(a) State three functions of a farm manager. [3 marks]
(b) Explain the following terms as used in agricultural economics: (i) appreciation (ii) salvage value (iii) farm budget (iv) farm inventory [8 marks]
(c) State five qualities of a good agricultural extension agent. [5 marks]
(a) Functions of a farm manager
-Marketing functions (e.g. quantity of produce to sell and price )
-Short and long term decision making
-Planning of operations
-Organizing
-Directing/leading
-Supervising
-Coordinating
-Evaluating/Monitoring •
-Budgeting
-Ensures adequate record keeping
-Staffing (recruitment, training, motivation, fixing salaries)
(b) Explanation of terms used in Agricultural Economics
(i) Appreciation: - Is the increase in the value of asset overtime
- Young animals, growing crops, lactating animals, cash crops and land can all appreciate in value over time.
(ii) Salvage value: - This is the amount of money received from the disposal of fixed assets after their normal useful life. •
-An asset may depreciate to an extent that it attracts little value.
- When there is uneconomic value on an asset, it is termed obsolete and therefore sold off as scrap
- Assets like machinery, motor vehicle, equipment and implements which depreciate can have salvage value.
(iii) Farm budget
- This is the estimated future income and expenditure of farm operations.
-The budgeting technique helps the farmer to select the most profitable plan from among competitive alternative plans
-It also helps to check the profitability of any economic change in farm plan
(iv) Farm inventory
-It is the listing of all assets on the farm and their money worth
-This is normally carried out at the close of farming season and at the beginning of farming season
-The inventory book will show details such as quantity of item, date of purchase, price and other useful information.
(c) Qualities of a good agricultural extension agent
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