(a) State three functions of a farm manager. [3 marks] (b) Explain the following terms as used in agricultural economics: (i) appreciation (ii) salvage value (iii) farm budget (iv) farm inventory [8 marks] (c) State five qualities of a good agricultural extension agent. [5 marks]
Explanation
(a) Functions of a farm manager -Marketing functions (e.g. quantity of produce to sell and price ) -Short and long term decision making -Planning of operations -Organizing -Directing/leading -Supervising -Coordinating -Evaluating/Monitoring • -Budgeting -Ensures adequate record keeping -Staffing (recruitment, training, motivation, fixing salaries) (b) of terms used in Agricultural Economics (i) Appreciation: - Is the increase in the value of asset overtime - Young animals, growing crops, lactating animals, cash crops and land can all appreciate in value over time. (ii) Salvage value: - This is the amount of money received from the disposal of fixed assets after their normal useful life. • -An asset may depreciate to an extent that it attracts little value. - When there is uneconomic value on an asset, it is termed obsolete and therefore sold off as scrap - Assets like machinery, motor vehicle, equipment and implements which depreciate can have salvage value. (iii) Farm budget - This is the estimated future income and expenditure of farm operations. -The budgeting technique helps the farmer to select the most profitable plan from among competitive alternative plans -It also helps to check the profitability of any economic change in farm plan (iv) Farm inventory -It is the listing of all assets on the farm and their money worth -This is normally carried out at the close of farming season and at the beginning of farming season -The inventory book will show details such as quantity of item, date of purchase, price and other useful information. (c) Qualities of a good agricultural extension agent Originality in thought, word and action He must be a good listener Must be patient with the people Must be honest and transparent Must be able to take steps without being directed Must be able to organize and implement programmes Must be able to offer clear judgement in all issues Must stay clear of local politics Must know and respect the culture of the people Must be a good mixer Good knowledge of the subject matter Must be able to speak the language of the people Must be a good communicator He must be friendly Exemplary leader Must be able to solve problems as they arise
