Theory question 106
Farm Management and Records(a) Explain each of the following terms as used in farm management (i) farm inventory; (ii) depreciation; (iii) liability; (iv) salvage value.
(b)(i) State the law of supply. (ii) Mention three factors that affect the supply of farm produce.
(c) Give five effects of weeds on farm animals.
Show the model answer
(a)(i) Farm inventory: a complete list of all the assets of a farm (land, buildings, machinery, livestock, stores) with their values at a given date.
(ii) Depreciation: the fall in value of a farm asset through use, wear and tear or age over time.
(iii) Liability: a debt the farm owes to outside parties, e.g. loans, overdrafts and unpaid bills.
(iv) Salvage value: the value of an asset at the end of its useful life (its scrap or resale value).
(b)(i) The higher the price of a commodity, the greater the quantity supplied, and the lower the price, the smaller the quantity supplied, other things being equal.
(ii) Any three: price of the produce; cost of inputs/production; technology; weather/climate; pests and diseases; prices of other products; government policy (taxes, subsidies); number of producers.
(c) Any five: some weeds are poisonous; reduce the amount and quality of pasture; harbour pests and parasites (e.g. ticks); thorny weeds injure animals; taint milk and meat; seeds and burrs damage wool and hides; some cause bloat or digestive problems.
Two lines for each term in (a).