AGRICULTURAL MANAGEMENT PRACTICES Past Paper FEBRUARY/MARCH 2016 Memo/Memorandum - GRADE 12 NATIONAL SENIOR CERTIFICATE

AGRICULTURAL MANAGEMENT PRACTICES
FEBRUARY/MARCH 2016
MEMORANDUM

MARKS: 200

SECTION A

QUESTION 1

1.1  Multiple-choice questions

1.1.1 D √√
1.1.2 C √√
1.1.3 B √√
1.1.4 A √√
1.1.5 B √√
1.1.6 A √√
1.1.7 D √√
1.1.8 C √√
1.1.9 C √√
1.1.10 D √√
(10 x 2)
(20)

1.2 Matching items
1.2.1 D √√
1.2.2 F √√
1.2.3 A √√
1.2.4 L √√
1.2.5 B √√
1.2.6 H √√
1.2.7 C √√
1.2.8 J √√
1.2.9 K √√
1.2.10 E √√
(10 x 2)
(20)

1.3 Correct agricultural term
1.3.1 Selective grazing √
1.3.2 Extensive system √
1.3.3 Yield √
1.3.4 Sterilising √
1.3.5 Mechanisation √
1.3.6 Short-term credit √
1.3.7 Budget √
1.3.8 Supply and demand √
1.3.9 Planning √
1.3.10 Cooperative √
(10 x 1)
(10)
TOTAL SECTION A: 50

SECTION B

QUESTION 2: PHYSICAL AND FINANCIAL PLANNING

2.1.1 FOUR effects of ill health on productivity

  • Absenteeism from work √
  • Loss of productive time during medical treatments √
  • Work overload on healthy workers √
  • Loss of experience √
  • Increase in medical costs for the business √
  • Lower profit margins √ (Any 4) (4)

2.1.2 The Unemployment Insurance Act, 2001 (Act 63 of 2001)

  • It makes provision for the security of farm workers √
  • When they become unemployed through illness, resignation, dismissal or retrenchment √ (2)

2.2 Items that must be included in a service contract

  • The full name and address of the employer √
  • The name and occupation of the employee √
  • The date of commencement of services √
  • Working day and working hours √
  • Remuneration and overtime remuneration √
  • Leave conditions √ (Any 5) (5)

2.3 Functions of soil as a resource in agricultural production

  • Medium for plant growth/provides anchorage to plants √
  • Supplies mineral/elements to the plants √
  • Keeps and supplies moisture to the plants √
  • Habitat for beneficial and non- beneficial micro- organisms √
  • It plays a recycling function for polluted water and air √ (Any 4) (4)

2.4.1 Best methods of disposing chemical containers

  • Incineration √
  • Bury containers deep into the soil √
  • Sending the containers back to the manufacturing company for reusing/ recycle √ (Any 2) (2)

2.4.2 Effects of incorrect application of chemicals on soil and environment

  • Soil degradation √
  • Environmental pollution √
  • Kills soil organisms √
  • Underground water pollution √
  • Surface water pollution √
  • Drastic change in the soil reaction √ (Any 4) (4)

2.5 Soil quality

  • Fertility √
  • Water holding capacity √
  • Physical activity √
  • Ability to erode √ (Any 3) (3)

2.6 Functions of contours in relation to control of soil erosion

  • By shortening the slope length the rate and quantity of water flow will be reduced √
  • Changes the angle of running water to be slower √ (2)

2.7.1 Advantages of using GPS in farm operations

  • Saving of inputs √
  • Application of input where it is required √
  • Saving money √
  • Optimal resource utilisation √  (Any 3) (3)

2.7.2 The abbreviation GPS in full

  • Global Positioning System √  (1)

2.7.3 Farming system that utilises GPS

  • Precision farming √ (1)

2.7.4 Definition of the term grid cell

  • Is the division of an agricultural field into small units √
  • For the purposes of soil sampling and soil analysis √ (2)

2.7.5 Type of data that can be obtained from grid cell

  • pH status √
  • nutrient status of the soil √
  • Soil form/series √
  • Soil type  √ (Any 2) (2)

2.8 Precautions to adhere to when using farm implements and machinery

  • Always wear appropriate protective clothing √
  • Never touch a moving part of a machine √
  • Make sure people are safe when coupling implements √
  • Make sure gears, pulleys are protected by a safety guard √
  • Only one person should be allowed on the tractor/implement √
  • Make use of correct tools for every operation √ (Any 4) (4)

2.9.1 THREE primary aims of a budget for a farm business

  • To set limits on the amounts to be used for farming activities √
  • To obtain credit on time √
  • To coordinate resources and money spent as planned √
  • To help determine whether to expand the business or not √ (Any 3) (3)

2.9.2 Advantages of a cash flow budget

  • Provides a guideline for farming expenses
  • Informs the source of money
  • Prevents impulsive purchases by the farmer
  • Informs how much money is available each week or month (4)

