 This is Kevin Birkitt with the Alabama Cooperative Extension System. For a few minutes, we're going to discuss the details and benefits of the Alabama Horticulture Enterprise Budgets. Each horticulture file generally follows the same format. To find the files, visit acys.edu, click on the topic of farming and farm management. Under this section, you will find profit profiles and enterprise budgets. Click on the enterprise budget you'd like to look at. The first page is a summary page and gives basic information. At the very top, it states the area, crop, and specifics of production. In this case, we're producing an acre of strawberries with six-foot spacing, 7,260 feet of drip tape, and 16 gallons per minute of irrigation. All of these factors affect the total cost. Expenses will be separated into categories like seeds and plants, supplies, labor, and a couple other categories. If someone wanted to check a specific expense, like fertilizer or seed cost, they can reference this page. Or if they wanted to estimate of growing this crop, this page may be sufficient. The goal is that a producer uses this and the following pages to develop a similar file for their own farm. These files are a good starting point. A farm can take them and then make adjustments as necessary. The second page gets into the details of the budgets. It has several columns and then corresponding information below that. On the far right, you will see the total cost column. Each of these entries make up the categorized totals we saw on the first page. The sixth column over, you will see a category that says MTH, which is short for month. The first entry is for June. The budget lists in sequential order all the activities expected to grow the crop. In this case, the first activity listed is completing a soil test. It estimates it would take half an hour of hand labor and the cost of the test being $7. The second activity is disking the field. The estimate is based on a 10-foot disk and a 75-horse power tractor. Machinery cost comes from calculations and tables, so don't expect to be able to calculate exactly what's listed here. The budget continues throughout the year until it gets to the end of the crop or harvest. The goal is including all activities the farm might have and the associated expense. While it's not considered a production guide, it does provide a lot of information. Some files are relatively short, others are several pages long. If a farm does not have a particular cost or activity, they can take out the entry from their own modified budget. The last page is additional information to help market the crop. It is based on the total costs and entries of the previous pages. On the left, you'll see percent, yield, and unit. 100% yield is what would be expected from a good crop. In this case, it's estimated you would get 3,075 four-court buckets to sell. A four-court bucket averages about six pounds. To multiply that out, you'd be around 18,450 pounds of strawberries per acre. Towards the top, it has different break-even price combinations. As we know, both yield and prices are variable. As you move towards the center, you'll see 100% yield and 464 per bucket, and it's out to zero. Meaning, with the estimated cost, if you sold 3,075 buckets at 464, you will make all of your money back. There are two numbers with each combination. The top number is revenue over direct expenses, and the bottom is revenue over total expenses. For the most part, we are concerned about covering our total expenses. While this does not always tell a producer exactly how much money can be made, it lets them know that based on their costs in yield, they would not want to sell for less than 464 a bucket. This helps when negotiating with different buyers. Having an understanding of costs and then what the farm wants to make in revenue allows them to set a fair price and evaluate market opportunities. To evaluate potential returns, multiply estimated price by estimated yield, and then subtract the enterprise budget total. Use this information to plan your year and determine the best options for your farm. Meeting with other businesses, bankers, and organizations like Farm Service Agency, this information may be useful. After budgeting, possible next steps for producers would be keeping financial records, analyzing results from year to year, and then trying to make improvements. For more information, visit ASUS.edu or reach out to your local extension office.