Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1925-09-03
THE pencil MAKES
A FARM PAY BETTER
Farm Accounting Reveals Losing
Methods and Points Way to
Bigger Profits.
from Bdnker-Fdrmer

successful unless 1t pays fair rate
o. 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 farmer with
an investment of fifteen to twenty
thousand dollars, yet does he keep
! DOCKS! Perhaps he may iot down a
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 a business and to be
successful must be conducted in
businesslike way. The business mans
mind should have indelibly printed
upon 1t two questions: What profit is
my business making? How can that
proht be increased? To know the lat
ter, one must find out the former; and
to find out about profits requires the
keeping of books.
II Is not necessary for farmer to
nave 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 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
Il have discovered" says one farm
bookkeeper, that the kind of man
you have on a job, as we'll as the
particular team, often makes quite
variation in the cost Of performing
certain tasks. | have learned from
the pages of my book that if l could
have increased the yield of my wheat
field by two bushels and my corn by
five bushels | would have realized &
substantial profit from them" Il
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 1
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
The basis of any system of farm &C
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 I
may be due to property which was
sold, or increased debts may be due
to Improvements made. If a farmer
is falling behind, the inventory will |
emphasize this fact. Often when
man is discouraged and thinks he is !
making no progress. his inventories
will tell him that he is better off than (
he thought.
At the end of each year a financial |
statement is drawn off This is the |
farmers rating and no farmer with a
good financial statement need fear
walking into a bank and asking for
loan