ZIMSEC O Level · Agriculture · Form 3, Form 4
Farm records
- Physical records: planting dates, inputs used, yields, livestock births and deaths, vaccinations.
- Financial records: receipts, expenses, cash book, inventory, profit and loss.
Records help with planning, measuring performance, obtaining loans and paying tax.
Costs and profit
- Fixed costs: do not change with output (rent, depreciation of equipment).
- Variable costs: change with output (seed, fertiliser, labour).
- Gross margin = total income − variable costs.
Worked example: A farmer sells 4 tonnes of maize at US$350 per tonne. Variable costs are US$600. Find the gross margin.
Income = 4 × 350 = US$1 400
Gross margin = 1 400 − 600 = US$800
Marketing
Selling to the Grain Marketing Board (GMB), contract buyers, local markets, auction floors (tobacco) and supermarkets. Agricultural cooperatives help farmers buy inputs and sell produce together.
Agricultural support
Agritex (extension advice), the veterinary services, agricultural banks, input support schemes and research stations.
Agribusiness
Value addition: processing raw produce into products with a higher price, such as peanut butter, dried vegetables and dairy products.
Check yourself
- Distinguish between fixed and variable costs.
- Give two reasons for keeping farm records.
- A crop earns US$2 000 and its variable costs are US$1 250. Find the gross margin.
Show answers
- Fixed costs stay the same whatever the output; variable costs change with output.
- Any two: planning, measuring profit, getting loans, tax, tracing problems.
- US$750
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