NSC Agricultural Management Practices Advertising: Every farmer should be an entrep

Question

Every farmer should be an entrepreneur.

3.1.1 Define the term entrepreneur.

3.1.2 State FOUR criteria that should be considered before starting an agricultural business.

3.2 The SWOT analysis gives insight into the challenges the farming entrepreneur faces in a farming business venture.

Tabulate and describe EACH component of the SWOT analysis. Use the table format below.

| Components    | Description  |
|---------------|--------------|
| Strengths     |              |
| Weaknesses    |              |
| Opportunities  |              |
| Threats       |              |

3.3 Listed below are activities of the direct marketing of farm produce to a retailer.
storage; packaging; processing; specialised transport; harvesting; grading

Name ANY product of your choice, rearrange the activities above and give an appropriate reason for the order of EACH activity for your product.

3.4 Name TWO pricing objectives guiding the pricing decisions of agricultural products.

3.5 During full production a farmer produces 2 000 kg of a product per week, ready to be marketed. Market A is a small market closer to the farm (50 km) and Market B is a big market further away (70 km). The transport cost is R12.50/km. At Market A there is the risk that only 70% of the produce will be sold, in contrast to Market B where everything will be sold. The produce will most likely be ready for the market during weeks three and four.

MARKET PRICE FOR AN AGRICULTURAL PRODUCT FOR A MONTH

3.5.1 Name TWO main factors that determine the price of agricultural produce.

3.5.2 Calculate the possible profit at Market A during the third week, taking the risk into account. Show ALL calculations.

3.5.3 Calculate the possible profit at Market B during the third week. Show ALL calculations.

3.5.4 Make a recommendation to the farmer based on the highest profit during the month, as indicated on the graph.

3.6 The following are the financial records of a crop farmer as at the end of July:

| ITEM         | VALUE (R)   |
|--------------|-------------|
| Property     | 1 800 000   |
| Creditors    | 800 000     |
| Plants and equipment | 350 000 |
| Inventory    | 2 000 000   |
| Debtors      | 300 000     |
| Mortgage bond | 200 000    |

3.6.1 Arrange the items in the table above according to the headings in the table below.

3.6.2 Name the type of farm record that is prepared from the assets and liabilities of the farm.

3.6.3 Calculate the net worth if the assets are R2 900 000 and the liabilities are R1 200 000. Show ALL calculations.

Every farmer should be an entrepreneur - NSC Agricultural Management Practices - Question 3 - 2017 - Paper 1

Worked Solution & Example Answer:Every farmer should be an entrepreneur - NSC Agricultural Management Practices - Question 3 - 2017 - Paper 1

Define the term entrepreneur.

State FOUR criteria that should be considered before starting an agricultural business.

Tabulate and describe EACH component of the SWOT analysis.

Name ANY product of your choice, rearrange the activities above and give an appropriate reason for the order of EACH activity for your product.

Name TWO pricing objectives guiding the pricing decisions of agricultural products.

Calculate the possible profit at Market A during the third week, taking the risk into account.

Calculate the possible profit at Market B during the third week.

Make a recommendation to the farmer based on the highest profit during the month.

Arrange the items in the table according to the headings.

Name the type of farm record prepared from the assets and liabilities.

Calculate the net worth if the assets are R2 900 000 and the liabilities are R1 200 000.

Join the NSC students using SimpleStudy...

Components	Description
Strengths	Identifying and leveraging the unique advantages your business has over competitors.
Weaknesses	Acknowledging internal limitations that may hinder the success of the business.
Opportunities	Exploring external factors that can be leveraged to grow the business.
Threats	Recognizing potential external challenges or competitors that may pose risks.

Current assets	Non-current assets	Current liabilities	Non-current liabilities
Inventory	Property	Creditors	Mortgage bond
Debtors	Plants and equipment