3.1 Land as production factor
3.1.1 Economic function of land in
Picture A: provision of food/raw materials
Picture B: provision of physical space/area
3.1.2 Method to increase the production in PICTURE A
The use of technology/scientific methods
3.1.3 Economic benefit of land to the farmer
Serves as a collateral/security
3.2 Association of the statements to the economic characteristics of land
3.2.1 Land for agriculture is limited/availability of land is limited
3.2.2 Land is durable/indestructible/lifespan of land is unlimited
3.2.3 Land appreciates in value
3.3 Labour as a production factor
3.3.1 Indication of the production factor
Casual
3.3.2 TWO characteristics describing a permanent farm worker
- Employed full-time
- Enjoy benefits such as leave/housing/pension
- Live with their families on the farm
- Has a long term contract/conditions of employment
- Allowed to have their own livestock on the farm
- Profit sharing
3.4 Labour challenges
3.4.1 TWO challenges of labour affecting productivity
- Abuse of alcohol
- Longer working hours
- Lower wages
- Poor living/working conditions
- Absenteeism
- HIV and AIDS infections
- Low levels of education/lack of training
3.4.2 TWO responsibilities by the farmer to address the challenges
- Abuse of alcohol - Awareness programmes/recreation facilities
- Longer working hours - Improved/better working conditions
- Lower wages - Improved wages/salaries
- Poor living/working conditions - Improved working/living conditions
- Absenteeism - Intervention/awareness programmes
- HIV and AIDS infections - Improved health conditions/HIV/AIDS awareness campaigns
- Low levels of education/lack of training - Provision of education/training
3.4.3 TWO reasons for farm workers to be lost to other industries
- Better wages in other sectors
- Better working hours
- Improved living conditions
- Better health facilities
- Better educational facilities
- Recreational facilities
3.5 Capital
3.5.1 TWO sources of capital
- Loan
- Production/sales from eggs
3.5.2 TWO problems in regard to capital
- High interest rate
- Capital is scarce
3.5.3 TWO other problems of capital
- Under capitalization
- Over capitalization
- Depreciation
- Risk
- Capital is expensive
- Law of diminishing returns
3.5.4 Calculation of profit with formula
- Profit = Income – Expenditure
- Profit = R14,85 – R8,55
- Profit = R6,30 per dozen
3.6 Risk management
3.6.1 TWO risk management strategies
- Diversification
- Hedging/contract marketing
3.6.2 Justification of
Diversification
The farmer has a number of different enterprises such as crops, livestock and fodder production in order to spread the risk
Hedging/Contract marketing
The farmer made future contracts/agreement with supermarkets
3.7 External and internal forces affecting the farming business
3.7.1 External forces affecting the farming business
(a) Economical/political
(b) Socio-cultural/health
(c) Competitive
(d) Socio-cultural/environmental
3.7.2 Sources of risk
- Financial/market price
- Environmental - NSC Agricultural Sciences - Question 3 - 2018 - Paper 2
Question 3
3.1 Land as production factor
3.1.1 Economic function of land in
Picture A: provision of food/raw materials
Picture B: provision of physical space/area
... show full transcript
Worked Solution & Example Answer:3.1 Land as production factor
3.1.1 Economic function of land in
Picture A: provision of food/raw materials
Picture B: provision of physical space/area
3.1.2 Method to increase the production in PICTURE A
The use of technology/scientific methods
3.1.3 Economic benefit of land to the farmer
Serves as a collateral/security
3.2 Association of the statements to the economic characteristics of land
3.2.1 Land for agriculture is limited/availability of land is limited
3.2.2 Land is durable/indestructible/lifespan of land is unlimited
3.2.3 Land appreciates in value
3.3 Labour as a production factor
3.3.1 Indication of the production factor
Casual
3.3.2 TWO characteristics describing a permanent farm worker
- Employed full-time
- Enjoy benefits such as leave/housing/pension
- Live with their families on the farm
- Has a long term contract/conditions of employment
- Allowed to have their own livestock on the farm
- Profit sharing
3.4 Labour challenges
3.4.1 TWO challenges of labour affecting productivity
- Abuse of alcohol
- Longer working hours
- Lower wages
- Poor living/working conditions
- Absenteeism
- HIV and AIDS infections
- Low levels of education/lack of training
3.4.2 TWO responsibilities by the farmer to address the challenges
- Abuse of alcohol - Awareness programmes/recreation facilities
- Longer working hours - Improved/better working conditions
- Lower wages - Improved wages/salaries
- Poor living/working conditions - Improved working/living conditions
- Absenteeism - Intervention/awareness programmes
