Farm Management
Farm Management
TLE IC 7
Module 7
FARM MANAGEMENT
Development Team
TECHNOLOGY AND LIVELIHOOD EDUCATION
Prepared by: RENE C. BAROLA, MAM
Reviewed by: JOAQUIN G. ATAYZA, MATEA
Layout Artist: RENE C. BAROLA, MAM
GLADYS S. MENDIOLA
ALBERT S. LLAVA
DISCLAIMER
The use of trade names in this module is to identify examples only and is not
meant to endorse these products or discredit any similar product.
Introduction
Objectives
Vocabulary
Agriculture. Agriculture is simply defined as the art and science of crop, animal and fiber
production for human consumption. As a branch of agriculture, animal
production deals with production of domesticated animals other than pets
and game animals (principlesofanimalproduction.blogspot.com,2012 ).
Pre-Assessment
Multiple Choice
Directions. Answer each question. Write the letter of the correct answer on your
answer sheet.
1. Esprit de corp means__________________.
a. harmony b.planning c. divide and rule d.remuneration
4. What document is used to record and keep account of different activities, events,
materials, expenses and profit regarding farm operations?
a . farm record
b. farm account
c. balance sheet
d.sales and receipts
10. What environment management is involved when used bottles, syringes and vials are
disposed based on the manufacturer’s recommendation?
a. drainage b.segregation c.cleaning d.disposal
11. Which type of record belongs to animal health management?
a.feeding record b.feed storage record c.animal health record d.sanitation record
12.Disease Records: Disease management; Production Records:_______________
a.Supervision of animals c.breeding of animals
b.management of animals d.quarantine of animals
13. Why is sick bay important in farm management?
a. To separate healthy and unhealthy animals
b. To prevent drainage problems
c. To remove excess water
d. To track number of animals in the livestock
14. The following are buildings and facilities needed for pig or swine raising EXCEPT_____.
a.pre-gestation area b. boar unit c.calf pen d. farrowing room
15.Why is proper ventilation and lighting important?
a. It provides comfort c.It provides weather-proof shelter
b. It provides aesthetic value d.It provides back up source of power.
Activity
FARM MANAGEMENT
Various definitions were given to farm management. These are reflected below:
2.A science which deals with the proper combination and operation of production
factors including land, labor and capital and the choice of crop and livestock enterprises
to bring about a maximum and continuous return to the most elementary units of
farming (Yan(n.d) as cited by De Leon,2008)
3.A process of involving, observing and analyzing alternative course of action; deciding
which courses of action to follow; taking steps necessary to carry out the decision once
it has been made; and bearing the responsibility for the outcome of the decision once it
has been made; and bearing the responsibility for the outcome of the decision
(Benake(n.d) as cited by De Leon,2008)
4. The art of applying business and scientific principles to the organization and
operation of a farm (Business definition (n.d) as cited by De Leon,2008)
5. The art of managing a farm(Taylor,1977)
It added that every farmer must know and be able to do all the practical jobs connected
with farming enterprises. For this practical knowledge, there is no substitute. This explains the
fact that good farm management is often considered as an art rather than a science and this
explain why some farmers fail while others succeed. For farmers to succeed they must also
know the scientific principle of crops and livestock production particularly in the area in which
the farming is to be practiced and also the soil type, disease, weather and the season could be
studied or obtained from an extension worker in the area. It so demands that farmers must
know and use the basic business principles in accordance with which the common farm
practices and scientific principles should be applied.
Further discussion explained that farm Management is also concerned with effective
employment of socially acceptable guidelines for all levels of organization. In policy
formulations and achieving results, relevant facts must be considered. It must at all times try
to attain optimum level of effectiveness and economy of operations. To do this, human
satisfaction, welfare package and morale boosting must be promoted. Farm Management
responsibility is a continuous and living activity which must not be replaced by routines or
operational techniques meant for lower level operatives in the absence of the manager. No
matter how large an organization is, the management process must be seen as a unified
process in which all the parts are inter-related and working towards a single purpose or set of
objectives. The management process is based on systematic diagnosis of the problem, finding
the facts, assessing and interpreting the findings, making decisions, giving instructions,
ensuring execution and checking the results. Farm Management performance is judged by the
achievement of purpose or objectives, effectiveness of operations and most important, the
contentment of the farm worker.
