Preparing a business plan is important for a new farmer - NSC Agricultural Management Practices - Question 3 - 2022 - Paper 1

1. Establish realistic pricing strategies to attract and retain customers while ensuring profitability.
2. Project sales forecasts based on market research to guide budgeting.
3. Allocate funds for marketing activities to enhance product visibility and customer engagement.
4. Set aside a contingency budget for unexpected expenses or opportunities.
5. Monitor cash flow to manage expenses effectively and ensure financial stability.

A. Organizational/coordination abilities - Effectively allocating tasks to workers based on skills. B. Technical/operational knowledge - Understanding agricultural practices and crop management. C. Innovative/creativity/vision insight - Ability to develop new ideas for improvement and adapt to changes. D. Perseverance - Continually trying even in the face of challenges such as drought.

1. Financial resources: Sufficient capital to invest in land, equipment, and operations.
2. Human resources: Skilled labor to carry out agricultural activities effectively.
3. Physical resources: Necessary equipment and infrastructure such as tractors, irrigation systems, and storage facilities.

Primary agricultural sector: Focuses on the extraction and production of raw materials, such as farming, fishing, and forestry. Secondary agricultural sector: Involves processing these raw materials into finished goods, like converting wheat into flour. Tertiary agricultural sector: Provides services related to agriculture, including distribution and marketing of agricultural products.

3.4.1 - D 3.4.2 - A 3.4.3 - B 3.4.4 - E

1. Reduced marketing costs as products are sold directly to consumers.
2. No transport costs incurred, leading to increased profit margins.
3. Enhanced relationships between farmers and consumers, fostering loyalty.

1. Farmers may need to accept lower prices due to competition in local markets.
2. Limited reach to consumers who may not visit the farm.
3. Increased risk of theft and security issues due to direct sales.

1. Assist in the marketing of agricultural products to elevate farmer sales.
2. Research potential markets for the products, ensuring access to various consumers.
3. Provide advice to farmers on production methods and sustainable practices.

1. Access to a larger customer base leading to increased sales opportunities.
2. Ability to establish brand recognition among consumers.
3. Opportunity to receive immediate cash flow from direct sales.

1. Improves decision-making by providing insight into performance.
2. Ensures efficient use of resources to maximize outputs.
3. Identifies areas for improvement, informing future strategies.
4. Monitors progress, allowing for timely adjustments.

1. Increases efficiency and productivity among workers due to clear direction.
2. Enhances skill utilization by assigning tasks according to workers’ expertise.
3. Minimizes conflicts and misunderstandings, leading to a harmonious work environment.
4. Establishes accountability and responsibility among workers, fostering a sense of ownership.