- HIV and AIDS infections - Improved health conditions/HIV/AIDS awareness campaigns
- Low levels of education/lack of training - Provision of education/training
3.4.3 TWO reasons for farm workers to be lost to other industries
- Better wages in other sectors
- Better working hours
- Improved living conditions
- Better health facilities
- Better educational facilities
- Recreational facilities
3.5 Capital
3.5.1 TWO sources of capital
- Loan
- Production/sales from eggs
3.5.2 TWO problems in regard to capital
- High interest rate
- Capital is scarce
3.5.3 TWO other problems of capital
- Under capitalization
- Over capitalization
- Depreciation
- Risk
- Capital is expensive
- Law of diminishing returns
3.5.4 Calculation of profit with formula
- Profit = Income – Expenditure
- Profit = R14,85 – R8,55
- Profit = R6,30 per dozen
3.6 Risk management
3.6.1 TWO risk management strategies
- Diversification
- Hedging/contract marketing
3.6.2 Justification of
Diversification
The farmer has a number of different enterprises such as crops, livestock and fodder production in order to spread the risk
Hedging/Contract marketing
The farmer made future contracts/agreement with supermarkets
3.7 External and internal forces affecting the farming business
3.7.1 External forces affecting the farming business
(a) Economical/political
(b) Socio-cultural/health
(c) Competitive
(d) Socio-cultural/environmental
3.7.2 Sources of risk
- Financial/market price
- Environmental - NSC Agricultural Sciences - Question 3 - 2018 - Paper 2
Step 1
Economic function of land in
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Answer
In Picture A, the economic function of land can be identified as the provision of food and raw materials. In contrast, Picture B represents the provision of physical space or area for various activities.
Step 2
Method to increase the production in PICTURE A
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Answer
To enhance the production depicted in Picture A, the implementation of advanced technology and scientific methods is crucial. This may involve using modern farming techniques, precision agriculture, and improving crop management practices.
Step 3
Economic benefit of land to the farmer
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The economic benefit of land to the farmer primarily lies in its ability to serve as collateral or security for loans. This allows farmers to access financing, which is essential for further investment in agricultural practices and resources.
Step 4
Association of the statements to the economic characteristics of land
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Land for agriculture is limited/availability of land is limited.
Land is durable/indestructible/lifespan of land is unlimited.
Land appreciates in value.
Step 5
Indication of the production factor
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The indication of the production factor in this context is 'Casual.'
Step 6
TWO characteristics describing a permanent farm worker
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Employed full-time.
Enjoy benefits such as leave, housing, and pension.
Step 7
TWO challenges of labour affecting productivity
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Abuse of alcohol.
Longer working hours.
Step 8
TWO responsibilities by the farmer to address the challenges
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For abuse of alcohol: Implement awareness programmes and recreational facilities.
For longer working hours: Improve working conditions.
Step 9
TWO reasons for farm workers to be lost to other industries
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Better wages in other sectors.
Improved living conditions.
Step 10
TWO sources of capital
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Loan.
Production/sales from eggs.
Step 11
TWO problems in regard to capital
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High interest rate.
Capital is scarce.
Step 12
TWO other problems of capital
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Under capitalization.
Law of diminishing returns.
Step 13
Calculation of profit with formula
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Answer
To calculate profit, use the formula:
Profit = Income - Expenditure.
Substituting the values:
Profit = R14.85 - R8.55 = R6.30 per dozen.
Step 14
TWO risk management strategies
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Diversification.
Hedging/Contract marketing.
Step 15
Justification of Diversification
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Diversification allows the farmer to manage risk by engaging in various enterprises, such as crops and livestock, effectively spreading financial risk across different ventures.
Step 16
External forces affecting the farming business
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