Abstract
Reporting to Landowners in Illinois
Although Cash Rent arrangements are becoming more prevalent as a farm
ground rental arrangement, Crop Share agreements are still popular. It is
also a common practice for farm producers to pay for the landowner’s share
of expenses related to the crop in the Crop Share arrangement. Quicken can
be used to track these expenses and report to the landowner. In order to do
this with Quicken, the production field owned by the particular landowner
must be identified. To do this, a Class identifying the field must be created.
It is convenient to use the FSA identification number.
Quicken for Farm Producers was developed to provide instruction to Illinois
farm producers desiring to computerize their farm records. The program is
computer based through the use of a laptop lab which is portable to local
extension offices. A 200 page manual is available on cd or hardcopy. Over
200 producers in Illinois have been trained through this program. The
program has evolved from a single session program to a minimum of three
session’s program. This format allows the producer to take their file home
with them to input information and then later ask questions during lab time.
A group file is also used which allows the producer to ask questions without
providing personal financial details, if they so desire. Since moving to the
multi-session format, impact evaluations indicate that implementation of
Quicken into the farm operation has improved from 25% to 100% after
attending the program. The manual is also available online in pdf format. In
Illinois, it is important for producers to keep field level (individual landlord)
information. This is done by using Quicken´s muliti-level reporting
functions. Producers are encouraged to email the instructor with questions
on using Quicken after the program.
Introduction to Using Classes
What is the purpose of using a class?
Classes represent additional layers of detail. Think of the Accounts as being
the first level. Under each account, such as a checking account, you record
transactions. An example might be writing a check for a fertilizer expense.
The account is the Checking Account. The category will be Fertilizer
Expense. We can also use a subcategory of phosphorus.
Level 3
Phosphorus Fertilizer
Subcategory
Level 2
Fertilizer Expense
Category
Level 1
Checking Account
Account
Suppose we want detail on analyzing the farm business by Enterprise. Let’s
assume we want to see how we are doing with our commercial corn
business. How much money are we making on corn? How are we going to
do this? Here’s how.
Level 1
Checking Account
Account
Level 2
Fertilizer Expense
Category
Level 3
Phosphorus Fertilizer
Subcategory
More Detail
1. Corn Enterprise
Or
2. FSA 100
Or
3. FSA 100 - Corn
Class
Class
By using the Class “Corn Enterprise” we can pull up every transaction
pertaining to the Corn Enterprise. This allows us to do Enterprise Analysis.
The same thing could be done by Field as well. In #1, the whole corn
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enterprise can be analyzed. In #2, we can exam the field for enterprise
analysis. In #3, the corn enterprise on the mentioned field is analyzed. This
can be particularly useful in identifying expenses by landowner.
By dividing the field for Enterprise Analysis, the field will not be able to be
analyzed as a whole, but only by field enterprise. The Quicken Reporting
System, although very good, will not allow you to do both whole field and
field by enterprise analysis. By adding the two together using a spreadsheet,
you could easily combine the field enterprise analyses into one field
analysis.
Handling Landowners
This section is for producers that pay for inputs that will later be charged to
the landowner. The easiest way to handle this is to say, “Don’t do that!”
However, it is a common practice that will continue. Many also handle and
sell grain for their landowner. This chapter will address such issues. There
are several ways to handle this.
1. Charge all the expenses to yourself in the appropriate category
and class. When you receive payment from the landowner; credit
the account back using the same categories, subcategories, classes,
and subclasses.
In this, let’s assume the bill for FSA 103 should be paid 50% by the
landowner, but you paid it already and now have received payment.
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Next, we will receive payment from the landowner for the landowner’s
portion.
Here are the recorded transactions..
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Here is the report showing the total expenses and reimbursements.
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2. Another way….Set-up a new category named “Farm Revolving
Funds”. From this category, money will be exchanged. At the end of
the business cycle, this account should be zeroed out. We have
discussed setting up categories earlier. This method will be more
tedious to input, but might be easier to track all transactions. When
creating a profit and loss report, simply uncheck the “Farm Revolving
Funds” category.
Example:
Next, we will pay the following invoice in full and collect payment from
Landowner Joe for half of the bill.
When recording the transaction, use the Split Transaction button.
Half of the bill is charged to the Farm Revolving Funds category using
Landlord Joe as a class.
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Next, record the payment from the landowner
The Red arrow shows your payment.
The Blue arrow shows the landowner share
Below the Blue arrow is the payment from the landowner.
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Grain Marketing and Landowners
For a farmer who markets grain for the landowner and the grain is stored at
an elevator, do not inventory the grain within your own file.
If you mix your grain with your landowner’s grain in the same bin, simply
do not count the estimated portion of the landowner. Again, keep a separate
file if needed.
For the full instructions on using Quicken for
Farm Producers:
http://www.farmdoc.uiuc.edu/manage/quicken/quicken.html
United States Department of Agriculture • Local Extension Councils Cooperating
University of Illinois Extension provides equal opportunities in programs and employment
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