Record Keeping B Agribusiness Farmers and Land Record Keeping ...

2009-2015Record Keeping Book forAgribusiness Entrepreneurs,Farmers and Land OwnersSmall Farms Research CenterAlabama A&M UniversityP.O. Box 700Normal, AL 35762Tel.: (256) 372-4970Fax: (256) 372-5517- 1 -

This Record Keeping Book Belongs to:Name:Address:Telephone: (___)- 3 -

Table of ContentsSmall Farms Research Center........................................................................ Error! Bookmark not defined.General Information..................................................................................................................................- 5 -How to use this Book............................................................................................................................- 5 -Farm Record Keeping Book Expenses .....................................................................................................- 6 -Instructions for Filling out Projected and Actual Farm Budget Statement ...............................................- 7 -Specific Instructions..............................................................................................................................- 7 -Projected and Actual Farm Budget for the Year 20__..............................................................................- 8 -Instructions for Filling out Daily Farm Operating Expenses ..................................................................- 15 -Specific Instructions............................................................................................................................- 15 -Instruction for Filling out the Monthly Summary of all Daily Operating Expenses...............................- 72 -Specific Instructions............................................................................................................................- 72 -Instructions for Filling out Annual Farm Operating Expenses ...............................................................- 75 -Specific Instruction .................................................................................................................................- 75 -Instructions for Filling out Income and Social Security Taxes Paid during the Year.............................- 78 -Income and Social Security Taxes Paid during the Year........................................................................- 79 -Instructions for Filling out the Annual Balance Sheet (Net Worth) Statement ......................................- 80 -Instructions for Filling out Family Living Expenses ..............................................................................- 86 -Specific instructions............................................................................................................................- 86 -Family Living Expenses for the Month of _________________, 20___ ...............................................- 88 -Instructions for Filling out Money from Non-farm Sources.................................................................- 101 -Money from Non-Farm Sources ...........................................................................................................- 102 -Instructions for Filling out Livestock Production Record.....................................................................- 103 -Livestock Production Record............................................................................................................- 104 -Instructions for Filling out the Income Statement ................................................................................- 105 -Specific Instructions..........................................................................................................................- 105 -Income Statement..............................................................................................................................- 106 -- 4 -

General InformationRecord keeping is a very important aspect of a successful business, such as farming. A wellkept record book is able to help the farmer determine whether or not his operation isprofitable. It is the basis for good business planning and improvements. Therefore, a farmerwho wants to improve his/her cash flow is encouraged to keep accurate records of his/heroperation. In this record keeping book, we have tried to make it easy for you, the farmer tobe able to keep records on the spot without complications. We believe that record keepingshould be fun and have made it so by reducing the complexities found in the farm serviceagency’s farm family record book. From these records, you can derive all the data you needfor completing farm service records.We have prepared two record keeping books one for expenditures and the other for sales.They both start with daily record keeping pages for twelve months. Next are monthlyrecords, where daily totals are transferred at the end of each month. These are followed bythe record of annual totals and others. You can carry these recorded keeping books with youat all times, for immediate entries, to avoid forgetting your daily transactions.The production of this instant record keeping book has been inspired by the complaints ofsome small family farmers regarding the complexities in the direct use of the Farm ServiceAgency’s farm family record keeping book. More record keeping materials will bedistributed to you as they become available. It is the in intention of the Small farm researchCenter to assist in your endeavor to become a better, more productive and more profitablefarmer. The source of some of the records in this book is from the Farm Family RecordBook of the FmHA form FmHA 432-1 (Rev. 7-94).How to use this BookThe book is mostly self explanatory. Each section begins with a brief explanation of itscontents and how to keep the records. The farm record keeping instrument on page 6 callsfor very familiar entries, such as name of operator, location of operation, owned or rented,total acreage owned, total acreage rented, farm product, number of acres planted andharvested, output, unit, price per unit, and year. This being the record of sales, other recordsinclude daily record keeping for sales of farm products, monthly summary of all daily sales,annual revenues from the sale of farm products (obtained from the daily totals), and projectedand actual farm budget for the year- 5 -

