Farmyard manure refers to the decomposed mixture of dung and urine of farm animals along with litter and left over material from roughages or fodder fed to the cattle. On an average well decomposed farmyard manure contains 0.5 percent N, 0.2 percent P2O5 and 0.5 percent K2O. The present method of preparing farmyard manure by the farmers is defective. In this article we are going to see what is FYM, how does it make, suitable and proper method of preparation of FYM and see several ways of losses incurred during handling and collection of FYM and ways to reduce those waste.