A group of business people came together and decided to buy land and start a farming enterprise. They did not have the skills or knowledge to farm, but they had capital to invest in this venture. A farm of 500 ha is currently on the market. The land has moderately good veld and a river runs through the farm. They plan to breed with horses and use the river for fishing. The soil is sandy and not very fertile.

NSC Agricultural Management Practices Economic planning: A group of business people came

A group of business people came together and decided to buy land and start a farming enterprise - NSC Agricultural Management Practices - Question 3 - 2023 - Paper 1

Question 3

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A group of business people came together and decided to buy land and start a farming enterprise. They did not have the skills or knowledge to farm, but they had capi... show full transcript

Worked Solution & Example Answer:A group of business people came together and decided to buy land and start a farming enterprise - NSC Agricultural Management Practices - Question 3 - 2023 - Paper 1

Step 1

Identify THREE strengths

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Answer

Availability of land - The group is purchasing a 500 ha farm which provides a suitable area for agricultural activities.
Capital is available - They have the necessary funds to invest in the farming enterprise, which is crucial for initial setup and operations.
Business skills - Although they lack farming knowledge, they possess business skills that can help in managing and developing the farm effectively.

Step 2

Identify ONE weakness

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Answer

Lack of farming skills - The group does not have the required farming experience or skills to manage agricultural operations effectively, which could hinder productivity.

Step 3

Identify ONE opportunity

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Answer

Agritourism - They can attract tourists for fishing and horseback riding, creating an additional revenue stream while promoting their farming activities.

Step 4

Identify TWO threats

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Answer

Rainfall availability - The productivity of the farm can be affected by inconsistent rainfall or drought, especially since the soil is not very fertile.
Conflict among group members - Disagreements about management decisions or profit-sharing could disrupt operations.

Step 5

Recommend an action to address the weakness identified in QUESTION 3.8.2

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Employ a farm manager who has the necessary skills and knowledge to operate the farm successfully. This individual can provide guidance and ensure that best farming practices are followed, enhancing the chances of success for the farming venture.

A group of business people came together and decided to buy land and start a farming enterprise - NSC Agricultural Management Practices - Question 3 - 2023 - Paper 1

Worked Solution & Example Answer:A group of business people came together and decided to buy land and start a farming enterprise - NSC Agricultural Management Practices - Question 3 - 2023 - Paper 1

Identify THREE strengths

Identify ONE weakness

Identify ONE opportunity

Identify TWO threats

Recommend an action to address the weakness identified in QUESTION 3.8.2

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