AGRICULTURAL ECONOMICS

AGRICULTURAL ECONOMICS.

AGRICULTURAL ECONOMICS; Economics. Study of how man and society choose, with or without the use of money, to employ scarce productive resources to produce various commodities over time and distribute them for consumption now and in the future.

Agricultural Economics.

An applied science that aims at maximising output while minimising costs, by combining the limited resources to produce goods and services.

BASIC ECONOMIC CONCEPTS. 

Condition where the factors of production or resources necessary to satisfy production needs are limited in supply.

Production needs are unlimited thus a farmer is faced with the problem of limited resources to satisfy unlimited needs. Scarcity affects agricultural production in many ways for example a farmer may be unable to apply the recommended amount of inputs because of limited capital.

• Preference and choice.

Preference is the selection of one thing or person over others.

Choice is the decision to select something.

Choice made is determined by such factors as the needs of the society, the farmer’s preference and ecological factors.

• Opportunity cost.

It is the value of the best forgone alternative.

Conditions under which opportunity cost is zero.

• When there is no alternative.
• When goods are offered for free.
• When resources are not limited.

FARM RECORDS.

Characteristics of good farm records.

Uses of farm records.

• Records help to compare the performance of different enterprises within a farm or other farms.
• They show the history of the farm.
• Guide a farmer in planning and budgeting of farm operations.
• Help to detect losses or theft on the farm.
• Help in the assessment of income tax to avoid over or under taxation.
• Helps to determine the value of the farm or to determine the assets and liabilities of the farm.
• Make it easy to share profits and losses in partnerships.
• Help in settling disputes among heirs to the estate when a farmer dies without leaving a will.
• Records help to show whether the farm business is making losses or profits. Helps the farm to obtain credit.
• Help in supporting insurance claims on death, theft and fire of farm assets.
• Provide labour information like terminal benefits like NSSF dues.
• They help the farmer in selling certain assets like farm animals, machinery.

Types of farm records.

1. Production records.

Show the total yield and the yield per unit of each enterprise.

The table below shows milk production records.

AGRICULTURAL ECONOMICS

1. Inventory records.

There are two types of inventory records.

• Consumable inventory records.
• Permanent goods inventory records.

Consumable goods include; animal feeds, fertilisers, drugs and some construction materials like cement.

Permanent goods include; tools, equipments, machinery.

Example of consumable goods inventory.

Example of permanent goods inventory.

1. Field operation records.

The farmer gives account of all that takes place in the field. For example the date of ploughing. Planting, fertilizer application. The records are kept per field or crop enterprises.

Season………………                                                 field No……………………

Net area…………………..

Crop grown ………………….                                      Variety…………………….

Ploughing date……………….                                    Planting date…………………….

Inputs:

………………………………………………………………………………………

Seed rate Kg/Ha…………………………………………………………………..

Fertilizer at planting: type……………                                                   Amount………….

Top-dressing: fertilizer…………………                                                 Amount……………..

Other

treatment………………………………………………………………………………………… ……………………………………………………………………………………………………

Pests…………………………….                                                       Control………………

Diseases………………………                                                          Control……………..

Weeds………………………..                                                          Control…………………… Other treatment

…………………………………………………………………………………………………..

Output.

Harvesting date………………………….                                        Method used………………

Yield/ha………………………………………………………………………………………… ………………………………………………………………………………………………..

Remarks………………………………………………………………………………………… …………………………………………………………………………………………………..

At the end of the season the farmer should work out cost of production for each field using inputs records.

1. Breeding records.

Records kept to show the breeding activities and programmes for different animals in a farm.

Breeding records card for cattle.

Calving records.

AGRICULTURAL ECONOMICS

In breeding of sheep and goats where individual animal records are difficult to keep the farmer can use a format for the whole flock which is illustrated below.

 Sheep and goats breeding records.

The records format above is applicable where there is a definite breeding programme and  Mating is restricted to a specified period.

Pig breeding records.

The record above shows breeding of sows within a year. It may be entered twice on the record if    It farrows twice

within the year.

Individual sow breeding records. 

The individual sow breeding records above gives the details of the sow and its litter up to the time of weaning. The records helps in selecting a breeding stock. E. Feeding records.

Kept to show the types and amount of feeds used in the farm.

AGRICULTURAL ECONOMICS

1. Health records.

Records kept to show the health conditions of the animals on the farm. The records are  Important during selection and culling of animals on health grounds. They help in calculating  Cost of treatment and shows course of action to be taken in maintenance of health.

AGRICULTURAL ECONOMICS

1. Marketing records.

Records that shows the commodity, quantity or amount sold, date, rate per unit of the  Commodity, total value and where sold.

Commodity…………………………………………………..

1. Labour records.

They should show the type of labour, date of employment, date and rate of payment, skilled or unskilled labour.

There are two types of labour records.

• Muster roll.
• Labour utilisation analysis.

Muster roll.

It is a record of the available labour on the farm. It is used to check the number of days they worked and therefore determine how much they should earn. Shows the name of the worker, the pay-roll number, and days worked, rate of payment, amount of salary or wages and signature.

Labour utilisation analysis.

It shows how labour is utilised on the farm. Helps to determine labour allocation,

Labour requirements for the purpose of budgeting and when labour is in peak demand or  When to lay-off unproductive labour.

AGRICULTURAL ECONOMICS

ALL AGRICULTURENOTES FORM 1-4 WITH TOPICAL QUESTIONS & ANSWERS

PRIMARY NOTES, SCHEMES OF WORK AND EXAMINATIONS