All items are listed separately, along with their amounts and prices, so that this can be done easily. Economic answers are always conditional. The most general use of a planning budget is to provide an estimate of the profitability of producing a particular crop. Established farmers may already own all the necessary equipment and want an estimate on how some new enterprise stacks up with what they are now producing. People just starting in agriculture may wonder if there is any money to be made in farming.
Different situations require different interpretations of a budget.
This is a short-run decision, tied to the economic life of the farm machinery. When discussing the acres required per cow for manure disposal, some assumptions need to be made. This rotation requires 1.8 acres of land per cow in order to have sufficient land to dispose of all the manure produced and not increase N, P, and K levels. This calculation is based on the following assumptions. The protein content in the corn silage is 8 percent.