Farm Record Keeping Book ExpensesName of Farm Operator:Location of Operation:Circle One or both as Applicable: Owned or Rented:Total Acreage OwnedTotal Acreage Rented2009 2010 2011 2012 2013 2014 2015Farm Product No. of AcrePlantedNo. of AcresHarvestedQuantity Unit Price/Unit Year- 6 -

Instructions for Filling out Projected and Actual Farm Budget StatementFarmers, like other business entrepreneurs, want to make profit from the farm enterprise theyoperate. In other to achieve this objective, they need advance planning to make good productionand marketing management decisions. The projected and actual farm budget, shown below,enables them to plan their enterprise(s) ahead of time. It will also help the farmer to make loanprojections and acquire such loans from lenders, especially if the business is projected to beprofitable.The items in the budget are divided into four parts. The first part deals with income from theoperation. Direct expenses come in second. The third and fourth parts are fixed cost and returns.The farmer is provided with spaces to fill in the sources of income and expenditure, the unit ofthe item (such as pounds, bushels, etc.) price in dollars, quantity of the item, last year’s actualtotals, projected totals for the present year, and actual totals for the present year. The projectedtotal will be made at the beginning of the year or growing season, while the actual total will becompleted at the end of the business’s accounting period.Specific Instructions1. Income—this refers to all the sources of revenue, such as sales of commodities from thefarm, deficiency payments, and etc.2. Direct expenses—these include all operating expenses, such as amount spent to purchasefertilizer, seed, insecticides, fuel, and etc.3. Fixed Cost—this cost refers to those specified in the Table. They are those cost that donot vary with production. They are incurred regardless of whether or not you produce inany given year, as long as you are still in the business.4. Total cost—Enter total direct expenses plus total fixed cost.5. Returns—under this category are returns above direct expenses and net returns. For thefirst, enter the difference between total income and total direct expenses. You get this bysubtracting total direct expenses from total income. Net returns are obtained bysubtracting total cost from total income.6. Get income and social security taxes paid during the year and include under directexpenses.Note: The returns and expenses provide the farmer with relative profitability of individualfarming enterprises. Because farmers are sometimes involved in more than one enterprise, weare enclosing more than one budget format for your convenience.- 7 -

Projected and Actual Farm Budget for the Year 20__Specific Item Being Produced: ___________________________Item Unit PriceDollarIncome:Quantity Last Year’s Actual Totals Projected totals for this year Actual totals for thisyearTotal IncomeDirect Expenses:Total Direct ExpensesFixed Cost:Insurance, Taxes, RepairInterest on fixed CapitalBuilding, Equipment, ImplementsReal EstateTotal Fixed CostTotal CostReturns:Returns Above Direct ExpensesNet Returns- 9 -






Instructions for Filling out Daily Farm Operating ExpensesMost farm inputs and activities have been included in the daily farm operating expense section.To the right of each activity or item are cells corresponding to the days of the month. The farmeris expected to enter, in the cells, the amount spent on a particular item in a specific day. At theend of the list of items are empty cells left for the farmer to include those inputs or activitieswhich have been omitted.Specific Instructions1. Twelve copies of this record are included to cover a calendar year, January throughDecember.2. At the end of the month, the entries for each unit, activity or item should be added up andtransferred to the monthly summary of all daily operating expenses, which starts on page73. Each entry should be made to correspond with the specific item under a given month.3. Remember to indicate whether the figure entered is in dollars ($) or cents.- 15 -

Seed CornSeed SoybeanS. Potato SeedlingMustard SeedTomato SeedingBell PepperTurnip SeedCollard SeedHerbicidesInsecticidesFungicidesFertilizerAirplane InsectFuel GasFuel DieselHired LaborItemOwner LaborRepair & MaintenanceSuppliesDiskTractor PurchaseGreen OnionOkra SeedDay of the Month1 2 3 4 5 6 7 8 9 10 11 12 13 14 15- 16 -

