Establishing Agricultural Enterprise

16 Grade 10 Agriculture questions on Establishing Agricultural Enterprise, with worked marking schemes. 16 questions are available on this topic in full.

1. Question 1

   1 mark

   A Grade 10 learner in Kirinyaga wants to start a French bean enterprise for export. Which of the following should she do FIRST before planting?

   A. Hire casual labourers to prepare the seedbed early so planting is not delayed

   B. Apply for a loan from a savings and credit co-operative society

   C. Carry out a market survey to identify a buyer and the quality standards required

   D. Buy certified French bean seed from an agrovet in the nearest town

   (1 mark)

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2. Question 2

   3 marks

   Explain three reasons why a farm business plan is important to a farmer starting a poultry enterprise.

   (3 marks)

   Marking scheme

   Any THREE, 1 mark each (reason must be explained, not just named): - It sets out the costs and expected income so the farmer can judge whether the enterprise will be profitable before spending money. - It is required by banks, SACCOs and other lenders as evidence that the enterprise is viable, so it helps the farmer obtain credit. - It guides day-to-day decisions and timing (when to buy chicks, feed, vaccinate, sell) so resources are not wasted. - It acts as a yardstick against which actual performance is later measured, so problems are detected early. - It forces the farmer to plan for risks such as disease outbreaks or price falls before they occur. Maximum 3 marks.

3. Question 3

   1 mark

   A tomato enterprise in Loitokitok earned KSh 180,000 in one season. Variable costs were KSh 95,000 and fixed costs were KSh 40,000. What was the gross margin?

   A. KSh 45,000

   B. KSh 140,000

   C. KSh 180,000

   D. KSh 85,000

   (1 mark)

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4. Question 4

   4 marks

   State four factors a farmer in Machakos should consider before selecting an agricultural enterprise for a two-acre farm.

   (4 marks)

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5. Question 5

   3 marks

   Suggest three ways in which a young farmer in Kitui with very little capital can start a vegetable enterprise.

   (3 marks)

   Marking scheme

   Any THREE, 1 mark each: - Start small on a portion of the family land and expand from the profits made. - Join or form a youth group or SACCO to pool savings and access group credit. - Use family labour instead of hired labour to cut costs. - Use locally available inputs such as farmyard manure and own-raised seedlings instead of buying everything. - Use cheap appropriate technologies such as drip kits, sunken beds or a multi-storey garden made from sacks. - Seek contract or pre-financing arrangements where a buyer supplies inputs and recovers the cost at delivery. - Lease or borrow equipment rather than buying it. Maximum 3 marks.

6. Question 6

   1 mark

   A group of Grade 10 learners registers a school-based rabbit enterprise as a self-help group rather than running it as individuals. The clearest advantage of this decision is that the group:

   A. Avoids paying for any inputs because members contribute labour

   B. Can access shared capital and be recognised when seeking markets or credit

   C. Automatically receives free breeding stock from the national government

   D. Is not required to keep any financial records of its trading

   (1 mark)

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7. Question 7

   4 marks

   Distinguish between fixed costs and variable costs as used in an agricultural enterprise, giving one example of each from a cabbage enterprise.

   (4 marks)

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8. Question 8

   5 marks

   Outline five records a farmer should keep when establishing a dairy enterprise.

   (5 marks)

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9. Question 9

   1 mark

   Which of the following is a FIXED cost in a one-season kale enterprise?

   A. Top-dressing fertiliser applied six weeks after transplanting

   B. Certified kale seed bought at the start of the season

   C. Wages paid to casual workers for weeding

   D. Annual depreciation on the knapsack sprayer

   (1 mark)

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10. Question 10

    1 mark

    Two neighbours in Bungoma each start a maize enterprise on one acre. One buys a certified drought-tolerant variety and the other plants grain saved from last season's harvest. The main risk carried by the second farmer is that:

    A. The saved grain cannot germinate at all because it has already been dried

    B. The maize will mature far earlier than the neighbour's crop

    C. The county government will penalise the sale of grain from saved seed

    D. Yield will be lower and the crop may carry seed-borne disease

    (1 mark)

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11. Question 11

    6 marks

    Account for the failure of many newly established agricultural enterprises run by young people in Kenya.

    (6 marks)

    Marking scheme

    Any SIX, 1 mark each: - Inadequate capital, so the enterprise is under-resourced and cannot buy quality inputs. - Starting without a market survey, so produce is not sold or is sold at a loss. - Poor or no record keeping, so the farmer cannot tell whether a profit is being made. - Lack of technical knowledge and skills in production and disease control. - Choosing an enterprise unsuited to the local climate, soils or land size. - Price fluctuation and exploitation by brokers, which erodes returns. - High post-harvest losses through poor handling and lack of storage. - Diversion of the enterprise's income to personal or family needs. - Pests, diseases and drought that the farmer had not planned for. Maximum 6 marks.

12. Question 12

    4 marks

    Describe two ways in which a farmer can reduce risk when establishing a new crop enterprise.

    (4 marks)

    Marking scheme

    Any TWO, 2 marks each (1 for naming, 1 for the explanation): - Diversification: grow more than one crop or combine crop and livestock so that failure or a price fall in one does not wipe out all income. - Insurance: take out crop insurance so that losses from drought, hail or flooding are compensated. - Contract farming: sign an agreement with a buyer before planting so the price and outlet are known in advance. - Growing tolerant varieties: use certified drought-tolerant or disease-resistant varieties to cut the chance of crop failure. - Phased or staggered planting: plant in batches so that not all the crop meets the same adverse weather or glut. - Starting small: test the enterprise on a small area before committing all the land and capital. Maximum 4 marks.

13. Question 13

    1 mark

    A family in Kiambu with a 0.25 hectare plot chooses a broiler enterprise instead of a dairy goat enterprise because they need income within two months. The factors that guided this choice are:

    A. The availability of family labour on the plot

    B. The size of land available and the gestation period of the enterprise

    C. The capital outlay required to buy breeding stock

    D. The level of technical skill the family already possesses

    (1 mark)

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14. Question 14

    1 mark

    A farmer in Nyeri keeps 40 layers. She uses eggs from the flock in her own kitchen but does not record them anywhere. What is the MAIN weakness of this practice?

    A. The enterprise's true output will be understated, so its profitability cannot be judged

    B. The eggs consumed at home are exempt from being counted as farm produce

    C. Home consumption is a loss and should not appear in any farm record

    D. The hens will reduce their laying rate because eggs are removed daily

    (1 mark)

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15. Question 15

    4 marks

    A Grade 10 learner keeps 100 broilers. She spends KSh 9,000 on chicks, KSh 26,000 on feed and KSh 3,000 on vaccines and litter. She sells 96 birds at KSh 550 each. Calculate her gross margin and state one reason why four birds may not have reached the market.

    (4 marks)

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16. Question 16

    1 mark

    A learner has KSh 20,000 and can start either a kale enterprise or a layer unit, but not both. She chooses kale and gives up the KSh 8,000 profit she expected from the layers. The KSh 8,000 forgone is referred to as the:

    A. Gross margin of the kale enterprise

    B. Variable cost of the kale enterprise

    C. Opportunity cost of the kale enterprise

    D. Fixed cost of the kale enterprise

    (1 mark)

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