Constructing a Southwest Florida Tomato Enterprise Budget

Enterprise budgets are effective planning tools for growers in search of help with forecasting, resource coordination, and better production decisions. In essence, enterprise budgets can help producers determine what to produce, how many acres to produce, the cost of production, and the necessary price to be profitable. This 5-page fact sheet written by Tara Wade, Barbara Hyman, Eugene McAvoy, and John VanSickle and published by the UF/IFAS Food and Resource Economics Department describes the process used to create the 2017/18 enterprise budget for tomatoes in southwest Florida and includes resources for producers interested in creating enterprise budgets for their own operations.https://edis.ifas.ufl.edu/fe1087

How do herders do well? Profitability potential of livestock grazing in Inner Mongolia, China, across ecosystem types

Livestock production has increased in Inner Mongolia, China, despite widespread documentation of grassland degradation. To begin investigating the relationship that produces these trends, we studied farm-level decisions of herder households. We estimated economic enterprise budgets for 15 counties in Inner Mongolia across five ecosystems in 2009 and 2014 by using household survey data. Six counties decreased livestock stocking rates and had improved profit over time. The remaining counties increased their stocking rates over the period studied and profit decreased for all but one county. Livestock operators who reported negative profit over the 5 years were located across ecosystem types and reported a large number of weather shocks that affected grassland availability. Removing the opportunity cost of land and labour from the economic enterprise budgets resulted in a positive profit for all counties, which may explain why herders continue to increase stocking rates with decreased grassland availability over time.

Satsuma Mandarin Budget and Profitability Analysis for North Florida

This 16-page analysis written by Kevin R. Athearn, Peter C. Andersen, Bent V. Brodbeck, Lei Lani L. Davis, Clay Olson, Daniel K. Fenneman, Matthew Lollar, Derek Farnsworth, and Michael Perez and published by the UF/IFAS Food and Resource Economics Department provides research-based information and a description of satsuma mandarin markets, production costs, and potential returns for citrus growers who are considering establishing a satsuma grove in north Florida. Its purpose is to serve as a reference and model for growers to create their own enterprise budgets and make financial projections. An enterprise budget estimates revenues, costs, and net returns for a particular crop or farm enterprise to help growers assess the economic viability and risk of an enterprise, compare enterprises, and evaluate production or marketing changes. The budget and financial analysis may assist prospective and current satsuma growers, agricultural consultants, and lenders with planning and decision making.http://edis.ifas.ufl.edu/fe1030

Per Unit Costs to Own and Operate Farm Machinery

With increasingly thin margins and new technologies, it is important that farm managers know their cost of field operations on a per unit basis (e.g., acre, ton, bale). Accurate per unit costs give confidence when constructing enterprise budgets and evaluating new technologies, such as no-till. Custom rates are often used as a proxy for per unit costs; however, this research, using entropy and jackknife estimation procedures, found that custom rates understate total ownership and operating costs by approximately 25% for an average Kansas farm. Estimates from these models are then used to benchmark actual costs against expected cost.