Squash SeedCustom HireTaxesUtilitiesWaterBoxesRubberInsuranceInk StampFarm BuildingItemDay of the Month1 2 3 4 5 6 7 8 9 10 11 12 13 14 15- 17 -

Seed CornSeed SoybeanItemS. Potato SeedlingMustard SeedTomato SeedingBell PepperTurnip SeedCollard SeedHerbicidesInsecticidesFungicidesFertilizerAirplane InsectFuel GasFuel DieselHired LaborOwner LaborRepair & MaintenanceSuppliesDiskTractor PurchaseGreen OnionOkraDay of the Month16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31- 18 -

ItemSquash SeedCustom HireTaxesUtilitiesWaterBoxesRubber BandsInsuranceInk StampFarm BuildingDay of the Month16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31- 19 -





















































Instruction for Filling out the Monthly Summary of all Daily Operating ExpensesMonthly summary of all daily operating expenses is itemized in moths. It is a list of all the itemsor activities in the previous record on daily farm operating expenses. The figures for making theentries in this record are obtained from the totals of the daily operating expenses.Specific Instructions1. Again the entries for a specific item under each month should be added up and entered inthe last column of this record. This represents the annual expenditure for a particularitem.2. The totals are carried over to page 76; the annual farm operating expenses, entered underthe given year, and against the particular item.- 72 -

ItemSeed CornSeedSoybeanS. PotatoSeedlingMustard SeedTomatoSeedingBell PepperTurnip SeedCollard SeedHerbicidesInsecticidesFungicidesFertilizerAirplaneInsectFuel GasFuel DieselHired LaborOwner LaborRepair &MaintenanceSuppliesMonthJanuary February March April May June July August September October November December Total- 73 -

DiskItemTractorPurchaseGreen OnionOkraSquash SeedCustom HireTaxesUtilitiesWaterBoxesRubberBandsInsuranceInk StampFarmBuildingMonthJanuary February March April May June July August September October November December Total- 74 -

Instructions for Filling out Annual Farm Operating ExpensesMost farm inputs and actives have been included in the first column under items. In this instancethe cells to the right of the items correspond to different years, 2009 through 2021. The farmer isexpected to enter in each cell, the amount spent on a [particular item in a specific year. Emptycells are left at the end of the list of items on the second page. The farmer should enter in thesecells any item, input or activity which has been omitted.Specific Instruction1. Obtain the values to be entered in the cells from the monthly summary of all dailyoperating expenses on page 73. For example the total expenditure for the seed corn in2009 is obtained from the first cell in the last column headed “Total” in the monthlysummary of all daily operating expenses.- 75 -

Seed CornItemSeed SoybeanS. Potato SeedlingMustard SeedTomato SeedingBell PepperTurnip SeedCollard SeedHerbicidesInsecticidesFungicidesFertilizerAirplane InsectFuel GasFuel DieselHired LaborOwner LaborRepair & MaintenanceSuppliesYear2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021- 76 -

ItemGreen OnionOkra SeedSquash SeedCustom HireTaxesUtilitiesWaterBoxesRubber BandsInsuranceInk StampFarm BuildingYear2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021- 77 -

Instructions for Filling out Income and Social Security Taxes Paid during the YearThe entries here are self explanatory. The form is divided into two main parts: income taxes andSocial Security taxes. The section for social Security taxes is divided in to two, for yourself andfor hired labor. In addition to date and amount in the hired labor section, enter name and socialsecurity number of the hired labor.At the end of the year, add the amount and enter the totals as indicated. Transfer the totals to thelast column of the projected and actual budget on page 4 headed “Actual totals for this year” Theentry in the item’s column of the projected budget should read: (1) Income tax paid, (2) SelfSocial Security tax paid, and (3) Hired labor social security taxes paid. In order to conservespace, you can add two social security taxes together (that is yourself and for hired labor) andenter it as one sum against Social Security taxes paid.- 78 -

