Market-Based Enterprise Budgets Toolkit

Greenhouse with plants.

The budgeting tools on this page can help guide small-scale farmers when analyzing net returns. Marketing costs can dramatically change the profitability of an enterprise or the whole farm. We have found that many farmers do not include marketing costs in net return analysis. Unless they consider marketing costs, they can’t calculate the operation’s true net return.

This toolkit contains sample budgets for 10 crops, or enterprises. It provides farmers the information they need to determine what sales market outlets to further develop or reduce, and how a change in production practices can influence the bottom line.

Each crop in the tabs below includes a free, downloadable Excel budget workbook that farmers can use to enter their own farm’s information for analysis.* This free resource was supported by funding from the USDA Agricultural Marketing Resource Center.

Using the spreadsheets
Although the Market-Based Enterprise Budget Toolkit has been created, formatted, and protected so that it does not require advanced skill to use, if you are new or unfamiliar with spreadsheets and the Excel program, we recommend learning the basics of Excel prior to using the toolkit.

New versions of Microsoft Excel open files downloaded from the Internet in “Protected View” mode (unless you have disabled this feature). If you see a yellow alert across the top of your screen, you will need to click “Enable Editing” in order to use the spreadsheets. Only certain cells in the sheets can be edited; other cells contain locked text and formulas.

Comments have been inserted to help you better understand the contents of particular cells. A red triangle in the upper right corner of a cell indicates that a comment has been inserted. Scroll over that cell and a note of explanation will pop up. We highly recommend that you view all comments prior to using the sheets. Green triangles appear in formula cells when there is no data entered for calculations to occur. As soon as the required data is entered, these green triangles will disappear.

Before entering your own data, we recommend copying the template to your computer and saving the file by a name that makes it recognizable to you, such as “Farm Profits 2019.” In the template, certain cells have a predetermined formula. For example, in a “Total” cell you’ll notice that it has been predetermined what data will be included in the Total. As you enter data, you’ll see the Total change. You can click on that cell to see, in the dialog box at the top of your screen, the formula used to create the content of the cell, to see what data is being included in the total.

These cells are locked so that you cannot accidentally change them. You can change a cell with text content, you do not want to change any cells that have formulas in them. If you need to change the name of your market channels, change those on the Step 1 (Expenses Input page) ONLY and they will automatically be changed on the rest of the sheets. If you need to change text in an expense line item, first unprotect the sheet by finding “Tools” in your menu bar at top, click on “Protection,” click on “Unprotect Sheet.”

If you must edit a locked text cell, make your edit and then immediately protect the sheet again by going to “Tools” in your menu bar at top, click on “Protection,” click on “Protect Sheet.” However we strongly recommend that you do not change any cells with a formula in them. Since all of these sheets work together and data is drawn for many different sheets to make calculations, you may corrupt the system and cause it to provide incorrect information.

Enterprise Budgets

Vegetable, Flower and Herb Transplants Asparagus High Tunnel Mixed GreensGreenhouse BasilGreenhouse ButterheadHigh Tunnel TomatoField Green BeansSweet PepperScallionsField Carrots

According to the USDA NASS 2017 Census of Agriculture, 2,524 farms sold transplants for commercial vegetable and strawberry production; 2,058 of those acres were grown under protection. Total sales of transplants were $250,168,076 in the 2017 census. The farm partner for this study is certified organic, so the sales receipts in the accompanying enterprise budget reflect organic prices. See the first tab of the workbook for more information and instructions.

FFED29a_TransplantBudget_v1Download

The budget presented here is a snapshot of asparagus production and sales. Asparagus takes two years to establish. This budget does not include costs for the establishment period because the owner (not the farmer) of the plots incurred those expenses. Therefore, the cell under “Ownership costs” called “Land” is blank. Normally, we would enter the average lease rate per acre in the state or region where the production is located. The three plots used in this study are leased to the farmer on a per-acre basis for one plot and percentage of total yield on the other plot. To view an asparagus budget that includes pre-production costs, please visit ISU Extension and Outreach AgDecision Maker. See the first tab of the worksheet for more information and instructions.

FFED29b_AsparagusBudget_v1Download
The budget presented here is a snapshot of mixed greens production in a high tunnel and associated sales. See the first tab of the workbook for more information and instructions.

FFED29c_HighTunnelMixedGreensBudget_v1Download
Greenhouses in this study are Gothic style, four connected, totaling 14,400 square feet under glass. All greenhouses utilize hydroponic systems. See the first tab of the workbook for more information and instructions.

FFED29d_GreenhouseBasilBudget_v1Download
. Greenhouses in this study are Gothic style, four connected, totaling 14,400 square feet under glass. All greenhouses utilize hydroponic systems. One house is dedicated to butterhead lettuce production. See the first tab of the workbook for more information and instructions.

29E_Greenhouse_ButterheadBudget_v1Download
The budget presented here is a snapshot of tomato production in a high tunnel and associated sales. Marketing costs were calculated by dividing the total sales of high tunnel tomatoes by the total sales of the 16 markets. That percentage becomes the multiplier to capture real costs per enterprise. See the first tab of the workbook for more information and instructions.

FFED29f_HighTunnelTomatoBudget_v1Download
The budget presented here is a snapshot of green bean production in the field and associated sales. Green bean sales averaged 20.6% of the total sales for the nine weeks they were offered in the CSA. Average sales at the farm stand as compared to the total were 11.7% for the 10 weeks offered. See the first tab of the workbook for more information and instructions.

FFED29g_FieldGreenBeansBudget_v1Download

The budget presented here is a snapshot of sweet pepper production and sales. Costs were calculated only for sweet pepper sales. This farmer grew the transplants from seed for the field instead of purchasing them. Based on this example, restaurant sales had a higher return on expenses. See the first tab of the workbook for more information and instructions.

FFED29h_SweetPepperBudget_v1Download
The budget presented here is a snapshot of scallion production in the field and associated sales. The results from this study show that the return on costs of production and marketing for farmer’s market had a higher profit margin than the other two market outlets. See the first tab of the workbook for more information and instructions.

FFED29i_ScallionsBudget_v1Download

The budget presented here is a snapshot of field-grown carrots and associated sales. This farm is certified organic and was in pasture for years before production; no fertilizers or pesticides were used. The results from this study show that the return on costs of production and marketing for farmer’s market had a higher profit margin than the other two market outlets. See the first tab of the workbook for more information and instructions.

FFED29j_FieldCarrotsBudget_v1Download

FFED program coordinator Emily Coll conducted the research with six Iowa farmers, and created the toolkit. Contact her with any questions.

*Note: The six farmers who participated in this study did not have loans for their farms. If yours does, be sure to include interest in the calculations on the Cost of Production tab.