Farm management UE Past Papers Questions.

1. Outline how capital for investment in agriculture and related projects can be acquired and associated limitations
2. Give 4 (four) types of agriculture loan repayment plans
3. You have US$27,000 loan to be paid over 7 periods in equal installments. Fill in the Table below.

Answer / Solution

UNSOLVED

1. Briefly discuss the main financial needs of potential investors and the lenders
2. What is assets ownership cost. Define depreciation as per IAS 16 Plant Property and Equipment,
3. Why should managers keep records in the farm.

Answer / Solution

UNSOLVED

1. Define partial budget
2. Suppose you are conducting a research and you want to advise cashew smallholder farmers who currently use chemical insectcides to change to weaver and technology. Do a partial budget analysis of trees colonized by weaver and versus trees sprayed with normal chemical insectcides using the information below then answer the questions that follows.

1. What will be the new or added benefits?
2. What costs will be reduced or eliminated?
3. What will be the new or added costs?
4. What revenue will be reduced or lost?
5. What is the next benefit and benefit/ cost ratio?

Answer / Solution

UNSOLVED

1. Outline how capital for investment in agriculture and related projects can be acquired and associated limitations.
2. Give 4(four) types of agriculture loan repayment plans
3. You have US$ 20,000 loan to be paid over 7periods in equal installments. Fill in the table below.

Answer / Solution

UNSOLVED

1. Whar is the strength of LP compared to other farm management tools
2. Read the following information

1. Farm that produces Apples(x) and Oranges(y)
2. Each crop needs land, fertilizer, and time
3. 6 acres of land
4. 6 tons of fertilizer
5. 8 hour work day:
6. Apples sell for twice as much as oranges i.e 500 US$ compared to 250 US$/ acre
7. We want to maximize profit(z):2x+y=z
8. We can`t produce negative

• Formulate the LP problem
• By using graphical method advise the farmer the optimal crops combination that He /she must considered in the plan (production) if the objective is maximize profit within the limits of available resources. What is the revenue of the optimal production level?

Answer / Solution

UNSOLVED