2.10 Sources of information available to the farmer

  • Websites √
  • Publications from commodity associations √
  • Agricultural extension services √
  • Farmers’ information days √
  • Publications from financial institutions √
  • News media (newspapers, radio or television) √ (Any 4) (4)
    [50]


QUESTION 3: ENTREPRENEURSHIP, RECORDING, MARKETING AND BUSINESS PLANNING

3.1.1 THREE reasons for developing a business plan

  • To test the feasibility and economic viability of the business idea √
  • To determine your financial needs √
  • To guide daily operations √
  • To ensure effective business management √
  • To allow you to foresee problems √
  • To gain knowledge about marketing opportunities √
  • To reposition the business √ (Any 3) (3)

3.1.2 TWO internal factors and TWO external factors from the SWOT analysis

  1. Internal factors
    • Strengths √
    • Weaknesses √ (2)
  2. External factors
    • Opportunities √
    • Threats √ (2)

3.2.1 Definition of entrepreneurship

  • It is the process of discovering, evaluating and exploiting opportunities √
  • To start and grow a new business √ (2)

3.2.2 THREE characteristics of entrepreneurs

  • Strong self- belief/confidence √
  • Takes risks √
  • Initiates things/self- starter √
  • Good people skills √
  • Handle responsibilities √
  • Hard worker √
  • Visionary √
  • See opportunities √
  • Decision maker √
  • Reliable √
  • Energetic √
  • Management skills √ (Any 3) (3)

3.3.1 Primary business

  • Producing an agricultural raw product √ (1)

3.3.2 Secondary business

  • Processing of the agricultural raw product on the farm into another product √
  • Processing the raw product to make it more acceptable for the consumer √ (Any 1) (1)

3.3.3 Tertiary business

  • Service delivery to tourists/customers visiting the farm √ (1)

3.4 Aim of keeping records by a farmer

  • Setting objectives for the enterprises √
  • Planning and implementing farming activities √
  • Planning for the future √
  • Creating a data base (history) for the farm √ (Any 2) (2)

3.5 Table of advantages and disadvantages of using computers

Advantages Disadvantages
• Easier access to information √
• Calculations more accurately done √
• More information can be stored in less space √
• Comparisons can be made easier √
• Can make use of trusted and tested programs for production, financial and physical records √
• Transfer of information is easier √
(Any 2)
• The farmer must be computer literate √
• In the case of electricity outage, records are not accessible √
• It is expensive to buy computers √
• Technology must be updated on a regular basis √
• It takes time to update data √
(Any 2)

 

3.6 Information about each farm worker

  • The farm worker's name and ID number √
  • Personal information √
  • Date of employment √
  • Presence/Absence from work √
  • Annual/Sick leave √
  • Working hours and over- time √
  • Contract of employment √
  • 'In Natura' payment  √ (Any 3) (3)

3.7 Aspects in a log book for all farm machinery and implements

  • Date of purchase √
  • Price of the item purchased √
  • Annual depreciation on items bought √
  • Quantity of each item bought, lost, replaced, and stock √ (Any 2) (2)

3.8.1 An inventory

  • An inventory form is used to provide the farmer with a complete list of all assets belonging to the farming enterprise. √ (1)

3.8.2 A cheque

  • A cheque is used to withdraw cash from the bank or it can be used to pay for services/goods rendered. √ (1)

3.8.3 An invoice

  • An invoice is used to document the sale of goods. √ (1)

3.9 TRIAL BALANCE OF VEGETABLE FARMING COOPERATIVE ON 31 OCTOBER 2014

    Debit   Credit  
3.9.1 Capital     250 000 00√
3.9.2 Cash withdrawals 45 000 00 √    
  Vehicles 88 000 00    
  Trading stock 176 000 00    
  Debit orders 69 000 00    
  Sales     890 000 00
3.9.3 Rent income     36 000 00 √
  Interest on income     7 000 00
  Cost of sales 550 000 00    
  Salaries 225 000 00    
3.9.4 Bank charges 2 000 00√    
  Stationery 13 500 00    
  Interest on loan 4 000 00    
  Water and electricity 7 000 00    
  Advertising 2 000 00    
           
3.9.5 TOTAL 1 183 000 00√ 1 183 000 00 √


3.10 Factors which determine the economic viability of a farm

  • Output per season √
  • Price obtained per unit √
  • Costs of inputs √ (Any 2) (2)

3.11 Wholesalers and commission agents

  • Wholesalers transfer goods from producers to retailers by handling quantities of product as large as possible at lower prices √
  • Commission agents operate on behalf of wholesalers/producers at a certain percentage as commission √ (2)

3.12.1 Marketing system

  • Free marketing √ (1)

3.12.2 Marketing aspect

  • C √

Reasons

  • The most intermediaries are used √
  • The product has been value added √ (3)

3.12.3 Marketing channel

  • Farm stall marketing √ (1)

