The document discusses the importance of farm inventory management, highlighting its role in tracking physical assets to enhance resource allocation and profitability. It outlines various types of farm inventory and methods for valuation, including market price and net selling price methods. Effective practices and tools are emphasized for achieving greater efficiency and reduced wastage in agricultural operations.

1. FARM INVENTORY

2. INTRODUCTION
 It is a complete list of all the physical
properties of a business or a firm along
with their values at a specific date.
 Farm inventory management plays a critical
role in the success of modern agricultural
operations, By effectively tracking and
managing various aspects of inventory.
 Farms can efficiently allocate resources,
reduce wastage, and ultimately increase
profitability.
01
Farm Inventory

3. Seed Inventory
Types of Farm Inventory
02
Types of Farm inventory are as..
Crop Inventory
Livestock Inventory
Equipment Inventory

4. TOOLS for Farm
Inventory Management
03
Tools of Farm inventory are as..
Spreadsheets Barcode/RFID Systems
Farm Management Software
IoT Sensors

5. Data Collection
Management Process
04
Categorization
Analysis
Decision Making
Reporting
Tracking

6. PROCEDURES
05 Step 1
Beginning of the year - Prepare a list of all
assets of your farm
- Current assets Cash in hand, time deposits, etc.
- Fixed assets or Depreciable assets, Tractor, land
- Non-depreciable assets - Seeds, fertilizers, etc.

7. PROCEDURES
06 Step 2&3
Valuation of each item using an appropriate
valuation method.
Repeat Steps 1 and 2 at the end of the year.

8. PROCEDURES
07 Step 4
Measure the difference at the inventory
(opening inventory) and at the end of the year
(Closing inventory).

9. Net Selling Price Method
Methods of Valuation
08
Types of Farm inventory are as..
Market Price Method
Cost Less Depreciation Method
Replacement Cost Less
Depreciation Method
Income Capitalization Method
Cost Method

10. For those assets which are primarily
meant for sale and are sold within
the year.
NSP = Selling Price – Marketing Cost
E.g: Crop produce, livestock
products
Net Selling
Price Method
0
9

11. Market Price Method
For valuing farm supplies
that are purcahsed
E.g: Seed, fertilizer,
pesticides.

12. Cost Method
To estimate current value
of farm produced inputs.
E.g: Compost, FYM and
standing crop

13. For working cspital assets – e.g.
machinery, new farm buildings, farm
equipments, livestock
Estimate depreciation amount and deduct
it from the purchase price or original
cost
Cost minus
depreciation
method
1
2

14. Replacement Cost
Minus Depreciation
What is replacement cost?
Cost of constructing the
same type of building at the
present price with the present
technology Seed, fertilizer,
pesticides. E.g.: Old farm
buildings

16. Write down all the advantages
Increased Efficiency
BENEFITS
14
Reduced Wastage
Improved Decision Making
Financial Control

17. Farm inventory management is an efficient
and profitable farming operation. By
adopting effective practices and utilizing
suitable tools, farms can achieve increased
efficiency, reduced wastage, and improved
profitability
CONCLUSION
15

18. THANK YOU
By,
Kaaviya AV