Income and Social Security Taxes Paid during the YearUse for keeping a record of the amount paid for income taxes and social security taxes for you and for hired labor. Enter whenpayments are made.DateIncome TaxesAmountSocial Security TaxesFor MyselfFor Hired LaborSocial SecurityNumberDate Amount Date NameAmount- 79 -

Instructions for Filling out the Annual Balance Sheet (Net Worth) StatementThe annual balance sheet provides operating plans, financial health, and overall summaryof a business for a specific time. It is completed at the end of the accounting period of aparticular business. You should determine your accounting period. Most business goesfrom January to December. If a farmer chooses this period the balance sheet is then filledout in December or at the end of the growing season. Current information in the balancesheet will be helpful when filing your income tax return beginning in January.The balance sheet statement comprises three parts; assets, liabilities and net worth andshows the financial position of a business at a particular moment in time. Assets aremade up of everything owned that has value. These go in the left handed side of thebalance sheet. Liabilities represent debt owed and are entered in the right hand side ofthe balance sheet. Net worth represents the owner’s investment in the business and thedetermination is made at the end of the balance sheet.Indicated on the top of the balance sheet is “Period covered.” They should cover a periodof twelve consecutive months reflecting your accounting period. For instance: for abusiness whose accounting period runs from January to December the entry shouldresemble the following11/1/2009-12/31/2009.Specific Instructions1. Enter the name of operator, applicant or borrower for the farming operation coveredby the balance sheet.2. Enter the individual’s social security number or company’s ID number next.3. Current Farm Assets—these are the farm items that can easily be turned into cash.Examples are cash on hand, checking and savings. To obtain total cash to enter in the“$ value” column, add cash on hand plus checking plus savings.4. Other Investments—these include time certificates, such as certificates of depositand treasury bills maturing in less than 12 months. Enter any other cash or accountsmaturing in less than 12 months. “Other” may include accounts such as hedgingaccount equity or marketable bonds and securities. Exclude IRA or other retirementaccounts. The total will be entered in the “$ value” column.5. Accounts and notes to be received—these include accounts and notes owed to youfrom business sales or services with a due date of 12 months or less. Examplesinclude crop deficiency payments, outstanding debt from sales of produce, etc. Addthem and enter in the “value” column.6. Crops and feed—enter the value of the type of crops (brought and grown) andcommercial feed held in inventory on the farm or in a commercial storage facility.Enter any crops in the commodity credit corporation (CCC) or Farmer-Owned- 80 -

Reserve (FOR) loan program with a due date of less than 12 months. Enter thenumber of units and price per unit in the appropriate columns. Use local marketprices or forward contract prices after adjusting for marketing expenses.7. Livestock to be sold—enter the value of livestock that will be sold within 12 months.Do not enter the value of livestock that will be entering the breeding herd. Enter thenumber, weight, and price after adjusting for marketing expenses.8. Growing crops—Enter the types of growing crops on the balance sheet, the number ofacres growing with each crop, price or cost per acre, and the total investment for eachcrop.9. Supplies and prepaid expenses—enter the total value of prepaid expenses and otherassets in your inventory. Include taxes and insurance.10. Leases—enter the net amount that has been paid on any operating lease.11. Total current farm assets—Enter the total value of all the current farm assetsdescribed above (3 through 10)12. Intermediate farm assets—these are those farm assets that have a life of 1 to 10 years.Examples include breeding livestock, machinery, and equipment used for production.Real estate in not included as intermediate assists.13. Accounts and notes to be received—enter all accounts that will not be received in thecurrent year, but will be received within 10 years. Subtract the portion to be receivedin the current year, which is already entered in the current accounts and noted to bereceived (number 5).14. Breeding Livestock—Enter all types of breeding livestock owned (include bothbought and breed livestock). Enter the number and price per unit of each type ofbreeding livestock in the spaces provided. Also, enter the total market value of eachtype of breeding livestock.15. Machinery, equipment, vehicles, and life insurance—enter the current market valueof all farm machinery, equipment, and vehicles. Include the face value (deathbenefit) of life insurance policies.16. Total intermediate farm assets—enter the total value of lines 13 through 15.17. Long term farm assets—these include those assets which are a permanent part of theoperation. Examples include farm real estate and equity in partnerships andcorporations. This will also include stocks with maturity of more than 10 years. Usethe spaces provided to list these assets and their monetary values.18. Total long term assets—enter the totals of your entries in number 17 above.19. Total farm assets—enter the totals of numbers 11, 16, and 18.20. Current farm liabilities—these are debts that must be paid within 12 months andinclude the current payments due on intermediate and long term debts. The amountof accrued interest and taxes should be calculated as of the balance sheet date.21. Farm accounts and notes payable—enter the name of the creditor, such as lender,dealer, bank or individual to whom the farm accounts and notes payable are owed.- 81 -

