Theory question 109
Basic Agricultural Economics(a) State and discuss briefly four factors of production in agriculture.
(b) List four functions of a farm manager.
Show the model answer
Model answer
(a) Land: all natural resources (soil, water, minerals) used in farming; reward is rent
Labour: human effort, physical or mental, family or hired; reward is wages
Capital: man-made assets used in production – tools, machines, buildings, money; reward is interest
Management/entrepreneur: organises the other factors and bears the risk; reward is profit
(b) Any four: planning; organising; decision making; coordinating/supervising; record keeping; marketing produce; controlling/evaluating; staffing
Explanation
Each factor needs a meaning and an example; functions can be listed.