Agribusiness management 2 Activity Sheet

1. How does the discovery of agricultural affect the social and economic condition of the
primitive people?
~When agriculture began to be practiced, people ended their nomadic life. They stayed
in places which they chose, and built their houses. Thus villages developed and grow. In
the beginning, people only produced the goods which they could consume It was a self-
supporting society. But when better techniques of farm production were introduced and
their institutions become more developed, they realized the advantage of producing
more good for trade purpose. And this was the beginning of progress.
2. What is the importance of agriculture to the Philippine economy?
~The cultivation of plant and animals through farming, mainly for food, agriculture also
knows geography of food in the Pilipine.
3. Could we attain economic progress without agricultural development? Justify your
answer?
~ in economics, the specialization of the functions and roles involved in production.
Division of labor is closely tied with the standardization of production, the introduction
and perfection of machinery, and the development of large-scale industry. Among the
different categories of division of labor are territorial, in which certain geographical
regions specialize in producing certain products, exchanging their surplus for goods
produced elsewhere; temporal, in which separate processes are performed by different
industrial groups in manufacturing one product, as the making of bread by farmers,
millers, and bakers; and occupational, in which goods produced in the same industrial
group are worked by a number of persons, each applying one or more processes and
skills. Modern mass-production techniques are based on the last type. The proficiency
attained through experience at one task and the time saved by concentration on one
phase of an operation are such that the total production is many times what it would be
had each worker made the complete article.
4. Explain the characteristic of farming?
Characteristics of Farming
Home and farm business are integrated.
Functions of management and ownership are combined.
Most farms are small business unit.
Farms products are not easy standardized.
Farmers’ control over production is limited.
Demand and supply of farm products are inelastic.
Farming is subject to great risk.
Farming can be done by less-educated person.
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 Fixed costs are usually high.
5. Give a examples of variable and fixed cost in agriculture!
~ Examples for the Variable Cost:
- Farm inputs, such as seeds, fertilizer, chemical and the like.
- Hired labor and other similar services.
- Gasoline, diesel and oil consumption.
~ Example for the Fixed Cost:
- Rentals for buildings and lands
- Taxes on real estate
- Interests on investment
6. What are the disadvantages of farming?
Farm products are highly competitive.
Farming has many uninsurable risks.
Farm production cost high caused by a relatively small size production unit.
Farm wages are lower compared with other industries
Farm production is difficult to control
Farm work is given low social status by Asian societies
7. In what way is farming similar to the other business enterprises?
~A farm is also a form business organization,as such business principles and strategies
are in most case also applicable to farm interprise.
8. What is a good farmer? Explain the qualities or characteristic of Filipino farmer?
~Good farmer is they employ their relatives and some other in the neighbor.
~Explain the qualities or character of Filipino farmers :
-Integration of home and farm business
-Combined function of management and ownership
-Most farm are small business units
-Farm product are not easily standardized
9. Define agribusiness. Give a example of agribusiness enterprise in the Philippines.
~ Particular type of business is in concerned with providing the farmer with supplier
which thief need in the production and in the processing and marketing of their farm
product.
Example: Planter Product
10. Why are farms different?
~Because traditional farming is a simple job, it doesn’t not require collage education,
what more important is to love the land and farm work.
11. What is the best type of farming in your place?
~The types of farming in my place are :Plant fruits and vegetable then tobacco and
coffee.
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12. Solving economic problems with economic solution alone is not effective. Why?
~Because in agriculture are not only confined to economics. There are also non-
economic
factors which greatly affect the emergence of such problems. For instance, the poor
health of
farmer, the unfavorable policies of the government, or the negative attitudes and values
of the farmer have very deep impact on the economic condition of the individual
~For example, extending financial assistance to a farmer bad habits is useless. Be value
must be improved through continuous training and education.
13. What are some of the economic and non-economic problem of the farmers?
Economic Problems :Financing, Production, Marketing, Industrialization, Land Tenure,
Taxation and subsidies, Economic infrastructures
Non- Economic Problems :Attitudes, Value and Cultural, Public administration,
Health, Education, Population, Religion
14. Why is it that most farmers are reluctant to change their traditional method of farming?
~Because the high cost of scientific methods of farming and the many risk involved in
agriculture prevent them from changing their old method of farming. The price of
fertilizer and chemicals are extremely high for the farmer.
15. How does industrialization affect agriculture?
~The process of industrialization creates problems in the agricultural sector.