Enter the payment due date for each account or notes payable. Enter the interest ratefor each account or note payable. Enter an ‘A’ or ‘M’ after the installment. Enter thetotal amount owed (principal and interest) on each account and note payable. Includepast due and current amounts payable.22. Current portion of CC loan—Enter the payment due date and the total amount owedon the loan(s). Include both principal and interest.23. Total current farm liabilities—enter the total of numbers 21 and 22.24. Intermediate liabilities—enter the current portion of principal due on long termliabilities. This is the portion that will come due within 12 months from the balancesheet date.25. Long term liabilities—enter the current portion of principal due on long termliabilities. This is the portion that will come due within 12 months from the balancesheet date.26. Accrued interest on intermediate liabilities—enter the total amount of interest thathas accrued on the intermediate liabilities as of the balance sheet date.27. Accrued interest on long term liabilities—enter the total amount of interest that hasaccrued on the long term liabilities as of the balance sheet date.28. Accrued taxes on real estate and personal property—Enter the total amount of realestate and personal property taxes that have accrues as of the balance sheet date. Alsoenter any other levied taxes or assessments that have accrued.29. Accrued taxes on income taxes and social security—enter the amount of State andFederal income taxes and Social Security taxes owed. Also, enter the amount of Stateand Federal income taxes and Social Security taxes owed for employees on thebalance sheet date.30. Accrued rent/lease payments—enter any accrued liability from renting or leasingland, machinery or other resources.31. Total current farm liabilities—enter the total of numbers 21 through 30.32. Intermediate farm liabilities—these are liabilities or debts that have a final due datebetween 1 to 10 years from the balance sheet date. The amount or portion of theprincipal that is due within 12 months from the balance sheet date should have beenentered in the current liability section and accrued interest. Name of the creditor,payment due date, interest rate, and amount owed are to be entered in the spacesprovided.33. Total intermediate farm liabilities—enter the total amount in number 31.34. Long term farm liabilities—these are long term debts, such as real estate debts, thathave original maturity date of more than 10 years. Again, the current principalportion should have been entered in the current liability section and accrued interest.In the spaces provide, enter creditor, payment due date, interest rate, amount owed,and the remaining principal amount for each real estate loan (that is the portion duebeyond 10 years).- 82 -

