AGRICULTURAL MANAGEMENT PRACTICES
GRADE 12
MEMORANDUM
NSC EXAMINATIONS
NOVEMBER 2021

SECTION A
QUESTION 1
1.1 Multiple choice
1.1.1 C ✓✓
1.1.2 B✓✓
1.1.3 A ✓✓
1.1.4 B ✓✓
1.1.5 D ✓✓
1.1.6 A ✓✓
1.1.7 B ✓✓
1.1.8 D ✓✓
1.1.9 A ✓✓
1.1.10 B ✓✓ (10 x 2)
(20)
1.2 Matching items
1.2.1 H ✓✓
1.2.2 L✓✓
1.2.3 G✓✓
1.2.4 A ✓✓
1.2.5 I ✓✓
1.2.6 D ✓✓
1.2.7 J ✓✓
1.2.8 K ✓✓
1.2.9 C ✓✓
1.2.10 B ✓✓ (10 x 2)
(20)
1.3 Agricultural terms
1.3.1 Diversification ✓
1.3.2 Soil conservation ✓
1.3.3 Communication ✓
1.3.4 Liabilities ✓
1.3.5 Receipt ✓ (5 x 1)
(5)
1.4 Underlined words
1.4.1 Deposit ✓
1.4.2 Design ✓
1.4.3 Processing ✓
1.4.4 Supply ✓
1.4.5 Smoking ✓ (5 x 1)
(5)
TOTAL SECTION A:50

QUESTION 2: PHYSICAL FARM PLANNING
2.1 Resources – Water
2.1.1 Main source of water for farmer
Rainfall ✓ (1)
2.1.2 Factors that determine the effectiveness of rainfall

• Rainfall intensity/tempo of rainfall/how hard it rain ✓
• Tempo of evaporation ✓
• Seasonal distribution ✓
• Reliability during season ✓
• Soil condition ✓
• Topography (slope) ✓
• Soil type (structure & texture (sand/clay)) ✓
• Frequency of rainfall ✓
• Amount of rain ✓(Any 4) (4)

2.2 Veld deterioration
2.2.1 Effect of trampling on feed available in a camp

• Feed/grazing damage✓thus less feed/grazing will be available✓
• Decreasing in the carrying capacity ✓and less animals can be kept✓
  (Any combination of the above 2) (4)

2.2.2 Methods to overcome the feed factor during the calving season

• Give extra feed to animals✓
• Reduce the number of breeding animals ✓
• Storing of feed ✓
• Remove animals earlier (wean calves while enough feed is available) ✓
  (Any 2) (2)

2.3 Law of diminishing return
2.3.1 Agricultural term for the relationship illustrated on the graph
Law of diminishing return✓ (1)
2.3.2 Description of the term marginal yield

• The profitable income obtained ✓
• Above the normal yield increase ✓
• For each of the extra input✓ (3)

2.3.3 Implications of the point marked A on the graph

• Point where the amount of inputs ✓
  Will result in no extra profitable income ✓
• From this point on, the farmer will start to lose money ✓
  Even with higher/increased yields✓ (4)

2.4 Planning utilization of camps
2.4.1 G ✓ (1)
2.4.2 C ✓ (1)
2.4.3 F ✓ (1)
2.4.4 A ✓ (1)
2.5 Resources – Capital
2.5.1 The main sources of capital for a farm business

• Production capital ✓ – capital quickly obtained ✓ when goods are sold✓
• Savings ✓ – farming profits of previous seasons ✓ that accumulate in a bank and are used as capital ✓
• Credit ✓ – overdraft, loans or credit facility ✓ that must be paid back within a certain time ✓
• External sources ✓ – investors, inheritance, grants etc. ✓
  (Any 2 + explanation) (6)

2.5.2 Problems related to capital as a production factor

• Capital is scarce ✓
• Capital is expensive, because of high interest rates ✓
• High risks involved ✓
• Over capitalisation can occur ✓
• Under capitalisation can occur ✓
• Insufficient collateral ✓
• Additional expenditure for capital ✓ (Any 3) (3)

