Theory question 110
Farm Management and Records(a) Define the following terms as used in agricultural economics: (i) Assets; (ii) Liabilities.
(b) Mention three problems encountered by farmers in obtaining agricultural credits.
(c) Enumerate four roles of an agricultural extension agent.
(d) Outline five roles of farmer co-operative societies in agriculture.
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(a)(i) Assets: everything of value owned by the farm business (land, buildings, animals, machines, cash, debts owed to it).
(ii) Liabilities: debts and obligations the farm owes to others (loans, unpaid bills, taxes payable).
(b) Any three: lack of collateral; high interest rates; cumbersome procedures and paperwork; illiteracy; delays in releasing loans; few lending institutions in rural areas; small farm size.
(c) Any four: teach farmers improved practices; demonstrate new techniques; link farmers with research; help farmers obtain inputs and credit; organise farmers' groups; advise on marketing and record keeping.
(d) Any five: give loans to members; supply inputs at lower cost; joint marketing for better prices; provide storage and processing facilities; educate members; hire out machines; bargain with government and buyers; encourage savings.
Five distinct roles in (d).