35. Total long term liabilities—enter the total amount of entries in number 33.36. Total farm liabilities—enter the total of numbers 30, 32, and 34.37. Nonfarm assets—these are assets owned by the farmer(s) that have value but are notused in the everyday operation of the business. Below “Nonfarm Assets” are listedvarious categories such as household goods, cars, recreational vehicles, cash value oflife insurance, stocks, bonds, nonfarm business, other nonfarm assets, nonfarm realestate annual tax. Evaluate and enter the values of all the assets in the columnprovided.38. Total nonfarm assets—enter the total of all the items listed in number 37.39. Total farm assets—Get total farm assets from number 19 or by adding total currentfarm assets plus total intermediate farm assets, plus total long term assets.40. Total assets—this is obtained by adding numbers 37 and 38.41. Nonfarm liabilities—these are debts or liabilities incurred by the individual farmer(s)for personal reasons that are not associated with the farming operation. These includeall the nonfarm accounts and notes payable. In the spaces provided, list the creditor,payment due date, interest rate, and monthly or annual installment (listed as Mon.Install. In the balance sheet). Enter the value of the nonfarm accounts and notespayable in the appropriate or last column.42. Total nonfarm liabilities—enter the total of all items listed in number 40.43. Total farm liabilities—obtain this by adding total nonfarm liabilities plus total farmliabilities or by adding numbers 41 and 42.44. Total liabilities—obtain this by adding total nonfarm liabilities plus total farmliabilities or by adding numbers 41 and 42.45. Net worth—subtract total liabilities from total assets or number 39 minus number 43.46. Total liabilities and Net worth—obtain this by adding total liabilities plus net worthor number 43 plus number 44.- 83 -

Period Covered: From __________,20__ thru ________,20__Name Of Operator/Applicant/Borrower:Current Farm Assets $Value Current Farm Liabilities $AmountCash on hand: Checking: Savings: Farm Accounts and Notes Payable (Include Principal andInterest)Other Investments: Time Certificates: Other: Creditor Payment duedateAccounts and Notes to be received (Receivables)Crops and feed Units Price per UnitInterestRateCCC: Loan Type Qty Due DateLivestock to be sold No. Wt. Price per Unit Current portion, Intermediate LiabilitiesCurrent Portion Long term LiabilitiesAccrued Interest on Intermediate LiabilitiesAcres Price per Unit Accrued Interest on Long term LiabilitiesAccrued taxes on Real Estate and Personal PropertyAccrued taxes on Income Taxes and Social SecuritySupplies and prepaid expensesAccrued Rent/Lease PaymentLeases Total Current Farm LiabilitiesTotal Current Farm AssetsIntermediate Farm LiabilitiesIntermediate Farm Assets Creditor PaymentDateAccounts and Notes to be Received (Receivables)No. Price per UnitInterestRateMonthly orAnnualInstallmentAmountOwedMachinery, Equipment, Vehicles, and Life insurance (Face Value)Total Intermediate Farm AssetsLong Term Farm Assets (Farm Real Estate)Total Intermediate Farm LiabilitiesLong Term Farm LiabilitiesTotal Long Term AssetsTotal Farm AssetsTotal Long term Farm LiabilitiesTotal Farm Liabilities- 84 -

Non Farms AssetsDollarValueNon Farm LiabilitiesHousehold goodsNon Farm Accounts and Note PayableCar, Recreational Vehicles, etc. Creditor PaymentdateInterestRateStocks BondsNonfarm BusinessOther Nonfarm AssetsNonfarm Real-estate Annual Tax ($)MonthlyInstallmentDollarAmountTotal Non Farm AssetsTotal Farm AssetsTotal AssetsTotal Nonfarm LiabilitiesTotal Farm LiabilitiesTotal LiabilitiesNet WorthTotal Liabilities and Net WorthThe above information in the Annual Balance Sheet (Net Worth) Statement in designed to help the farmer in securing loanfrom the farm service Agency (FSA). If you need help in filling out any part of this statement, please notify the farmmanagement specialist nearest you or call Dr. Duncan Chembezi at (256) 372-4970.- 85 -

