Farm budget resources available to relieve financial stress
Wednesday, November 30, 2022
Ag producers need to enhance their budgeting skills over the next few months to survive the tumultuous drought that has impacted crop yields and hay production. OSU Extension offers helpful budgeting tools and resources. (Photo by Todd Johnson, OSU Agricultural Communications Services)
Enterprise budgets help producers make informed, smart decisions in a timely manner to improve farm management.
Sample enterprise budgets provided by Oklahoma State University Extension for late summer and fall planted crops have been updated and allow users to easily customize their operation’s activities. OSU Extension’s free sample budgets via Excel provide editable budget summaries. In addition to the sample documents, OSU Enterprise Budget Software is available for purchase. This option offers advanced, interactive budget-building features that create snapshots of an operation through PDF files.
OSU Enterprise Budget Software includes horticulture budget scenarios as well as those for traditional crop and livestock commodities, such as alfalfa, wheat, cow-calf operations and corn.
Roger Sahs, OSU Extension specialist in agricultural economics, said drought conditions over the past year have intensified financial stressors on the farm. The capital, time and management strategies invested in crops like wheat and canola are critical to harvest success.
“There is considerable uncertainty given the volatility in the commodity markets in addition to the inflationary pressures that are squeezing profit margins,” he said. “Even with high crop prices, it’s important to scrutinize every dollar spent in an operation.”
OSU’s sample enterprise budgets address the “what-ifs” life presents by examining how changes affect breakeven prices and yields, Sahs said. The free budget resources paint a clear picture for producers as they evaluate their options and commit to valuable resources.
“Budgets focus on finances while working on production performance,” he said. “There are times when you can save or make the most money from right behind your desk.”