Evaluating enterprise change and capital investments: partial and break-even budgets


To maximise returns, most farmers should adapt production activities to influences such as changing market requirements and production costs. To answer the question ‘Will I be better or worse off if I do something which I am not doing now?’ the farmer needs some detailed planning and an accurate assessment of benefits and costs involved.

If you want to achieve the best balance of enterprises or replace an old machine, you must assess the relative merits of your proposed changes in the context of overall farm structure. Two useful techniques for such an evaluation are partial and break-even budgets. This Agfact discusses the ways in which you can use these techniques.


Agfact M1.2 Second Edition

Published: 01 Sep 2001