Instructions for Filling out Family Living ExpensesFamily living expenses are all those expenditures which the farmer incurs outside thefarm. They are itemized by the month and include items as household operating, foodincluding lunches, clothing personal care, health, house repair and sanitation, school,church and recreation, personal insurance, transportation, furniture, and auto repair. Thethree empty cells are for you to include any item that has been omitted.Specific instructions1. Household operating—For each month, list the expenditures used in running thehousehold, which includes gas, wood, coal, kerosene, other utilities, laundry supplies,locker rent, stamps, pest control (home), pressure canner, canning and freezingequipment, kitchen utensils, utensils, window drapers, curtains, linen, furniture repair,etc.2. Food including lunches—for each month, list the amount spent for food; including allfood and drinks purchased, school lunches, and meals away from home.3. Clothing personal care—For each month, enter the amount spent for thread cash paidfor sewing, patterns, shoe repair, cleaning, shaving, and toilet supplies, barber and beautyshop, combs, shoe polish, etc.4. Health—for each month list the amount spent for health care such as prescription andnon prescription drug expenditures, hospital bills, dentist, glasses, nurse, healthassociation fees, etc.5. House repair and sanitation-- For each month, list the amount spent for house repairand sanitation. This may include vanish, paint, wallpaper, screening, carpet cleaning, etc.6. School—Enter in the monthly columns the amount spent for the education of peoplein your household. It should include your expenditure to learn better farming techniques,school supplies, class dues, tuition, music lessons, etc.7. Church and recreation—for each month, list your church offerings, papers, magazines,cameras, gifts, railroads, bus, indoor and outdoor games, movies, etc.8. Personal insurance—for each month, enter the amount you spent for premiums on life,accident, burial, house and household item security insurance.- 86 -

9. Transportation—for each month, enters the amount spent, that are not related torecreation for your transportation and that of other members of your household.10. Furniture—for each month—list the amount spent for furniture. This should includebeds and bedding, and unusual expenses snot recorded elsewhere.11. Auto repair—for each moth, enter the expenditure to repair your automobile orhousehold truck(s) not related to the farm.Note. Add up each column and enter the total at the bottom as indicated. That will beyour monthly expenditure for each item. This total will be carried forward to the sectionon “Family Living Expenses, Annual Summary.”- 87 -

Date Item HouseholdOperatingFoodIncludingLunchesFamily Living Expenses for the Month of _________________, 20___ClothingPersonalCareHealthHouseRepair andSanitationSchoolChurchandrecreationPersonalInsuranceTransportation Furniture AutoRepairAndOtherAdd each column and transfer living expenses, annual summary, on the last page of this book.- 88 -












Family Living Expenses Annual Summary, 20___.MonthJanuaryHouseholdandOperatingFoodIncludingLunchesClothingPersonalCareHealthHouseRepair andSanitationSchoolChurchandRecreationPersonalInsuranceTransportation Furniture AutoRepairandOtherTotalMonthlyExpenseFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotals forthe Year- 100 -

Instructions for Filling out Money from Non-Farm SourcesThis form is self explanatory. It is itemized in months January through December. Theoperator is expected to enter the date of the non-farm transaction, item and quantity, andthe actual income realized from the event. Refer to the section on “non-farm income” inthe income statement for an idea of some of the types of items you are expected to listand evaluate. Monthly totals are calculated and entered at the bottom of the form. Thetotal for each item for the year will appear in a specific row in the last column while thetotal for the year will be seen at the bottom of the same last column headed “Total Non-Farm Income.” These totals are transferred to the appropriate section (see “non-farmIncome”) of the income statement on page 106.- 101 -

\Money from Non-Farm SourcesDateItem andQuantityNonfarmIncomeJanuaryNonfarmIncomeFebruaryNonfarmIncomeMarchNonFarmIncomeAprilNonfarmIncomeMayNonfarmIncomeJuneNonfarmIncomeJulyNonfarmIncomeAugustNonfarmincomeSeptemberNonfarmIncomeOctoberNonfarmIncomeNovemberNonfarmIncomeDecemberTotal NonfarmIncome- 102 -

Instructions for Filling out Livestock Production RecordThe entries in the Table should reflect every livestock operation performed during thebusiness period. Listed in the first column are different kinds of livestock. Spaces areleft for additional entries depending upon the nature of your enterprise.Specific Instructions1. Number beginning of Year….For each livestock; enter the number you have at thebeginning of the business period. You may choose to write the year of operation above“Kind of Livestock” or anywhere else in the table.2. The rest of the items across the top of the table are self-explanatory. Follow them andmake all your entries accordingly.- 103 -

