The number of farmers that do not keep farm records is shocking.
Some of them complain that they are always busy and don’t have time, while
others say that they know how to manage their farms without always writing
things down. These are the reasons and attitudes that make us fail all the time
we practice farming. You will even find others taking all their receipts at the
end of the month/year to an accountant friend to help them calculate production
costs and profitability. The problem with this picture is that the accountant
will not know what has really been going on at your farm thus causing a lot of
irregularities with your financials.
Keeping farm records is an important activity in farming. The
records have to be accurate and up to date reflecting on all activities that
occur on the farm. Knowledge acquired from
keeping good farm records is priceless. Farmers should always have their farm
records ready before they do any financial analysis, financial decision or
budgeting.
Importance of Farm Record Keeping
It’s always important to have records as a farm manager because;
1. A Requirement for Support by Lenders, Agencies, etc.
Lenders, government agencies, insurance companies and many other bodies
demand good records before providing help to farmers. Extension Agents of
Agricultural Agencies sometimes need good records kept by farmers to be able to
give them good technical advice on their farms. Financial institution and other
lenders would need good records of the farm’s income and expenditure before
giving out loan facilities to farmers.
2. Better Farm Planning and Forecasting
Farming is a business and good farm records keeping helps the farmer
to plan and do realistic forecasting. Records keeping provides valuable
information on the methods that work and why others did not. In budgeting, the
farmer can better predict price changes of inputs and produce from expenditure
and sales records kept from earlier seasons. The farmer can decide how much is
required for farm expansion from good farm records.
3. Better Prediction of Rainfall and Weather Patterns
Records on rainfall incidence and amount over a period is very
relevant. A farmer, from the records, decides when to plant and when to carry
out other activities on the farm. More so, farmers who depend solely on
rainfall, use these records as a guide throughout the farming season. Besides,
temperature changes also have significant effects on plants, especially at
tender stages. It is, therefore, important for farmers to have a fair idea on
temperature changes at certain times in the season. We advise farmers to keep a
simple rain gauge and thermometer for the measurements of rainfall amount and
temperature.
4. Track Income and Expenditure
Farmers most of the time are not able to give proper accounts on
their cash inflows and outflows. This is basically because they overlook and do
not record “petty” expenses and incomes (like feeding and costs of phone
calls). Keeping proper records, will at any time of reconciliation, give the
farmer the correct amount of money spent or gained from the farm. Moreover,
this helps in proper planning and budgeting.
5. Better Management of a Farm
A farmer who keeps records on seed germination rates of
the seeds bought is in a better place to select better seeds for seasons.
Besides, records keeping helps to decide the right type of crop to grow on a
particular type of soil, at a particular time of the season for best yield and
better pest and disease management. In the case of livestock, the farm keeps
records of the bloodline, pest, and diseases, feed types and consumption, etc.
These records help to prevent inbreeding, control pests and diseases, give the
best feed for best performance and a lot.
Farmers should also keep records for their farm activities such as:
- Breeding
- Feeding
- Harvesting
- Planting
Records
All these guidelines are important to help you as a farmer make
better future decisions in your agribusiness venture.
Tip: Use modern technology to make the best out of record keeping i.e. if a cow dies from lighting shock, take a photograph of it using your phone and use this image to claim damages from your insurance company. A picture is worth a thousand words but it can also be worth a thousand dollars.
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