Principles of management are only guidelines and that require great skill in using and adapting
them to particular circumstances. There are fourteen (14) principles given and elaborated by
Henri Fayol as follows:
4. Unity of Command Each worker must have one boss from whom
he receives orders: Departmental
responsibility must be very carefully set out
so that there is no overlapping of authority.
14. Espirit de Corp This is the last of the principles and one
which must permeate all others. It is
described as harmony among all members of
the organisation. The all too frequent
management practices of divide and rule is
roundly condemned.
All the general principles enumerated above are relevant to Farm management and can easily
be related to the basic principles given below: ·
1.Planning and Control Planning and control are important tools in Farm Management. They
provide the administrative aspect of the management. The essential steps in planning and
control involve setting of goals and objectives, laying down of responsibilities for specific
sections, determining or setting appropriate standard of performance through systematic
analysis and assessment of the relevant facts; then ensuring effectiveness by continuously
comparing the achievements with the set goals. Work specialization, simplification and
standardization all help to make the routine effective.
4.Motivation The morale is kept high by keeping all workers informed about the activities, the
successes and drawbacks, consulting them before new regulations are put forward, fostering
the sense of responsibility, allowing them to develop their own capabilities within the overall
goals of the organisation. Farm manager must give workers room to contribute more than
mere performance of their allotted routine duties. There must be security of the job and
confidence that one is not simply being used. There must be fairness and objectivity in dealing
with workers. Discipline must be maintained and accepted by subordinates.
When there is a sense of responsibility, there will be no need to gear people to action.
Continuous review of codes of conduct helps to keep them in line and updated. The personality
of the farm manger to a great extent determines the level of moral and discipline in the
organisation.
Decision making is the process of thought or deliberation that results in a choice. This
definition implies that decision making involves making a choice from possible alternative
resources. Like in other businesses, decision making in farm business is one of the most
important activities that a Farm Manager has to carry out. It is important that Farm Manager
should follow a gradual and sequential process in taking decisions. A wrong decision at a
particular stage in production process can lead to total collapse of the farm business. The
success of any farm manager will depend to a large extent on the right type of decision he
made.
There are seven essential steps that must be followed when making decision in Farm
Management:
3.Suggest Solutions:
After establishing the course of the
problem, you can now suggest some
possible solutions to it.
5.Select the Best Solution: From the point of view of cost, human
resources, material resources and
workability of the solutions, the farm
manager can now choose the best
alternative solution.
Given the problems and/or decisions faced in Farm Management, the farm manager or
management must be prepared to carry out the following functions in agricultural production:
planning, forecasting, organizing, coordinating, staffing or personnel management, directing
and leading, communicating, motivating and supervising.
Which function is most important? They are all important and emphasis should be laid on
different aspects according to need.
7. Directing and It is the duty of farm manager to lead the farm workers in the
Leading. implementation of the chosen plan. Leadership entails
outstanding character that commands the respect of all
workers. A good leader must be very knowledgeable, mature in
thought and action with balanced judgment and decisions which
are generally satisfactory to most farm workers. Leaders must
accept responsibility for their actions and must be firm.
Illiteracy is the inability to read or write. Illiterate farmers therefore, can neither read nor write.
On the other hand, literacy refers to the ability to read, write and decode symbolic
representations in order to ease communication between communicators irrespective of
distance. It is the acquisition of the literacy skill that gives people real share of Western
Education. Literacy limited to reading, writing and numeracy is generally regarded as
traditional literacy. It is the most common or orthodox form of literacy. As a rule, any farmer
who attended schools and obtained a minimum qualification of primary school certificate or its
equivalent may be regarded as literate farmer.
