What is Farm Inventory?
This is a complete listing of all farm assets and materials. Farm inventory, also includes an estimate of the market value, of everything available. Farm inventory information is normally recorded on the last day, of the business year, and is required by banks and also for income tax filing.
It can also be taken twice, at the beginning and end of the year.
The items in inventory include land, buildings, livestock, equipment, crops in the farm and in storage, etc.
Importance of Farm Inventory:
In farm management, inventories play a key role;
1. It shows the lists of all items on the farm at a particular time.
2. It provides information that is needed for income tax and planning.
3. Farm inventory records can assist farmers to get a bank loan.
4. It assists the farmer to know the farm equipment no longer providing value, and the time to sell them.