Enterprise budgetingEnterprise budgeting
Livestock production budgeting can be made easier using “enterprise” analysis worksheets.
January 22, 2025

Enterprise budget worksheets developed for the beef industry allow producers to analyze the costs and returns associated with the various segments of their operations. Enterprises are the basic building blocks for a ranch or farm operation.
By analyzing revenues and expenses associated with individual enterprises, producers can determine which enterprises might be expanded and those that should be cut back or even eliminated. These can be either short- or long-term changes. Some examples of different ranch enterprises are:
Cow/calf operation
Stocker or backgrounding cattle
Heifer development
Finishing cattle
Hay production
Feed grain production
Corn for silage
Corn for grain
For example, if hay is produced for on-ranch use, it is evaluated as if it were sold at the prevailing market price. Essentially, a cow-calf enterprise would buy the hay from the hay enterprise. Likewise, if calves are held for backgrounding after weaning, they’re “purchased” from the cow/calf enterprise.
Enterprise budgets typically have two segments of costs. Variable costs — costs that change with the level of production. Fixed costs — costs a producer must pay regardless of production level.
Items and values entered in enterprise budgets should only be taken as guides. Interactive spreadsheets make budget development and recalculating alternative inputs quick, easy, and accurate. Representative budgets are available through state Extension websites. Here’s a rundown of a few enterprise budget worksheets that are available to beef producers:
Missouri
The University of Missouri (UM) offers budget worksheets designed to help producers evaluate expected costs and returns for crop and livestock enterprises, said Adauto Rocha Jr., assistant professor, of agricultural business and policy. UM Extension offers eight (8) different beef production enterprise worksheets for 2025.
“These worksheets might seem a little daunting at first because we’re very inclusive with all the variables that might be found in a typical beef operation,” explained Rocha. “But once a producer gets accustomed to using the worksheets, they can provide a list of good information.”
Rocha added that because the enterprise spreadsheets are interactive, they can be used to determine returns for “what if” situations. For example, “what if” a rancher wants to wean 600 lb. calves versus 550 lb. calves? The cow/calf spreadsheet can help calculate the extra costs of putting on those additional 50 lbs., whether they are being sold off-ranch or retained.
“We find that agricultural lenders love these analytical tools,” Rocha said.
North Carolina
The NC State Beef Cow-Calf enterprise worksheet template allows producers to estimate revenue, operating expenses, annual ownership expenses, and returns to land, overhead, and management.
However, NC State economists advise that their beef enterprise budgets are designed to be used as guides to develop budgets for a specific farm situation. These budgets also are not cash flow projections. Separate cash flow projections are recommended if the proposed enterprise requires a large investment financed by borrowing.
South Dakota
South Dakota State University agricultural economists have also developed a suite of beef cattle enterprise budgets.
“An accurate budget is important because it helps with marketing and other decision-making efforts,” said Heather Gessner, SDSU Extension livestock specialist. “For example, risk management products can be more effective when you know the profit you’re trying to protect.”
Other decisions related to feed purchases, marketing venues, pasture rent, etc., can be made to improve profitability once the real numbers are known.
Colorado
The Agriculture and Business Management Team at Colorado State University provides detailed enterprise budgets of average costs and incomes associated with growing major crops and livestock produced in Colorado. The budgets are updated annually.
The budgets can determine where a rancher is on a cost-of-production scale based on the average costs for a specific crop or livestock enterprise.
Texas
Texas A&M AgriLife Extension Service enterprise budgets for major crops and livestock are tools developed to help producers generate their budgets. Over 180 enterprise budgets for major crops and alternative production systems are available from the 12 Texas Extension districts in the state.
The Texas enterprise budgets are developed and updated each year by January 31.
Oregon
Oregon State University also provides a host of enterprise budget worksheets. They can be used by producers, lenders, and others to estimate costs and returns for many crop and livestock enterprises by providing templates in PDF and XLS formats.
Their format, like the others, allows producers to substitute their figures for revenues and costs and tailor the results to their specific operations. The budgets are also flexible enough that producers in most areas of the country can adapt them to their situations and locations.
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