By Archie Flanders, Agricultural Economist
Whole farm budget analysis is an extended application of crop enterprise budget methodology.
Crop enterprise budgets with per acre costs and returns are expanded to a whole farm analysis by applying county-level aggregate yield data to represent a case study farm. Results for the case study farm with 2,800 acres of corn, soybeans, and rice are $1,024,487 of current production expenses and an additional $232,505 of long-term debt obligations for machinery and equipment. Total annual farm expenses are $1,437,270. Deducting $66,582 as value of operator management and family living expenses results is net equity loss of $43,415. Without receipts from PLC and ARC payments, total equity losses would increase to $110,581.
More information: Whole Farm Analysis – August 2017