Budgeting for the Farm in the New Year: Smart Winter Decisions
Jan 12, 2026
With the start of the New Year comes the start of a new harvest season. Take the time now to build your budget for the 2026 season and set your operation up for a successful year ahead.
Forecasting your income and estimating costs is complex and sometimes overwhelming for farmers. However, budgeting remains an essential tool for identifying opportunities to save money, improve efficiency, and make informed decision throughout the year.
Start by defining your goals and objectives of your operation. A farmer with a large row crop operation might look to increase margins by 10%, reduce debt, or fund new equipment. A family, on the other hand, might set a simple goal of raising 70% of the vegetables the family needs from their small garden plot. Defined goals can provide a clear direction for all budgeting decisions.
After you have set your goals, you can then look back at your past results to make sure this goal is attainable. Review your records to understand what worked and where adjustments might be made for a better return on your crop yield.
Next, list of all your available resources, including land, equipment, labor costs, and operating capital. This will help you determine what resources are available and identify any limitations.
After finishing these steps, you can then start projecting possible yields. You can do this by using historical data, soil analyses such as soil samples, and then recommendations from others who are educated on the subject.
Forecasting prices is arguably one of the most important in the budget process. Estimating expected market prices is important for product development. Be sure to be conservative in your estimates to avoid overestimating your revenue. Then consider the possible market fluctuations, so you can be prepared for the unexpected.
A well constructed budget for the upcoming year ahead sets the foundation for a successful year. Reach out to specialists to receive help with input planning, pricing options, and expert advice.
Forecasting your income and estimating costs is complex and sometimes overwhelming for farmers. However, budgeting remains an essential tool for identifying opportunities to save money, improve efficiency, and make informed decision throughout the year.
Start by defining your goals and objectives of your operation. A farmer with a large row crop operation might look to increase margins by 10%, reduce debt, or fund new equipment. A family, on the other hand, might set a simple goal of raising 70% of the vegetables the family needs from their small garden plot. Defined goals can provide a clear direction for all budgeting decisions.
After you have set your goals, you can then look back at your past results to make sure this goal is attainable. Review your records to understand what worked and where adjustments might be made for a better return on your crop yield.
Next, list of all your available resources, including land, equipment, labor costs, and operating capital. This will help you determine what resources are available and identify any limitations.
After finishing these steps, you can then start projecting possible yields. You can do this by using historical data, soil analyses such as soil samples, and then recommendations from others who are educated on the subject.
Forecasting prices is arguably one of the most important in the budget process. Estimating expected market prices is important for product development. Be sure to be conservative in your estimates to avoid overestimating your revenue. Then consider the possible market fluctuations, so you can be prepared for the unexpected.
A well constructed budget for the upcoming year ahead sets the foundation for a successful year. Reach out to specialists to receive help with input planning, pricing options, and expert advice.