Ohio State University (OSU) Extension is offering 2013 economic enterprise budgets for a variety of crops, including alfalfa hay, grass hay and alfalfa haylage.
In addition to cash expenses and depreciation, the budgets factor in opportunity costs of land, labor, management and capital.
“By including opportunity costs of labor and management in an economic enterprise budget, the user can determine whether the enterprise is economically viable in the time frame being considered,” says Barry Ward, production business management specialist with OSU Extension.
The budgets, available here, are compiled on downloadable Excel spreadsheets that contain macros for ease of use. Growers input their production and price levels to calculate their own numbers. The budgets also have color-coded cells that allow users to plug in numbers to easily calculate bottom lines for different scenarios. Detailed footnotes are included to help explain methodologies used to obtain the budget numbers.
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