Characteristics of Agriculture.
Farming which is regarded as the art of tending crops and rearing animals is the major
occupation of most rural communities in the Philippines. The following are the major
characteristics of agriculture:
Small Farm Another important characteristic of agriculture is the small size of the
Size farmland per farmer. If farmers have an average farm holding of less
than 5 hectares, they practice substance agriculture. With the small
nature of the farm holdings farmers can only produce for himself and
the family consumption with very little for market. Apart from the
small size of the farm holding, farmers equally engaged in the
planting of many crops depending on the need of the family. This
small size impedes the mechanization of farmland.
Low Level of The small size of traditional farms, coupled with poor technology and
Output low level of input collectively contributed to the low level of
production output. Farmers produced mainly for domestic use and
little for export. Farmers’ output is subject to his farm size, family
labor and the type of farm implements used. Since most farmers are
poor, the level of investment in agricultural production is generally
low and therefore, their output will equally be low.
We have already seen that subsistence agriculture is peculiar to illiterate farmers while
commercial agriculture is synonymous with literate farmers. Most of our discussions could best
be applicable to commercial agriculture where profit is the ultimate goal of the farm
enterprise. Some of the effects of illiteracy on Farm Management include the followings:
1.One of the characteristics of illiterate farmers is the small farm holding. This small
farm size posed a serious problem in Farm Management in the area of determining
the level of production, farm labor to employ and farm inputs to use.
2.Another effect of illiteracy on Farm Management is the low level of technology and
over dependence on the traditional method of farming. Modern commercial
agriculture demands the use of modern farm inputs and new technology. For farm
plan and decisions to work perfectly well, modern methods of farming must be
adopted.
3. Most illiterate farmers do not want to take any costly risk and therefore, do not put
their savings in long-term investments such as plantation agriculture. This will affect
decisions on how to select the best combinations of activities to produce the food
supply and cash incomes needed to cover essential household needs.
4. Illiterate farmer produces mainly for his family use only and only little for sale. This
has serious effect on the volume of farm product for sales and even the type of farm
product to produce.
FARM RECORDS AND ACCOUNTS (De Leon,2008)
To manage the farm really well, keep records and accounts. simple record keeping need not
take up too much time and the advantages are numerous. Most other entrepreneurs, even
those with very small businesses, consider it worthwhile to keep accounts. Some of them even
hire an accountant to help with these records although their business is probably less complex
than farming. Regular farm record is a crucial tool to a successful farming business. Without
farm records farmers have to rely on their memory in order to make decisions in their farm
management and planning. However, human memory fades over time and the dearth of a
farmer who uses his memory may result in the loss of information.
In livestock production or farming, a good record keeping system should provide information
for:
At the end of the year,add the total sales and receipts to get the value of total production of
the farm and add the produce used in the home,to get the farm profit subtract the total
expenses from the total production of the fam.
ADVANTAGES OF FARM RECORDS AND ACCOUNTS (De Leon,2008)
1.Records and accounts give a history of what has happened on the farm for the period during
which they have been kept. By comparing one year’s records with the next, a farmer can see
the progress being made-whether the profits and yields are improving. Records should also
help trace weaknesses in the farming methods.
2.They are an aid to managerial control during production. with the help of records, a farmer
can keep a close check on whether things are going according to plans; whether too much
animal food or too much seed is being used; or whether crop and livestock yields are falling. It
is important to detect where things are going wrong quickly so that they can be put right
before big losses occur.
3.They provide figures for farm planning and budgeting. A farmer making plans to modify the
farm needs to know what yields to expect from crops and livestock and what costs and
receipts to get. Many agricultural advisory officers keep approximate figures for the district but
it is much better if each farmer has records of what happened on his own farm.
4.They tell a farmer how much he is earning. With this information a farmer can make sure
that he does not spend too much on himself and his family. In this way, he can avoid getting
into money difficulties. If a farmer feels that he has been charged too much of income tax, he
may get a fairer assessment if he can present how much he earns.
