Farm records and accounting

Farm Records
and Accounting
A Report in
Agricultural Extension 221:
Advanced Agribusiness

Dr. Cesar T. Villanueva
Professor

Ronel D. Caña
Student

I. Introduction
 Farming is an enterprise;
 Farmer = Entrepreneur =
Businessman;
 farmer-entrepreneur has tasks such
as monitoring farm income, making
outside transactions and keeping track
of the farm supplies;
 farmer must employ key tools and
methods in order to keep track of and
manage his business.

I. Introduction
 Farm records and accounting forms
are key tools where the farmer may
base his future decisions;
 A good farm record is also a tool used
in assessing and mitigating farm
business risks and opportunities;
 A little of farming + a little of business
= farm record and accounting.

II. Importance of Farm Records
 Farm records are a management tool
– they allow you to measure how
efficiently you are using resources and
to determine whether or not you are
having income;
 Farm records are also essential for
planning and decision making;
 Farm records is used in obtaining
credit;
 Farm records is used for income tax

III. Items Included in the Farm
Record Keeping System
 A business checking account to
handle all business transactions.
 An income ledger to record all
business income by calendar month.
 An expense ledger to record all
business expenses by calendar
month.
 An inventory that involves both the
physical counting and valuation
assignment.

III. Items Included in the Farm
Record Keeping System
 A depreciation schedule pro-rating the
original costs of assets over more than
one accounting period.
 A net worth statement or balance sheet
summarizing assets and liabilities of the
farm.
 An income or profit and loss
statement that lists receipts and
expenses by type (and the result is net
profit or net loss).
 Cash flow statement measures the flow
of funds into the business and the flow
out of the business over the accounting
period.

IV. Farm Record Keeping
 the essential first step in organizing
business transactions;
 simply a record of the money you
spend and the money you earn;
 written on a set of ledger sheets,
which contain several columns, to
keep track of where money goes and
from what source it is earned.

V. Farm Record Keeping
Systems
 two kinds of record keeping systems:
―single entry‖ and ―double entry‖;
 ―double-entry‖ method is a perfected
system with built-in cross checks and
automatic balancing;
 for the purpose of farming, ―single-
entry‖ record keeping is advised;
 this will still provide you with the basic
information you need to manage your
farm.

VI. Farm Accounting
 the process of measuring and
recording all farm resources and all
farm transactions with financial
consequences in a systematic way;
 conduct of farm accounting may take
a large part of the farmer‘s time and
effort;
 however this effort is compensated in
account of the following reasons:

VI. Farm Accounting
 itpermits the farmer to find out the size
of the income which is derived from the
farm;
 to know the total value of the farm
business and to know which part is
actually owned by the farmer and which
by others;
 to detect loss or theft of cash or stock;
 to provide the necessary data for a
correct income tax assessment;
 to claim expenses for work done by

VI. Farm Accounting
 normally farmers dislike paper work,
as they are busy with their farm work;
 where to keep records may be a real
problem for a farmer, as one cannot
expect an office or a desk on the
average farm;
 therefore, farm accounting should
be kept very simple; it helps when all
records can be kept in just one book

VII. Customary Business
Documents and Their Use
 Cash receipt
◦ when merchandise is bought and paid for
in cash, the seller in a modern business
will make out a cash receipt which is
printed in duplicate. The original cash
receipt is given to the buyer. The buyer
should keep the receipt and later enter it
in his Cash Book. The duplicate remains
in the book of the seller; later on the seller
will summarize the duplicates and enter
them in his Cash Analysis Book.

 Invoice
◦ whenever merchandise is sold on credit
an invoice is made out in the invoice
book which is usually in triplicate. The
original invoice is given to the buyer
together with the merchandise. Where
monthly statements are sent to the buyer,
the duplicates will be sent to the buyer
together with the statement. The triplicate
remains in the book as a record.

