Theory question 106
Farm Management and Records(a) A farmer purchased a tractor in the year 2000 for D12,000.00. In 2009, the tractor was sold for D3,000.00 as it was no longer economical to keep. Calculate the: (i) useful life of the tractor; (ii) salvage value of the tractor; (iii) total depreciation of the tractor; (iv) annual depreciation of the tractor.
(b) Describe the following terms as used in agricultural economics: (i) demand schedule; (ii) supply curve.
(c) List four agricultural extension agencies in West Africa.
(d) State four ways through which soils are enriched with nitrogen.
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(a)(i) 2009 − 2000 = 9 years.
(ii) D3,000.00.
(iii) 12,000 − 3,000 = D9,000.00.
(iv) 9,000 ÷ 9 = D1,000.00 per year.
(b)(i) Demand schedule: a table showing the quantities of a commodity consumers will buy at different prices at a given time.
(ii) Supply curve: a graph showing the quantities producers will offer for sale at different prices; it slopes upward from left to right.
(c) Any four: ministries of agriculture (extension departments); agricultural development programmes (ADPs); universities and research institutes; NGOs; farmers' co-operatives; commercial firms (agro-chemical/seed companies); international agencies (FAO, IITA).
(d) Any four: nitrogen fixation by Rhizobium in legumes; free-living bacteria (Azotobacter, Clostridium); lightning; nitrogen fertilizers; organic manure and compost; decay of organic matter; rain.
Show each depreciation step.