FARM RECORD- MEANING, IMPORTANCE AND TYPES—BY INTRUCTOR MRS. EREKATA, OJ.
MEANING OF FARM RECORD: Farm records are written document that show all the activities that take place in the farm from the beginning to the end of the farming season. For a farmer to manage his farm business very well he/she must keep proper accurate records.
THE IMPORTANCE OF FARM RECORDS:
It gives the history of what happens in the farm from the beginning to the end of the farm business.
It helps the farmer to know whether he is making profit or loss.
A good farm record can be used as a collateral security for obtaining loan from bank.
It enables the farmer to make proper management decision.
Figures obtained from farm record can be used for farm planning and budgeting.
It helps to determine the value or worth of the farm in case of winding up or death of the owner of the farm.
It can be used for the preparation of farm account and annual tax.
TYPES OF FARM RECORDS: The following are types of farm records kept by farmer:
FARM DAIRY: A farm diary is a record of the day-day activities carried out on the farm. The activities might include: clearing of the bush, purchase of tractors, purchase of inputs e.g. seed, fertilizer, disease outbreak or death of an animal etc. farm diary is a good reference book tom obtain information about the farm.
FARM INVENTORY: This is the record of the cash value of the items owned by the farmer as well as all assets owned by him. Farm inventory shows all the properties owned by the farmer. The properties may include-farm building, tractors, land, livestock, crops etc. It is usually taken at the beginning and at the end of each farming year. An inventory record is needed when a farm is to be sold or handed over to another manager. Also a good inventory record can assist the farmer to get bank loan. Example is shown below.
FARMER’S NAME ABIOLA SEHINDEMI
ITEMS VALUE ₦
Total = 2,850,000.00
IMPUT RECORD: An input record is a record of items invested in the running of the farm. It gives the farmer a record of the expenses incurred in running the business. The will enable him to calculate his profit and loss at the end of the farming season. A farmer is said tom have made a profit if his output is greater than his input and loss if input is greater than output. Below is an example of an output.
DATE INPUT VALUE ₦
1/1/15 100 days of old broiler chicks 20,000.00
3/2/15 400 bags of broiler starter mash 64,000.00
6/3/15 2bags of maize seeds 15,000.00
8/4/16 10 bunches of cassava stem 10,000.00
11/4/16 10 bags of N.P.K . fertilizer 20,000.00
Total = 129,000.00
PRODUCTION RECORD: A production record is a record which shows everything that is produced on the farm and how the farm is run. It enables the farmers to know which projects are profitable and this guide him in predicting and planning in future. Below is an example of production record. Weekly production record for the month of January-February 2016.
Date Product Quantity produced Value ₦
2/1/16 Broiler 3kg 10,000.00
9/1/16 Eggs 15 crates 15,000.00
16/1/16 Vegetables 2kg 2,000.00
23/1/16 Fruit 8kg 800.00
30/1/16 Tomato 10kg 5,000.00
6/2/16 Okra 5kg 1,000.00
Total = 33,800.00
CONSUMPTION RECORD: This is the record of the farm product consumed by the farmer and his family. Below is an example:
Date Produce Quantity consumed Value ₦
1/3/16 Eggs 5 crates 5,000.00
3/3/16 Yam 20 tubes 2,000.00
5/3/16 Rice 1 bag 18,000.00
25/3/16 Corn 15kg 2,000.00
Total = 27,000.00
SALES RECORD: It is the record of all the products sold by the farmer. The money realized from the sales constitutes the income of the farmer. An example of a sales record is shown below.
Date Produce Quantity sold Rate Amount ₦
1/5/16 Tomato 50kg 100 5,000.00
5/5/16 Lettuce 20 packs 50 1,000.00
10/5/16 Eggs 50 crates 1000 50,000.00
Total = 56,000.00
PROFIT AND LOSS ACCOUNT: This is the record of all sales and expenditure made in the farm at the end of a year to determine whether the farmer made profit or loss. Below is an example of a profit and loss account. Levokan Setoda farm Consult made the following transactions for the year ended 31/12/15
Opening valuation stock 200,000.00
Closing valuation 200,000.00
Cost of tomato seeds 15,000.00
Cost of fertilizer 16,000.00
Cost of insecticide 10,000.00
Labour hired 50,000.00
Cost of banana suckers 15,000.00
General expenses 20,000.00
Sales of tomato 39,000.00
Sales of banana 70,000.00
Tomato consumed 10,000.00
Banana consumed 20,000.00
Prepare a profit and loss account indicating whether a profit or loss was made.
Purchase and Expenses ₦ sales and receipt ₦
Opening valuation 200,000.00 closing valuation 200,000.00
Cost of tomato seeds 15,000.00 sales of tomato 39,000.00
Cost of fertilizer 16,000.00 sales of banana 70,000.00
Cost of insecticide 10,000.00 tomato consumed 10,000.00
Labour hired 50,000.00 banana consumed 20,000.00
Cost of banana sucker 15,000.00
General expenses 20,000.00
Net profit 341,000.00
Total = 339,000.00 339,000.00