5.A farmer can represent himself better in business dealing if he has accounts to show he
manages his funds.
Miller (2007) also presented the essentials of farm record management. These are the
following:
1.Good record keeping is important to the financial health of the farm. However, good records
alone do not ensure success but success is unlikely without them.
2. Records tell how well you are managing your operation and they show the strengths and
weaknesses.
Behera, Mandal, Sahu, Rai, Chaudhary & Muwel (n.d) gave advantages of record keeping
at farm.These are as follows:
Records provides basis for evaluation of animals from past records hence helps in
selection and culling animals
Helps in preparing pedigree and history record of animals.
Helps in assessing the past records and designing better breeding plans to check
inbreeding, selecting superior parents and helps in better replacement and culling
practices.
Helps in progeny testing of bulls.
Helps in analyzing feeding cost and benefits from animal product outputs. Hence helps
to formulate economic feeding strategies for optimal productions.
Helps in detection of abnormal conditions or disease status of the herd that leads to
loss in body weight, loss in milk production etc.
Helps in finding the commonly occurring diseases in the herd and thus to formulate in
time precautionary measures like vaccination, deworming etc.
Helps in fixing proper prices of animal meant for purchase and sale.
Helps in overall better supervision and management of herd.
Helps in ascertaining the income and expenditure (economics) of dairy farm.
Helps in estimating the cost of milk production.
Helpful in comparing the efficiency of labor and herd with other farms.
To compare the herd performances in different years to determine the amount of
profit/loss each year and
setting future
goals/directions for the
farm.
ADVANTAGES OF LIVESTOCK
RECORD KEEPING
Source: https://www.legit.ng/1131221-types-farm-records-
uses.html
1. Aids in determining the inflow and outflow, in economics terms, of the farm.
2. Helps in setting proper pricing for animals which has to be sold at the auction.
3. Provide insights for designing better breeding plans.
4. Supports in overall farm management.
5. Assist in the formulation of economic feeding approaches in order to improve
company’s production.
6. Track record of disease allows to discover unusual animal conditions.
7. Offers basis to evaluate and select the animals ready to be slaughtered.
8. Provide history of counteractive measures taken in the previous years in
emergency situation, such as vaccines used to treat animals affected by diseases.
9. Provides a comparison between different year’s profit/loss allowing to to set
future objectives for the farm.
10.Useful to verify the effectiveness of the work carried out within the farm.
11. Useful to calculate approximately the cost of production.
To Scholtz (2021), there are also advantages to record keeping. These are as follows:
It may be a requirement
Lenders, government agencies, insurance companies and others often require detailed
and well-maintained records of the farm’s income and expenditure before giving out loans
to farmers.
There are numerous livestock record keeping tools that farmers can use to record
their information, such as: record nots manually on note books; Spreadsheet, Computer
and mobile applications. So, depending on what tool the farmer chooses to use, such tools
must be able to provide information about what is happening on the farm and preserves
farm records for current and future use. Keeping farm records is therefore a fundamental
management tool that can reveal both strengths and weaknesses in farming activities.
Keeping farm records is one of the most neglected activities in the farm
management. Farmers consider record keeping as time-consuming therefore they often
ignore this practice. However, keep track of what is happening in farm is one of the most
important aspects in order to improve both animal welfare and farm management. In
addition, keep records of all the activities carried out within the farm may allow to avoid
financial losses and to make more informed decision.
1.Keep it simple
2.Data must be useful
3.Records must lead to action
1. Livestock register : This register records the number of the animals at the farm
along with their identification number, date of birth, sire number, dam number, calf
and its sex, date of calving, date of purchase, date of sale/auction/death.
2. Calving register : This register maintains the records of calving that take place in
the farm. It maintains dam and sire number of the calf, calf number, sex and its
date of birth and any other remarks like type of calving (normal/abnormal).
