Agricultural reality // Sustainable production through accounting
The processing or utilization of land in farming must be focused between quality and productivity vs. conservation for future generations. Quality is the result of doing things right the first time in order to consistently satisfy the consumer. Productivity is the result of the wise application of science and technology for the production of goods, as well as the intelligent use of resources, to increase the welfare of society and the permanence of man in the future.
Agricultural companies must be prepared to face the changes and problems that periodically arise in the economic environment, being proactive to visualize the different approaches, make decisions that lead to sustained success, constantly evaluate the results, and thus achieve competitive advantages that differentiate them from other organizations.
One of the main problems of this sector is that there is a deficient quantification and presentation of the transactions of agricultural companies, due to the lack of an adequate accounting system. Accounting is the preferred and common language for the understanding of business. So we ask ourselves, is it necessary to adapt this language to the agricultural sector in order to guarantee a reasonable veracity and confidence in the financial information? Yes, in fact, this is where the importance of agricultural accounting is born.
However, since there are no defined standards for the recording, evaluation and presentation of accounting and financial operations, the companies in this sector are using a variety of criteria, and the aim is to present a unified accounting system, with the option of improving and presenting a system framed in the production process of the agricultural production unit.
It is important to emphasize that in order to consolidate a good agricultural accounting system, it is necessary to have clear, in the first instance, everything concerning agricultural terms, such as the crop processing cycles and their work. Among which we can name: land preparation, sowing, post-sowing work, crop maintenance, harvesting, among others.
In a practical analysis, we can say that man has begun an enormous process of awareness and proper use of the land and its resources. Sustainable development, (Satisfying our needs without endangering the satisfaction of the needs of future generations), is a common conversation today, and many countries in the world are aware that the earth's clock is running out, thanks to the indiscriminate use of it and the mismanagement of natural resources. That is why knowing how to use natural resources efficiently is not only an economic necessity, but a social necessity. By means of agricultural accounting, we can realize if our activity is directly affecting the environment, or if we are overexploiting the land, it is enough to make a good analysis of the results it yields.
That is why we can affirm that agricultural accounting, in support of environmental accounting, determines the environmental income and costs, allowing us to know the steps to follow to improve the use and treatment that we are giving to the planet. It is not only enough to know how much income was generated with the crops, but to have enough information to be able to generate what is necessary without compromising the land, so that it has the necessary time to regenerate and be ready for planting again, that is, to satisfy our needs without compromising the satisfaction of the needs of our future generations.
Some time ago I read that there was a Blockchain project that allowed to track the entire movement of agricultural production, since it was extracted until its end in the market, which would allow absolute control of the entire process, and the possibility of more and better monitoring and recording. I did not follow this project, and have no idea if it is already being implemented, but I assume they must be working on it.
Blockchain would also be a great tool to achieve better control of data.