AGRICULTURAL MANAGEMENT PRACTICES
FEBRUARY/MARCH 2016
MEMORANDUM

MARKS: 200

SECTION A

QUESTION 1

1.1  Multiple-choice questions

1.1.1 D √√
1.1.2 C √√
1.1.3 B √√
1.1.4 A √√
1.1.5 B √√
1.1.6 A √√
1.1.7 D √√
1.1.8 C √√
1.1.9 C √√
1.1.10 D √√
(10 x 2)
(20)

1.2 Matching items
1.2.1 D √√
1.2.2 F √√
1.2.3 A √√
1.2.4 L √√
1.2.5 B √√
1.2.6 H √√
1.2.7 C √√
1.2.8 J √√
1.2.9 K √√
1.2.10 E √√
(10 x 2)
(20)

1.3 Correct agricultural term
1.3.1 Selective grazing √
1.3.2 Extensive system √
1.3.3 Yield √
1.3.4 Sterilising √
1.3.5 Mechanisation √
1.3.6 Short-term credit √
1.3.7 Budget √
1.3.8 Supply and demand √
1.3.9 Planning √
1.3.10 Cooperative √
(10 x 1)
(10)
TOTAL SECTION A: 50

SECTION B

QUESTION 2: PHYSICAL AND FINANCIAL PLANNING

2.1.1 FOUR effects of ill health on productivity

• Absenteeism from work √
• Loss of productive time during medical treatments √
• Work overload on healthy workers √
• Loss of experience √
• Increase in medical costs for the business √
• Lower profit margins √ (Any 4) (4)

2.1.2 The Unemployment Insurance Act, 2001 (Act 63 of 2001)

• It makes provision for the security of farm workers √
• When they become unemployed through illness, resignation, dismissal or retrenchment √ (2)

2.2 Items that must be included in a service contract

• The full name and address of the employer √
• The name and occupation of the employee √
• The date of commencement of services √
• Working day and working hours √
• Remuneration and overtime remuneration √
• Leave conditions √ (Any 5) (5)

2.3 Functions of soil as a resource in agricultural production

• Medium for plant growth/provides anchorage to plants √
• Supplies mineral/elements to the plants √
• Keeps and supplies moisture to the plants √
• Habitat for beneficial and non- beneficial micro- organisms √
• It plays a recycling function for polluted water and air √ (Any 4) (4)

2.4.1 Best methods of disposing chemical containers

• Incineration √
• Bury containers deep into the soil √
• Sending the containers back to the manufacturing company for reusing/ recycle √ (Any 2) (2)

2.4.2 Effects of incorrect application of chemicals on soil and environment

• Soil degradation √
• Environmental pollution √
• Kills soil organisms √
• Underground water pollution √
• Surface water pollution √
• Drastic change in the soil reaction √ (Any 4) (4)

2.5 Soil quality

• Fertility √
• Water holding capacity √
• Physical activity √
• Ability to erode √ (Any 3) (3)

2.6 Functions of contours in relation to control of soil erosion

• By shortening the slope length the rate and quantity of water flow will be reduced √
• Changes the angle of running water to be slower √ (2)

2.7.1 Advantages of using GPS in farm operations

• Saving of inputs √
• Application of input where it is required √
• Saving money √
• Optimal resource utilisation √  (Any 3) (3)

2.7.2 The abbreviation GPS in full

• Global Positioning System √  (1)

2.7.3 Farming system that utilises GPS

• Precision farming √ (1)

2.7.4 Definition of the term grid cell

• Is the division of an agricultural field into small units √
• For the purposes of soil sampling and soil analysis √ (2)

2.7.5 Type of data that can be obtained from grid cell

• pH status √
• nutrient status of the soil √
• Soil form/series √
• Soil type  √ (Any 2) (2)

2.8 Precautions to adhere to when using farm implements and machinery

• Always wear appropriate protective clothing √
• Never touch a moving part of a machine √
• Make sure people are safe when coupling implements √
• Make sure gears, pulleys are protected by a safety guard √
• Only one person should be allowed on the tractor/implement √
• Make use of correct tools for every operation √ (Any 4) (4)

