(a)(i) State the law of diminishing returns [2 marks} (ii) Explain the main cause of...
(a)(i) State the law of diminishing returns [2 marks}
(ii) Explain the main cause of diminishing returns in agricultural production. [2 marks]
(b) A commercial farmer bought a second hand combine harvester for N100,000.00 in 1990, and sold it for N30,000.00 in 2000. For the combine harvester (i) salvage value [1 marks]
(ii) total depreciation [2 marks]
(iii) annual depreciation [2 marks]
(c) List seven problems of agricultural extension services in West Africa. [7 marks]
Explanation
(a)(i) The law of diminishing returns The law states that as successive amounts of a variable factor are applied to one or more fixed factors, output might increase a lot at first but there comes a point at which the use of an additional amount of the variable factor will add less to output than the preceding amount.
(ii) Explanation of the main cause of diminishing returns in agricultural production. Wrong combination of inputs:
If the amount of variable factor used is in excess of the fixed factor of production, diminishing returns will set in. For instance, if a plot of land (fixed) is to be cultivated by ten men (variable) under normal situation, but suddenly, the number is increased to twenty-five (25), there would be room for laziness, gossiping and general under-utilization of labour.
(b) Calculation of salvage value, total depreciation and annual depreciation of the combine harvester
Salvage value
+ #30,000.00
Total Depreciation
Cost price - Salvage value
= #100,000.00 = #30,000.00
= #70,000.00
Annual depreciation
= Cost price - Salvage value
Useful life in years
= #100,000.00 - #30,000.00
10 years
= #70,000.00
10 years
= #7,000.00
(c) Problems of Agricultural Extension services In West Africa
- Inadequate extension officers
- Inadequate transportation/poor accessibility to farming communities
- Inadequate incentives for extension officers/insufficient motivation of extension agents
- Illiteracy of the farmers
-Poor monitoring of extension service agents
-Conservatism of the farmers
-Undefined roles for extension agents
-Inadequate credit facilities to the farmer
-Corruption among extension personnel
-Inadequate supply of subject matter specialists
-Inadequate coordination between extension service and the agricultural research institution
-Inadequate farm-inputs to back-up extension messages
-Conflicting religious beliefs and tradition
-Inadequate extension service amenities
-Inadequate programme evaluation
-Non-involvement of farmers in planning extension programme
-Language barrier