Farm budgets and costs (field crops and pastures)
The farm enterprise budgets provide a guide to the relative profitability of different enterprises and an indication of the different management practices used. The crop production information presented in the Grains report provides a guide to the outlook for various crops.
The aim of these budgets is to provide producers with an additional planning tool to help evaluate options. The budgets presented are meant to be a projection of price expectations in the near future, rather than a statement of the recent past.
It is extremely difficult to accurately predict future prices and other variables. However, by using the best available information, it is still better to evaluate your options by making your own projections and combining them into a business plan for your property. These budgets will help you in developing your own budgets.
The budgets and other information need to be applied carefully when used to decide a farm’s overall enterprise mix. If major changes are being considered, more comprehensive budgeting techniques are required to indicate the real profitability of the situation.