Budgeting is a common strategy to ensure spending aligns with financial means, particularly when planning significant expenses. In beef cattle operations, budgets are essential, with various types suited to different needs, explains Kansas State University agricultural economist Dustin Pendell on the Cattle Chat podcast.

Pendell highlights three types of budgets: cash flow, enterprise, and partial. A cash flow budget tracks money coming in and going out, providing a clear financial picture. An enterprise budget considers all revenues and costs, including potential ones, making it a valuable tool for producers and often required by bankers when evaluating loan requests.

For operational changes, Pendell recommends a partial budget, which estimates the costs and potential revenue associated with the change. Unlike enterprise budgets, partial budgets focus solely on additional data relevant to the specific adjustment.

K-State beef cattle nutritionist Phillip Lancaster advises producers creating cow-calf budgets to evaluate forage production and grazing potential for the upcoming year. Using historical records and considering moisture predictions can aid in planning.

The full discussion is available on the Cattle Chat podcast via streaming platforms.