Response of Small and Mid-Size Ohio Farmers to Computerized Farm Recordkeeping

Ohio State University Extension

Caldwell, Ohio

Ohio State University Extension agents and farm management specialists have been teaching computerized recordkeeping workshops since 1990 reaching over 1,000 people. Objectives of these workshops are 1) to give participants hands-on experience using computerized records, 2) to demonstrate how low-cost software, such as the Quicken program, could be adapted to farm recordkeeping, and 3) to demonstrate how a computerized record system could generate the kind of reports and information needed to manage a modern farm business. A follow-up survey of 286 randomly selected participants was conducted during 1995 to determine what impact these educational efforts had. One hundred and eighty-six responses were received for a response rate of 65%.

Of the 186 responses, 160 or 86% reported farming activities. For this analysis, those participants having annual gross farm sales of $100,000 or less are considered to be small and mid-sized farms. Fifty-five percent of those reporting agricultural activities fall into this category. Twenty-nine percent of the farming participants reported annual farm sales of $100,000 to $200,000 while 16 percent reported sales greater than $200,000.

Those surveyed were asked, "Are you presently using the Quicken program?" Seventy-two percent of the small and mid-size farmers responding indicated that they were using Quicken for their recordkeeping. For those who had not adopted Quicken, the reasons given included preference for a manual system (31%), the computer records program was no useful (21%), no computer (17 %), computer compatibility problems (14%), using another computer records (7%), and other reasons (10%).

The value of any recordkeeping system is dependent on how often entries are made. Overall, the adopters reported frequent program usage with 95% using the program at least once a month. Thirty-six percent said they used the program more than once a week, 16 % at least once a week, 21% every two weeks, and 21% once a month. Another 5 % of the respondents said they use the program every six months.

Those who adopted the Quicken program were asked, "Have computerized records with Quicken improved your management decisions?" Eighty-seven percent said their management decisions had im-proved as a result of using computer-ized records. These improved decisions resulted from the following factors and were rated on a scale of one (not at all) to five (very much):

1) improved accuracy (average score 4.2),

2) improved accessibility (4.4),

3) more complete information (4.3),

4) ease of recordkeeping (4.3)

5) flexibility of retrieving and reporting information (4.2).

It appears that computer records can lead to more informed decisions not only because of the records being kept up to date, but also due to the ease with which financial data can be manipulated and retrieved.

Although the workshops focused on learning how to use a computer recordkeeping program, the need for good recordkeeping skills was also stressed. The survey asked the participants to rate their recordkeeping skills on a scale of one (no skills) to five (excellent skills) before and after the workshop. Of the small and mid-size farmer participants, 56% rated their recordkeeping skills as poor to fair before the workshop, while 18% rated their skills after the workshop as poor to fair.

Before the workshop, 41% of the small and mid-size participants rated their skills as good to excellent, but after the workshop 82% said their recordkeeping skills were good to excellent. The average recordkeeping skill level of the small and mid-size farmers improved from 3.3 before the workshop to 4.0 after the workshop, statistically significant at the 1% level.

Participant comments about the most important things learned and suggestions for improvement of the workshops help keep future workshops relevant and useful. The most frequently mentioned item was to emphasize how to use the computer records program and how it can be applied to the participant's situation. Other items mentioned or suggestions made were to emphasize proper recordkeeping techniques using computers, to use a computer lab to help those attending improve their computer skills and knowledge, and to have assistance available after the workshop to answer questions about using the computer records program.

In conclusion, teaching computerized recordkeeping workshops has resulted in adoption of the technology, improved management decisions and better recordkeeping skills. From our experi-ence in Ohio, it also appears that computerized recordkeeping is a size neutral technology since the results of the analysis of small and mid-size farmers were not significantly different from all farmers in the survey.

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