Posts Tagged: farm decisions
The other day as I noticed the bright shoots of green from daffodil bulbs popping up from under the leaves, I was reminded of the silly little sprinklers lining the landscaped space near my family home. My grandpa had put in the great little irrigation system, years ago, while my parents were building the house. Not long after my grandpa passed away unexpectedly. Nobody ever thought to ask about that irrigation system until a few years later when the house was completed and the landscaping finally reached that area. Nobody knew where the valve to those sprinklers were, nobody except my dear old grandfather, who was now gone.
Thankfully, that little irrigation system was easily replaced in a day or two. What if it had been the entire irrigated pasture? There are many integral bits of knowledge you have that are essential to the daily functioning of your operation. Does somebody else know what you know about your farm or ranch? Nobody likes to think about dying or debilitating sickness or injury, but wouldn't you rather think about it now to prevent your family from having to deal with a mangled mess of undocumented details?
Operational continuity is what we call the information and planning needed to help your business partners or family successfully operate your farm or ranch in your absence. Here is a short list of some topics to consider in operational continuity.
- What needs daily attention? – Animals, gauges, sales, bills, etc.
- What do you do/need throughout the year? – Do you have a calendar of everything you do and need each month? When you order it or buy it so it is available as needed? Examples would be, seed, or vaccinations, animal feed, or batteries, which are all essential when you need them.
- Whose contact information do you either have in your personal phone or in your head? – Veterinarian, suppliers, neighbors, people you lease land from, etc.
- What passwords or security is in place that someone needs to know how to access? - Could your family or business partner access funds or your important computer files if you weren't there?
If this blog post has you thinking about planning for continuity in your operation, then you are in luck.
If you're interested in learning more about planning for the continuity of your farm or ranch - and in sharing your experiences - join us for our next Farmer-to-Farmer breakfast at Happy Apple Kitchen, February 13, from 8 to 10:30AM. Please register for this event at https://ucanr.edu/survey/survey.cfm?surveynumber=26562 This event is supported by grants from the USDA Risk Management Agency.
You've chosen to be a farmer. You want to be outside, the sun on your back and the breeze in your face, working with your crops or your livestock. But your farm is a business, and to succeed, you need to keep and know your numbers. You need a farm record system that is more than just a shoe-box for receipts. There are computerized bookkeeping systems, or you could hire a bookkeeper, but both can be expensive. You need something that is cheap, reliable, easy to use, and fills your needs.
Step back for a second and think about what a farm records system should do. Certainly tax records, but also timely financial records for making business decisions. Good records will help you know your farm is making a profit, or what to change if it isn't. Work-time records will tell you which crops suck up time and return little profit. Are you keeping track of your cash, the check book, and the credit card charges? A good record system will do this as well.
I want to introduce the system I use on my farm. I have come to this system after trying computerized systems (both commercial programs and spreadsheets I built myself), as well as a full double-entry hand system. For the past several years I have used a simplified handwritten system. I keep all my financial and time records in a single 3 ring binder. I write everything down on columnar paper using 27 columns for accounting records and 14 columns for time records.
My sheets are simple: in the financial sheet, starting from the left of the sheet, there is a column for date, and a wide column for written notes. The next 4 columns are for expenditures, broken down by method of payment -- farm checking account, credit card, cash, and the rare occasions I use the family checking account. I write down every time I use any of these payment methods to pay for farm expenses. The next 18 columns are for my expense accounts (“accounts” are simply categories of expenses). These include vehicle expenses, equipment, chainsaws, feed, etc. The last 3 columns are for categories of income (firewood, livestock, etc). In this way I have been able to consolidate all my expenses and income in a single-spreadsheet. I have a similar sheet for time records, with columns for date and comments, and then several for categories of work.
This system can be put together for less than $10. My hand system works for me because I am more likely to write stuff down if I can just pick up my binder and do it – something I try to do daily. But whatever records system you choose, make sure it is comfortable for you – that way you will be much more likely to actually use it!
Allen Edwards, Edwards Family Farm, Colfax, California
For more details on this system use the link at the bottom of the page.