3.13 Methods of setting prices

  • Cost/Pricing plus % profit √
  • Competition oriented/going rate pricing/Market oriented pricing √
  • Cost plus two times labour/labour plus two times cost √
  • Supply and demand √
  • Break – even – point  √(Any 2) (2)

3.14.1 Calculate gross income

  • Gross income = 4 ton x 10 ha x R3 000/ton √
    = R120 000 √ (2)

3.14.2 Calculate break- even point

  • Yield break even point=(FC+VC)/SP
  • Yield break even point=(𝑅4 000+𝑅2 000)/𝑅3 000 √
    = 2 ton/ha √ (2)

    [50]

QUESTION 4: HARVESTING, PROCESSING, AGRITOURISM AND MANAGEMENT

4.1 Importance moisture content at harvesting

  • Moisture contributes to mass according to which payment is done √
  • High moisture content cause produce to be susceptible to fungal attack √
  • High moisture content promotes rotting √ (Any 2) (2)

4.2. Tabulate advantages and disadvantages of storing perishable crops

  Advantages of storing perishable crops   Disadvantages of storing perishable crops
4.2.1 Products keep longer √ 4.2.1  It is expensive √
4.2.2 Quality will keep for a longer time √ 4.2.2 Very expensive √
Change in taste √ (Any 1)

(4)

4.3.1 Meaning of the term value adding

Means taking a raw material and processing it √
OR
Adding something to it to change raw material into a saleable item that would be purchased by a specific group of customers √ (2)

4.3.2 Advantages of value adding in agribusiness

  • Increase the prize you get for your raw material/higher income √
  • Available throughout the year √
  • Longer shelf life √
  • You are master of your own destiny/determine the income √
  • Creates goodwill value √
  • Job creation √ (Any 2) (2)

4.3.3 Financial sustainability of a value added farming enterprise

  • The farmer identifies a gap in the market and through processing value is added to a raw product. √
  • The new value added product can generate an income which may contribute to the financial viability of the farm √
    (2)

4.4.1 Conditions under which microbes will not survive

  • Environment which is dry √
  • Where temperatures are low (cold) √
  • Where temperatures are very high (heat)
  • Where there is no oxygen √
  • Where chemicals are present √ (Any 4) (4)

4.4.2 Food products from fermentation

  • Yeast products like bread/wine/beer √
  • Vinegar √
  • Cheese √
  • Yogurt √ (Any 2) (2)

4.5.1 Exporting

  • When products from one country is moved/sold to other countries for consumption or use. √ (1)

4.5.2 Liability on export products

  • Latent defects √
  • Faulty descriptions √
  • Manufacturing defects √
  • Faulty shipments √
  • Inappropriateness of the article for the purpose √ (Any 2) (2)

4.6 Rules and regulations to be followed during the transport of animals

  • A non-slip floor (of truck or trailer) √ – to prevent animals from falling and hurting themselves √
  • Adequate sidewalls of truck or trailer √ – to prevent animals from falling from vehicle √
  • Height between decks in multi-tier vehicles should be adequate √ – to enable larger animals to stand fully erect and to allow free flow of air √
  • Vehicle must be spacious √ – to ensure the safety of the animals during transportation √ (8)

4.7 Role of local communities in agritourism

4.7.1 Empowerment of community

  • Community develops its own eco-attraction and provides employment for the whole community √
  • Money spent by tourists filter through to the whole community √ (2)

4.7.2 Involvement by community members:

  • Community members must work hand in hand with agritourism operators √
  • They must conserve the environment by creating an area which is safe and attractive to tourists √ (2)

4.7.3 Awareness of agritourism

  • Individuals become environmentally sensitive and try to preserve indigenous plants √
  • Work towards development of land for agritourism, selling of local craft to tourists and make the area a friendly one √ (2)

4.8.1 Steps a farmer has to implement for efficient control

  • Setting standards √
  • Measuring and evaluating achievements √
  • Measurements plus review of variances √
  • Correction to achieve standards √ (4)

4.8.2 Advantages to the farmer through the application of control measures

  • Deviation from planned activity brought to the attention of the manager √
  • Time and money are saved through speedy intervention √
  • Any problem which occur can be attended to in due time √
  • Production process is not interrupted √ (Any 3) (3)

4.9 Reasons for re-planning an enterprise in the farm business

  • Changes in technological and biological relationships √
  • Changes in the pattern of resources √
  • Labourers resign √
  • New inputs in the market √
  • Changes in prices √
  • Prices of certain inputs rise, e.g. fertiliser √
  • Risks and uncertainties √
  • Changes in weather patterns √ (Any 5) (5)

4.10 Ways that farm business promote well-being of workers

  • By being involved in social community programmes √
  • By implementing skills development programmes in the workplace √
  • Promoting safety in the workplace √
  • Providing learnerships for employees √
  • Giving bursaries to children of their employees √ (Any 3) (3)

    [50]
    TOTAL SECTION B: 150
    GRAND TOTAL: 200