The Crop Enterprise Budget Tool spreadsheet developed by the Division of Extension at UW-Madison provides a straightforward method to arrive at a cost of production for crops on a per acre and per bushel basis.
The tool includes a section where yield per acre and price per bushel can be used to determine income from grain production operations.
Expense sections include variable costs and fixed costs. These expenses are automatically deducted from the income line to determine profit or loss from the income and expense data input into the tool.
The budget tool is a spreadsheet with a number of tabs across the bottom of the screen. The instructions tab is the best place to start to provide some guidance on how this tool works.
Spreadsheet Tutorial
Custom Rate Guides
Custom rate guides are valuable tools to estimate field operation costs. Custom rate guide resources include:
Summary
The bottom line is the crop budget enterprise tool can provide an estimate of expenses.
The crop enterprise budget tool can help with current revenue and cost estimates or future forecasting related to profitable pricing and grain marketing. Once a profitable price is determined, the grain marketing strategies can begin.
Measuring Price Risk for Your Farm Business
Setting Risk Management Goals for Your Farm Business
Identifying the components and sources of risk on the farm
Evaluating a Farmer’s Risk Tolerance
