Farm Records and Accounts – JSS3 Agricultural Science Lesson Note (Second Term)

Farm records are written accounts of the activities, assets, costs and products of a farm.

Behavioural objectives

By the end of the lesson, students should be able to:

1. define farm records and farm accounts;
2. state the types of farm records;
3. explain what each type of farm record contains and what it is used for;
4. give examples of items entered in the farm inventory and the sales records;
5. calculate simple profit or loss from a farm’s income and costs.

What are farm records?

Farm records are written details of what a farmer owns, spends, produces, sells and uses on the farm.

• Purpose: they tell the farmer how the farm is doing.
• Comparison: they show which projects are more profitable.
• Where kept: in exercise books, record books, ledgers or on a computer.

Why are farm records kept?

Farm records are kept to help the farmer manage the farm and make good decisions.

• Profit and loss: they help the farmer to work out the farm profit.
• Planning: past records guide plans for the next season.
• Choice of project: they show which crops or animals earn more money.
• Loans: banks and cooperative societies may ask to see records before lending money.
• Control of waste: they show where money or materials are being wasted.
• Value of the farm: they show what the farm is worth when it is to be sold or shared.
• Tax and legal matters: they give proof of income and expenses when needed.

What are the types of farm records?

There are seven main types of farm records: farm diary, farm inventory, input records, production records, labour diary, sales records and consumption records.

Farm diary

• Meaning: a record of everything that happens on the farm each day.
• Examples of entries: planting, weeding, spraying, feeding animals, weather and visitors.
• Use: it reminds the farmer of what was done and when.

Farm inventory

• Meaning: a record of all assets owned by the farmer and the cash values of the items.
• Examples of entries: land, buildings, cutlasses, hoes, tractors, crops on the farm, livestock and stored produce.
• Use: it shows the worth of the farm. It is usually taken at the start and end of the year.

Input records

• Meaning: a record of all the items used in running the farm during the year.
• Examples of entries: seeds, fertilizer, drugs, feed and fuel, with their costs.
• Use: it is used to calculate the farm profit.

Production records

• Meaning: a record of all items produced on the farm.
• Examples of entries: number of eggs collected, bags of maize harvested, tubers of yam, litres of milk.
• Use: it enables the farmer to know which projects are more profitable.

Labour diary

• Meaning: a record of the day-to-day work done on the farm.
• Examples of entries: names of workers, days worked, the job done and wages paid.
• Use: it is used to determine the work done, the amount of labour used and the cost at the end of each operation.

Sales records

• Meaning: a record of all products sold by the farmer.
• Examples of entries: eggs, yam and goats sold, with date, quantity, price and buyer.
• Use: it shows the money earned from the farm.

Consumption records

• Meaning: a record of all farm products consumed by the farmer and his family.
• Examples of entries: yams, eggs and vegetables eaten at home.
• Use: it shows the value of produce that was not sold.

What is the summary of the types of farm records?

What are farm accounts?

Farm accounts are summaries of the money a farmer receives and spends on the farm.

• Income (revenue): money received from selling farm products.
• Expenditure (cost): money spent on inputs, labour and other needs.
• Profit: the money left when costs are less than income.
• Loss: the shortage when costs are more than income.
• Asset: anything of value that the farmer owns.

How is profit or loss calculated?

1. Add up all money earned from sales (income).
2. Add up all money spent (costs).
3. Subtract the total costs from the total income.
4. A positive answer is a profit. A negative answer is a loss.

Example: a poultry farmer earns ₦150,000 and spends ₦110,000. Profit = ₦150,000 minus ₦110,000 = ₦40,000.

What are the qualities of good farm records?

Good farm records are accurate, simple, complete and up to date.

• Accurate: figures and details must be correct.
• Simple: the farmer and workers must be able to read and understand them.
• Complete: every activity, cost and sale must be entered.
• Up to date: entries are made on the day things happen.
• Neat and safe: books are kept clean and in a safe place.

What problems affect record keeping on farms?

Many small farmers find it hard to keep records because of a few common problems.

• Illiteracy: some farmers cannot read or write well.
• Lack of time: farm work leaves little time for writing.
• Forgetfulness: entries are delayed and details are forgotten.
• Lack of interest: some farmers do not see the value of records.
• Loss of books: records can be damaged by water, fire or pests.

Evaluation

1. State five types of farm records.
2. What is a farm inventory? Give two examples of items entered in it.
3. Which farm record is used to calculate the farm profit?
4. Which farm record helps a farmer to know which projects are more profitable?
5. What is recorded in the labour diary?

Assignment

Write short notes on the sales records and the consumption records of a farm. Give one example of a product entered in each.