AGRICULTURAL MANAGEMENT PRACTICES
GRADE 12 
NSC PAST PAPERS AND MEMOS
FEBRUARY/MARCH 2018

INSTRUCTION AND INFORMATION 

1. This question paper consists of TWO sections.
2. Answer ALL the questions in the ANSWER BOOK. 
3. Read the questions carefully and answer only what is asked. 
4. Number the answers correctly according to the numbering system used in  this question paper.
5. You may use a non-programmable calculator.
6. Write neatly and legibly.

QUESTIONS 

SECTION A 
QUESTION 1 
1.1 Various options are provided as possible answers to the following questions.  Choose the answer and write only the letter (A–D) next to the question  number (1.1.1–1.1.10) in the ANSWER BOOK, for example 1.1.11 D. 
1.1.1 A written plan that shows the future actions with regard to possible  income and expenditures of a farming enterprise: 

1. Budget
2. Trial balance
3. Balance sheet
4. Cash flow statement 

1.1.2 The farm management component that involves the grouping of  actions that will improve the productivity of a farming enterprise: 

1. Decision-making
2. Coordination 
3. Organisation
4. Control 

1.1.3 The type of capital that a farmer uses to buy livestock and farming  implements: 

1. Fixed capital
2. Floating capital
3. Movable capital
4. Working capital 

1.1.4 The return received by a farming enterprise after all operating  expenses have been paid: 

1. Net farm income
2. Farm profit 
3. Gross margin
4. Variable cost 

1.1.5 A written plan recording the production and financial decisions in  a production enterprise: 

1. Business plan
2. Budget
3. Business advertisement
4. Business image

1.1.6 The relative change in quantity demanded associated with a  relative change in price. 

1. Inelastic demand
2. Inelastic supply
3. Demand elasticity
4. Supply elasticity 

1.1.7 The following does NOT affect an increase in local marketing  costs: 

1. Packaging of food
2. Export tax
3. Processing of food
4. Marketing service 

1.1.8 The person who buys products from producers, processors and  other marketing intermediaries for resale: 

1. Retailer
2. Stockbroker
3. Agent
4. Wholesaler 

1.1.9 The following marketing approach is used by cooperatives: 

1. Buy in bulk and sell in small scale
2. Buy in small scale and sell in small scale 
3. Buy in small scale, combine produce with other cooperatives  and sell in bulk 
4. Buy in bulk and sell in bulk 

1.1.10 … is used for easier handling of agricultural products. 

1. Packaging 
2. Processing 
3. Standardisation
4. Grading (10 x 2) (20)

1.2 Choose a description from COLUMN B that matches a term  in COLUMN A. Write only the letter (A–L) next to the question number  (1.2.1–1.2.10) in the ANSWER BOOK, for example 1.2.11 M. 

(10 x 2) (20)

1.3 Give the CORRECT agricultural term for each of the following descriptions.  Write only the term next to the question number (1.3.1–1.3.10) in the  ANSWER BOOK, for example 1.3.11 Recording. 

1.3.1 Credit required for the acquisition of movable capital, such as  vehicles, equipment, breeding stock and machinery 
1.3.2 The cost of labour or material which increases with every item  produced or every service rendered 
1.3.3 The process where the farmer ensures that the actual activities  correspond with the production plan 
1.3.4 An activity by farmers and processors to ensure that produce  reaches every part of the country 
1.3.5 The drive for behaviour that is caused by human characteristics, such as the quest for power, the need for the feeling of belonging  or the desire for profit 
1.3.6 The system where all the products produced are placed together  and handled in bulk by the cooperative to sell the product 
1.3.7 The costs that farm producers must incur from preparation of soils  up to harvesting of the products 
1.3.8 The function where a producer exchanges produce for capital 
1.3.9 Starting a new business by innovative individuals who respond to  opportunities in the industry 
1.3.10 The entrepreneurial skills involving leadership, networking and  teamwork (10 x 1) (10) 

TOTAL SECTION A: 50

SECTION B 
QUESTION 2: PHYSICAL AND FINANCIAL PLANNING 
Start this question on a NEW page. 
2.1 The diagram below represents soil depth in crop production. 

2.1.1 Redraw the table below in the ANSWER BOOK to compare soil A  and soil E with reference to the given criteria:  (8) 

2.1.2 Choose between legumes and cereal crops and indicate which  ONE will grow the best in: 

1. Soil A (1) 
2. Soil B  (1) 

2.2 Give FOUR reasons why livestock farmers prefer sweet veld over sour veld  for grazing. (4) 
2.3 Describe THREE disadvantages of an intensive farming system on soil as a  result of the overuse of water and agrochemicals. (3)
2.4 Redraw the table below in the ANSWER BOOK to classify different types of  pastures into artificial (planted) and natural pastures. 
Types of pastures: 

• Clover
• Grassland
• Legumes
• Perennial grasses
• Scrub
• Savannah  (6) 

2.5 Farmers lose farm workers because of ill health. The result is that the farmer  has to employ and train new workers which means cost have to be incurred. 

