Iowa State University
Farm Economics: Current Issues
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Enterprise Commitment
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Enterprise - The production of a single crop or type of livestock, such as corn or dairy. A responsibility center.

  • Primary enterprise - An enterprise that provides the foundation of the firm. The success of the primary enterprise is critical to the success of the firm.
  • Secondary enterprise - An enterprise that supports a primary enterprise and/or the the mission and goals of the firm.
Types of enterprises
  • Competitive enterprises - Enterprises for which the output level of one can be increased only by decreasing the output level of another.
  • Complementary enterprises - Enterprises for which increasing the output level of one also increases the output level of the other.
  • Supplementary enterprises - Enterprises for which the level of production of one can be increased without affecting the level of production of the other.
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Iowa State University Extension
Copyright © 2002, Iowa State University Extension
Tim Eggers, Field Ag Economist
Clarinda, Iowa 51632  (712) 542-5171
All rights reserved.
Page last updated April 12
, 2001