Enterprise Budgets: Organic Corn Example - Enterprise budgets help to allocate land, labor and capital, which are limited, to the most appropriate use. The most appropriate use is defined by the person in control of the resources and may be used to maximize profits, minimize soil loss, or to achieve other goals.

Crop Budgets - Enterprise budgets provide valuable information regarding individual enterprises on the farm. This tool enables the farm manager to make decisions regarding enterprises and plan for the coming production year. The enterprise budget uses farm revenue, variable cost, fixed cost and net income to provide a clear picture of the financial health of each farm enterprise.