Calculating your break even budget is essential for making decisions like which crops to grow and how to best allot time and marketing efforts. Knowing the costs and potential income from various crop or livestock enterprises is critical to the financial stability of your operation. Record keeping and budgets are especially useful for planning cashflow for diversified operations with income and expenses that may vary significantly throughout the year. Investing time to understand expected expenses and predict future revenue can improve your confidence in decision making and peace of mind for the future. For related topics, check out our Business Planning and Farm Financing pages. Check current market prices and find crop planning tools on our Direct Marketing pages.