Theory question 110
Farm Management and Records(a) State two methods of calculating depreciation of farm machines
(b) List four roles of capital in agricultural production
(c) Explain five major roles played by middlemen in the marketing of agricultural produce
Show the model answer
(a) Any two: straight-line method; reducing (declining) balance method; sum-of-the-years'-digits method; revaluation method
(b) Any four: buys land and inputs (seeds, fertilizer, feed); buys machines and equipment; pays wages; builds farm structures; makes expansion possible; allows adoption of new technology
(c) Any five: buy produce in bulk from scattered farmers (assembling); transport produce to markets; store produce till needed; grade, process and package; give credit/advance payment to farmers; provide market information; bear risks of price changes and losses; distribute to retailers and consumers
Name two methods; explain each middleman role.