Ontario Enterprise Budgets - Help Section
Table of Contents
Enterprise budgets are developed to aid producers in evaluating alternative cropping and livestock plans. These budgets are planning tools to estimate costs and evaluate enterprise alternatives. The sample costs are only a guide to illustrate a method of preparing your projections.
An enterprise budget has the following characteristics:
At the same time, some things must be recognized that are not implied by an enterprise budget:
Each producer should develop an individual production plan. Input your own information in the spaces provided. The resulting estimate will assist you in choosing your enterprise mix, target prices and marketing strategies for your farm.
Budgeting Tools were developed as a tool for assessing the risk associated with farm businesses. The budgets for each commodity will allow you to enter data specific to your operation into the budget, have the appropriate calculations be performed, and be able to view/modify/print the results for your own use. This powerful computer application provides a unique opportunity for producers to assess the risk in various components of their operations. Many planning alternatives can now be evaluated in the time it would take to manually develop and evaluate a single plan. This frees up time for you to investigate alternatives and to consider 'what if' questions.
The livestock budgeting tools each have a help section included in the Excel file. Please refer to this information for more detailed help instructions related to the livestock enterprise.
Perennial crops produce a crop more than one year and usually live for many years. They require an establishment period and following the establishment period produce a crop year after year. The perennial crop budgets include a section for the establishment costs and the annual operating costs once the crop is in full production.
Annual crops are planted and harvested within the same growing year. Annual crop budgets only require annual operating costs to be inputted.
Data input steps:
General Variable and Fixed Costs or general overhead costs are those whole farm costs that can be difficult to allocate to a specific enterprise. These costs will show little or no change whether one crop or another is grown. That is to say, your crop mix choice should be the same after allocating general overhead costs as it was before they were added. For this reason they are not directly included in the enterprise budgets. There is a table that allows you to allocate these overhead costs and transfer them to the budget if you wish to arrive at a total cost of production.
The Livestock Budgeting Tools each have a Help section included in the Excel file. Please refer to this information for more detailed data input instructions related to the livestock enterprise.
For more information:
Toll Free: 1-877-424-1300