An enterprise budget is a listing of all income and expenses associated with a specific enterprise. What you produce determines the profitability of your business. Enterprises are the basic building blocks for a farm plan. By analyzing revenues and expenses associated with individual enterprises you can determine which enterprises might be expanded and those that should be cut back or eliminated.
This post will focus on developing your 2025 Corn Budget. The following are key components for this budget.
1. Revenue Assumptions
- Corn yield (bushels per acre): Estimated based on your field’s productivity or average local yields.
- Price per bushel: You can base this on current market trends or contract pricing.
- Revenue calculation: Yield per acre x Price per bushel.
2. Variable Costs
These are costs that vary depending on the acreage and input levels.
- Seed costs: The cost of corn seed per acre, including any seed treatment.
- Fertilizer: Nitrogen, phosphorus, potassium (NPK) and other micronutrient fertilizers required for soil health.
- Herbicides and pesticides: Costs for controlling weeds, insects, and diseases.
- Fuel: Fuel for planting, cultivating, irrigating, spraying, and harvesting.
- Labor: Wages for employees working in the field, including seasonal workers.
- Crop insurance: Premiums for insurance covering potential yield losses or damage from weather events.
- Other inputs: Other specific inputs required to produce your crop.
3. Fixed Costs
These are costs that do not fluctuate with the level of production.
- Equipment depreciation: The annual depreciation of tractors, planters, sprayers, harvesters, etc.
- Land rent/lease: If you do not own the land, this would be a fixed cost.
- Interest on land and equipment loans: If applicable, include the interest you pay on any loans.
- Building and storage maintenance: Costs for maintaining barns, grain bins, or other structures.
- Property taxes: Taxes associated with your land and equipment.
4. Overhead Costs
These include administrative and management costs that can be allocated to each acre.
- Management and administration: Salaries or wages for management or administrative roles not included in variable costs.
- Insurance (property, liability): Farm insurance policies.
- Utilities: Electricity, water, gas, propane, and other utilities for farm operation.
5. Other Costs
- Transporting: Cost of hauling harvested corn to your bins or elevators.
- Storage costs: If you’re storing the corn for later sale, include costs for drying and storage.
6. Profit Margin
After calculating your revenue and all associated costs, determine the profit margin per acre. This is the difference between your total revenue and total costs.
The following link will take you to the 2025 OSU Corn Enterprise Budget developed by OSU Extension’s Barry Ward. This can serve as a guide to help you consider all costs in your operation.