2.6 Comparison of planters

(6)
2.7 Factors that influence drift of spray

• Droplet size ✓
• Pressure ✓
• Wind speed ✓
• Temperature ✓
• Humidity ✓
• Speed of implement ✓
• Applicator height from crop ✓ (Any 3) (3)

2.8 Challenges of agritourism in rural areas

• Low returns on high development cost ✓
• Low demand ✓
• Lack of essential skills ✓
• Dominance of mass tourism operators ✓
• Poor infrastructure ✓ (Any 3) (3)

2.9 Niche markets

• Small market segment✓
• Target specific clients/customers ✓
• Higher price range ✓
• Specialised product ✓ (Any 3) (3)

2.10 Aspects to consider in buying used implements

• Price in relation to a new one ✓
• Condition of the implement ✓
• Cost to repair or maintain the implement✓
• Possible expansion ✓
• Does it fit in with existing equipment/conditions ✓ (Any 3) (3)

[50]

QUESTION 3: BUSINESS PLANNING, ENTREPRENEURSHIP, MARKETING, PRICE DETERMINATION AND THE MANAGEMENT PROCESS
3.1 Main types of resources on business plan

• Human resources✓
  The human resources available/needed in the new business venture should be mentioned ✓
• Financial resources ✓
  • Fixed capital/infrastructure needed/available ✓
  • Floating capital needed/available ✓
  • Own capital available to help you start your business✓ (Any 1)
• Natural resources ✓
  Availability of water and land will determine the size of your enterprise ✓

3.2 Farming system and entrepreneurship

• Commercial farming ✓

Reasons

• Food productions need to be increased as the world population keep on increasing ✓✓
• Ecological agriculture needs to be taken into account as resources need to be protected ✓✓
• Precision production as more food need to be produced from a smaller area ✓✓
• Diversification of production and products are important as it decrease the risk ✓✓
• Greater global competition provides the opportunity to export products✓✓
  (Any 2)

3.3 Production costs
3.3.1 Value of the break-even-point (2)
B=        R650       
    R3500 - R1000
= 2,6 ton/ha
3.3.2 Break-even-point

• It is the number of units that must be sold at a given price ✓
• That the total income of the farm/enterprise is equal to the total expenditure of the farm/enterprise ✓
• If sales are higher than the break-even-point, the farm makes a profit ✓
• If sales are lower than the break-even-point, the farm makes a loss ✓
  (Values of QUESTION 3.3.1 can be used in the explanation) (4)

3.3.3 Profit

• profit = (yield x price) - (BEP x price)
  = (4 x R3500 ) - (2,6 x R3500)
  = R4900/ha
• selling = 4 x R3500
  = R14000
• cost = 2,6 x R3500
  =R9100
• profit = R14000 - R9100
  = R4 900/ha (3)

3.4 Amount of product bought

• The price of the product ✓
• The need for the product ✓
• The preferences of consumers / quality of product✓
• The buying power of consumers ✓
• The number of consumers ✓
• The range of products available to the consumer ✓
• The price of competitive products ✓
• External factors like pandemonium among consumers ✓ (Any 4) (4)

3.5 Reasons for advertising

• To inform people about the product and services available/rendered ✓
• To persuade people to buy the product or use the services ✓
• To offer special offers ✓ (3)

3.6 Marketing strategies
3.6.1 Target market
The specific customers you intend to attract/target ✓✓(2)
3.6.2 Competition
Producers selling the same product / rendering the same service ✓✓ (2)
3.6.3 Distribution

• How to get the product from the producer to the customer marketing goals ✓✓
• Plan how far you intend to grow with regard to sales, profits and customer satisfaction ✓✓
• Give information on methods and timeframe of distribution ✓✓ (Any 1) (2)

3.7 Distinguish between diversification and specialisation

(4)
3.8 Labour legislation
3.8.1 Worker conduct and action
Compensation for Occupational Injury and Diseases act ✓
3.8.2 Action taken against worker
Disciplinary action ✓
3.8.3 THREE disciplinary steps

• Workers must know the actions to be taken against them ✓
• Must refer to the offence and not to the worker ✓
• Taken as soon as possible after the offence ✓
• Must always be consequent / consistent ✓
• Action must be related to the offence ✓
• Should not interfere with the working relationship ✓ (Any 3)

