Theory question 101
Agricultural Finance(a) Differentiate between credit and subsidy in agricultural finance.
(b) Name five agricultural inputs that are subsidised by the government.
(c) Mention six periodic maintenance practices on a tractor.
(d) State five precautions that should be taken when operating farm machinery.
Show the model answer
(a) Credit is a loan given to a farmer that must be repaid (usually with interest) over a period; a subsidy is a non-refundable part-payment or aid from government that lowers the cost of inputs or services.
(b) Any five: fertilizers; improved seeds/seedlings; agrochemicals (pesticides, herbicides); improved breeds/day-old chicks; veterinary drugs and vaccines; tractors and implements/tractor hire; irrigation equipment; feeds.
(c) Any six: change engine oil; change oil and fuel filters; grease/lubricate moving parts; check and adjust fan belt tension; recharge or service the battery; tighten loose nuts and bolts; replace worn parts; adjust brakes and clutch; clean or change the air filter; check hydraulic oil level; paint to prevent rust.
(d) Any five: follow the manufacturer's manual; only trained operators should drive; wear protective clothing; keep machines in good working order; do not operate when tired, sick or drunk; keep a first aid kit; take care when hitching implements; keep bystanders away; obey road safety rules and use lights/reflectors.
Credit is repaid; a subsidy is not.