Gce Model Questions Vol1 2023 Agricultural Science Question 10

A farmer in the middle belt region of Nigeria operates a mixed farm with both crop production and livestock rearing. The farm has a total of 5 ha of arable land. The farmer wishes to allocate part of the land to maize (Zea mays) and the remainder to a small ruminant enterprise consisting of 20 goats. Each goat requires 0.2 ha of grazing/pasture land per year. The expected average daily weight gain for each goat is 15 kg, and the market price for goat meat is ₦250 per kg. Maize yields an average of 4 t ha⁻¹ and the current market price for maize is ₦1 500 per tonne. The following cost data apply (all values in Nigerian Naira, ₦): - Fixed costs (independent of land use): land preparation ₦30 000, labour ₦20 000, veterinary services ₦10 000. - Variable costs per hectare for maize: seed ₦200, fertilizer ₦500. - Variable cost per goat per year: feed ₦5 000. - Overhead (administrative) cost is 5 % of the total of fixed and variable costs. Answer the following: a) Determine the maximum area (in hectares) that can be allocated to the goat enterprise without exceeding the total land available. b) Using the land allocation from part (a), calculate the total expected annual gross revenue from both maize and goats. c) Compute the total annual cost (including fixed, variable and overhead costs) for the farm based on the land allocation in part (a). d) Calculate the net profit for the year. e) If the farmer wishes to achieve a net profit of at least ₦150 000, determine the minimum price per tonne of maize that must be obtained, assuming all other parameters remain unchanged. Provide all working steps and clearly state any assumptions made.