skip to content

Enterprise budgets

Dairy enterprise budgets are one of the most useful tools to evaluate the financial performance of farms, particularly farms with diversified operations. Fixed expenses do not change over the short term and are not influenced by productivity, such as insurance, depreciation, interest and taxes. Variable or operating expenses are tied to production, such as seed, fertilizer, and fuel expenses. By itemizing all fixed and variable expenses, along with gross receipts, it is possible to evaluate returns on a per acre basis or on a per cow basis.