Budgets: Proper planning and decision-making critical, as farms prepare for the year ahead

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As farms continue to see increased input costs and fluctuating returns in 2023, proper planning and decision-making will be critical for the year ahead. Updated enterprise planning budgets from the University of Missouri Extension can help producers manage costs and project revenue for their operations.

More than 30 interactive budgets and calculators are available for livestock, row crop,s and forage enterprises. Customized to Missouri growing conditions and economic factors, these tools can equip producers with tools to evaluate their operation’s scale and profitability, said MU Extension agricultural business specialist Jennifer Lutes. 

“Our planning budgets allow producers to plan for the economic sustainability of their operations and really articulate what their farm will look like going into the next growing or marketing year,” Lutes said. “As we look ahead to another year of increased expenses and volatility, we see our budgets as a critical piece of the farm management toolkit.”

Producers can tailor each budget to fit their farm and understand the cost structure for each enterprise. Equipped with this information, they can then determine how to best control input costs, set price targets for the year, or adjust enterprise sizing for maximum profitability.

Unique growing conditions, economic factors, and crop types across the Show-Me State require more than a blanket approach to farm management, notes MU Extension ag business specialist David Reinbott.

In addition to statewide budgets, customized crop budgets and irrigation investment tools are available for producers specifically in southeastern Missouri. Cotton, rice, peanuts, milo, and other regional crops are included in the suite of budget tools, Reinbott said. 

Producers in the Missouri Bootheel can leverage crop budgets specifically tailored to their region as they make sound management decisions in 2023, he said. “Our tailored budgets for the Bootheel give these producers invaluable tools as they evaluate and make management decisions for operations that we just don’t see elsewhere in the state,” Reinbott said. “These resources are one of a kind.”

Missouri’s enterprise budgets are prepared each year by the University of Missouri Extension and can be downloaded for free. Find budgets at this link.

Download crop budgets for southeastern Missouri at this link.

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