Farm Records – SS2 Agricultural Science Lesson Note (Third Term)

Farm records are written documents that show the major activities going on in a farming business. They help the farmer to monitor prices, show the financial position of the farm, determine profit and make management decisions.

Behavioural objectives

1. State what farm records are.
2. Give at least six reasons why farm records are important.
3. List the types of farm record.
4. Describe what each type of farm record contains.
5. State the qualities of a good farm record.

Why are farm records important?

Farm records are important because they give the farmer facts about money, management and dealings with other people.

Records and money matters

• Price changes: the farmer can monitor changes in the prices of products bought or sold.
• Financial position: records show how much money the farm has, owes and is owed.
• Profit: records give the total income and total cost, so profit can be worked out.
• Farm worth: records help to determine the actual worth of the farm.
• Fraud: records help to detect fraud and theft by workers or others.

Records and management

• Decisions: records give facts for informed management decisions.
• Efficiency: records are used to compare management efficiency from year to year or between farms.
• Enterprise performance: records are used to evaluate how well each enterprise (for example maize or poultry) is doing.
• Future returns: past records are used to estimate future farm returns.
• Health monitoring: records are used to monitor the health status of crops and animals.

Records and other people

• Loans: banks and lenders ask for records before they give a loan.
• Tax: records are used for the determination of annual tax.
• Research: records provide a basis for conducting research.

What are the types of farm record?

There are six main types of farm record: farm diary, farm inventory, sales and purchase record, yield or production record, payroll or labour record, and farm input use record.

What is a farm diary?

A farm diary is the record of daily activities on the farm.

• Typical entries: planting, weeding, spraying, feeding animals, vaccination, visitors and weather.
• Use: it helps the farmer to remember what was done, when and by whom.

What is a farm inventory?

A farm inventory is the list of all assets on the farm and their money worth or value.

• Typical entries: land, buildings, tractors, tools, livestock, seeds, feed and cash.
• When it is taken: usually at the start and end of the farming year.
• Use: it shows the worth of the farm and any change in worth over the year.

What is a sales and purchase record?

A sales and purchase record is a record of the revenue and expenses of the farm business.

• Sales (revenue): money received from selling crops, eggs, meat, milk or live animals.
• Purchases (expenses): money spent on seeds, feed, drugs, fertiliser, tools and repairs.
• Use: it is the main source for working out profit or loss.

What is a yield or production record?

A yield or production record contains information on the output of crops and animal products.

• Crop examples: bags of maize, tubers of yam or baskets of tomato harvested from a plot.
• Animal examples: eggs collected, litres of milk, weight of animals sold.
• Use: it shows which crops, animals or methods give the best output.

What is a payroll or labour record?

A payroll or labour record shows the amount and types of labour hired or employed to work on the farm.

• Typical entries: names of workers, days worked, type of work and rate of wages paid.
• Use: it helps to control labour cost and settle wage disputes.

What is a farm input use record?

A farm input use record shows the inputs required, the inputs used and the level of input application.

• Typical entries: seeds sown, fertiliser applied, agrochemicals sprayed, feed and drugs given.
• Use: it helps to plan purchases and avoid waste or over-application.

How do the records link to profit?

Profit is revenue minus total cost, and the figures come from the sales, purchase, labour and input records.

• Revenue: total money earned from sales, taken from the sales record.
• Total cost: money spent on inputs, labour and other items, taken from the purchase, labour and input records.
• Profit: revenue minus total cost.
• Loss: the result when total cost is greater than revenue.
• Net worth: total assets minus total liabilities (debts), taken from the inventory.

What are asset and liability?

Worked example (figures are for practice only)

1. Revenue from sales: ₦500,000.
2. Total cost: ₦350,000.
3. Profit = ₦500,000 − ₦350,000 = ₦150,000.
4. If total assets are ₦2,000,000 and liabilities are ₦400,000, net worth is ₦1,600,000.

What are the qualities of a good farm record?

A good farm record is accurate, simple, complete, up to date, neat and clear, and safe.

• Accurate: every figure and fact is correct.
• Simple: it is easy to write and easy to understand.
• Complete: no important activity is left out.
• Up to date: entries are made on the day the activity takes place.
• Neat and clear: the writing can be read by anyone who needs it.
• Safe: it is kept in a secure place so that it is not lost or damaged.

How is a farm record kept?

A farm record is kept by writing every activity, quantity and price in a suitable book on the day it happens.

1. Choose the type of record needed for the activity.
2. Get a strong notebook, record book or file for each type.
3. Write the date and the activity or item on the day it happens.
4. Enter quantities, prices and names of people involved.
5. Check the entries for mistakes.
6. Add up totals at the end of the week, month or year.
7. Store the books safely for later use.

Evaluation

1. What are farm records?
2. State six reasons why a farmer should keep farm records.
3. Which farm record lists all the assets on the farm and their value?
4. Which farm record shows the revenue and expenses of the farm business?
5. What information does a payroll or labour record contain?

Assignment

List the six types of farm record and state what each one shows.