(a) Distinguish between the terms loan and subsidy as used in agricultural financing. (2 marks)
(b)(i) Define the term supply. (2 marks)
(ii) Use the information in the supply schedule below to draw a supply curve. (3 marks)
| Price of Cocoa (Le) | Supply of Cocoa (tonne) |
| 10,000 | 450 |
| 15,000 | 550 |
| 20,000 | 700 |
| 25,000 | 1000 |
| 30,000 | 1,700 |
(iii) Use the supply curve drawn to explain the relationship between supply and price. (2 marks)
(c) State two advantages and two disadvantages of using farm and home visits as a teaching method in agricultural extension work. (4 marks)
(d) Mention three characteristics of agricultural produce in relation to marketing (3 marks)
Explanation
a) Distinguish between the terms loan and subsidy as used in agricultural financing: Loan is a repayable credit with or without interest, either in cash or kind, given to farmers. Whereas, subsidy is a non, repayable financial aid in the form of lump sums, or as regular allowances paid by the government or a society to meet part of the cost of certain inputs and services.
(b)(i) Definition of the term supply: Supply is the total quantity of commodities which producers are willing to offer for sale at alternative prices, over a given period of time.
(ii) Supply curve for Cocoa
(iii) Explanation of the relationship between supply and price of cocoa: The lower the price of cocoa the lower the quantity of cocoa the farmers are willing to supply. OR The higher the price of cocoa the higher the quantity of cocoa the farmers are willing to supply.
(c) Advantages and disadvantages of farm and home visits as a teaching method in agricultural extension work
Advantages (i) The extension worker gains first hand knowledge of actual farm situations. (ii) Personal visit develops goodwill, confidence and mutual trust between farmer and extension agent. (iii) It gives opportunity to farmers to present peculiar problems and for the extension agent to answer specific questions and grant specific requests. (iv) It helps extension workers to single out local leaders.
Disadvantages: (i) Personal visits are expensive and time-consuming, (ii) Only a few farmers are reached at a time. (iii) There is the tendency to visit some farmers more often than others, thus arousing resentment in the farming community.
(d) Characteristics of agricultural produce in relation to marketing: (i) Seasonality Perishability (iii) Bulkiness (iv) Large number of (ii) producers. (v) Some agricultural produce cannot be consumed in the form in which they are produced.