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Farm Records Book
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For Management
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Extension Bulletin E-1144
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Prepared by Florencia Colella
Revised April 2021
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MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential.
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Michigan State University Extension programs and materials are open to all without regard to race, color, national origin, gender, gender identity, religion, age, height, weight, disability, political beliefs, sexual
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orientation, marital status, family status or veteran status. Issued in furtherance of MSU Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Jeffrey
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W. Dwyer, Director, MSU Extension, East Lansing, MI 48824. This information is for educational purposes only. Reference to commercial products or trade names does not imply endorsement by MSU
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Extension or bias against those not mentioned.
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Farm Records Book For Management
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Farm name
Year
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The intent of this “Farm Records Book for Management” is to assist you in collecting and organizing your farm's data.
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Collecting your farm's data is a preemptive necessity to analyze your farm's financial performance, and therefore improve its management decisions
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and determine its ability to compete in the business of farming and agriculture.
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By making good decisions for your farm, you will improve your own life and the lives of those around you.
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We suggest that you:
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1. Keep the income and expense accounts current as the year progresses.
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2. Close the book at end of your accounting year by summarizing the income and expenses.
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3. Take inventory of assets and liabilities to prepare an end-of-year Net Worth Statement.
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4. Identify the strengths and weaknesses of your farm business by comparing your performance to your historical performance, to your goals,
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and to the performance of other farm businesses. Find business analysis reports for various types of farms here:
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https://www.canr.msu.edu/telfarm/business-analysis-summaries. Pages 9 and 10 of this book will guide you as you develop your own farm analysis.
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5. Maintain or expand the strong enterprises or profit centers of your farm business and improve or eliminate the weak areas.
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Your MSU Extension agent can help with enterprise analysis once the whole farm analysis is finished.
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6. Get assistance and additional evaluation from an objective resource person; e.g., MSU Extension, paid consultant,
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and other knowledgeable sources including your creditor.
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7. Use your own farm record data when planning your credit needs. Present the facts and discuss your plans with your creditor.
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8. Know the facts about your farm business. You should know your business better than any third party.
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This knowledge can help you succeed and help build a strong agriculture.
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Index
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1. Farm expenditures
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A. Farm operating expenses
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1. Instructions
4. Cash flow statement
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2. Recording
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3. Summary
5. Farm taxes
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B. Labor record
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1. Instructions
6. Personal taxes
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2. Recording
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C. Purchases of business property (Cost recovery)
7. Production
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1. Instructions
A. Crop production
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2. Recording
B. Livestock production
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D. Loan transactions
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1. Instructions
8. Net worth statement
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2. Recording
A. Instructions
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B. Detailed statement
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2. Farm income
C. Summarized statement
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A. Cash Farm receipts
D. Hints for making estimations
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1. Instructions
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2. Recording
9. Income statement
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3. Summary
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B. Sales of business property
10. Financial measurements
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1. Instructions
A. Explanation
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2. Recording
B. Scorecard
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3. Tracking personal deductions and adjustments to income
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A. Itemized deductions
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B. Adjustments to income
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