Farm Record Keeping Process and Examples
Farm record keeping is very important in any production pertaining agricultural enterprise. Farm Records provide substantial information important in decision-making. Information gathered from farm records also help in planning and budgeting. Records are sources of data in obtaining credit, insurance, and in preparing tax returns and reports required by the government. It is also useful in marketing produce and in other farming activities. Farm records determine the value of the project should it be used as a collateral for a loan or when the owner decides to sell the project.
Some records that facilitate effective management;
1. Cash record. This is a record of cash accounts in the farm. It may be a combined cash record where both the cash received from sales and cash payments can be seen in one record or this may be a special cash record wherein the cash received journal and cash payments journal are separately recorded transactions.
Date
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Cash Received
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Cash Paid
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Amount
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Receipt No.
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Remarks
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Amount
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Receipt No.
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Remarks
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July 30
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P 4,600.00
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3450
|
Sale of 4 bags rice
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P 400.00
|
9087
|
Payment of Insecticide
|
2. Farm sales record. This is used to record all sales of farm produce. There are two kinds of farm sales record: the general and the classified.
The general form has only one amount column where the value of farm products sold are recorded. The other columns are the other pertinent information such as date, unit, description, and unit value.
Farm Sales Record
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Date
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Description
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Quantity
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Unit
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Unit Value
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Total Value
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July 30
|
rice
|
10
|
cavans
|
P1500.00
|
P15,000.00
|
3. Stock record. This record shows the stock supplies and materials needed by the farm for all farming activities, especially in large scale production.
Stock Record
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Date
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Item
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Qty.
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Unit Value
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Total Value
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Issued’ Used Qty
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Balanced/ Unused Qty
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July 30
|
Fertilizer
|
10 bags
|
P1000/bag
|
10,000
|
4
|
6
|
4. Production record. This record determines the annual profitability of a farm enterprise. It lists the different crops grown in the farm during the whole year, the amount spent for the production of each crop, the total sales per crop, the remaining stock and the net income. This farm records summarizes the performance of the farm and readily provide information on how much was spent and gained for each crop raised. The production record can be used by the farmer in determining which commodities are more profitable to raise for the next cropping season.
Production Record
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Cropping Season
Jan to April
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Description of commodity
Pepper
Garlic
|
Cost of Production
P 24,000.00
|
Total Sales
P 50,000.00
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Remaining Stocks
300kg
|
Net Income
P 26,000.00
|
Total
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5.Cost and return analysis. This record tells the farmer how much profit he or she will gain in a specific project undertaken. It contains a list of all the farming activities that were performed in season and the expenses that are incurred every farming activity. It also summarizes the cost of supply and material used for the cropping season. The cost and return analysis helps the farmer gets the total cost of production and estimate the net return he or she will gain depending on the crop yield or the mode of production.
Cost and return Analysis
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Item
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Labor Cost of Man/day (8hrs)
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Labor cost of man & animal/day(8hrs)
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No. of days required at 8hrs/day
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Amount
|
1. Land Prep
2. Prep of planting materials
3. Planting
4. Irrigating
5. Others
Sub Total -A
|
1+2+3+4
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6. Supplies and materials
a. Seed
b. Fertilizer
c. Others
|
P 3,000.00
| |||
Sub Total- B
|
P 3,000.00
+sub totalA
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Grand Total
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a. Cash on hand
b. Cash in bank
c. Total of account receivable
d. Estimated value of livestock and farm animals at hand
e. Estimated value of crops to be harvested.
f. Estimated cost of supplies and materials at hand.
g. Debts owed by the farm.
h. Value of land, building, and equipment.
i. Estimate of credit available to the farmer.
Partial Statement of Finance
| |
Assets
|
Amount in Peso
|
A. Cash on hand
Cash in bank
Others
Total assets
|
P 65,000.00
25,000.00
P 90,000.00
|
Liabilities
|
Amount in Peso
|
B. Debts Owed
Rural Bank loan
Total debts owed
Estimated available credits
|
P 3,000.00
6,000.00
P 9,000.00-90,000.00
P81,000.00
|
Income Statement for ending year
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Particulars
|
Amount in Pesos
|
1. Sales
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Less:
2. Expenses
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3. Profit before Tax
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Less:
4. Estimated income tax (5%)
5. Net Profit after Tax
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