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Farm Information Systems

Learn why farmers keep records, alternatives for farm accounting, and key components of farm information systems. Understand the importance of reporting, planning, and evaluation. Explore various farm accounting systems and decision-making criteria for implementation.

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Farm Information Systems

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  1. Farm Information Systems

  2. Key Questions: Chapter 3Farm Information Systems • Why do farmers keep records? • What are the alternatives for farm accounting? • What information is contained in a farm information system?

  3. Why Do Farmers Keep Records? • Reporting • Income tax returns • Landlords, partners • Loan applications • Planning • Provide data for budgets • Evaluation and diagnosis • Look for strengths and weaknesses

  4. Farm Accounting Systems • Hand record books • Personal computer system • Paid accountant • Farm business association

  5. Components of Farm Accounting Systems 1. Cash receipts 2. Cash expenditures 3. Inventory of current assets • crops, livestock, supplies • usually once a year 4. Inventory of capital assets • machinery, land, buildings, equipment • depreciation schedule

  6. Components of Farm Accounting Systems 5. Credit records (loans and payments) 6. Labor records • names, hours worked • withholding for taxes 7. Family living expenses 8. Production records • Crops, livestock

  7. Decisions About Farm Accounting Systems • Accounting Period • Hand Book or Computer System • Cash versus Accrual • Single Entry versus Double Entry • Amount of Production Information • Whole Farm versus Enterprise

  8. Computer Record Systems • General purpose small business systems • Quicken, Quick Books, Peachtree, etc. • Usually under $100 • OK for income tax and basic financial statements • No farm orientation • No production records

  9. Farm and Ranch Accounting Systems • Chart of accounts designed for agriculture • Track quantities as well as $ • Most cost $400-$600 • Some offer extra modules • Payroll records • Crop or livestock production records • Depreciation schedules

  10. Computer Record Systems Options • Write checks • Customize chart of accounts • Divide by enterprise (profit center) • Summarize by production period • Ease of data entry • Create income tax forms • Export data for other uses

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