Theory question 110
Basic Agricultural Economics(a) State the law of diminishing returns in agricultural production.
(b) The table below shows the relationship between quantities of fertilizers used and the corresponding yields of sorghum.
Quantity of fertilzer (bags): 0, 6, 12, 18, 24, 28, 32, 36, 40, 46
Sorghum yield (kg): 8, 30, 50, 90, 140, 170, 190, 200, 200, 190
(i) Use the table to draw an input - output graph. (ii) Explain the relationships between fertilizer input and sorghum yield.
(c) Enumerate four functions of an agricultural extension agent.
(d) State five benefits of commodity boards in the marketing of agricultural produce in West Africa.
Show the model answer
(a) When more and more units of a variable input are added to a fixed input, total output first rises at an increasing rate, then at a decreasing rate, and finally falls.
(b)(i) Plot fertilizer (bags) on the horizontal axis and sorghum yield (kg) on the vertical axis, plot the ten points and join them with a smooth curve with a title and labelled axes.
(ii) From 0 to about 24 bags, yield rises at an increasing rate (increasing returns); from about 24 to 36–40 bags it rises at a decreasing rate (diminishing returns); maximum yield of 200 kg is reached at 36–40 bags; beyond 40 bags yield falls (negative returns), so extra fertilizer is wasteful.
(c) Any four: teach farmers improved practices; demonstrate new technologies; carry farmers' problems to researchers; help farmers get inputs and credit; organise farmers into groups/co-operatives; advise on marketing and record keeping.
(d) Any five: guaranteed/stable prices for farmers; provide market for produce; maintain quality through grading; fund research and development; provide storage and processing; earn foreign exchange; give credit/subsidies to farmers.
In (b)(ii) mark the three stages of returns on the curve.