By Dusty Sonnenberg, CCA, Ohio Field Leader: a project of the Ohio Soybean Council and soybean checkoff
High market prices incentivize farmers to consider raising crops that they may not otherwise grow given lower prices. While the higher prices may make a crop more profitable than it had been; making a fair assessment of the profitability level in comparison to other crops is important. The use of the Ohio Crop Enterprise Budgets is a good starting point to compare all the variables involved.
“An enterprise budget provides an estimate of potential revenue, expenses and profit for a single enterprise,” said Barry Ward, Leader in Production Business Management at The Ohio State University. “The Ohio State University College of Food Agriculture and Environmental Sciences (CAFES) has a long history of developing Enterprise Budgets that can be used as a starting point for producers in their budgeting process. The OSU enterprise budgets represent common, workable combinations of inputs that can achieve a given output.”