2023 UA Crop Enterprise Budgets Now Available

According to the recently released 2023 crop enterprise budgets from the University of Arkansas Cooperative Extension Service, surface irrigated corn, soybean, rice, peanut, cotton, and sorghum are the most profitable crops in that order. While the budgets project higher crop revenues in 2023 compared to 2022, with an average increase of 11%, they also show a 9% increase in crop input expenses. The budgets suggest that there may be fewer cotton acres and more corn and soybean acres, and that rice acres may increase from the previous year due to slightly higher profitability. It's important to note that budgeting is a tool for setting expectations, but it is not a guarantee of actual returns. If the end of the year looks like the budget, it is a sheer coincidence. Several factors, including weather, price changes, and unexpected events (commonly referred to as "black swans"), can impact the success of a crop.

The UA 2023 Crop Enterprise Budgets are a useful tool for farmers and landowners looking to understand the potential profitability of their crops. Created in Excel, these budgets allow users to customize the prices, yields, machinery, and irrigation used in their calculations to better reflect their own farm's activities. By making adjustments to these variables, farmers and landowners can see how changes in field trips, inputs, machinery, prices, and yields can affect their profitability. The budgets are available for free download on the extension service's website and are a convenient way to plan for the future.