The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1925-09-10
THE PENCIL MAKES
A FARM PAY BETTER
Farm Accounting Reveals Losing
Methods and Points Way to
Bigger Profits.
From Bdnker-Farmer)

From Banker Fdrmer)
A farm cannot properly be called
successful unless it pays fair rate
OF interest on the investment and re-
turns fair wages for the farmers la
Dor. Agriculture is considered by all
odds the most important industry in
the world, and yet in no other indus
try is the business end so neglected
1t is common to- find a farmer with
an investment of fifteen to twenty
thousand dollars, yet does he keep
books? Perhaps he may jot down
note now and then of an important
deal, but this is of no value in an
analysis of his business as whole.
No other industry, however small. is
carried on without books of some
sort
Farming is business and to be
successful must be conducted in a
businesslike way. The business mans
mind should have indelibly printed
upon it two questions: What profit is
my business making? How can that
profit be increased? To know the Lat
ter, one must find out the former; and
to find out about profits requires the
keeping of books.
It is not necessary for farmer to
have course in bookkeeping Al
most every agricultural college in the
country has issued simplified farm
accounting book which it sells at cost,
and only few minutes are required
each day to jot down the days hap
penings.
Accounts Increase Profits
Instances number a thousandfold
where farmers have profited by know
ing their business. Accounts kept by
nineteen farmers in Illinois led them
to improve the organization and oper-
alton Of their farms in ways that add
ed approximately $3.50 to their aver
age net income in 1922, the seventh
year they had kept accounts.
An Iowa farmer found at the end of
the first year he kept books that crops
fed to livestock brought more money
than when sold outright. His figures
showed that his cows were poor;
compared with other farms in the
state, he found the number of acres
cultivated per man on his farm, as
well as the number of acres per horse.
were below average. He rented more
land and replanned his fields, so that
the crop areas per man and horse
were increased. He sold some of his
scrubs and bought good cows. The
second year his income from the
farm, after paying all expenses and
interest on the money invested, had
been increased over $3.50.
Costs Can Be Regulated
II have discovered" says one farm
bookkeeper, .that the kind of man
you have on job, as well as the
particular team, often makes quite a
variation in the cost of performing
certain tasks l have learned from
the pages of my book that if could
have increased the yield of my wheat
field by two bushels and my corn by
five bushels | would have realized a
substantial profit from them"
While the farmers may not be able
to FIX prices on their products, they
do have voice in determining the
costs of production. To reduce this
cost they must first know what the
costs are.
The number of farmers who are
keeping books on their business has
increased remarkably in recent years,
but the number of businesslike farm
ers is woefully small when listed
alongside the sum total of the farm
ers in the country.
Inventory Is Indispensable
Il The basis of any system of farm ac-
counting is the annual property list
or inventory. 1t is the starting point
Of the farm records. One must take
into consideration decreases or in
creases in the value of all property
owned to gauge the progress Of the
business. Lacking facts as to the
value of his property, no business man
can form. an accurate estimate of how
he stands financially. Increased cash
may be due to property which was
sold, or increased debts may be due
to Improvements made. If farmer
is falling behind, the inventory will
emphasize this fact Often when a
man is discouraged and thinks he is
making no progress, his inventories
will tell him that he is better of than
he thought.
At the end OF each year a financial
statement is drawn of. This is the
farmers rating and no farmer with
good financial statement need fear
walking into bank and asking for
loan