2.5.1 Explain THREE methods that a farmer can use to reduce the risk  of losing income due to the ill health of farm workers. (3) 
2.5.2 Name THREE items that must be included in the ill-health policy  and programme of a farm business. (3) 

2.6 Study the cartoon below and answer the following questions. 

2.6.1 Categorise the different types of capital mentioned in the cartoon  above. (6) 
2.6.2 Advise the farmer on how he/she can obtain extra money to  purchase items needed on the farm. (1) 
2.6.3 State THREE important requirements for a farm business to qualify  for long-term credit. (3) 
2.6.4 Briefly explain the difference between the following sources of  capital: 

1. External sources  (2)
2. Internal sources (2) 

2.7 Farmers should keep accurate farm records to enable them to manage the  finances of the farm. 
2.7.1 List FOUR prerequisites that enable the farm manager to compile  the next Cash Flow Budget. (4) 
2.7.2 Describe THREE valuable comparisons a farmer can make from  the budget and the financial statement for the same period. (3) [50]

QUESTION 3: ENTREPRENEURSHIP, RECORDING, MARKETING, BUSINESS  PLANNING AND ORGANISED AGRICULTURE 
Start this question on a NEW page.
3.1  

Name FIVE labour-related records that need to be kept. (5) 
3.2 List FOUR data items that are reflected in source documents required to  complete the farm's financial accounts. (4) 
3.3 Use the information on a vegetable enterprise below to complete the Income  Statement for the year ending 31 December 2017. 

3.3.1 Draw up an Income Statement using the headings in the table  below. Write the information given above in the appropriate  columns and calculate the totals. 
INCOME STATEMENT FOR YEAR ENDING 31 DECEMBER 2017  (4) 

3.3.2 Calculate the profit or loss for the year ending 31 December 2017.  Indicate whether it was a profit or loss. (2) 
3.4 Define the following agricultural terms as they are used in financial  management: 
3.4.1 Break-even point (1)
3.4.2 Debtor (1)
3.5 The Balance Sheet is a measure of what a business is worth and where the  total assets are equal to the total liabilities.  
A crop farmer had the following balances in his/her books on 31 August 2017: 

Use the data in the financial records above to fill in the missing information in  the balance sheet below. Write down the information next to the question  number (3.5.1–3.5.6) in the ANSWER BOOK. (6) 

3.6 A strategic marketing plan is part of a business plan for an agricultural  enterprise. It integrates all business activities and resources logically to meet  customer needs and to generate profit. To eliminate mistakes during the  marketing process it is important to acquire the correct information. 
3.6.1 Give reasons why it is important to compile a strategic marketing  plan for an agricultural enterprise. (2) 
3.6.2 Compile a list of questions that you would use to collect information  for a strategic marketing plan. (5)
3.7 A business plan is important to direct a new business. 
3.7.1 Describe FOUR basic features of a business plan in relation to the  product. (4) 
3.7.2 Name FOUR aspects that a farmer will consider with regard to the  place to sell his/her agricultural products. (4) 
3.8 The table below represents the supply and demand of a crop. 

3.8.1 Draw a line graph of the data in the table above that represents the  supply and demand for this crop. (5) 
3.8.2 Indicate the price of the product at the point of market equilibrium. (1) 
3.8.3 Briefly discuss TWO possible reasons for the shortage of the  product in the market at specific times. (2) 
3.8.4 Briefly explain the TWO strategies the farmer could use to deal  with product shortages at certain times as mentioned in  QUESTION 3.8.3. (4) [50]

QUESTION 4: HARVESTING, PROCESSING, MANAGEMENT AND AGRITOURISM
Start this question on a NEW page. 
4.1 The planning stage is critical for the success of the harvest. 
4.1.1 List FOUR factors that a farmer should take into consideration  during the harvesting of a crop. (4) 
4.1.2 Describe TWO basic principles of post-harvest handling of a crop. (2) 
4.2 

4.2.1 Identify the storage facility shown in the picture above. (1) 
4.2.2 State THREE environmental factors that can be controlled in the  storage facility mentioned in QUESTION 4.2.1. (3)
4.3 Redraw the table below in the ANSWER BOOK. To demonstrate your  understanding of the concepts of sorting and grading, place the statements  listed below under the correct headings in the table. 

• Removal of undesirable additional materials, for example leaves or  stones, at first sight
• The assessment of a number of characteristics of a product to obtain an  indication of its overall quality
• An expensive process due to the long procedure of setting standards
• Separation of raw materials into categories on the basis of shape, size,  weight, image and colour
• Segregating grains, fruit or vegetables into marketable and unmarketable  products
• Requires skilled personnel  (6) 

4.4 The demand for processed agricultural products is higher than for raw  agricultural products. 
4.4.1 State THREE fermentation processes that can be used to preserve  products. (3) 
4.4.2 Cooling is one of the processes to preserve agricultural products.  Explain the effect of moisture in the cooling process. (2) 
4.5 A schematic presentation of an agribusiness chain can be drawn from the  primary agricultural sector to the secondary agricultural sector and to the  consumer. 
4.5.1 Classify the following into the correct agricultural sector: 

Use only ONE enterprise as an example to draw the schematic  presentation in your ANSWER BOOK using the following format: 
(3) 
4.5.2 State THREE tertiary-sector inputs that assist the primary and  secondary sector in handling and marketing produce to the  consumer. (3) 
4.6 State THREE main functions of packaging materials in the handling of  perishable products. (3) 
4.7 Name TWO factors that will indicate the viability of value-adding of products  on a farm. (2) 

4.8 
4.8.1 Define the term product route as it is used in agritourism. (2) 
4.8.2 Identify TWO activities in the scenario that are of interest to  tourists. (2) 
4.8.3 Give THREE aspects that illustrate the educational potential of the  agritourism venture above. (3) 
4.8.4 Identify THREE entrepreneurial characteristics displayed in the  scenario above. (3) 
4.9 In modern farming ventures, the management of a farm has become the main  determinant for a successful and economically viable enterprise. 
4.9.1 Briefly discuss FOUR roles of the farm manager in maintaining the  financial viability of an agricultural enterprise to achieve financial  sustainability. (4) 
4.9.2 Name the FOUR basic types of coordination. (4) [50] 

TOTAL SECTION B: 150 
GRAND TOTAL:  200