 Statement
◦ the seller can summarize all invoices to a
customer in a statement; this statement
is then sent to the customer for payment.
The statement gives the dates of the
invoices, their numbers and the amounts
which are due, under the heading DEBIT.
If during that month any payment or
merchandise or credit is received from
that customer, it will be accounted for
under the heading CREDIT. The
difference between debit and credit is
entered under the heading BALANCE.

 Purchase order
◦ a written request to a trading business to
supply specified merchandise on credit; at
the same time it warrants payment when the
merchandise (with the invoice) is delivered;
commonly called a ‗local purchase order‘ or
LPO (in English speaking countries). A
purchase order specifies the merchandise in
number, kind, size, make, color, etc.. It needs
the signature of the person who actually
orders and that of the person who must
approve the purchase.

 Cheque (check)
◦ A cheque is an order to a bank to make a
payment in money. A cheque is the safest
and easiest way of paying a debt or a
purchase for a person having a bank
account.

 Money Order
◦ money order is another kind of order to
make a payment. It is a means of
transmitting money to persons who have
no current bank account. To obtain a
money order, the amount to be
transmitted plus a fee have to be paid to
the Post Office (or any other service
provider) or the bank. A money order form
has to be completed (sender, payee,
name of the office where the money order
can be cashed).

VIII. Balance Sheet
 Measuring and Recording of Farm
Resources
◦ to obtain and maintain the most profitable
use of the available farm resources;
◦ the resources of a farm business are
nature, labor and capital:
 ‗capital‘ is commonly meant capital or
production goods; not just money!
 ‗labor‘ is the resource provided by individual
human beings with their free consent (it
cannot be owned)
 ‗nature‘ and ‗capital‘ are either owned or
rented

VIII. Balance Sheet
Resources
◦ when making a list of the resources, only
those owned by the farmer are
considered;
◦ the rented resources are taken into
account when the costs of production are
calculated;
◦ It is important to know by what financial
means the farmer is able to own his farm
resources;
◦ the farm resources are also called

VIII. Balance Sheet
Resources
◦ A general way of recording the facts about
the available farm resources is the
Balance Sheet (BS) – also known as the
Net Worth Statement;
◦ it is a listing of all the possessions and
debts of the farm business at a certain
date;
◦ debts (= what is owed to others) are
called ‗liabilities‘;
◦ possessions are called ‗assets‘

VIII. Balance Sheet
 Schematically, a Balance Sheet looks like:

Balance Sheet
Of ………………… (Name and
On …………. (Date)
Place)
Assets Liabilities
How are the farm resources Possessions = all farm resources
(possessions) financed:
a. by the farmer himself
b. by others = loans or debts

VIII. Balance Sheet
 The Balance Sheet
◦ its primary use is to establish the financial
solvency of the business;
◦ represents a financial snapshot of the
business at a specific point in time;
◦ the three components of the balance sheet
are assets, or things owned; liabilities, or
things owed; and the difference between
these, the owner’s equity or net worth.
◦ separate property belonging to the farm
business from property belonging to the
farmer's household.

VIII. Balance Sheet
◦ The assets are listed in the following
order:
 1) the most fixed assets, such as land;
 2) the more current assets;
 3) and finally the most liquid, such as cash in
hand and money to be received.
◦ The total assets, also called Gross
Capital, is the total value of all land,
capital goods, stocks in store or in the
field and money available in the business.

VIII. Balance Sheet
◦ Liabilities are also grouped into one of three
categories. Current liabilities are those
corresponding to current assets, like other
debt payments within the calendar year;
◦ Intermediate liabilities relate to working
assets, like farm equipment, and include the
liabilities or balances due on intermediate
assets with terms from one to ten years;
◦ Long-term liabilities include land and
contracts on real property exceeding ten
years in duration.

