Keeping

Farm Records
National Training on Agripreneurship
for Young Farmers
August 29, 2019
RDEC-ATI Quezon City
 Brief Profile
Charmyne V. Sanglay
• Master of Management in
Agribusiness Management and
Entrepreneurship, UPLB
• Bachelor of Science in
Agrbusiness, CBSUA
• College Instructor, LSPU
• AgriDoc 2017
• Organic agriculture advocate
• Extensionist
• Researcher
• Mentor
• Mother
 Understanding
Entrepreneurship in Farming
 Entrepreneurship: A Mindset
• Entrepreneurship is a key factor for the
survival of small-scale farming in an ever-
changing and increasingly complex global
economy.
• Entrepreneurship in agriculture can still be
raising livestock and growing crops, but it
can be much, much more than that.
 Entrepreneurship: A Mindset
• The farmer plans, implements, operates
and assumes financial risks in a farming
activity or agricultural business.
• Entrepreneurship in the agricultural sector
focus on the ability of farmers to generate
new opportunities, organized either as
new business ventures or as part of the
existing business entity (Bryden et al.,
1992).
 Farmers as Entrepreneurs
• Entrepreneur is derived from the French
word entreprendre, meaning “to
undertake.”
– Farmer-entrepreneurs see their farms as a
business. They see their farms as a means of
earning profits. They are passionate about
their farm business and are willing to take
calculated risks to make their farms
profitable and their businesses grow.
 Farmers as Entrepreneurs
• Entrepreneurs are also innovators. They
always look for better and more
efficient and profitable ways to do
things. Being innovative is an important
quality for a farmer-entrepreneur,
especially when the business faces
strong competition or operates in a
rapidly changing environment.
Can small-scale farmers
become entrepreneurs?
Can small-scale farmers
become entrepreneurs?
 Can small-scale farmers become
entrepreneurs?
• Small-scale farmers all over the world have shown a
remarkable ability to adapt.
• They look for better ways to organize their farms.
They try new crops and cultivars, better animals,
and alternative technologies to increase
productivity, diversify production, reduce risk – and
to increase profits.
• They have become more market oriented and
have learned to take calculated risks to open or
create new markets for their products. Many small-
scale farmers have many of the qualities of an
entrepreneur.
 Can small-scale farmers become
entrepreneurs?
• They need to be innovative and forward-
looking.
• They need to manage their businesses as
long-term ventures with a view to making
them sustainable.
• They need to be able to identify
opportunities and seize them.
 Mind Set of an Entrepreneur
• Anticipate failure
• Let go and delegate
• Stay curious, learn new skills
• Follow your instincts
 How does record keeping help
agripreneurs anticipate failures???

Why should I keep

record?
Keeping Farm Records

• Why it is important to keep

records?

• What is the purpose of records?

• How can records help farmers?

• What can happen if records are

not kept?
Keeping Farm Records

Running a business without

records is like running a clock
without hands
 Keeping Farm Records

• Keeping farm records is the backbone of

managing the farm business or any farm
enterprise.
• Efficient management of a farming
operation today requires that records be
maintained to enable the farmers make
informed decisions affecting the
profitability of their farms.
 What is Record

 A record is written proof of what happened,

what is happening, or what is anticipated to
happen.
 A record can also be a written proof of what
was said, and who said it.
 Some examples are: minutes of a meeting, a report
on the number of group members who worked in
the group project, a record of the names of
members who have brought in their membership
contribution.
 What is Record

A farm record is a document (in most

cases a book) that is used to keep
account of different activities, events,
materials etc. regarding the farm
operations.
 What is Record

• Record keeping is the act of making

records to maintain detailed
information about some activity.
• It must be simple and precise!
• used as a guide for improvements or
adjustment to be done.
• helpful in the day to day operation of
the enterprise.
 Why Keep Records?
• Many people do not write down how much money
comes in and how much money goes out of their
business. Some farmers do not know how to do it, or
some do not know how it can help their business.
– Therefore people do not really know how much money they are
earning.
• Record keeping means that you write down all the
money that comes into your business, and all the
money that goes out of your business, including the
production activities.
• Record keeping is important because you cannot
keep everything in your head. People are forgetful by
nature.
 Why Keep Records?

Complete and accurate financial record keeping is

crucial to your business success for a number of reasons:

• Good records provide the financial data that help you

operate more efficiently, thus increasing your
profitability.

• Good records are essential for the preparation of

current financial statements, such as the income
statement (profit and loss) and cash-flow projection.

