Enterprise Budgets

Agribusiness Management events and meetings

This webpage is the financial archives of the Women In Agriculture webinars.

Maryland enterprise budgets for 2024 are based on average yields and estimated input costs, which may vary from one farm to another. It is important to include actual farm data when completing enterprise budgets.

Crop budgets vary greatly by operation! Prices and cost estimates are averages collected from retailers across the state. Input prices will vary by crop, management, region, varieties, and other criteria and may not be reflective of YOUR true costs.

Chapter 2: Economic assessment and risk management is part of the online publication "From Surviving to Thriving: Strategies for Urban Farm Success. Most of the work of a farm is in producing and marketing crops and livestock. But will this effort be economically viable? And what are the economic risks? These are questions that all farm businesses must answer regardless of whether they are for-profit or not-for-profit. To stay in business, the farm must be economically sustainable. To measure economic viability, this chapter will focus on two economic measurements – profit and cash flow.

Introduction Financial and economic considerations such as limited capital, untimely cash flow, insufficient labor, small acreage or other reasons require farmers to hire custom service for field operations. Custom work charges are determined by demand and supply and are negotiated between farmers and custom operators. The purpose of this publication is to provide information on custom work charges in Maryland and to provide data to assist in decision-making regarding purchasing equipment.

What price are you getting per cwt of milk? Like most dairy farmers, you know the price or you can get it quickly by reviewing milk check receipts. How much does it cost you to produce a cwt of milk? Like many dairy farmers, you may not know. Dairy farming is complex, and determining your costs of production is sometimes difficult. Yet, your costs directly affect your profit, and it is important to understand them.

In the opening session of a recent Annie’s Project Class I coordinated, we addressed the topic “The Seven Habits of Highly Effective Farm Women.” It was a take-off modeled on Steven Covey’s (1992) book, “The Seven Habits of Highly Effective People.” In his book, Covey highlights the seven habits of great managers. I think this is a valuable read for any business person. Another great resource for Ag business entrepreneurs is “The E-Myth” a book by Michael Gerber. His book talks about how most of us believe we can succeed as entrepreneurs, when in reality most small businesses fail.

As I review more business plans and engage in entrepreneurial coaching sessions, I’m seeing more detailed marketing plans, engagement strategies, and attention to marketing materials. Those are all good business components. But, I almost never see a line item in their budgets for marketing costs. Plans and support materials are great, but how much will these things cost and where is the most effective use of your marketing funds? Not being intentional about developing the budget that will support your marketing plans is like purchasing a car and not determining if you have enough money to buy the gas to run it.

Planning is essential to any business, no matter how large or small its inventory, payroll, and bank account. To be successful, farm operators must know their current position and future plans. Thinking about your plans is not enough! Taking time to formulate ideas, evaluate your business, devise a strategy, and anticipate possible problems will help your business be successful.