VIII. Balance Sheet
Balance Sheet
All Organic G.M.O. Farm, San Ildefonso, Bul. December 31, 2010
ASSETS LIABILITIES
Fixed Long Term

Farmland (3.0 ha@P500,000) 1,500,000.00 Farm Real Estate 350,000.00

Buildings & Improvements 650,000.00 Building Depreciation 280,000.00
Other facilities 210,000.00 Total Fixed 630,000.00
Total Fixed 2,360,000.00
Intermediate
Intermediate Machinery Depreciation 50,000.00
Poultry-2,000 hds@P100 200,000.00 Vehicles Depreciation 68,000.00
Machinery & Equipment 800,000.00 Equipments Depreciation 42,000.00
Vehicles 400,000.00 Total Intermediate 160,000.00
Total Intermediate 1,400,000.00
Current
Current Accounts payable 250,000.00
Cash, savings account 700,000.00 Bank notes 65,000.00
Supplies 150,000.00 Loans 122,000.00
Securities marketable 100,000.00 Accrued taxes 76,000.00
Cash value of insurance 200,000.00 Total Current 513,000.00
Accounts receivable 350,000.00
Total Current 1,500,000.00 Total Liabilities 1,303,000.00

Total Assets 5,260,000.00 Net Worth 3,957,000.00

Total Liabilities and Net Worth 5,260,000.00

VIII. Balance Sheet
 Depreciation
◦ means loss of value;
◦ refers to capital goods or investments;
◦ due to the fact that capital goods (or
production goods) do not last forever but
wear out, deteriorate and finally become
useless;
◦ not only wear and tear, but also age may
cause depreciation - something may
become what is called obsolete, when it is
outmoded.

VIII. Balance Sheet
 Depreciation
◦ there are various methods of calculating
depreciation;
◦ most common method is the straight line
method, in situations with no or little
inflation.;
◦ this method is commonly used in farm
accounting;
◦ depreciation is calculated as if the value
decreases by the same amount each
year.

VIII. Balance Sheet
 Depreciation
◦ a capital good still has some value after it
is worn out;
◦ this value is called residual, salvage, rest
or scrap value;
◦ the scrap value has to be subtracted from
the original or initial value of the capital
good before one starts to calculate the
depreciation.

VIII. Balance Sheet
 Straight Line Depreciation Formula:

Purchase Value – Scrap
Annual Depreciation = Value
Useful life in years

VIII. Balance Sheet
 Inventory and Valuation of Resources
◦ valuation is the estimation of the value of
each asset or item;
◦ inventory is a list of all possessions or
assets item by item, at their present value;
◦ in making valuations, the value of farm
produce can be based either on its cost of
production or on its market value;

VIII. Balance Sheet
 Inventory of Resources
◦ Land:
 does not deteriorate under good
husbandry practices and keeps the
same value;
 may even become more valuable with
time;
 value entered is the purchase price or
the estimated price, based on the value
of similar land in the area at the time.

VIII. Balance Sheet
◦ Buildings:
 stone or brick may last 25 to 40 years;
 depreciation is between 4% and 2.5%
per year;
 wooden buildings depreciate at about
10% per year.

VIII. Balance Sheet
◦ Machinery:
 Non-motorized machinery (ploughs,
harrows and carts) depreciate at about
10% per year;
 Motorized machinery (tractors,
harvesters and diesel pumps)
depreciate at 20% per year or more,
depending on maintenance and number
of hours which they are operated per
year.

VIII. Balance Sheet
◦ Small tools:
 Includes hammers, pliers, shovels, buckets,
etc.,
 with small purchase values and written off
immediately at purchase (which means that
their depreciation is 100%);
 on a large, modern farm there may be
thousands of such small tools; some might
be new and some nearly worn out;
 a suitable method is to calculate the new
value of all small tools and to enter them on
the Balance Sheet for half that value once
and for all.

VIII. Balance Sheet
◦ Livestock:
 listed by kind, age and sex;
 each group of animals is valued by
multiplying the number in that group by
a fixed price;
 this fixed price would be the cost of
breeding a representative animal of that
group;
 a ‗standard value‘ may be applied for
inventory/valuation purposes.

