Keeping farm records is an important part in farming. The records have to be accurate and up to date reflecting on all activities that occur on the farm. Farmers in Kenya should always have their farm records ready before they do any financial analysis, financial decisions or budgeting.
Its always important to have records as a farm manager because;
- Loan Applications: When you want to expand your farming business you will need to have good records to present to the bank. These records will be needed to determine if your business has been performing as required.
- Management Purposes: If you have good farm records this will enable you to plan and manage your farm effeciently. It will show you where you have been wrong and what you need to do to make it right. It will also act as a guideline in managing your farm bugdget.
The number of farmers in Kenya that do not keep records is shocking. Some of them complain that they are always busy and don’t have time, while others say that they know how to manage their farms without always writing things down. These are the reasons and attitudes that make us fail all the time we practice farming. You will even find others taking all their reciepts at the end of the month/year to an accountant friend to help them calculate production costs and profitability. The problem with this picture is that the accountant will not know what has really been going on at your farm thus causing a lot of irregularities with your financials.
Farmers should also keep records for their farm activities such as
- Planting Records
All these guidelines are important to help you as a farmer make better future decisions in your agribusiness.
Tips: Use modern technology to make the best out of record keeping i.e If a cow dies from lighting shock, take a photograph of it using your phone and use this image to claim damages from your insurance company. A picture is worth a thousand words but it can also be worth a thousand shillings:).