Compare methods

	Enterprise Budgeting	Agricultural Household Model
Field	Food Agriculture Studies	Food Agriculture Studies
Family	Process / pipeline	Regression model
Year of origin	1984	1986
Originator	Farm management tradition (Kay, Edwards & Duffy; Boehlje & Eidman)	Inderjit Singh, Lyn Squire & John Strauss
Type	Full-cost enterprise budgeting pipeline with per-unit cost of production	Structural production-consumption household model with separability testing
Seminal source	Kay, R. D., Edwards, W. M., & Duffy, P. A. (2020). Farm Management (9th ed.). New York: McGraw-Hill Education. ISBN: 9781259837463	Singh, I., Squire, L., & Strauss, J. (Eds.). (1986). Agricultural Household Models: Extensions, Applications, and Policy. Baltimore: Johns Hopkins University Press for the World Bank. ISBN: 9780801932489
Aliases	Enterprise Budget, Crop and Livestock Budget, Cost of Production Budget, Full-Cost Enterprise Analysis	Farm Household Model, Singh-Squire-Strauss Model, Non-Separable Household Model, Agricultural Household Production-Consumption Model
Related	3	3
Summary	An enterprise budget is a complete, per-unit projection of the revenues and costs of a single farm enterprise — a crop per hectare, a class of livestock per head — that, unlike a gross margin, accounts for both variable and fixed costs to arrive at net return and the full cost of production. Standard in farm management texts such as Kay, Edwards, and Duffy and Boehlje and Eidman, enterprise budgeting forces every claim on the enterprise's resources to be priced: not just seed and fertiliser, but depreciation, interest, land charge, and overhead. The headline outputs are net return per unit and the unit cost of production, the break-even price and yield that tell a manager what it really takes for the enterprise to pay its way.	The agricultural household model treats the farm household as a single unit that is simultaneously a producer and a consumer, choosing how much to grow, how much labour to hire or supply, and how much to consume — decisions that ordinary firm theory and consumer theory treat as separate. Synthesised in Singh, Squire, and Strauss's 1986 World Bank volume, the model's central result is conditional: when all markets (especially for labour) function perfectly, the household's problem is recursive — it maximises farm profit first and then spends that profit like any consumer, so production decisions are independent of preferences. But when markets fail, the two sides fuse: a shadow wage replaces the market wage and household composition begins to drive production. Whether that separation holds is an empirical question, and Benjamin's 1992 Econometrica test is the canonical way to answer it.