VIII. Balance Sheet
 Valuation of Resources
◦ There are many methods for valuing farm
assets. Commonly used methods are as
follows:

VIII. Balance Sheet
◦ The market cost method:
 values assets at their purchase price;
 use this method for recently purchased
assets that will be used in a relatively
short time (i.e., feed, fuel, fertilizer, and
seed);
 must be used to value inventories for tax
purposes.

VIII. Balance Sheet
◦ The net market price method:
 uses the market cost less transportation
and marketing charges;
 It is the money the farm would have left
after selling a product and can be used
when liquidity estimates are needed;
 net market price could be used for
livestock and farm produced crops.

VIII. Balance Sheet
◦ Farm production costs method:
 determined by the cost of producing a
commodity on the farm;
 It is useful for farm produced
commodities that in turn will be used in
other farm enterprises;

VIII. Balance Sheet
◦ cost-minus-depreciation method:
 applies to investments that have a
useful life longer than a year;
◦ capitalization method :
 uses the time value of money to
estimate current asset value;
 based on an annual income stream that
an asset can produce in its present use.

VIII. Balance Sheet
◦ replacement cost for equivalent
function method :
 considers the changing function of some
assets over time;
 replacement cost considered should be
related to its current use.

IX. Cash Analysis Book
 Cash Book, Petty Cash and Diary
◦ cash book is what it says, namely a
record of all changes in cash and a record
of all cash transactions;
◦ each transaction starts with a new line in
the cash book;
◦ farms use a petty cash book in which
expenditures and receipts for cash in
hand are recorded when they occur;
◦ once a week or once a month the totals
are entered in the cash book.

 Cash Book, Petty Cash and Diary;
◦ A diary is a book of events, transactions
or observations recorded daily or at
frequent intervals;
◦ Large farms which keep a complete set of
accounting books may use a diary for non
financial records, such as work performed
by laborers, fertilizer applications on
specified crops and fields, dates of sowing
and harvesting, servicing, yields, feed
given to animals, etc..

 The design and use of the Cash Analysis
Book
◦ it is not possible to calculate the Net Farm
Income from the cash book as such;
◦ receipts and expenditures have to be
sorted out, kind by kind.
◦ To be able to manage the farm in such a
way that the most profitable use is made of
the farm resources, the farmer must:

 The design and use of the Cash Analysis
Book
 distinguish
 receipts for farm produce from other receipts,
such as sales of capital goods and loans;
 expenditures for production purposes from
expenditures for other purposes, such as
investments and repayments;
 calculate the costs and revenues of his separate
farming activities (also called enterprises);
 compare the output and costs of each activity with
the results of previous years and also with the
results of other farms.

 Cash Analysis Book
◦ an extension of the cash book;
◦ the Cash Analysis Book adds several
columns to the total +receipts and total
expenditures columns of the cash book;
◦ In these columns receipts and
expenditures of one and the same kind are
recorded a second time;

 Different columns in the Cash Analysis
Book
◦ columns in which the output and costs are
entered for each activity (enterprise or
operation) for which separate information
is wanted; examples: maize, poultry, citrus,
milk, cattle, woodlot;
◦ a column ‗other output‘ on the receipts side
and a column ‗overhead costs‘ (or general
costs) on the expenditures side, in which
output and costs are entered which
cannot be allocated to a specific
activity;

 Different columns in the Cash Analysis
Book
◦ a column for livestock sales on the
receipts side and a column for purchases
on the expenditures side;
◦ a column for non output receipts and a
column for non cost expenditures on the
expenditure side;
◦ a column for receipts from the
household (private) and a column for
expenditures for the household;
◦ other columns.

