(a) What is depreciation in agricultural production? (b) Distinguish between the following pairs of terms as used in agricultural production: (i) farm recor...
Question 1 Report
(a) What is depreciation in agricultural production?
(b) Distinguish between the following pairs of terms as used in agricultural production:
(i) farm records and farm accounts;
(ii) credit and subsidy;
(iii) assets and liabilities.
(c) State five problems of agricultural extension in West Africa.
(d) Enumerate five factors that affect the supply of cassava in West Africa
Answer Details
(a) Depreciation in agricultural production
Depreciation is the gradual reduction or loss in the value of a durable (fixed) farm asset such as machinery or a building over time, due to wear and tear, age, or obsolescence.
(b) Distinguish between the pairs of terms
(i) Farm records and farm accounts
| Farm records | Farm accounts |
|---|---|
| Written information on all activities and events on the farm (operations, dates, inputs, outputs). | The part of the records dealing only with money matters (income and expenditure) to show profit or loss. |
(ii) Credit and subsidy
| Credit | Subsidy |
|---|---|
| A loan of money or inputs given to a farmer that must be repaid, usually with interest. | Financial or material aid given by government to reduce the farmer's cost of production, and it is not repaid. |
(iii) Assets and liabilities
| Assets | Liabilities |
|---|---|
| The properties and things of value owned by the farmer (land, machinery, livestock, cash). | The debts and money the farmer owes to others. |
(c) Five problems of agricultural extension in West Africa
- Inadequate funding of extension services.
- Inadequate and poorly trained extension agents.
- Poor transportation and inaccessible rural roads.
- High level of illiteracy among farmers.
- Wide farmer-to-agent ratio, so agents cannot reach all farmers.
(d) Five factors that affect the supply of cassava
- Price of cassava.
- Cost of production (inputs and labour).
- Weather and climatic conditions.
- Incidence of pests and diseases.
- Government policy and the number of cassava farmers.
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