2.9.1 THREE primary aims of a budget for a farm business

• To set limits on the amounts to be used for farming activities √
• To obtain credit on time √
• To coordinate resources and money spent as planned √
• To help determine whether to expand the business or not √ (Any 3) (3)

2.9.2 Advantages of a cash flow budget

• Provides a guideline for farming expenses
• Informs the source of money
• Prevents impulsive purchases by the farmer
• Informs how much money is available each week or month (4)

2.10 Sources of information available to the farmer

• Websites √
• Publications from commodity associations √
• Agricultural extension services √
• Farmers’ information days √
• Publications from financial institutions √
• News media (newspapers, radio or television) √ (Any 4) (4)
  [50]

QUESTION 3: ENTREPRENEURSHIP, RECORDING, MARKETING AND BUSINESS PLANNING

3.1.1 THREE reasons for developing a business plan

• To test the feasibility and economic viability of the business idea √
• To determine your financial needs √
• To guide daily operations √
• To ensure effective business management √
• To allow you to foresee problems √
• To gain knowledge about marketing opportunities √
• To reposition the business √ (Any 3) (3)

3.1.2 TWO internal factors and TWO external factors from the SWOT analysis

1. Internal factors
   • Strengths √
   • Weaknesses √ (2)
2. External factors
   • Opportunities √
   • Threats √ (2)

3.2.1 Definition of entrepreneurship

• It is the process of discovering, evaluating and exploiting opportunities √
• To start and grow a new business √ (2)

3.2.2 THREE characteristics of entrepreneurs

• Strong self- belief/confidence √
• Takes risks √
• Initiates things/self- starter √
• Good people skills √
• Handle responsibilities √
• Hard worker √
• Visionary √
• See opportunities √
• Decision maker √
• Reliable √
• Energetic √
• Management skills √ (Any 3) (3)

3.3.1 Primary business

• Producing an agricultural raw product √ (1)

3.3.2 Secondary business

• Processing of the agricultural raw product on the farm into another product √
• Processing the raw product to make it more acceptable for the consumer √ (Any 1) (1)

3.3.3 Tertiary business

• Service delivery to tourists/customers visiting the farm √ (1)

3.4 Aim of keeping records by a farmer

• Setting objectives for the enterprises √
• Planning and implementing farming activities √
• Planning for the future √
• Creating a data base (history) for the farm √ (Any 2) (2)

3.5 Table of advantages and disadvantages of using computers

3.6 Information about each farm worker

• The farm worker's name and ID number √
• Personal information √
• Date of employment √
• Presence/Absence from work √
• Annual/Sick leave √
• Working hours and over- time √
• Contract of employment √
• 'In Natura' payment  √ (Any 3) (3)

3.7 Aspects in a log book for all farm machinery and implements

• Date of purchase √
• Price of the item purchased √
• Annual depreciation on items bought √
• Quantity of each item bought, lost, replaced, and stock √ (Any 2) (2)

3.8.1 An inventory

• An inventory form is used to provide the farmer with a complete list of all assets belonging to the farming enterprise. √ (1)

3.8.2 A cheque

• A cheque is used to withdraw cash from the bank or it can be used to pay for services/goods rendered. √ (1)

3.8.3 An invoice

• An invoice is used to document the sale of goods. √ (1)

3.9 TRIAL BALANCE OF VEGETABLE FARMING COOPERATIVE ON 31 OCTOBER 2014

3.10 Factors which determine the economic viability of a farm

• Output per season √
• Price obtained per unit √
• Costs of inputs √ (Any 2) (2)

3.11 Wholesalers and commission agents

• Wholesalers transfer goods from producers to retailers by handling quantities of product as large as possible at lower prices √
• Commission agents operate on behalf of wholesalers/producers at a certain percentage as commission √ (2)

3.12.1 Marketing system

• Free marketing √ (1)

3.12.2 Marketing aspect

• C √

Reasons

• The most intermediaries are used √
• The product has been value added √ (3)

3.12.3 Marketing channel

• Farm stall marketing √ (1)

3.13 Methods of setting prices

• Cost/Pricing plus % profit √
• Competition oriented/going rate pricing/Market oriented pricing √
• Cost plus two times labour/labour plus two times cost √
• Supply and demand √
• Break – even – point  √(Any 2) (2)

