Farm Record Keeping: 8 Farm Records For Cost and Income Tracking

Farm record keeping is one of the important aspects of farming that can make or mar a farm enterprise. Farm record is a document meant to keep details of every event within the farm; procurements details, cost and revenue, sales records, and other events that need to be captured in simple farm records for the sake of making productive decisions. The importance of record keeping in agriculture cannot be overemphasized.

There are different types of farm records that can be kept to monitor the progress of the farm. Farming is no doubt, very lucrative business, and becoming well known around the globe. Lots of people, both old and young, are now delving and swerving the steering of income in agricultural directions but success can only be made with good documentation.

Farming as we all know has different sectors and every sector is very relevant in the economy building as they are interwoven in terms of their operation. It is very possible you run a large farm with multiple enterprises; crop production, animal husbandry, logistics system etc.; with proper record keeping, each of these farm enterprises can be monitored to determine how profitable each enterprise it. All you need is a farm management record keeping book where all enterprises are listed and figures related to individual enterprise are recorded accordingly.

A farm manager must be a good record keeper because farm records are indicators of success or failure in every farm enterprise; it will show the state of the business.

Good recording keeping has countless benefits and it is necessary a clever farm manager embraces the habit of keeping farm records. There are different types of farm records in agriculture, I will elucidate some farm records and how relevant they are in the success of the farming business.

8 Types of Farm Records Used in Agriculture

The following farm records are needed to monitor the costs of production and keep events within the farm for productive decisions to make the farm scalable.

#1. Farm Diary Record

Farm diary record is the type of farm record that houses the daily activities of a farm and the farmer. This farm record book is very important as it serves as a reference book to obtain past information on the farm. Examples in poultry farming, where a farm manager needs to vaccinate his birds or give the birds so medications at a particular period.

It is very normal for humans to forget things easily, once this farmer has a farm diary record to input the date and time for the operation. He will carry this out and it will prevent a future outbreak of any potential threat or menace on his farm.

However, it is not a farm diary record if it is not used daily. It has to serve the purpose it is intended for. As a farmer, it is imperative you keep farm records and accounts of what happens in your farm daily. This will enhance the progress of the farm.

#2. The cash book and payment receipt record book

This is one of the types of simple farm records a good farmer should take note, cash book, and payment receipt record is a farm record book of all financial transactions, both the income and expenditure, of the farm. With it, a farm manager can access loans, detect fraudulent practices, and know the state of the business. It is a farm accounting record book. In addition, the farm manager can make productive decisions based on the figures present in the record.

#3. Annual valuation record

This type of farm record book shows the value of stocks present on the farm from the beginning of the year to the end. It will aid decision making to prepares the farm plan for the next production year.

It is imperative that at the end of each production year, a farmer should evaluate his or her venture to know the current state of the business. The farm strength and weakness have to be determined; this is only possible when the farmer has the annual valuation record.

#4. Farm inventory Record

This is the farm record that shows the lists of all the items present on the farm at a particular time, examples are farm equipment, farm building, farm plots, furniture, etc.

Farm inventory record shows all the equipment and their value also the current state of the equipment, the record is usually taken at the beginning and end of the production year. A good farm inventory record book can assist farmers to get a bank loan.

#5. Yield and Production Record

This is one of the essential types of farm records to be kept on a farm, it is the farm record book that shows the yield or output of the farm. For both animal and crop production; the daily or seasonal production rate is recorded in the record.

This type of farm records contains the numbers of eggs laid per day or the sizes of litter after farrow or the tonnes of the crop harvested per season. Yield and production record shows the success rate of the farm during the production year.

#6. Payroll and Labour Record

This is another cogent farm records; it shows the amount and types of labour hired or employed to work on the farm. Also present in this farm record is the rate and wages paid, this record enhances transparency on the farm.

#7. Farm input utilization record

This farm record book shows all the input acquired and utilized during the production year, it shows the relevance of a particular input in the production. It shows the level of input application and it is also used in combination with output record to determine resources productivity.

#8. Profit and loss record

This is the principal record; it shows the economic level of the business. This farm accounting record is the only type of farm records most farmers tend to keep, however, the aforementioned records are prerequisite to this record.

This farm record book is normally prepared at the end of every production period, usually at the end of the year to determine whether the business is making a profit or otherwise.

Importance of keeping farm records in agriculture

These are the types of farm records an aspiring successful farmer must prepare and keep; they are computer-aided farm records. The importance of farm records is copious and cannot be overruled; the uses of farm record:

  • Procurement of a bank loan.
  • Aids productive decision making.
  • Help to detect fraudulent practices.
  • It helps to know the economic status of the farm.
  • It shows the strength and weakness of a farm

Record keeping in agriculture is very important; I implore every farmer to take note of these eight (8) types of farm records.

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