• Good records are critical at tax time. Poor records

could cause you to underpay or overpay your taxes.
 Advantages of Record Keeping

• You will know how much money you have received, how much
money you have spent and how you have spent it.
• You will know how much are the amount of inputs and
materials used to grow the enterprise
• You will know the price of produce sold and cost if inputs.
• You can calculate whether you are making a profit or a loss.
• You will be able to make better decisions on what to buy and
sell.
• You can keep records of buying and selling on credit, so that
people cannot cheat you.
• You will know how much volume you produce.
Types of Farm Business Records

• Production Records
• Labor Records
• Inputs and Materials Records
• Cash Inflow
• Cash Outflow
• Home Consumption Records
• Profit and Loss Records
 Production Records

• Production records refer to quantities of inputs

(seeds, fertilizers, pesticides and the cost of
artificial services).
– include things such as crop yields, plant populations,
calves born, litres of milk produced, weaning weights and
death loss.
– capture important aspects such as how many animals
you have, their health history, what you are feeding them
and how much/how often, what vegetable varieties you
have and how they perform.
 Labor Records

This type is used to keep the record of

staffs, their salaries, and payment.
Inputs and Materials Records

This record is used to keep track of all

agricultural inputs such as fertilizers, seeds,
etc. The record often also contains the
amount of that was bought, the amount that
has been used, and what is left.
Household Budget
 Household Budget

• Adhering to a household budget is an

excellent habit to develop.
– It will help you to spend less, save more, and
avoid problems making payments or paying
excessive interest payments on credit cards.
– In order to create a household budget you will
just need to document your current spending
and earnings and the financial discipline to
adjust your spending so that you will be on better
financial footing.
– assists farmers to know where some of the
income of the entreprise is going.
Household Budget
Household Budget
 Cash Flow Records

• A cash flow which provides either a

monthly or quarterly listing of all inflow and
outflow of money from a business. It
shows possible shortfalls in cash and thus
allows for corrective measures.

• Unfortunately, this is usually the most

neglected management tool.
 Cash Flow Records

• A statement of cash flows summarizes all

the cash receipts and cash expenditures
that were received or paid out during the
accounting year.
• It is sometimes called a flow of funds
statement.
• Unlike the net income statement, it does
not measure the profitability of the
business.
 CASH BOOK OF AGRIE FARM

DATE PARTICULARS CASH IN CASH OUT BALANCE

January Savings P500 P500

Loan 500 1000

Hand Tractor 100 900

Irrigation Fee 150 750

Seed 30 720

Fertilizer 30 690
 Profit and Loss Records

• Farm income refers to profits and losses

incurred through the operation of a farm.
• a summary of income and expenses that
occurred during a specified accounting
period.
 Profit and Loss Records

• It is a measure of input and output in peso

values.
• It offers a capsule view of the value of
what your farm produced for the time
period covered and what it cost to produce
it.
Financial Discipline
 Financial Discipline

– The ability to resist the temptation of

extravagant living and high consumption

– Results in generation of savings to

pursue wise investments
 How to have financial
discipline?

Contentment
• A lifestyle of simplicity and being happy with
the basics.
• Focus on the “essentials” – food, shelter,
clothing
 Financial Discipline
• “Kung maigsi ang kumot, matutong
mamaluktot”
• “He who controls his appetite will
never be in debt”
• “The person who is strict with himself
will never fail”
Financial discipline means to ensure this
equation:

Income > expenses  savings 

wise investments
 Increased income
• Have a job, love your job
• Work ethics
• Be promoted
• Have increase in salary
• Have a business
• Have many income-generating projects
 Decreased expenses
• Produce what you eat
• Make or repair your clothes
• Have your own house; simple house
• Natural light, have backyard for garden
and livestock, fruits
• Have a farm  produce your food,
business
 5 Wise Investments
1. Time deposit
2. Managed / mutual funds
3. Land
4. Higher education
5. Family business
3 Kinds of Lifestyles:
1. Living beyond your means (Foolish)
Income < Expenses  Utang

2. Living within your means (Unwise)

Income = Expenses  Break-Even

3. Living below your means (Wise)

Income > Expenses  Savings
 How to be a Successful
Entrepreneur in Agriculture
1. Know your Big Why
2. Understand the sector
3. Get a mentor
4. Learning
 How to be a Successful
Entrepreneur in Agriculture
“Agriculture is a profitable business but more
importantly, it’s a business for those with a
mission to contribute to humanity’s
continued existence and, is a great avenue
to impact your immediate society while
making profits.”
 “Without entrepreneurs,
there can be no development”
(McClelland)
Keeping Farm Records

Good Day!
 Keeping Farm Records

AgriDoc Farm, Cash Book

As of July 2019
Transactions:
1- Mr. Goreng invested an initial capital of P500
2- He bought 1kg of seeds at P10
3- Paid labor at P30.00
5- Bought fertilizer at P10.00 on credit
10- Sold 10 empty sacks at P12.50/sack
13- Paid marketing expenses at P20.00
20- Sold 2kg of rice at P25.00 on account
Practice: Cost and Return Analysis

Compute for the Total Income, Total Expenses

and Net Income/ batch