3. Daily milk yield register : This register records the daily milk yield performance
of the cows.
4. Calf register : maintains the records of calf at the farm, calf number, sex of the
calf, sire number, dam number, birth weight etc.
5. Growth record of young stock : this record maintains the weight of the young
stocks at different intervals.
6. Daily feeding register : This register records the amount concentrate, dry fodder,
green fodder and other feeds given to the animals daily.
7. Herd health register : This register maintains the record of the diseased animals
along with history, symptoms, diagnosed disease, treatment given and name of the
veterinarian who treated.
8. Cattle breeding register : This register maintains the details of breeding
practices in the farm such as cow number, date of calving, date of heat and services
along with the bull number, date of successful service, pregnancy diagnosis records,
expected date of calving, actual date of calving, calf number etc.
9. Animal History sheet : This maintains animal number, breed, date of birth, sire
and dam number, lactation yield records, date of drying, date of disposal/death, cause
of disposal etc.
Andreas (2019) gave the types of farm livestock record keeping and their uses. These
include the following:
1. Farm records help a farmer to keep stock and manage each aspect of the farm properly.
2. They are important for planning and budgeting. They provide a farmer with enough
information needed for proper planning and budgeting at every point in time.
3. They help farmers know the progress and contributions of each aspect of the farm to its
overall success.
4. They are important for proper farm management.
5. They can be very helpful when a farmer needs to access financial aids from banks or
other financial institutions.
There are different types of farm records a farmer should keep to run a successful farm
business. They include:
1. Daily farm records Getting an agricultural loan in a country: a complete guide These
are the records of all important daily activities and events that happen on the farm. These
records help the farmer keep track of past farming activities and plan for future activities.
2. Records of farm implements and equipment This is used to keep an inventory of
all the equipment on the farm and their quantity. It can also contain the date of purchase
of the equipment and sometimes their description.
3. Record of agricultural inputs This record is used to keep track of all agricultural
inputs such as fertilizers, seeds, etc. The record often also contains the amount of that
was bought, the amount that has been used, and what is left.
4. Records of livestock and livestock products Farmers keep different records of
livestock for each type of livestock on the farm. Also, for livestock that have products e.g.
eggs from chickens, the farmer keeps a record that accounts for the number of eggs laid
every day. If a farmer has cows for milk production, he keeps record of the amount of
liters of milk produced per day. Vaccination of layers: schedule, principles, and importance
5. Records of animal feeds This record is used for keeping an inventory of the types of
animal feed and the quantity purchased, used, and also quantity in stock on a daily basis.
6. Production records Production records are used to document everything that is
produced on the farm. These records are prepared every week. And then summed up at
the end of the month and also at the end of the year. Thus, there is a weekly record, a
monthly record, and an annual record of everything produced on the farm. They help the
farmer to keep track of how well the farm is doing.
7. Records for farm use Used for recording the date the land was prepared for farming,
the number of plots or hectares used in planting, the plants planted on the farm and
where they are planted.
8. Farm expenditure records Farm expenditure records are used to keep a record of all
expenditures.
9. Workers records This type is used to keep the record of staffs, their salaries, and
payment. It is also known as labor record.
10. Vehicle records It is used to keep a record of all vehicles used on the farm, petrol
and oil used, and also any repairs and servicing and the dates of the repair or servicing.
11. Sales record Sale records are used to keep a record of all sales made from farm
produce. Since the importance of farm records in proper farm management have been
highlighted here, farmers are encouraged to start keeping them at the beginning of every
farming season or cycle. An organized farm record, good management and success go
hand in hand.
The Department of Agriculture of the Republic of the Philippines, Bureau of Agriculture and
Fisheries Standards (2019) gave the good animal husbandry practices. These are the
following:
1.To ensure food safety and quality It helps to reduce physical, biological and chemical
hazards in farm production that pose health risks. There is an assurance that food will not
cause harm to the consumer when it is prepared or eaten according to its intended use.
