Types of Budgets
There are three basic types of budgets that can be used in the farm business management process. Each type of budget provides different information to the manager for use in the decision-making process. The common thread in each type is that, if properly defined and used, the budget format permits the manager to use economic logic to answer questions of what, how much, and when resources should be used to achieve the goals and objectives as established by the farm family.
The three types of budgets are:
- Whole-farm budget
- Enterprise budget
- Partial budget