Farm management is the science of organising and controlling farm resources (land, labour, capital) to achieve the farmer’s goals — usually maximum profit.
Principles of Farm Management
- Planning: deciding what to produce and how.
- Organising: arranging resources and labour.
- Controlling: supervising activities to meet targets.
- Evaluation: checking results and making improvements.
Types of Farm Records
| Record | What it shows |
|---|---|
| Farm diary | Daily activities on the farm |
| Cash book | Money received and spent |
| Inventory record | List of farm assets (tools, animals, land) |
| Production record | Yields and output (e.g. eggs, crops) |
| Sales record | What was sold and for how much |
| Labour record | Workers and wages |
Importance of Farm Records
- Help the farmer know whether the farm is making profit or loss.
- Help in planning and budgeting.
- Used to obtain loans from banks.
- Help in making decisions about what to produce.
Key idea: Profit = Total income − Total cost. Good records are essential for calculating whether a farm is profitable.
Summary
Farm management organises resources for maximum profit. Farm records (diary, cash book, inventory, production, sales and labour records) let the farmer track performance, plan ahead and access credit.
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