Cash Analysis Book - All Organic G.M.O. Farm, San Ildefonso, Bul., January – December 2010
Receipts
Machine
Date Description Total Crops Livestock Others Private
Rentals
1/6/10 Cash in Hand 9,000 9,000
1/19/10 1 Organic GMO Cow 15,000 15,000
1/30/10 1 Organic GMO Pig 6,000 6,000
6/1/10 Landprep rentals 12,000 12,000
Summary for the rest of
the year:
Crops sold 5,000 5,000
Animals sold 3,000 3,000
Machine rentals 4,500 4,500
Other sources 2,000 2,000
Total Receipts 56,500 5,000 24,000 16,000 11,000 -
Expenditures
Crops Vet.Serv./ Overhead
Date Description Total Other Exp. Private
Supp. Purch. costs
1/12/10 Fertilizer 5,400 5,400
1/20/10 Veterinary services 2,000 2,000
1/25/10 Wages 5,000 5,000
1/31/10 Building Repair 15,000 15,000
7/25/10 Private drawing 1,000 1,000
Summary for the rest of
the year:
Crop supplies 4,000 4,000
Fuel & Oil 3,600 3,600
Vet. Serv. & Supp. 2,000 2,000
Wages 8,000 8,000
Private drawings 2,000 2,000
House repair 6,000 6,000
Cash Balance 2,500 2,500
Total 56,500 9,400 4,000 16,600 23,500 3,000

X. Income Statement / Profit
and Loss Statement
 the second important financial
statement;
 summary of receipts and expenses and
the resulting profit or loss during an
accounting period, usually a year;
 for purposes of estimating profit or
loss, the accrual system presents a
much better estimate of business
performance;

X. Income Statement
INCOME STATEMENT
All Organic G.M.O. Farm, San Ildefonso, Bul.
January 1, 2010 to December 31, 2010
FARM RECEIPTS FARM OPERATING EXPENSES
Crop Products sold 41,000.00 Organic GMO Seeds 1,800.00

Organic GMO Cows sold 15,000.00 Feeds 16,000.00

Machinery income 30,000.00 Labor 5,000.00
Misc. income 2,000.00 Repairs & Maintenance 3,500.00
Organic GMO Pigs sold 12,000.00 Property taxes 900.00
Gross Farm Receipts 100,000.00 (1) Insurance 650.00
Supplies 2,000.00
Chemicals 3,000.00
Fuel (Gas, Diesel & Oil) 5,500.00

Waste disposal & Compost 1,200.00

Miscellaneous 650.00
Interests 2,100.00

Total Farm Cash Operating Expenses 42,300.00 (2)

Net Cash Operating Income (1-2) 57,700.00 (3)

X. Income Statement
ADJUSTMENT FOR INVENTORY
Crop Accounts Supplies & Accounts
Livestock
Prod’n. Receivable Materials Payable
Ending Inventory 300.00 1,500.00 2,000.00 400.00 -
Beginning Inv. 250.00 2,000.00 3,164.00 200.00 -
Net Adjustment 50.00 500.00 -1,164.00 200.00 - -414.00 (4)

Net Operating Profit (3 +/- 4) 57,286.00 (5)
ADJUSTMENT FOR CAPITAL ITEMS
Machinery & Equipments Buildings & Improvements
Ending Inventory 21,000.00 60,000.00
Plus sales 500.00
Sub-total (6) 21,500.00 60,000.00

Beginning Inv. 22,650.00 57,000.00
Plus purchases 600.00
Sub-total (7) 23,250.00 57,000.00
Net Capital Adjustments (6-
-1,750.00 3,000.00 1,250.00 (8)
7)

Farm Profit or Loss (58) 53,536 (9)
Net Non-Farm Income 7,000.00 (10)

Total Farm & Non-Farm Income (9+10) 60,536.00(11)

Income & Security Taxes 1,650.00 (12)
Net After-tax Income (11-12) 58,886.00

X. Income Statement
 Profit and Loss Statement
Components:
◦ Receipts
 gross returns from the sales of farm products
and the value of farm products used in the
home;
 receipt section of the income statement assigns
a value to gross farm production;
 to accurately state gross income, receipts must
be adjusted for inventory changes;
 receipts should also be adjusted for purchases
of livestock, feed, and supplies.