3.14.1 Calculate gross income

• Gross income = 4 ton x 10 ha x R3 000/ton √
  = R120 000 √ (2)

3.14.2 Calculate break- even point

• Yield break even point=(FC+VC)/SP
• Yield break even point=(𝑅4 000+𝑅2 000)/𝑅3 000 √
  = 2 ton/ha √ (2)
  
  [50]

QUESTION 4: HARVESTING, PROCESSING, AGRITOURISM AND MANAGEMENT

4.1 Importance moisture content at harvesting

• Moisture contributes to mass according to which payment is done √
• High moisture content cause produce to be susceptible to fungal attack √
• High moisture content promotes rotting √ (Any 2) (2)

4.2. Tabulate advantages and disadvantages of storing perishable crops

(4)

4.3.1 Meaning of the term value adding

Means taking a raw material and processing it √
OR
Adding something to it to change raw material into a saleable item that would be purchased by a specific group of customers √ (2)

4.3.2 Advantages of value adding in agribusiness

• Increase the prize you get for your raw material/higher income √
• Available throughout the year √
• Longer shelf life √
• You are master of your own destiny/determine the income √
• Creates goodwill value √
• Job creation √ (Any 2) (2)

4.3.3 Financial sustainability of a value added farming enterprise

• The farmer identifies a gap in the market and through processing value is added to a raw product. √
• The new value added product can generate an income which may contribute to the financial viability of the farm √
  (2)

4.4.1 Conditions under which microbes will not survive

• Environment which is dry √
• Where temperatures are low (cold) √
• Where temperatures are very high (heat)
• Where there is no oxygen √
• Where chemicals are present √ (Any 4) (4)

4.4.2 Food products from fermentation

• Yeast products like bread/wine/beer √
• Vinegar √
• Cheese √
• Yogurt √ (Any 2) (2)

4.5.1 Exporting

• When products from one country is moved/sold to other countries for consumption or use. √ (1)

4.5.2 Liability on export products

• Latent defects √
• Faulty descriptions √
• Manufacturing defects √
• Faulty shipments √
• Inappropriateness of the article for the purpose √ (Any 2) (2)

4.6 Rules and regulations to be followed during the transport of animals

• A non-slip floor (of truck or trailer) √ – to prevent animals from falling and hurting themselves √
• Adequate sidewalls of truck or trailer √ – to prevent animals from falling from vehicle √
• Height between decks in multi-tier vehicles should be adequate √ – to enable larger animals to stand fully erect and to allow free flow of air √
• Vehicle must be spacious √ – to ensure the safety of the animals during transportation √ (8)

4.7 Role of local communities in agritourism

4.7.1 Empowerment of community

• Community develops its own eco-attraction and provides employment for the whole community √
• Money spent by tourists filter through to the whole community √ (2)

4.7.2 Involvement by community members:

• Community members must work hand in hand with agritourism operators √
• They must conserve the environment by creating an area which is safe and attractive to tourists √ (2)

4.7.3 Awareness of agritourism

• Individuals become environmentally sensitive and try to preserve indigenous plants √
• Work towards development of land for agritourism, selling of local craft to tourists and make the area a friendly one √ (2)

4.8.1 Steps a farmer has to implement for efficient control

• Setting standards √
• Measuring and evaluating achievements √
• Measurements plus review of variances √
• Correction to achieve standards √ (4)

4.8.2 Advantages to the farmer through the application of control measures

• Deviation from planned activity brought to the attention of the manager √
• Time and money are saved through speedy intervention √
• Any problem which occur can be attended to in due time √
• Production process is not interrupted √ (Any 3) (3)

4.9 Reasons for re-planning an enterprise in the farm business

• Changes in technological and biological relationships √
• Changes in the pattern of resources √
• Labourers resign √
• New inputs in the market √
• Changes in prices √
• Prices of certain inputs rise, e.g. fertiliser √
• Risks and uncertainties √
• Changes in weather patterns √ (Any 5) (5)

4.10 Ways that farm business promote well-being of workers

• By being involved in social community programmes √
• By implementing skills development programmes in the workplace √
• Promoting safety in the workplace √
• Providing learnerships for employees √
• Giving bursaries to children of their employees √ (Any 3) (3)
  
  [50]
  TOTAL SECTION B: 150
  GRAND TOTAL: 200