(a) State two methods of calculating depreciation of farm machines. (b) List four roles of...
(a) State two methods of calculating depreciation of farm machines. (b) List four roles of capital in agricultural production. (c) Explain five major roles played by middlemen in the marketing of agricultural produce.
Explanation
(a) Methods of calculating depreciation of farm machines: (1) straight -line method or fixed installment method (2) annual revaluation method (3) unit of production or output method (4) declining/reducing balance method (5) sum-of-the-years-digit method.
(b) Roles of capital in agricultural production: (i) enables acquisition of farm inputs (ii) enables acquisition of machinery and implements (iii) payment of wages and salaries (iv) expansion of scope of production (v) improvement of farm facilities (vi) facilitates marketing functions and services (vii) it enhances the adoption of agricultural innovations (vii) it ensures timeliness of farming operation .
(c) Roles of middlemen in marketing farm produce: (i) link producers with consumers who may be far apart (ii) they have financial ability to give loans to farmers to aid production and eventually buy the produce. (iii) most have transport facilities to collect produce from small and scattered farms and villages (iv) they build up the bulk of .the produce at great risk of price fluctuation, pest infestation etc. (v) provision of facilities for cleaning, storage, packaging, grading etc. thereby influencing produce quality (vi) supply of relevant information to producers on market trends and prices of necessary inputs.