2.To protect and promote the welfare of animals It provides safe standards for feeding,
health care, prevention and treatment of disease and the assurance of freedoms of
animals as well as avoidance of cruelty, maltreatment or neglect to animals.
3.To promote health and safety of farm workers It provides a safe and healthy working
condition on the farm by identifying the hazards and minimize potential risks.
4.To support environmental management It helps minimizes adverse effect on the
environment like harmful greenhouse gases emissions such as methane, carbon dioxide
and other Green House Gases (GHG), pollution of land and water resources.
https://www.legit.ng/1131221-types-farm-records-uses.html
Source: Department of Agriculture of the Republic of the Philippines , Bureau of
Agriculture and Fisheries Standards(2019)
.
Analysis
Abstraction
Application
Post-Assessment
Multiple Choice
Directions. Answer each question. Write the letter of the correct answer on your
answer sheet.
1. What document is used to record and keep account of different activities, events,
materials, expenses and profit regarding farm operations?
7. What environment management is involved when used bottles, syringes and vials
are disposed based on the manufacturer’s recommendation?
a. drainage b.segregation c.cleaning d.disposal
8. Which type of record belongs to animal health management?
a.feeding record b.feed storage record c.animal health record d.sanitation record
9.Disease Records: Disease management; Production Records:_______________
a.Supervision of animals c.breeding of animals
b.management of animals d.quarantine of animals
10. Why is sick bay important in farm management?
a. To separate healthy and unhealthy animals
b. To prevent drainage problems
c. To remove excess water
d. To track number of animals in the livestock
11. The following are buildings and facilities needed for pig or swine raising EXCEPT_____.
a.pre-gestation area b. boar unit c.calf pen d. farrowing room
12.Why is proper ventilation and lighting important?
a. It provides comfort c.It provides weather-proof shelter
b. It provides aesthetic value d.It provides back up source of power.
13 Esprit de corp means__________________.
b. harmony b.planning c. divide and rule d.remuneration
14. The proper combination and operation of production factors in agriculture is termed
as farm management.
a.True b.False
I. milk yield II. egg laid III. date of birth IV. sex
a.I & II b.II & III c.III & IV d.II, & IV
Going Further
References
De Leon, M.V (2008) Basic Agriculture: A Practical Guide For Students, 927 Quezon Avenue, Quezon
City, Phoenix Publishing House, Inc.
https://www.legit.ng/1131221-types-farm-records-uses.html
Rajalaxmi Behera*, Ajoy Mandal*, Adhikari Sahu**, Saroj Rai*, Shilpa Chaudhary*** and
Nirmala Muwel(n.d.) importance-of-record-keeping-at-livestock-farm Retrieved
from https://vikaspedia.in/agriculture/livestock/cattle-buffalo/importance-of-record-keeping-
at-livestock-farm#:~:text=Record%20keeping%20is%20a%20necessary,few%20days%2C
%20months%20or%20years.
Scholtz, K.(2021) The importance of keeping farm records in agricultural production.Retrieved from
https://www.southpointfinancial.com/the-importance-of-keeping-farm-records-in-agricultural-
production/
Key to Correction
PRE-ASSESSMENT
ANALYSIS
Answers may vary
ABSTRACTION
Answers may vary
APPLICATION
Answers may vary
GOING FURTHER
Answers may vary
POST-ASSESSMENT
Criteria Percentage(%)
100% of the questions were answered correctly 100
Relevant answers
Observed proper mechanics like grammar, punctuations etc.
Originality(personal answer or cited the source/references)
50% of the questions were answered correctly 90
Relevant answers
Did not observe some of the proper mechanics like grammar,
punctuations etc.
Originality(personal answer or cited the source/references)
Less than 50% of the questions were answered correctly 85
Relevant
Did not observe some of the proper mechanics like grammar,
punctuations etc.
Originality(personal answer or cited the source/references)
Tried to answer but too many incorrect answers 75
Irrelevant answers
Did not observe proper mechanics in writing.
Not original answers