New Videos Promote Farm and Livestock Enterprise Budgets: Cost and Return Estimates

Two new videos are now available to support growers in estimating cost and returns for farms and ranches. Extension agents and specialists are encouraged to share the videos with their clientele. Crop Enterprise Budgets for New Mexico Farmers and Livestock Enterprise Budgets for New Mexico Livestock Producers, below, can also be watched or embedded from YouTube.

This video highlights crop enterprise budgets developed by NMSU Cooperative Extension to estimate the costs and returns of farming in various regions of New Mexico.

This video highlights livestock enterprise budgets developed by NMSU Cooperative Extension to estimate the costs and returns of raising livestock in New Mexico, specifically cow-calf and stocker operations.

Dr. Pilja Vitale, Statewide Extension Economist for New Mexico’s Cooperative Extension Service, in the Department of Extension Economics at NMSU, collaborated with New Mexico State University (NMSU) Department of Innovative Media Research and Extension (IMRE) to create the videos. Additional information on the enterprise budgets is offered at costsandreturns.nmsu.edu.

An enterprise budget is the basic building block of costs and returns of growing crops. Associated with a particular region or county within the state, each enterprise budget represents one crop or livestock activity, typically calculated on the same per-unit basis, such as per acre, so producers can easily compare multiple enterprises. Dr. Vitale says an Enterprise Budget is a practical tool that helps farmers and ranchers sustain their operations.

We produce these videos to assist our Extension agents, so they can share this information and resources with farmers and livestock producers in their respective counties. It helps our agents have better conversations with farmers and livestock producers about which crops, or livestock are most profitable, what inputs are needed and how much they cost, [and] how to plan for switching crops or starting a new enterprise. These Enterprise Budgets provide estimates on costs-and-returns associated with growing crops or raising livestock. [They] also provide valuable information to help farmers and livestock producers make better decisions about their operations.

Common Questions about Cost and Return Estimates

(answered by Dr. Vitale)

Q—Which crops, or livestock should I choose to generate sustainable income? 

A—We encourage them to use regional or county-level enterprise budgets to compare profitability. 

Q—I’m a beginning farmer—what crops should I consider, and what do they typically cost and earn? 

A—We provide examples of input requirements, production costs, and expected revenue.

Q—I’ve been growing one crop but want to switch—what alternatives offer better returns? 

A—We share updated budgets and discuss the trade-offs in cost, labor, and market access.

Q—How much does it cost to grow the typical crop or raise livestock in this area? 

A—We Reference current enterprise budgets to break down input costs and total expenses.

Enterprise Budgets emphasize the importance of costs-and-returns, farm or ranch planning, and evaluation of farm or ranch performance. They’re also a source of data for compensating producers’ income in case of special events.

Cost and Return Estimates for Farms and Ranches

To learn more about the Enterprise Budgets for Farmers and Livestock Producers, visit https://costsandreturns.nmsu.edu/

Written by Arturo R. Ruiloba III, Media Specialist, Department of Innovative Media Research and Extension.