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Enterprise Budgets
Enterprises are the building blocks of a farm or ranch. They represent estimates of income and expenses for a specific period of time using a particular set of production practices for that particular enterprise. It is important, therefore, to determine the impact each enterprise contributes to the overall success of a farm. Enterprise budgets are designed to provide a framework for any farm operator to evaluate costs and receipts, break-even analysis and machinery costs for his or her operation. Enterprise Budgets are used to:
- Itemize the receipts or income received fro an enterprise.
- List the inputs and production practices required by an enterprise.
- Help the producer evaluate the efficiency of farm enterprises.
- Provide a framework for the whole farm plan.
- Are useful in supporting an application for credit.
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