16. What are the effects of taxes on agricultural production?
~With such incentives, concerned agricultural projects or enterprises are expected to
become viable and their number to increase. However, problems such as favoritism and
inefficient administration of the incentive program of the government may likely crop
us. As result, farmers in the neglected crop industry develop negative attitudes toward
the intention of the government.
17. Define farm of organization?
~Farm of organization : labor machines, money, and materials
18. What are the duties of the farm manager?
The duties of farm manager: Select the farm enterprise, Choose and combine properly
the factors of production, Plan the physical of the farm, Provide a system of records and
account
19. What are the factors of production? How are these used in agricultural?
Land, labor, and capital
In agricultural countries, labor is cheap because there is an oversupply, they use labor-
intensive methods in production for economic reason, industrial countries have more
capital resources than labor. This proportion determines their choice of method of
production. Since the use mechines is much cheaper, they utilize capital-intensive
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 technology.
Factor payments such rent, wages, and interest vary from region to region. However, a
farm manager has to evaluate such economic advantage in relation to the availability
and cost of marketing facilities and outlets.
20. What are the characteristics of a desirable farm?
~Characteristics of a desirable farm: Fertility of the land, Topography, Improvements,
Farm layout, Weeds and stumps, Location of farm, Taxes, The community
21. Explain the problem of a manager!
The problem of a manager:
Lack of inadequate current information : a farm manager should be well-informed on
prevailing prices affect which his farm business.
Response to institutional changes : a farm manager should be able to adjust favorably to
changes in government programs on agriculture, such as agrarian reform, cooperatives,
corporate farming, etc
Risk : a farm enterprise is subject to many risk
Choice of proper alternatives : a farm manager is often confronted with problems of
choosing economic opportunities wisely
Proper combination of fixed and variable factors : profit maximization is the goal of a
farm manager. To achieve this, he has to arrange the most efficient combination of the
factors of production, like land, labor, machines, and building.
22. Define credit. Is it different from debt?
~ Credit is defined as the ability of an individual to acquire goods, service, or money at a
certine time in exchange for a promise to pay at some future time. The promised
payment may take the form of goods, services, or money, they are two parties which are
involved in credit transactions, one is creditor who provides the ting borrowed and the
other one is the debtor who receives it and assumes the obligation to pay.
No, it is same, they are thing derived from two different points of view.
23. Why do famers need credit?
~ Because they can’t rely on their savings because they have none, with the high cost of
living, the income of the farmer is usually barely enough to support his family, his
financial problems is further aggravated when he begin sending his children to college-if
it still possible for him to do so, obviously, they have no more money to spend for their
farm input and other capital investment.
24. What are the determinants of the cost of credit?
Interest : this payment for using the money of other people, in banking institution the
loans come from the saving or deposits of individual.
Fees : aside from interest, there are other charges which financial institution impose on
borrowers.
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 Method of payment : the manner of paying of the loan affect the cost credit.
Size of the loan : credit which requires a constantrate of interest and a fixed service
charge is not favorable to small loan borrowers
25. What are the principles in the use credit?
Principle in the use credit : Productive enterprises, Time of repayment, Rate of
repayment , Size of repayment
26. How do you improve the ability of farmers to pay off loans?
Loan should be used for productive projects, the income which is generated from the
project should be sufficient to repay the loan, for a viable project or investment, a
reliable feasibility study should be conducted.
27. What is supervised credit?
~Supervised credit : supplement with farm and home management guidance under an
borrow during the various stages of the project development.
28. What are the steps in supervised credit?
Steps in supervised credit : Analysis the project, Preparation of the farm plan and
budget, Periodic inspection and follow up of the project, Evaluation of the project upon
it’s completion
29. What are the types insurance for farmers?
~The types insurance for farmers are : Life, Fire, Automobile, Crop
30. Explain the advantage of insurance for farmer?
It substitutes certainty for uncertainty
It distributes the cost of losses
It help in getting credit
It help in the calculation of costs
31. What are the factors of production?
~Factors of production are : Land, labor, capital, and entrepreneur
32. Why is the entrepreneur very important factor in production?
~The farm manager direct, controls, and, coordinates the other factors, such as land,
labor, and capital, he decides what crops to produce, and where, when, and how to
produce them, he improves farm enterprise therefore greatly depends on the competence
and foresight of the entrepreneur.
33. Define the law of diminishing return!
~ Is classic economic concept that started that as more investment in an area is made,
overall return on that investment increases at the a beginning rate. As summing that
variables remitted fixed.
