A farmer in Ogun State cultivates 10 hectares of maize. He incurs the following costs in one farming season: cost of seeds = N25,000; fertilizers = N40,000; labour = N60,000; pesticides = N15,000; land rent = N30,000; depreciation on equipment = N20,000. His total revenue from the sale of maize is N280,000.
(a) Calculate the farmer's:
(i) Total Fixed Cost (TFC) (2 marks)
(ii) Total Variable Cost (TVC) (2 marks)
(iii) Total Cost of Production (TC) (2 marks)
(iv) Net Farm Income (NFI) (2 marks)
(b) State THREE differences between fixed costs and variable costs in farming. (6 marks)
(c) Explain TWO ways in which a farmer can reduce cost of production on the farm. (4 marks)

Question

A farmer in Ogun State cultivates 10 hectares of maize. He incurs the following costs in one farming season: cost of seeds = N25,000; fertilizers = N40,000; labour = N60,000; pesticides = N15,000; land rent = N30,000; depreciation on equipment = N20,000. His total revenue from the sale of maize is N280,000.
(a) Calculate the farmer's:
    (i) Total Fixed Cost (TFC) (2 marks)
    (ii) Total Variable Cost (TVC) (2 marks)
    (iii) Total Cost of Production (TC) (2 marks)
    (iv) Net Farm Income (NFI) (2 marks)
(b) State THREE differences between fixed costs and variable costs in farming. (6 marks)
(c) Explain TWO ways in which a farmer can reduce cost of production on the farm. (4 marks)

Accepted Answer

undefined. Explanation will be available shortly. Sign up to access full Worked answers.

Answer

A) null

Answer

B) null

Answer

C) null

Answer

D) null

Practice more Agricultural Science questions