identification and inventry of resources
Answers
Here is an example of Farm resource inventary.
1. Complete a balance sheet;
2. Provide a summary of collateral that can be used for a loan application;
3. Identify problems with the condition of the farm’s assets and their management;
4. Provide information that can be used to evaluate options for growth and diversification;
5. Identify underutilized resources;
6. Compute non-cash expenses such as depreciation;
7. Determine the health of an operation; and
8. Document the farm’s resources in case of fire, theft, or storm damage.
Resource Inventory
The resource inventory will help to identify soil erosion in fields and pastures, manure that is stored (dumped) too close to water sources, financial problems such as too much debt or large variable costs, and needed labor and human resources. Only after a resource inventory is completed can the current health and future direction of the operation be determined. The resource inventory can be divided into these five areas:
1. Physical/Natural Resources
These include:
A map detailing the land topography; pasture; vegetative species; weeds and woody species and their sites; carrying capacities of each field; the location of structures including barns, working pens, and fences; and all water resources that are available including ponds, streams, automatic waterers, and rural water lines (a NRCS soil map and a hand-drawn map are helpful).
Soil surveys including land use and fertility (soil test) recommendations by field or area (a NRCS soil map and university Extension soil tests are helpful).
An accurate description of wildlife and domestic species and populations (including loose neighborhood dogs and coyotes) to determine potential predators or problems that can result from them.
A historical record of rainfall and weather patterns for the farm or local area.
The fair market value of the land (farm) if it were sold.
2. Human/Personnel Resources
These include:
All persons who work on the farm including the farmer, family, paid full- or part-time employees, custom hired operators (i.e., a hired trucking company or fencing company), friends and neighbors;
A. The names, assigned duties of each person, their salaries/wages, their skills and talents, their work schedules, emergency information for employees, and sources of help to cover a person who is absent or cannot perform his/her duties; and
B. I-9 (U.S. citizen or not) and other data that is needed for filing income taxes, insurance benefits, Social Security or tax identification number, etc.
3. Equipment Resources
These include:
The size, age, condition, and model or serial numbers of all equipment that is used by the farm (permanent identification on the equipment is helpful);
A. Note whether the equipment is owned, rented, or borrowed; and
B. Estimate the fair market value of each piece of equipment and its depreciated value (original cost minus accumulated depreciation).
4. Animal (and Forage) Resources
These include:
The inventory and value of all livestock including goats, guard animals, and others. The value of breeding stock can be determined by (1) original purchase price minus accumulated depreciation or (2) the fair market value. These records should include each animal’s identification (ear tag, ear notch, implant, or NAIP), breed records and registrations, breed or type, performance and production of dam and sire records;
A. The total number of fenced or available acres along with a history of yields that are used by each enterprise (i.e., goats and estimated forage production in the field).
5. Financial Resources
These include:
Cash and savings accounts that are used by the farm (it is best to separate farm and family living bank accounts, but this is often not practical for small producers.