Livestock Production RecordKind of LivestockHogsNo.Beginningof YearAcquiredPurchaseDispositionSold Home Use ReplacementNo.endNO. Value No.BornNo.RaisedNo. Value No. Value No. Value ofyearNotes on FeedingVaccinations, etc.First FarrowSecond FarrowCattleOther LivestockPoultry- 104 -

Instructions for Filling out the Income StatementAn income statement may be prepared for the farm as a unit or for individual enterprises.The procedures are basically the same, although two farm statements may differ considerablybecause of different objectives and organization. There are essentially three parts in thisincome statement, revenue, expenses and non-farm income. The other parts are the totalgross farm revenue, total expenses, net farm income and net income.Specific Instructions1. Transfer From….This appears in the first column of the table and tells you where to getsome of the items listed in the income statement.2. Revenue….The revenue items in the Table are self explanatory. All revenue yieldingitems should be included. Those not listed should be grouped as “Other Farm Income.”3. Total Gross Farm Revenue…Add the dollar amounts listed under “Revenue” and enterin the space provided. The year of operation should be specified as indicated.4. Expenses….Some items of expenses are listed here. Enter expenses againstcorresponding items. Again, farm expenses omitted should be included as “Other FarmExpenses.”5. Total Expenses… Add the dollar amount under “Expenses” and enter in the spaceprovided.6. Net Farm Income… To obtain this, subtract total expenses from total gross farmrevenue and enter as specified.7. Non-Farm Income…Some non-farm income sources are listed here and include wagesand tips. All other non-farm income should be entered in the space provided. Add theseentries together to get total non-farm income. Next, enter income before tax, your totalincome tax expense, and family living expenses. Add together total non-farm incomeexpenses and family living expenses to get your total non-farm expense.8. Net income…Enter the difference between total non-farm income and total non-farmexpense obtained in number 7. Get this by subtracting total non-farm expense from totalnon-farm income.- 105 -

Income StatementTransfer From: Year:_____ Year:______ Year:_____ Year:_____Obtain Figures From the Revenue: $ $ $ $Total” column of the monthlySummary of all daily sales orFrom annual revenue fromCrop InsuranceDeficiency PaymentsFeed Revenuethe Sale of farm products all Livestock IncomeFound in the sales Record Poultry Revenuebook. All actual Figures Breeding Stock Cash SaleOther Farm Income (List Below):Obtain figures from “monthlysummary of all DailyOperating Expenses or fromAnnual Farm OperatingExpenses All actual figuresSee annual summary for thisObtain figure from the recordon “Money From Non-FarmSources.” All actual figures.See annual summary for thisTotal Gross Farm RevenueExpenses:Cost of Feed PurchaseCost of Current Year Market Livestock SoldOther Cash Operating ExpensesDepreciation ExpenseTotal Operating ExpensesTotal Interest ExpensesFamily Living Expenses From farm IncomeOther Farm Expenses (List Below):Total Expenses (List Below):Net Farm Income (Subtract total Expenses FromTotal Gross Farm Revenue)Non-Farm Income:Wages and TipsOther Non Farm IncomeIncome Before TaxTotal Income Tax ExpenseFamily Living Expenses From Non-Farm IncomeNet Income (Add all income and subtract allexpense)- 106 -

Small Farm Research CenterAlabama A&M UniversityDuncan M. Chembezi, DirectorE’licia L. Chaverest, Program Manager and Marketing SpecialistMargaret Clark, Graduate AssistantBrandi Roebuck, Undergraduate AssistantSome sections of this booklet draw heavily on a similar publication originally produced by theLouisiana Family Farm Technical Assistance Project, Southern University and A&M System.These sections are reproduced herein with permission from Southern University.- 107 -

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