Permanent Farming Systems Based on Animal Traction: Farmers Handbook (GTZ, 1995, 183 p.) PART VIII: Farm management (introduction...) 8.1 Introduction to management 8.2 Farm records

Permanent Farming Systems Based on Animal Traction: Farmers Handbook (GTZ, 1995, 183 p.)

PART VIII: Farm management

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It is very important for a farmer to understand that market farming is a business which can be very profitable but also includes the risk of failure and loss. Subsistence farmers who are producing to meet their own requirements, do not spend much time and money for their farms and they keep the risk of failure low.

Figure

Farmers who produce for the market, however, put more land, labour and money into their farms in order to gain more. To minimise the risk of failure and maximise profits, they have to judge markets and climate very carefully and balance the land, labour and money used for their farm: this is called "management".

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8.1 Introduction to management

8.1.1 Definitions

- Farm:

One or more piece(s) of land where crops and/or animals are grown or reared as an agricultural enterprise.

- Farmer:
Someone who grows crops and/or rears animals for self-sufficiency and/or marketing.

Farm Management:

Includes planning, establishment, handling, control and evaluation of a farm. The main aim of farm management is to succeed in reducing loss and increasing profit. This depends on the ability of the manager to use effectively, the following available resources.

Available resources

-Land: size, shape, structure
-Labour: manpower, animal power - oxen. tools/implements
-Capital: input materials, seed, chemicals/fertilizer

-Techniques: cultivating practices (land preparation methods, planting time and method, weeding, harvesting, processing and marketing).

In short, a Farm Manager must know and decide - what, when, where, how and why to do anything on the farm to make the biggest profit.

8.1.2 Objectives

Improvement of the Farm Structures:
This includes the conservation and improvement of the farming land, the soil, farm roads, buildings, etc.

The farm size should be economical. To crop only 1 ha. with oxen is not economical. You will not be able to pay back your loan.

The soil should be fertile, productive and well protected. The way of farming will influence your soil. Protect and improve the soil by means of contour and organic farming (see Part V of the handbook).

The farm should be accessible by carts to facilitate easy transport of inputs and harvest.

Installations like farm house, cowshed, stores, etc. should be convenient and long lasting.

Improvement of Farming Skills:
A good farm manager shows a lot of interest in new methods of production and processing.

He is eager to learn

-What kind of implements and tools to use, to improve effectiveness of work e.g. seed planter, oxen farming implements

-which farming methods are very productive and lasting, e.g. contour/organic farming
-how to prepare/process crops to find a good market, e.g. drying, storage, etc.

Improvement of Financial Situation:
A farm manager must reduce losses and maintain or increase the output (yield) at the same time to make profit. The farm profit is the money left from selling produce, after the deduction of expenditures like loan repayment, cost of seeds/fertilizer, cost of labour, etc.

8.1.3 Methods

-Studies & Analysis

A farmer as a farm manager must know his or her environment: the climate, vegetation, topography, what crops/animal do well where, when and how, what markets are available when, where, and to what scale. Briefly, a farm manager must investigate the available resources and how they can be combined effectively.

-Planning
A farmer, as a farm manager should make plans on what to do, and how to do it

The farmer will have to think about different production methods and about the cost and benefits he will have when using one or the other method.

-Decision Making

A farmer grows a crop. For this crop, he knows all the costs of inputs operations. Then he knows how much will be his income out of the yields of this crop (output) depending on the various methods of production he can use. This enables him to compare both, output and input with the different production methods so that he can choose the production method which gives the biggest profit. This choice the farmer makes is what we call decision making.

-Taking; Action

This is the actual stage of growing cross or rearing animals and keeping good records of all aspects planned. For instance, the land preparation planting of crops, caring for the crops/anneals, harvesting/processing marketing.

-Evaluation (Checking)

For the evaluation of his farm, the farm manager has to keep records of activities, expenses and income. The evaluation of this data enables the farmer to know whether the farm is gaining or losing. (See section on farm records and accounts).

-Continuation

A farmer who is managing his farm successfully in the first phase has to think of how to maintain and how to increase his income in the following phase. He may decide to use his oxen to extend his farming area, or use the oxen for contract work in addition to his farm work. The farmer may also improve his storage facilities and his skills for better marketing.

8.1.4 Factors Influencing Farm Management

- Environment
Land, plot size, soil, climate, labour force and source, market, etc.

