What to include in a farm budget?

A simple whole farm budget may include minimal information (e.g., list enterprises and production level) or include detailed data for each enterprise (e.g., seed and fertilizer prices and volumes, custom harvest costs, pre- and postproduction labor hours, application rates, etc.).

What is an enterprise budget?

What is an enterprise budget? An enterprise budget is used for planning and estimating income (revenues), expenses (costs), and profits for a single enterprise of a farm business. Enterprise budgets are constructed on a per unit basis, such as per acre or per head, to facilitate comparisons among other enterprises.

What is the average budget for a farm?

These include feed, 18.5 percent, farm services, 10.8 percent, livestock, poultry, and related expenses, 10.1 percent, and labor, 9.2 percent. In 2022, the United States total farm expenditure average per farm is $226,986, up 15.8 percent from $196,087 in 2021.

What are the types of farm budget?

There are four general types of farm/ranch budgets: whole-farm, partial, cash flow, and enterprise. A whole-farm budget is normally constructed on an annual basis and includes all the income and costs associated with a farm's yearly production. It summarizes the major physical and financial features of the entire farm.

How to create a farm budget?

Whole-Farm Budget List the goals and objectives of the farm firm. Inventory the resources available for use in production. Determine physical production data that will be used in the input/output process. Identify reliable input and output prices. Calculate the expected variable and fixed costs and all returns.

How do I start a farm on a budget?

Here are some of these strategies for keeping your costs low so you can get off the ground and start making a profit quickly and easily. Start on a Small Parcel. Buy Used Equipment. Grow Food for Yourself and Livestock. Get Your Family Involved. Work with Locals to Reduce Your Costs. Use Natural Resources. Make Compost.

What are the costs of running a farm?

Feed costs were the largest overall driver of higher expenses, up 18.5% from 2021. Other "farm services" rose 10.8%, while livestock, poultry and related other expenses were up 10.1%. Labor costs were 9.2% higher. The total farm expenditure per average farm in 2022 was $226,986, up 15.8% from $196,087 in 2021.

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