3.9 Achievements made through motivation of farm workers by the farm manager

• Leads to higher productivity ✓
• Builds self confidence ✓
• Promote feeling of well-being✓
• Workers feel more appreciated ✓
• Workers feel part of the management team ✓ (Any 3) (3)

3.10 Reasons for training farm workers

• It can lead to promotion / more tasks ✓
• Can do different/more tasks✓
• To increase the knowledge and skills of the workers ✓
• Time saving as workers can do the required job quicker ✓
• Saves on repairs as workers know how to correctly use equipment ✓
• Leads to higher productivity/efficiency ✓ (Any 3) (3)

3.11 Psychological needs of farm workers

• Acceptance by others ✓
• Being appreciated ✓
• Being acknowledged ✓
• Self-fulfilment ✓ (Any 2) (2)

[50]

QUESTION 4: FINANCIAL PLANNING, RECORDING, HARVESTING, VALUE ADDING, AND PACKAGING
4.1 Draw-up a budget

(10)
4.2 Balance sheet
4.2.1 Terminology

1. Fixed Assets
   • The assets purchased for long-term use ✓ and
   • are not likely to be converted quickly into cash, ✓
2. Depreciation
   • A reduction in the value of an asset over time✓
   • due to usage or age ✓
3. Creditor
   A person or company to whom the farm owes money ✓✓(6)

4.2.2 Analysing income statement

• To determine if the business is profitable ✓
• To determine if the business runs at a loss ✓
• If it runs at a loss – determine why and try to rectify the situation ✓
• It runs at a profit – determine how the profit can be increased ✓
• To compare budgeted values and to make changes to the budget ✓
  (Any 2) (2)

4.3 THREE reasons for buying processed products

• Have a longer shelf life ✓
• Ease of handling ✓
• Ease of transportation ✓
• Easier to prepare for eating ✓
• Available out of season ✓
• Consumer preference ✓ (Any 3) (3)

4.4 The importance of grading the products

• To add value to the product ✓
• To obtain better prices at the market ✓
• To prepare product of uniform quality ✓
• To gain trust from the consumers ✓
• To standardize quality ✓
• Consumer preference✓ (Any 3) (3)

4.5 Risk management
4.5.1 Manage the risk

• It extend the original product shelf life ✓
• Value is added to product ✓
• Less chances of damage to the original product ✓
• More profit could be obtained ✓ (Any 3) (3)

4.5.2 Amount of profit per bottle
Profit = selling price – break-even point
= R116,00 – R82,00 ✓
= R34,00 ✓ (2)
4.5.3 Exporting of fruit juice
OR value = R16/€1✓x €12 ✓
= R192,00 ✓ (3)
4.5.4 Influence of exchange rate on profit

• Because of a weaker Rand, the income will increase ✓
• With a higher income it becomes more possible to expand ✓
• Less risk financing the expansion ✓ (Any 2) (2)

4.6 Harvesting of crops
4.6.1 Harvesting

• Is the process whereby the produced products are removed/cut✓
• and collected from the field/animal ✓ (2)

4.6.2 Advantages of harvesting by hand

• Relatively cheap ✓
• Less maintenance ✓
• Less damage ✓
• Products can be selected, ripe vs. non ripe products✓ (Any 3)(3)

4.6.3 Purposes for which crops are used for:

• For selling ✓
• Food for animals/people✓
• Ingredients in … (medicine/cosmetics/household product) ✓
• Manufacturing✓
• Processing✓ (Any 4) (4)

4.7 Aspects considered when designing packaging material for agricultural products

• Cost effective✓
• Type of the material ✓
• Protection of the product✓
• Provide information to the consumers✓
• Features to make it easy to handle✓
• Easy to print on✓
• Attract people’s attention (trademark/product recognition✓
• Characteristics of the product ✓ (Any 3) (3)

4.8 Main causes of food spoilage

• Living micro-organisms on the food✓
• The presence of enzymes in the food ✓
• Damage caused by insects/rodents ✓
• Wrong handling and harvesting of the products ✓
• Inadequate storage facilities/temperature ✓
• Exposure to air (oxidation) ✓ (Any 4) (4)

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