AGRICULTURAL MANAGEMENT PRACTICES
GRADE 12   
NSC PAST PAPERS AND MEMOS
FEBRUARY/MARCH 2018

MEMORANDUM

SECTION A 
QUESTION 1 
1.1 Multiple Choice 
1.1.1 A ✔✔ 
1.1.2 C ✔✔ 
1.1.3 C ✔✔ 
1.1.4 B ✔✔ 
1.1.5 A ✔✔ 
1.1.6 C ✔✔ 
1.1.7 B ✔✔ 
1.1.8 C ✔✔ 
1.1.9 D ✔✔ 
1.1.10 A ✔✔ (10 x 2) (20) 

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

1.3 Correct Agricultural Term 
1.3.1. Medium term credit ✔ 
1.3.2 Variable costs ✔ 
1.3.3 Control ✔ 
1.3.4 Distribution ✔ 
1.3.5 Motivation ✔ 
1.3.6 Pooling system ✔ 
1.3.7 Production costs ✔ 
1.3.8 Selling ✔ 
1.3.9 Entrepreneurship ✔ 
1.3.10 Interpersonal skills ✔ (10 x 1) (10)

TOTAL SECTION A: 50

SECTION B 
QUESTION 2: PHYSICAL AND FINANCIAL PLANNING 
2.1 Soil depth 
2.1.1 Comparing soil A and soil E in a table form  (8) 

2.1.2 Grow best 

1. Soil A – legumes ✔
2. Soil B – cereals ✔ (2) 

2.2 Preferring sweet veld 

• Grow on an average low rainfall throughout ✔
• Less supplements needed ✔
• It is nutritious throughout its growing stages ✔
• It stays palatable throughout, even during its matured stage ✔ (4)

2.3 THREE disadvantages of intensive farming system 

• Prolonged use of agro-chemicals results in pollution of water and soil ✔
• Land treated with chemicals reduces the diversity of micro-organisms ✔
• Overuse of water leads to reduced nutrients in the soil ✔ (3) 

2.4 Different types of pastures  (6) 

2.5 Labour illness 
2.5.1 THREE methods to reduce the risk of losing income due to ill health 

• Workers should be multi-skilled to provide backup skills when  needed ✔
• Farmers should outsource certain farming activities and  mechanisation✔
• Farm business should have the ill-health policy and  programmes in place✔ (3)

2.5.2 THREE items included in the ill-health policy and programme

• Treatment and prevention programmes ✔
• Care and support programmes ✔
• Protection of infected and affected employees from stigma and  discrimination ✔ (3) 

2.6 Capital 
2.6.1 Categorise the types of capital mentioned in the above  cartoon 

• Working capital ✔
  • Wonder fertilizers ✔
  • Wonder herbicides ✔
  • Money ✔
• Movable capital ✔
  • Wonder irrigation ✔ (6) 

2.6.2 Advise farmer on extra money 

• Can apply for a loan ✔ (1) 

2.6.3 THREE important requirements for long term credit 

• The potential of the farm business ✔
• The stage of development of the business ✔
• The type of farming enterprise ✔
• The credit worthiness of the farm business ✔ (Any 3) (3)

2.6.4 Difference between sources of capital 

1. External sources
   • Capital obtained from resources outside the farming  enterprise ✔
   • It is not linked to the owner ✔ (2)
2. Internal sources
   • Capital obtained from resources within the farming  enterprise ✔
   • It is linked to the owner itself ✔ (2) 

2.7 Budget 
2.7.1 FOUR pre-requisites to prepare the next cash-flow budget

• The previous income statement for the same period ✔
• The present balance sheet ✔
• The balance sheet of the previous period ✔
• Notes on the transactions that were conducted during the  previous financial period ✔
• Calculations on depreciation ✔ (Any 4) (4) 

2.7.2 THREE valuable comparisons from budget and financial  statement 

• Profitability of the business ✔
• Establish whether the current expenses are within acceptable  limits ✔
• Determining whether the business is making progress by  comparing figures with those of previous period ✔ (3) [50]

QUESTION 3: ENTREPRENEURSHIP, RECORDING, MARKETING, BUSINESS  PLANNING AND ORGANISED AGRICULTURE 
3.1 Labour related records 

• Working hours for each day/week/month ✔
• The specific days that the seasonal workers have worked ✔
• Total days of leave taken by the workers ✔
• Remuneration of workers ✔
• Misconduct by workers ✔
• Work performance of workers ✔ (Any 5) (5) 

3.2 Data items reflected on source documents 

• Number of product ✔
• Date of transaction ✔
• Description of article or purchase ✔
• Total amount of sales ✔
• Company name ✔
• Payment method ✔
• Buyer or seller information ✔ (Any 4) (4)

3.3 Income statement 
3.3.1 INCOME STATEMENT FOR YEAR ENDING 31 DECEMBER  2017 

• One mark for correct entries in expenditure ✔
• One mark for correct entries in income ✔
• One mark for correct total in expenditure ✔
• One mark for correct total in income ✔ (4) 

3.3.2 Profit or Loss 

• Profit/Loss = Income – Expenditure 
  = R68 900 – R70 000 
  = – R1 100,00 ✔
• It was a loss ✔ (2)

3.4 Financial definitions 
3.4.1 Definition of break-even point 

• It is the level of production at which the costs are covered ✔
  OR
• When income derived from produce is equal to output ✔ (1) 

3.4.2 Definition of debtor 

• Person/business that owes the farm money ✔ (1)

3.5 Balance sheet  (6) 

3.6 Marketing plan 
3.6.1 Importance of compiling a strategic marketing plan 

• Meet customers' needs ✔
• Generate profit ✔ (2) 