X. Income Statement
Components:
◦ Expenses
 the outlays for items paid for and used
during the time period covered by the
income statement ;
 include all the cash operating expenses as
well as the fixed expenses incurred during
the accounting period;
 cash operating costs are ―Farm Operating
Expenses,‖ and fixed expenses are
considered under ―Adjustments for Capital
Items.‖;

X. Income Statement
Components:
◦ Inventory adjustments
 for prepaid operating expenses such as
seed, chemicals, and insurance;
 necessary for capital assets such as
machinery and building improvements;
 reflect purchases and sales that occurred
during the year.

X. Income Statement
 Measures of Business Performance:
◦ Net cash operating income
 determined by subtracting the cash
operating expenses from gross receipts;
 can be used to compare operating
efficiencies across farms with different
debt structure;
 its primary use is related to cash flow and
to estimate cash returns when taxes are
calculated on a cash basis.

X. Income Statement
◦ Net operating profit
 obtained by adjusting cash operating
income for accounts receivable, payable,
and inventory changes;
 the purpose for making these
adjustments is to determine an accrued
accounting of income produced during
the period.

X. Income Statement
◦ Farm Profit or Loss
 results from adjusting net operating profit for
―Net Capital Adjustments‖;
 to compute net income on an accrued basis,
adjustments must be made for capital
assets;
 the ―bottom line‖ profit or loss is the before-
tax return to the operator‘s management,
capital, risk, and unpaid family labor.;
 the trend of the receipts, expenses, and
profit over time is valuable in analyzing the
financial progress of the farm business.

XI. Enterprise Accounting
 can help you make decisions about
particular components of your farm
business;
 used to pinpoint sources of profit in the farm
business and factors affecting profitability
 focus only on the most meaningful data;
 rule of thumb in collecting and recording
enterprise data or farm records in general is
to ask whether the information value in terms
of improved decision making equals or
exceeds the cost of data collection and
analysis.

 three enterprise classifications:
◦ Production Enterprises - these are crop and
livestock enterprises that produce marketable
commodities.

◦ Service Enterprises - include machinery and
equipment services, an on-farm retail market, and
the farm shop. These enterprises are internal to
the farm business and provide services not
directly marketed.

◦ Holding Enterprises - these are storage facilities,
buildings, capital—enterprises that hold the inputs
or farm-produced commodities until they are
ready for use in a particular enterprise or are
ready for sale.

 factors to consider in evaluating crop and livestock
enterprises :

 Livestock enterprises:
◦ Returns per hundred price of feed fed
◦ Feed costs per kg of meat or milk produced
◦ Feed efficiency, kg of feed per kg of product
◦ Total enterprise profits per head or per unit
◦ Other factors that might include such things as pigs weaned
per litter, percent calf crop, kg of milk produced per cow, etc.

 Crop enterprises:
◦ Yield per hectare
◦ Returns above cash hectare
◦ Net enterprise profit per hectare
◦ Gross value of crop produced per hectare
◦ Machinery and power costs per hectare
◦ Fertilizer costs per hectare

XII. Cash Flow Statement
 know the flow of income and expenses
during the accounting period to ensure you
can meet your financial obligations on time;
 helps you assess your ability to pay bills on
time;
 can be completed on an annual, semi-
annual, quarterly, monthly, or bimonthly
basis depending on the size and type of
business;
 the larger the business and the more capital
involved, the more important cash flow
planning becomes.

 Cash Flow is different from Income
Statements:
◦ cash flow statement includes non-farm items
such as non-farm income, living expenses,
and income taxes;
◦ cash flow also more fully reflects breeding
stock and machinery purchases and a more
complete accounting of principal payments
and loans;
◦ the cash flow can be defined as the sources
and uses of funds or a flow-of-funds
statement;
◦ it summarizes all the transactions during a

 Instructions for completing a cash flow statement:
1. Complete the summary, column by column,
starting with the column corresponding to the
first period of the year.

