Sources of farm financing II - SS1 Agriculture Past Questions and Answers - page 2
In which category of farm financing do farmers reinvest profits from previous seasons into their farms?
Self-financing
Government support
Private loans
Savings and Thrift Societies
What does the term "NGO" stand for in the context of farm financing?
National Government Organization
Non-Governmental Organization
New Generation Organization
Network of Greenhouse Operators
Which of the following is NOT a common government support mechanism for farmers?
Subsidies
Crop insurance
Private loans
Research and extension services
What financial support can agricultural cooperatives provide to their members?
High-interest savings accounts
Free agricultural equipment
Affordable credit, marketing, and profit sharing
Government grants
Which source of farm financing involves the collective pooling of resources by farmers to access credit and other benefits?
Self-financing
Crowdfunding
Agricultural cooperatives
Government support
Describe the concept of self-financing in farming.
Self-financing in farming means using the resources generated within the farm, such as profits from previous seasons, to fund current and future agricultural activities.
How can government subsidies benefit farmers, and what types of subsidies are commonly provided?
Government subsidies benefit farmers by reducing the cost of inputs like seeds and fertilizers. Common types include price support subsidies and direct income support.
Give an example of a situation where a Savings and Thrift Society can be beneficial for farmers.
A Savings and Thrift Society benefits farmers by allowing them to pool their savings, providing affordable credit to members for agricultural investments.
Explain the role of NGOs and non-profit organizations in supporting agricultural development.
NGOs and non-profit organizations support agriculture by offering financial assistance, training, and resources to farmers, especially in developing regions.
What are the advantages and disadvantages of crowdfunding as a source of farm financing?
Crowdfunding in farming can provide access to funds for specific projects or initiatives but may also come with the challenge of attracting enough investors and managing expectations.