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Capital budgeting on the farm

Your Farm Business

October 21, 2011
From Wayne Schoper and Rich Baumann , South Central College

Most farm business managers are used to developing and using a cash flow budget for their farm business. They estimate the quantity and sale price of the commodities they plan to produce, and the costs of inputs needed to produce those commodities (seed, fertilizer, feed, etc.). The better farm managers also monitor their actual incomes and expenses during the year to see how close they compare to their estimates, and make adjustments during the year as needed. This is just part of modern farm business management.



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