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3 marksFarm Financing and Support Services

CSEC Agricultural Science · May/June 2013 · Paper 2 · Question 7(a)

High global wheat prices lead to a government policy substituting 20% wheat flour with cassava flour.

State THREE subsidies or incentives that the government could provide to farmers to encourage the expansion of cassava production.

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Other parts of this question

  1. 7(b)(i)What type of budget should Mary do for the change in her plans, that is, to buy a tractor instead of hiring a tractor?[1 mark]
  2. 7(b)(ii)Identify TWO fixed costs and TWO variable costs in Table 1.[3 marks]
  3. 7(b)(iii)Calculate the annual depreciation on the tractor, using the following formula: (Cost of tractor - net disposable value of tractor) / 5 = Depreciation[1 mark]
  4. 7(b)(iv)Mary also decides that she will rent her tractor at a cost of…[2 marks]
  5. 7(b)(v)Calculate net change in profit or loss, using the following formula: Net change in profit/loss = Additional Income calculated in (iv) - Additional Costs (shown…[2 marks]

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