Keep paperwork up to date

April 2025

YOLANDI MARAIS, AGRICULTURAL ADVISOR AT DUNAMUS

MOST FARMERS ENJOY THE PRACTICAL SIDE OF FARMING – TO BE IN THE FIELDS, TO WORK WITH THEIR HANDS, TO HERD CATTLE AND TO SEE HOW NATURAL PROCESSES ARE TURNED INTO MARKETABLE PRODUCTS. THIS IS IMPORTANT BECAUSE IT IS THE HEART OF A FARMING BUSINESS, BUT ANOTHER CRITICAL PART OF A FARMER’S RESPONSIBILITY IS TO ENSURE ENDURING SUCCESS – PROPER KEEPING OF THE RIGHT RECORDS.

‘I do not like paperwork.’ ‘I’ll leave it to my accountant.’ ‘I cannot work with a computer.’ ‘Paperwork is for people who like working in an office.’ These are some of the excuses farmers tend to use when asked why their records are not up to date and organised. 

WHY RECORD-KEEPING IS IMPORTANT
Running a farming operation takes planning and keeping good records is the golden thread that links the history of the farm (the realities) with the planned future. If you do not know exactly what the current reality of the farm is, how can you plan for the future and how will you know if you reach your goals?

As a farmer, you are also a manager who must make decisions on a daily basis. Good records serve as a basis for making good scientific decisions based on actual facts. Good records force a farmer to think about numbers and measurable quantities. This usually improves his/her judgement concerning physical and financial concepts. It helps one to approach a matter more objectively.

Most importantly, keeping good records ensures that the farming business adheres to the rule of law regarding annual submissions – for example, tax returns and required document submissions when applying for credit. Many farmers are not eligible for loans because of a lack of records.

TYPES OF RECORDS
So, if record-keeping is the golden thread, what type of records must farmers keep? The nature and scope of a comprehensive farm record-keeping system will depend on the nature and size of the farm business. However, the following types of records should be kept:

Financial records
These include:

• A complete list of assets and liabilities (inventory).
• Recording the income and expenses (remember to keep the source documents as well).
• Preparation of financial statements and management statements.
• Analysis and interpretation of the farm’s results.
• The planning or replanning of the farm for the next one to three years.

Mechanisation records
Machinery statements contain all the information about machinery. Information on individual items, stating the model, age, book value, repairs, service records, hours worked and insurance, should be recorded.

Field records
These records are needed for market planning and largely involve market information in the form of historical product prices, quantities, dates, agents, etc.

Labour records
Labour statements are used to record all matters about labourers. These include details such as service contracts, wages received, rations, medical costs and workers’ compensation. The number of labourers, loans, debts, leave and absences should also be recorded.

General records
Rainfall, map of the farm and other records regarding the farm, such as tax returns, permit applications, vehicle licences, membership fees, field maps, etc.

Livestock records
These contain information about the various stock-farming enterprises in the farm business. Feed, remedies, dosing and marketing costs for a specific herd or flock are recorded. For example, individual records of milk production, calving records, wool production, weaning mass and weight gains should be kept.

Livestock tables indicate the opening and closing numbers of livestock, as well as their value, by classifying livestock according to age and gender – for example, bulls, cows, heifers over two years and heifers one to two years. 

USE THESE TOOLS

• Using a computer along with the right software can make it very easy to keep farm records and compile financial statements.
• You can even use your cellphone with appropriate applications (apps), notes and photos that can capture data.

However, if you do not have a computer or are not comfortable using technology, handwritten records are just as good and can serve the same purposes.

To plan for success, use good records as a foundation for the plan. This will help you make better-informed decisions without guessing. Nobody knows your farm and business better than you. Keeping the right records can be very beneficial. It can help you to get access to funding, ensure your business is adhering to law and improve your management skills, as you will be making better decisions that lead to higher chances of success.

Publication: April 2025

Section: Pula/Imvula