You start with five basic tools: a hammer, a hoe, a sickle, an axe and a watering can. All tools are stored inside the tool box in your farm house at the beginning of the game. Thomas will also put a pedometer inside the tool box at the beginning of the game. It counts the number of steps you've taken as long as it's inside your rucksack. The sixth tool, fishing rod, can be received from Zack in his house on Mineral Beach. He finds his old fishing rod inside one of the wooden box and give it to you. All tools can be stored inside the tool box in your farm house if you wish not to carry them around and you can take them out again whenever you need them.
Other tools are available via event/purchase from shop.
Fishing rod: received from Zack in his house on Mineral Beach. You need to have at least one empty tool slot in your bag.
Brush: bought from Saibara's blacksmith shop for 800 G.
Milker: bought from Saibara's blacksmith shop for 2000 G
Clippers: bought from Saibara's blacksmith shop for 1800 G
Bell: bought from Yodel Ranch for 500 G
Non-permanent tool / one use only:
Animal medicine: use to heal your sick animals. Can be purchased on Poultry Farm and Yodel Ranch for 1000 G each.
Cow miracle potion: use to make your adult cow pregnant. Can be purchased on Yodel Ranch for 3000 G.
Sheep miracle potion: use to make your adult sheep pregnant. Can be purchased on Yodel Ranch for 3000 G.
There are seven levels of every tool in the game: Tools upgrade can be done via Saibara's blacksmith if you bring him a certain ore and have enough money and experience points to upgrade them.
Each tool has an upgrade gauge that can be seen in your farm asset list (press SELECT and left directional button). It will list all six main tools and the experience points they have. Everytime you use a tool, the experience points of the said tool will increase. When the experience points hit 100%, the tool can be upgraded to the next level. A colored dot will appear below the gauge and the gauge will reset to 0. The color of dot corresponds to the ores you can use to upgrade the tools.
Brown - Copper (appear when exp. points = 100%)
Silver - Silver (appear when exp. points = 200%)
Gold - Gold (appear when exp. points = 300%)
Blue - Mythril (appear when exp. points = 400%)
If you want to upgrade a tool, then you need to have enough experience points and the right ore to upgrade it. The ore can be dug in the Spring Mine. Bring the tool and the ore to Saibara the blacksmith and he will charge you fees for using his service.
Note: You CAN skip level if you want to. For example, you can upgrade your sickle directly to silver sickle without upgrading it to copper sickle beforehand as long as you have enough experience points to do so (200% - silver dot). The advantage is that it will save you some money required to upgrade your tool. However, the disadvantage is you have to spend more time using the iron tool which is less efficient than the copper tool.
The tool levels are:
Iron: This is what your first tools are made of. They aren't very strong, so it would be a good idea to mine some ores and upgrade them.
Copper: These are a little stronger than iron tools. Upgrade requires a copper ore and 1000 G.
Silver: These are stronger than copper tools. Upgrade requires a silver ore and 2000 G.
Gold: A little more difficult to find than silver and stronger than silver tools. Upgrade requires a gold ore and 3000 G.
Mythril: The best tools you'll get without trying to find the cursed tools and much stronger than gold tools. Upgrade requires a mythril ore and 5000 G.
Cursed: Can be found when digging in lake mine (the mine which only accessible in winter)
Blessed: You must remove the curse from your cursed tools by doing specific tasks.
Mythic: The best tools in the game. Upgrade requires your blessed tools, a mythic stone and 50000 G