4 A farmer in a developing country currently practises subsistence farming on 2 hectares of land. She grows cassava and vegetables to feed her family. A gov...
Question 1 Report
4 A farmer in a developing country currently practises subsistence farming on 2 hectares of land. She grows cassava and vegetables to feed her family. A government programme is offering loans and training to help subsistence farmers move towards commercial farming.
(a) State what is meant by:
(i) subsistence farming [1]
(ii) commercial farming. [1]
(b) Describe four differences between subsistence farming and commercial farming in terms of inputs and outputs. [4]
(c) The farmer decides to take the loan and begin growing chilli peppers for sale at the regional market. Explain three factors of production she would need to increase in order to run a successful commercial enterprise. [6]
(d) Suggest three risks the farmer might face when moving from subsistence to commercial production. [3]
[Total: 15]
Answer Details
(a) Definitions:
(i) Subsistence farming is a system of agriculture where the farmer produces food mainly to feed themselves and their family, with little or no surplus for sale at market. [1] The primary goal is household food security rather than generating income.
(ii) Commercial farming is a system of agriculture where crops or livestock are produced mainly for sale at a market, with the primary goal of generating profit. [1] The farmer views the enterprise as a business and makes decisions based on market demand and financial returns.
(b) Four differences between subsistence and commercial farming:
| Aspect | Subsistence farming | Commercial farming |
|---|---|---|
| Labour | Uses mainly family labour [1] | Uses hired or wage labour |
| Tools and equipment | Uses hand tools or simple implements [1] | Uses machinery or improved equipment |
| Purchased inputs | Little or no purchased fertiliser or pesticide [1] | High levels of purchased inputs |
| Output volume | Small quantities for household consumption [1] | Large quantities produced for sale |
(c) Three factors of production the farmer would need to increase:
- Land: She may need to rent or acquire additional land to grow enough chilli peppers for the commercial market. [1] A larger cultivated area allows economies of scale and a higher total output, which is necessary to justify the transport and marketing costs of selling at a regional market. [1]
- Labour: She would need to hire workers for planting, weeding, harvesting, and sorting the chilli peppers. [1] Commercial production requires more hands than family labour alone can provide, and specialised tasks such as pest management or grading may need skilled workers. [1]
- Capital: She needs money to purchase improved seeds, fertiliser, pesticides, and tools. [1] She may also need to invest in irrigation equipment, a storage facility to keep harvested peppers fresh, and transport to reach the regional market. [1]
(d) Three risks the farmer might face when moving from subsistence to commercial production:
- Market price volatility: Prices for chilli peppers may fall if many farmers in the area grow the same crop, leaving her with low revenue and difficulty repaying the loan. [1]
- Crop failure: Drought, pests, or disease could destroy the crop, leaving her with debt from the loan and no income to repay it. [1] With subsistence farming, she at least had diversified food crops to fall back on.
- Loss of food security: If she converts all her land from food crops (cassava and vegetables) to a cash crop (chilli peppers), her family may not have enough to eat if the commercial venture fails or income is delayed. [1]
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