- Technology

Currently used practices and techniques, traditional and/or modern techniques and the appropriate implements.

- Manager's Qualities

It is necessary to have a good manager to succeed. A good manager must have the following qualities:

1. A good farm manager must be capable of controlling him- or herself.
2. Must be determined and courageous.
3. Must know how to plan and take timely good decision.
4. Must know appropriate farming methods.
5. Must know hue/her environment.
6. Must be hardworking.
7. Must be able to withstand failure.
8. Must keep good records.
9. Must constantly investigate new developments.

8.2 Farm records

It is very important for any farmer to record all his/her farm operations. This helps the farmer to know the inputs used, the current situation of his farm and plan for the future.

8.2.1 Farm Record Book

There are many ways of keeping records of farm activities. In the table below, there is one example of a farm record book.

DATE	OPERATION CARRIED OUT	AREA	TIME hours	COST FCFA	REMARKS
15/02/95	Cleared one quarter of farm	0.25	3 1/2		self
20/02/95	Continued clearing on farm	0.55	5		w/ my sons
22/02/95	Completed clearing of rest of farm	0.2	3		alone
02/03/95	Ploughed 2 plots of farm	0.5	2		w/oxen
03/03/95	Completed ploughing	0.5	2		w/ oxen
12/03/95	Harrowed field	1.0	1		w/ oxen
15/03/95	Planted 1/2 of plot	0.5	1.45	500	invited relatives
15/04/95	Applied 3 bags of fertilizer (NPK 20/10/10) and did moulding on maize field	1.0	5	7000	w/ oxen

A farm record book will indicate the work done, the time taken and the cost incurred. It enables you to calculate your farm requirements, e.g. working hours per week or month and expenses.

8.2.2 Accounts

It is very important for a good farmer to know the meaning of money, to keep simple accounts and an inventory of property owned.

What is the meaning of money?

-a means of expressing the value of a thing
-all money, coins, paper notes are presented in gold
-every country has its own currency, e.g. Cameroon- CFA Germany - Deutsche Mark (DM)

U.S.A. - Dollars France - French Francs
The value of money changes. This year you may buy a bag of fertilizer for 3,000 CFA, next year it may cost 3,500 CFA.

What use are accounts to a farmer?
Accounts

-are records of farming business
-explain the farm expenses and income
-show the gain or loss of farming business

Use of Accounts

-they help the farmer to evaluate the economics of his farm business.
-with the above, one can become master of any money.

Types of Accounts

-annual farm or production accounts e.g. (animals, crops).
-family accounts
-bank or credit union accounts .
-daily, monthly and yearly accounts

8.2.2.1 Annual Crop Account

Year 1994 (prices are just examples, not real)

Monica has a field of 2 hectares of maize. She hired the services of an oxen farmer to plough and ridge the land for 56,000 francs on the 1st of March. She sowed 60 kg. of selected seeds at 200 francs per kg. on the 15th of March. On the 15th of April, she bought 12 bags of fertilizer 2-0/10/10 costing 2,000 francs each from the Cooperative. For transport, she hired a bullock cart for 2,000 francs from an oxen farmer.

On the 20th of April, she hired 20 women in her farm to do the weeding for 40,000 francs and bought food and drinks for 10,000 francs. On the 1st of August, the harvest was 60 bags. She sold 30 bags immediately at 5,000 francs each and stored 30 bags. Since she has a large family, for food she used 10 bags ( value 5,000 francs each) then kept 1 bag for seeds (value at 5,000 francs) and sold the rest at the sowing period for 8,000 francs per bag, in March.

How much money has she gained or lost?
Draw up an annual crop account !
Year 1994

DATE	I buy, I sell, I give	INCOME	EXPENSE
1st March	Hiring of oxen	-	56,000
15th Marc	Purchase of seeds 60 kg. at 200 CFA each	-	12 000
1st April	Purchase of 12 bags of bags (20/10/10) fertilizer at 2,000 CFA per	-	24,000
	Hiring of bullock cart for transportation of fertilizer	-	2,000
20th April	Purchase of foods and drinks hiring for women to weeding	-	50,000
1st August	Sales of 30 bags of maize at 5000 CFA per bag	150,000	-
	10 bags of maize kept for food (value 5000 CFA per bag)	50,000	-
August to beginning of 1995	1 Jag of maize kept for seeds (value 5000 CFA)	5,000	-
	19 bags of maize sold at the sowing period for 8000 CFA per bag	152,000	-
	TOTAL	357,000	144,000

Gain = Income - Expenses
= 357,000 CFA - 144,000 CFA = 213,000 CFA
Gain = 213,000 CFA

NOTE: If Mme Monica owned a pair of oxen she would not have hired the services of an oxen farmer and women to do the weeding. She would have used her own oxen.

