MODULE 1.2

• Farm Records

  • Written statements or collection of facts and figures on a subject for a definite purpose.

  • Example: data on money, dates, events, quantities of farm produce and inputs, prices, etc.
• Purpose of Farm Records

  1. Primary Purpose
  2. Specific Purpose
• Purpose of Farm Records

  
  

  PRIMARY PURPOSE

  • to provide financial and physical information that help answer the following basic farm management questions:

  – Which of my crops or livestock are earning

  money for me?

  – Which should I expand or drop?

  – Am I making the most of my resources?

  • To answer these, records of past farm performances are needed.
• Purpose of Farm Records

  
  

  SPECIFIC PURPOSE

  • to help the operator increase their efficiency by providing a basis for deciding where to put his resources

  • for planning and budgeting

  • to evaluate the profitability of various farm enterprises
• Types of Farm Records

  1. Financial
  2. Operating/Physical
• Types of Farm Records

  FINANCIAL RECORDS

  • Records of income, expenses, changes in farm properties and debts, and sources and uses of cash arising from the farm operations
  • Used to measure the financial position and performance of the farm business
  • E.g., income records and expense records
• Financial Records

  1. Income Records
  2. Expense Records
• FINANCIAL RECORDS

  
  

  Expense Records

  • Represent the costs of operating the farm business.
  • Expense record is similar to the income record in form.
• FINANCIAL RECORDS

  
  

  Income Records

  
  

  • Farm receipts including proceeds from the sale of farm produce such as crop and livestock products, and other sources of income.
  • It must show the contribution of each farm enterprise to total farm income.
• OPERATING/PHYSICAL RECORDS

  • Show where the materials and other resources used by various enterprises can be found.
  • Used to answer questions about technical relationships and resource allocation. Included to supplement the financial records.
  • E.g., farm maps, crop records, livestock records (feed records, production records, etc.), labor records, etc.
• Operating/ Physical Records

  1. Farm Maps
  2. Labor Records
• OPERATING/PHYSICAL RECORDS

  Farm Maps

  • Help facilitate planning activities for possible investments (land leveling, irrigation, or drainage systems)
  • Help locate possible problems in the farm (disease build-up or depletion of soil fertility), etc.
• OPERATING/PHYSICAL RECORDS

  Labor Records

  • Shows basic information relating to the number of man-days used for a particular task and the corresponding monetary value Helps facilitate payroll preparation
  • Records productivity of each worker