,000 acres of dryland sugar beets to irrigated green beans

Additional Costs

Additional Revenue

Reduced Revenue

Reduced Costs

A. Total additional costs and reduced revenue

A. Total additional costs and reduced revenue

Net change in profit (B-A)

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