8.2.2.2 Family Account

John and Mary Shu are farmers in Bafut who bought a pair of oxen on credit. At the beginning of the year, that is 1st January, they had 300,000 francs from sales of crops.

On the 15th of January, they made their repayment of the loan to the Bank in cash of 50,000 francs.

On the 8th February, Mary went to the market to buy uniforms, canvas, shoes and socks for the children for the youth day for 20,000 francs. She also bought provisions for the household for 10,000 francs.

The agricultural research organisation introduced a good variety of maize. Since the family is interested to have a better yield, on the 1st of March, John Shu buys 60 kg. of unproved seed at 2,000 francs per kg. On the 12th of March, the father of John died. He spent 100,000 francs for the death celebration.

On the 1st of April, John went to Bafut market and sold a goat for 10,000 francs. He met some friends and bought drinks for 4,000 francs.

How much balance does the family have? You should make a cash book to know this!
Cash Book

DATE	TRANSACTION	IN	OUT	BALANCE
01/01/95	Sales of Crops	300,000	-	300,000
15/01/95	Repayment of loan	-	50,000	250,000
08/02/95	Purchase of uniforms, etc. for the children	-	20,000	230,000
	Purchase of provisions for the household	-	10,000	220,000
01/03/95	Purchase of 60 kg. of unproved maize seeds (200 frs/kg)	-	12,000	208,000
12/03/95	Death celebration of John's father	-	100,000	108,000
01/04/95	Sale of one goat	10,000	-	118,000
01/04/95	Purchase of drinks	-	4,000	114,000

The family balance is 114,000 francs!
This cash book is very useful. It enables you to know your daily income, expenses and the balance you still have. Some farmers spend more than they have which is not good.

By recording income and expenses in a Cash Book you can detect unnecessary expenses or losses and avoid them m future and you find out where you earn money easily and increase your income.

8.2.2.3 What is an inventory?

An inventory is a detailed statement of one's belongings, property or a descriptive list of ones goods which should be established and updated yearly.

Through an inventory, a farmer is able to know what is available on the farm and what he may need.

No. ITEM	QUANTITY	CONDITION
1. Oxen	1 pair	good
2. Plough	1	good
3. Ridger	1	broken
4. Bullock Cart	1	good
5. Goats	10	5 young, 5 old
6. Farm House	1	needs repair
7. Hose	4	2 good, 2 broken
8. Crops	Maize 1ha.	good
	Coffee, 2 ha.	disease and pest
	Plantains, 1 ha.	good
9. Fertilizer	20/10/10, 10 . bags

After you have made your inventory, you should also take note of Depreciation.

Depreciation accounts for the wear and tear of articles through use and age. If a farmer understands that his or her tools/implements are wearing out, he/she should save money to buy new ones. Depreciation indicates how much money you should set aside every year, if you want to be able to replace a certain item when is worn out.

Example:
A cart costs 80,000 CFA. If we assume that the cart can last for 10 years, you have to save 8,000 francs each year so that you will have enough money to buy a new one by the time the old one is worn out.

The first version of this handbook was produced in 1982 as a guide for the basic training of farmers of the North-West Province of Cameroon, in the use of oxen. Over the years, the focus of the project changed from introducing the use of draft animals to encouraging the development of permanent farming systems employing draft animals. Consequently handbook parts dealing with crops, soil, the permanent farming system, vegetables and farm management were added and amended in the subsequent editions. The most recent addition is the part on donkeys which are becoming increasingly important as draft animals in Africa.

In the meantime the book has found a much wider audience beyond the boundaries of the North-West Province through its distribution by GATE/ISAT, where it has become popular as a reference book for people who are practically involved in agriculture, farmers and extension workers. It now has a far more widespread application throughout tropical Africa and it covers a wide range of rural agricultural and livestock topics.