Understanding Budgets and the Budgeting Process

Budgeting is crucial to a business' success. This publication helps you navigate this often intimidating task by discussing the four budget types most commonly used by agricultural producers (whole farm, partial, cash flow and enterprise). Because of its importance in creating the other budgets, the enterprise budget is spotlighted, with particular attention to variable costs, establishment costs, budget interpretations, use of the budget, breakeven analysis and sensitivity analysis.