Enterprise budgets are the building blocks for a whole farm budget. They are also referred to as gross margin budgets and are an estimation of revenue and expenses for one enterprise over one cycle of production. As they are usually calculated on a per hectare or per DSE basis, they can aid in comparison between different enterprises.
A gross margin provides a simple indication of the financial performance of an enterprise on your farm. It can also assist in comparing different alternatives on farm. A gross margin allows a farmer to make comparisons between the relative profitability of different enterprises (i.e. beef versus cropping) or within enterprises (i.e. wheat versus barley).
It is simply the difference between income and costs, but a gross margin calculation can start to guide you in deciding which enterprise mix to build into your farm business.
Need help finding a farm enterprise gross margin template? A gross margin spreadsheet for sheep, wool, cattle, dairy, cropping (inc. wheat, cotton, rice), horticulture — look no further!
We provide links to sample and example gross margin templates and spreadsheet to help you to begin to build your own!