The following budget estimates the cost of producing processing potatoes based on general recommendations in using fertilizers and chemical inputs. The figures provide an economic evaluation of processing potatoes required to cover all costs including labour and investment. Management has not been accounted for in this enterprise budget. The cash input costs associated with growing irrigated processing potatoes are substantial. It is important for farm managers to do detailed budgets if they are to select the optimum combination on inputs that will maximize profits.
Detailed planning is also necessary when estimating the required amount of operating credit.
To estimate a cash flow budget the actual payments on principal and interest may be substituted for the fixed costs in the budget. As well, an estimate has to be made to cover family living expenses and funds required for capital purchases. This budget outlines the cost of producing processing potatoes under irrigated conditions and is based on a pivot system with a river as the water source. A land base of 450 acres of potatoes was used in developing this budget. Potato crop rotation was based on growing potatoes no more than 1 year in 3.