Farm Management and Budgeting - JSS3 Agricultural Science Past Questions and Answers - page 2
What principle of farm management focuses on maximising productivity and profitability?
Resource allocation
Risk management
Decision-making
Operational budgets
Which government support program maintains minimum prices for agricultural products?
Price supports
Trade policies
Conservation programs
Input subsidies
What does hedging involve in risk management?
Spreading risk by engaging in multiple enterprises
Using financial instruments to manage price volatility
Protecting against production and revenue losses
Controlling the quantity and price of imported goods
What type of risk is associated with changes in interest rates and debt management?
Climate risk
Financial risk
Production risk
Price risk
Which environmental policy provides support for environmentally friendly agricultural methods?
Trade policies
Price supports
Conservation programs
Input subsidies
What does farm management primarily involve?
Farm management primarily involves the efficient operation of agricultural enterprises, encompassing strategic planning, resource allocation, and decision-making to optimise productivity and profitability.
What is the purpose of operational budgets in agriculture?
Operational budgets in agriculture serve the purpose of estimating costs and revenues for specific activities or enterprises on the farm. They help farmers plan and manage their financial resources effectively by providing insights into cash flow management, income projections, and expenditure planning for day-to-day operations.
What type of risk in agriculture is associated with fluctuations in market prices?
Fluctuations in market prices are associated with price risk in agriculture. This risk arises from uncertainties in market conditions, affecting the prices of agricultural products and subsequently impacting farm revenues and profitability.
Which risk management strategy involves spreading risk by engaging in multiple enterprises?
Diversification is the risk management strategy that involves spreading risk by engaging in multiple enterprises. By diversifying th, eir agricultural activities, farmers reduce their dependence on a single crop or livestock speciesthereby mitigating the impact of adverse events such as crop failures or market downturns on their overall income.
What government intervention aims to reduce the cost of agricultural inputs?
Input subsidies are a government intervention aimed at reducing the cost of agricultural inputs for farmers. These subsidies may include financial assistance or incentives to offset expenses related to seeds, fertilisers, pesticides, and other essential inputs, thereby promoting agricultural productivity and ensuring farmers' access to necessary resources.