2. Total lines 1 through 12 to get Total Cash
Available in the period. Place the result on line
13.

3. Total lines l4 through 40 to get Total Cash
Required for the period. Place the result on line
41.

4. Subtract line 41 from line 13 and place the
result on line 42. If the result is negative, place a
minus sign in front of it or place the value in

5. If line 42 is negative, show at least enough new
borrowings (line 43) to cover the deficit.

6. If line 42 is positive, show projected principal
and interest payments on the operating loan(s)
in lines 44 and 45.

7. If line 42 is negative, subtract it from the amount
of money borrowed (line 43) to get the ending
cash balance (line 46). If line 42 is positive,
subtract principal and interest payments (lines
44 and 45) to get the ending cash balance.

8. Increase the operating loan balance (line 47) by
the amount of new borrowings during the
period, or decrease it by the amount of principal
payments, whichever is appropriate.

9. Transfer the ending cash balance (line 46 for
the period you have just completed) to the
beginning cash balance (line l) for the next
period.

10. Repeat steps l through 9 for each period of the
year.

11. One column should be completed for the total
year‘s operation. The figures in this column
reflect your total cash flow for the year. Each
figure in this column is the sum of the figures in
the individual time periods for most of the lines.
But, the figures in lines 1, 13, 42, 45, and 46 do
not necessarily ―add across,‖ due to the transfer
of cash balances from the end of one period to
the beginning of the next. If the beginning and
ending cash balances were all equal, these

CASH FLOW STATEMENT
Use pencil – round to Pesos
Date Completed: December 31, 2010
CASH INFLOW Period Jan 1-15 Jan 16-31 …
1. Beginning Cash Balance
2. Crops
3.
4.
5. Livestock
6.
7.
8. Custom Work
9. Agricultural Program Payments
10. Patronage Dividends
11. Other
12.
13. Total Cash Available (Add lines 1-12)
CASH OUTFLOW
14. Rents and leases
15. Gas, Fuel, Oil
16. Labor hired
17. Machinery repair
18. Machinery hire
19. Fertilizer and Chemicals
20. Seeds
21. Feed Purchased
22. Livestock expense (vet., breeding, etc.)

23. Building and Fence Repair
24. Supplies
25. Utilities
26. Insurance (property, liability, etc)
27. Real estate taxes
28. Livestock purchased for resale
29. Other
30.
31.
32.
CAPITAL EXPENSE OUTFLOW
33. Machinery purchase
34.
35. Breeding livestock
36. Other
37. Family living expense
38. Income & security tax
39. Fixed loan payments – principal
40. Fixed loan payments
41. Total cash required (Add lines 14-40)
42. Cash available less cash required (13-14)
43. Money to be borrowed (if 41 is negative)
44. Debt payments (if 42 is negative)
45. Ending Cash Balance
46. OPERATING LOAN BALANCE

XIII. Field Records
 Field records for crop production might
include such items :
◦ field identification or description;
◦ parcel size;
◦ cropping history;
◦ crops grown, cultural practices used and
yield information;
◦ current field activities;
◦ soil test data;
◦ labor hours by activity.

XIII. Field Records
 Livestock or poultry records also provide
useful information. Poultry records should
include:
◦ chicken purchases and dates;
◦ mortality rates;
◦ feed records, quantities purchased, and
quantities fed;
◦ production records, eggs per day;
◦ cull or damaged eggs;
◦ rodent control activities;
◦ sale of pullets or hens.

That’s it! Thank
you!
References:

Gletema, Bart. editor. Farm Accounting. Agromisa
Foundation. Wageningen, The Netherlands, 2006
Carkner, Richard W., Farm Business Records: An
Introduction. Washington State University,
Washington DC, USA, 2000

RONEL DIMAYA CAÑA
Agriculturist II
Provincial Agriculture Office
City of Malolos, Bulacan
791-0018/791-0008

Farm records and accounting

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