3.6.2 Questions to acquire information 

• Where will I sell my product? ✔
• Who is the client? ✔
• What is the size of my potential client base? ✔
• What is the location of my clients and how will it affect my sales? ✔
• What are the client's needs and requirements? ✔
• Will I sell directly to the client? ✔
• Will I sell wholesale to convenience store? ✔
• What are the seasonal price changes? ✔
• What are the quality standards that I have to adhere to? ✔ (Any 5) (5)

3.7 Business plan 
3.7.1 Description of basic features of a business plan related to  product 

• Product description that will derive from the farming enterprise  ✔
• Market analysis to seek the best market to sell the product ✔
• Operational plan on how to produce the product ✔
• Financial analysis including budgets and the use of capital ✔
• Appendices attached as support documents ✔ (Any 4) (4) 

3.7.2 FOUR aspects of place to sell 

• Distance to the market ✔
• Size of the market ✔
• Storage facilities ✔
• Infrastructure surrounding the market ✔
• Buying power of customers ✔
• Identity/Name of the market ✔ (Any 4) (4)

3.8 Marketing 
3.8.1 Graph representing the supply and demand for a crop 

Allocation of marks: 

• Applicable heading✔
• Labelling and values of x-axis and y-axis✔
• Labelling graphs✔
• Correct supply graph✔
• Correct demand graph✔ (5) 

3.8.2 Price at market equilibrium 

• R16,00✔ (1) 

3.8.3 TWO possible reasons for the shortage  

• Consumers buy more when price is low and with no increase  in supply, leads to a shortage ✔
• Farmers supply/market less of a crop when price is low that  tend to lead to shortages because of a higher demand from  consumers ✔
• Socio-economic factors – when people have more money they  buy more and shortages can occur during higher buying  timeframes ✔
• Natural disasters/hail/floods/drought causes less products to  be harvested ✔
• Seasonal yields differ between different years. Demand  increases that leads to shortages ✔ (Any 2) (2) 

3.8.4 TWO strategies to deal with shortages 

• Modify planting or harvesting times✔ – to supply sufficiently  during periods of short supply ✔
• Process products✔ – to prolong shelf life so that they could be  sold during periods of short supply ✔ (4) [50]

QUESTION 4: HARVESTING, PROCESSING, MANAGEMENT AND AGRITOURISM
4.1 Harvesting 
4.1.1 Factors take into consideration during harvesting a crop 

• Availability of transport ✔
• Labour requirements ✔
• Storage ✔
• Weather conditions ✔
• Marketing trends ✔ (Any 4) (4) 

4.1.2 Describing basic principles of post-harvest handling  

• Handle with care to avoid damage or cutting or crushing or  bruising of the produce ✔
• Remove damaged items from good quality items during the  sorting process ✔ (2) 

4.2 Storage 
4.2.1 Storage facility in the picture 

• Silo ✔ (1) 

4.2.2 Environmental factors that are controlled in a silo 

• Temperature ✔
• Moisture/Humidity ✔
• Air ✔
• Light ✔ (Any 3) (3)

4.3 Difference between sorting and grading  (6) 

4.4 Processing 
4.4.1 THREE fermentation processes that van be used in  preservation 

• Sugar fermentation ✔
• Milk sugar/lactose fermentation ✔
• Acid forming fermentation ✔ (3)

4.4.2 Effect of moisture in the cooling process 

• Moisture enhances the cooling process/Makes the process  faster ✔
• If moisture froze it can damage the product ✔ (2)

4.5 Agricultural chain 
4.5.1 Schematic presentation of an agri-business chain 
(3) 
4.5.2 THREE tertiary sector inputs 

• Storage ✔
• Transport ✔
• Marketing agents ✔
• Market agents ✔
• Advertising companies ✔
• Finance brokers ✔
• Insurance brokers ✔ (Any 3) (3) 

4.6 Main functions performed by packaging 

• To contain the product ✔
• To protect the product ✔
• To sell the product ✔ (3) 

4.7 Factors indicating viability of value adding 

• Equipment available ✔
• Facilities available ✔
• Demand for processed product ✔ (Any 2) (2)

4.8 Scenario agritourism 
4.8.1 Definition of the term product route 

• Agritourism route where tourists see and learn ✔
• About all stages of the production of an agricultural product ✔ (2) 

4.8.2 Activities in the scenario 

• Touring the rooibos route ✔
• Viewing and feeling the tea plants in their natural state ✔
• Learning about the harvesting and curing of the final product ✔
• Learning the history of the rooibos plant ✔ (Any 2) (2) 

4.8.3 Aspects that illustrate educational potential 

• Knowledge of the cultural and historical heritage of the place ✔
• Sustainable utilisation of our natural resources ✔
• Promotion of healthier eating habits ✔ (3) 

4.8.4 THREE entrepreneurial characteristics in the scenario 

• Hardworking ✔
• Creative ✔
• Can identify unique opportunities ✔
• Confident ✔ (Any 3) (3)

4.9 Management 
4.9.1 Role of farm manager in maintaining the financial viability

• Planning the production process ✔
• Organizing the different activities on the farm ✔
• Coordination of all sectors of the production process ✔
• Controlling the production process ✔
• Decision making on a day to day basis ✔ 
• Motivation of labour force ✔ (Any 4) (4) 

4.9.2 FOUR basic types of coordination 

• Informal coordination✔
• Programmed coordination✔
• Liaison coordination✔
• Group coordination ✔ (4) [50] 

TOTAL SECTION B: 150 
GRAND TOTAL: 200