💰 Farm Numbers: Counting Your Way to Better Harvests and More Money
Moving your farming from just feeding your family to a successful business by using simple facts.
If you want your farm to move from relying on subsistence to making real money, you need to use **simple numbers and facts**. This guide shows you how to track your costs and sales so you can stop guessing and start planning for a better future. By counting the money you spend and the money you get, you can plan, budget, and confidently grow your economic future.
The Foundation: Writing Down Everything (Record Keeping)
The first step is simply **writing down everything** that happens with your crops and money. This is not hard accounting, just consistent recording in a special notebook. This notebook is where all good planning starts.
| Category | Data to Record (Money You Spent / Input Costs) | Data to Record (What You Harvested / Output Figures) |
|---|---|---|
| Money Tracking | Cost of seed, fertilizer, hired labor, Boda/Truck transport, and repairs. | Total amount harvested (e.g., kg of maize, bunches of matooke). |
| Farm Work Tracking | Date of planting, size of the plot (acres), weather notes. | The price you sold each unit for (e.g., shillings per kg, shillings per bunch). |
Why this matters: Without these simple records, you cannot know if you are making money or losing money on a crop.
Your Most Important Number: Gross Profit
This calculation shows you immediately if the money and hard work you put into a crop resulted in profit. This is the clearest measure of how well your business is doing.
| Step | What It Means | Example (1 Acre of Maize) |
|---|---|---|
| 1. Total Money Spent (TCoP) | Add up all your input costs. | 500,000/= (Seeds + Fertilizer + Labor + Transport) |
| 2. Total Money Received (TR) | Total Harvested Quantity × Selling Price. | 1,350,000/= (1,500 kg × 900/= per kg) |
| 3. Gross Profit | Money Received minus Money Spent. | 850,000/= (1,350,000/= − 500,000/=) |
The **850,000/= Gross Profit** tells you that your maize was a financial success. If this number was **negative** (a loss), you must quickly change your methods for the next season.
Scaling Up: Planning for the Future
Use your profit numbers to plan and grow your farm into a predictable and profitable business.
1. Planning for a Bigger Harvest (Yield)
Yield per Acre helps you predict how much you will harvest next time, which is needed to plan for sales and labor.
Example: If you got 1,500 kg from 1 acre, your goal for next season can be 1,800 kg/acre by buying better seeds. You have a clear, measurable goal.
2. How to Use Your Profit (Budgeting)
The money you profit must be split wisely to secure your household and make sure you can plant the next season without problems.
| Where the Money Goes | Percentage of Profit | Purpose (Securing Your Future) |
|---|---|---|
| Reinvestment Fund | 30% – 40% | **Must be saved** to buy seeds and fertilizer for the next season. (e.g., 30% of 850,000/= is 255,000/=) |
| Savings/Emergency | 10% – 20% | Saved in a VSLA or bank for emergencies like medical costs or school fees. |
| Household Income | 40% – 60% | The money you use for daily family needs and consumption. |
Accessing Development Capital (Loans)
A farmer who shows a notebook with a predictable **850,000/= Gross Profit** is much more likely to get a loan from a VSLA or micro-finance group. **Your records are your proof!** They show that you are serious and successful.