Economics of Farm Enterprises II. (Farm Management II.) MSc level Lecture 8 Structure of Planning, Partial Budgeting

Partial budgeting Background to planning Use of partial budgets Brief history Value and limitations Use of partial budgets

Substitution Partial Budget

Substitution Partial Budget/2

Marginal Returns Innovation Budget

Buildings Innovation Budget /2 Average investment in pigs

Innovation Budget /3 Average investment in feed Average investment in miscellaneous costs Summary of average investments Interest at 16% per annum

Expansion / Contraction Partial Budget

Expansion / Contraction Partial Budget /2 Average investment in variable costs

Change in Use of Feed

Break-even Budgeting

Example Questions: Extra annual fixed costs of ownership Extra variable costs per hectare Break-even yield