Question 10
GCE_MODEL_QUESTIONS_VOL1
•
2022
•
AGRICULTURAL_SCIENCE
•
essay
A mixed farm in Kaduna State occupies 120 hectares, of which 70 ha are used for crop production (maize and soybean) and 50 ha for livestock (cattle and goats). The farmer plans a five‑year expansion and wishes to prepare a comprehensive farm business plan. The following data are available:
Question Parts
(
a
)
Using the data below, calculate the projected gross income for each of the five years. Assume the following annual changes: maize yield increases by 5 % per year, soybean yield by 3 % per year, cattle milk production per head rises by 2 % per year, and goat meat production per head rises by 1 % per year. Prices are assumed constant over the period.
- Maize: current yield 3.5 t ha⁻¹, price ₦120 000 t⁻¹, cultivated area 40 ha.
- Soybean: current yield 2.0 t ha⁻¹, price ₦180 000 t⁻¹, cultivated area 30 ha.
- Cattle: 120 heads, average milk yield 15 L day⁻¹ per head, 300 days per year, price ₦150 per litre.
- Goats: 200 heads, average carcass weight 20 kg per head, price ₦2 500 kg⁻¹.
(
b
)
Estimate the total variable cost for each year, given the following unit costs (assumed constant):
- Maize seed: ₦15 000 ha⁻¹
- Soybean seed: ₦12 000 ha⁻¹
- Fertiliser (NPK) for crops: ₦30 000 ha⁻¹
- Cattle feed: ₦2 000 per head per year
- Goat feed: ₦1 200 per head per year.
Include only the listed variable costs in your calculation.
(
c
)
Using the figures from (a) and (b), compute the net profit for each of the five years and identify the year in which the farm first achieves a net profit margin of at least 20 %.
(
d
)
Provide three management recommendations that would improve the farm’s financial sustainability over the five‑year period, considering both agronomic and livestock aspects.
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About This Question
This is
Gce Model Questions Vol1
2022
Agricultural Science
Question 10.
It is one of the
essay
questions from the
2022
Gce Model Questions Vol1
Agricultural Science
examination.
The question covers
Farm Management
.