ANNUAL STOCK-TAKING AND VALUATION OF FARMS.

Te Aroha News, Volume II, Issue 95, 28 March 1885, Page 7

A NNUAL S T OC K-TAKING AND VALUATION OF FARMS.

Perhaps theYe never was a time in the agricultural history of tlie colony when those engaged in agriculture were so perplexed as at the present time. The majority of farmers know little about the actual jroiit and loss of the year's transactions. So long* as "the result of t'le year's operations covers the domaml for interest on loans, rent^ taxes, a*id labour, very little trouble is taken to ascertain which department of the farm has shown the best result. For the past two years thr return -from the wheat crops has boen most unsatisfactory. Any profit which has been made has come from the stock of the farm — for (he most part sheep and pigs — and the dairy. It is the first importance that an annual estimate should be made of the value of the stock on hanl, and the amount received for corn. At the close of the agricultural year every farmer who desires to know exactly how his business stands and prospers makes a valuation of the live stock, crop*, implements, and other effects which form his stock-in-trade. A system of regular stock-taking every year obviates all the endless confusion which is apt to ■ensue without it. It not only affords the farmer a correct knowledge of his financial position, but it sharpens his judgment as to the value of different articles with which he has to do, and and without it lie can never toll what are the weakest and the strongest points in Ins system of management. Tue host time for such valuation depends very much on the kind of farm. C n sheep farms or grazing the most suitable time is after fie autumn sales, when the flock is made up for the winter and there is no surplus stock to bring into the valuation. On arable farms there is no such suitable period, as fie land is either covered with crops, or else the crops are in bulk and unrealised ; but either the autumn term, as in the case of grazing farms, or the end of December (May in the colony) is the best. Some prefer to make the valuation ot a corn farm at midsummer ; but the crops are unraatured then, or Still to be harvested, and an estimate at that time is less certain than dealing with the bdK after harvest. On a dairy farm the period of the y*ar at which the inventory or valuation is made is a matter of less consequence. Those who object to the valuation of iarm stock anil produce in this way as being a mere estimate, forget that they have to estimate values ev-ry time they go to market, both in buying and in selling. The current market prices a*e j just as uood fk'guMe to the farmer in valuing his stock-in-trade for his own satisfaction as when he takes it to market, if he chooses to bring himself a* keenly to the question. Prices may, of course, vary between the time of valuation and the time of realisation ; yet if the farmer knows when to sell, and sells at tie right time, and takes care to value himself in at fair market rates, the, fluctuation of prices shouid not affect his estimates very mnch, if at all. The usual method of finding the net annual profit or loss on a farm is to put on one side all the expenses, which include rent, rates and taxes, wages, purchased seeds, manures, and feeding stuffs, interest on capital, wear and tear, and depreciation on live and dead stock, and the valuation of stock at the beginning of the year j on the other side, the value of all the prodnceand stock disposed of, and the new valuation of the stock in h«i I. But the resu't may he ascertained far more rea iih aid just as accurately, by making the farm debtor for the valuation on December 31st and creditor by valuation on December 3 1st following. The difference between the two valualions will be the amount of profit or loss on the farm for the year ending December 31st. A valuation of this kind on an arablefarm includes the implements, harness, machinery, and fixtures ; tho horses,, cattle, sheep pigs, ami poultry ; the com (threshed and uuthreshed), hay, s raw, root and gresn crops ; the purchased teedin_r stuffs on hand ; the manures on hand or applied for next year's crops ; the seeds on hand or sown ; the tillages performed on account of next year's crops, ami the outstanding ' debts and credits of the farm. Tlte implements, liar ness, machinery, and fixtures are only valued the first year to begin with, or taken at cost price, and 5 per cent, deducted from their value annually to make up for depreciation. The other items will be the subject of a new valuation every year, and the methods of estimating them are commonly well understood. — Press.