New Features to Enterprise Budgets

Author(s): Greg Halich

Published: October 28th, 2021

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Enterprise budgets are designed to help farmers estimate profitability in the current and future growing seasons, and are also used by lenders and other agricultural-related professionals. Expected year-to-year changes in profitability can help farmers make decisions related to cropping decisions (e.g. Should I plant wheat this fall? Should I plant more soybeans vs. corn this spring). Longer-term profitability changes can help farmers make decisions related to negotiations on cash rent.

Several enterprise budgets are available on our Budgets and Decision Tools page. You'll now notice a new format for the corn-soybean budgets has been developed to give it additional capabilities compared to the previous versions. Over the years, I have received requests to add various capabilities to these budgets and this new format/structure incorporates these suggestions and more.

These new additions include:

Fertilizer calculator
Storage calculator
Ability to separate out trucking costs
Use of crop-share instead of cash rent
Customizable machinery operations, including incorporating cover crops

The downside is the new budget has additional sheets and additional entries. Not everyone will want these additional capabilities so the original corn-soybean budgets for Central Kentucky and Western Kentucky will remain available, at least in the foreseeable future. The wheat budget will have a similar format and will be available next year.

Comments and suggestions are encouraged and welcomed.

Recommended Citation Format:

Halich, G. "New Features to Enterprise Budgets." Economic and Policy Update (21):10, Department of Agricultural Economics, University of Kentucky, October 28th, 2021.

Author(s) Contact Information:

Greg Halich | Associate Extension Professor | greg.halich@uky.edu

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