34. How does the law of diminishing returns affect agricultural production?
~Must easier discripe than to predict, simplestic intraction explain the general principal,
that-real live, business models generally have multiple variables and changing prices for
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 goods and labor to consider, in edicine the effect of diminishing return become hurt to
isolate due to improvement in production.
35. State the law of comparative advantage
~The availability of spare part and local service
36. How can small farmers mechanize their farms? Facilities are essential consideration in
the purchase of machines, particularly the more complicated ones.
37. Define farm marketing, What is the modern concept of farm marketing?
~Farm marketing : marketing of farm product involves activities which facilitate the
movement of products from the farm to the ultimate users, it requires a good
transportation and communication system in order to ensure an efficient transfer of farm
product to the consumers, Likewise, processing, warehousing, and storage facilities
should be adequate to expend the benefits of raw product and stabilize supply of farm
goods.
~The modern concept of farm marketing : The pursuit of our transactions and exchange
relationship, the traditional objects of exchange are good and services, under the modern
setting, exchange does not only involve goods and services but also money, time,
attention, energy, devotion, and the like.
38. What are the functions of marketing. Is selling the same as marketing?
~Functions of marketing : Assembling, Storage, Financing, Standardizing and grading,
Transporting, Packaging, and Retailing,
39. Yes it is .
40. What are the factors in agricultural marketing?
~Factors in agricultural marketing : Size of the farm, The nature of the product, Optional
uses.
Give examples of international trade barriers. How do these affect the farmers?
~Tarif or customs. Tariffs are taxes on imported products.
Kuota. Quotas limit the many units that can be imported to limit the amount of goods in
the market and raise prices.
Subsidi. Subsidies are government assistance for local producers. Subsidies generated
from taxes. Forms of subsidies include financial assistance, low interest loans and
others.
Trade barriers reduce economic efficiency, because people can not take advantage of the
productivity of other countries. Parties that benefit from the existence of trade barriers is
the manufacturer and the government. Manufacturers get protection from trade barriers,
while the government gets revenue from duties.
bases of international trade?
~Comparative advantages enjoyed by each nation it means a country has to export the
product which enjoys the greatest advantages.
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42. How is man related to land? Which is the best relationship?
Owner : he has tenants or workers who work on his farm
Owner-cultivator : he farm his own land
Owner-lesser : he leasses his farm
Tenant : he tills a farm which does not belong to him, he merely gets a share in the
harvest
Sharecropper : he works in the farm mostly during harvest season
Laborer : he perform manual work in the farm
Lessee : he operates the farm on a fixed rental basis
Manager : he operates the farm for the owner.
43. What are the problems of tenure group?
~Some problem of tenure group : Size of the farm, Education, Standard of Living,
Health, Landlord-tenant relations
44. Why do farmer become more productive when they own the farm they are telling?
~Because they can easier to process their own product in their farm.
45. Describe the social condition of tenant!
~The agricultural sector is generally a low-income area, tenant and farm workers exist
on hand where most of the rural poor people live in absolute poverty but the big
landlords wallow in luxury n comfort, they live in mansion while their poor tenant
reside only in shanties, it’s a dual society – one is for the very few rich and another for
the many poor.
46. What is the agrarian reform? Is it same as Land Reform?
~Agrarian reform is a package of service extended to the farmers in the farm of credit,
infrastructure farm extension, legal assistance, electrification, and the development of
rural institution, the program is designed to uplift the farmers from poverty, ignorance,
and stagnation and to make them productive, responsible and dignified, and progressive
partner in nation-building. No, it is not,
47. Explain some shortcoming in our land reform program!
~The land reform program has not been fully implemented in many other countries.
Lack of money and the anemic political will to fight vested interests appear to the
principal reason for the superficial execution of land reform.
48. Why is the program of family planning not really successful poor countries?
~ It helps couples achieve their desired family size and can help lower
maternal and child mortality—critical Millennium Development Goals. Family
planning does not limit rights; it gives people choices by providing them the tools to
control the timing and number of children to have. Meeting the fertility preferences of
individual families is undoubtedly a desirable objective on reproductive rights grounds
and in many countries would at the same time address the objective to reduce population
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 growth rates
49. What causes low productivity among Asian farmers?
~ because the type of agriculture that is different, and Asian countries are developing
countries so that preformance produce their agricultural products using imported
equipment
50. Is farm mechanization effective in Asia agricultural? Explain.
~Yes, it is, because agriculture have basicly the same objectivs to maximizes their profit
efficient operations . One way of attaining this objectifs is to produce more with the
least cost.
51. What are the barriers of agricultural reforms?
~The barriers are imposed for political reason.