An enterprise is defined as a single crop or livestock commodity that actually produces a marketable product. Feeder Cattle 3. Corn for Grain 5. Corn for Silage 6. What you produce determines the profitability of the business.
Enterprises are the basic building blocks for a farm plan.
By analyzing revenues and expenses associated with individual enterprises you can determine which enterprises might be expanded and those that should be cut back or eliminated. An enterprise budget is a listing of all estimated income and expenses associated with a specific enterprise to provide an estimate of its profitability. A budget can be developed for each existing or potential enterprise in a farm or ranch plan. Several budgets could be developed for a single budget to represent alternative combinations of inputs and outputs. Each budget should be developed on the basis of a small common unit such as one acre of corn, wheat, hay, etc.