Enterprise Budgets and Variable Costs

This brief from Agromisa deals with variable costs and enterprise budgets. This is a small, basic subject of farm accounting that can be used as a means for both planning and evaluating performance of activities on a farm. This AgroBrief forms part of a series of briefs on Farm Management in general, and the economics of farming in particular. After describing the basics of farm economics (1) and enterprises (2), methods of calculating a crop budget (3) and a livestock budget (4) are given. The document concludes with a short discussion on the use of enterprise budgets.

This is an extremely useful and practical guide on this topic and will be helpful to any adviser or loan officer who requires to make farm budgets or teach others how to do so.

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