Observation

            Question 6 was the quite popular among candidates.

• Although most candidates explained agricultural credit concisely, few of them failed to state that the credit is repayable or should be paid back by the farmer.
• In Question 6(b), some candidates were stating the reasons why agriculture has not been fully mechanized in West Africa.
• Many candidates were able to explain farm valuation and cash record but had difficulty explaining the balance sheet concisely. 

The expected answers include:

• (a)  Meaning of agricultural credit

Agricultural credit is repayable money given to farmers to enable them carry out their farming activities.

(b)  Reasons why farmers find it difficult to obtain loans for agricultural production in West Africa

• Inadequate acceptable collateral
• Risk of crop failure is high
• Inadequate farm records
• High interest rate charged on agricultural loans
• Inadequate insurance cover for farms
• Inadequate moratorium/ deferment of payment of loans by farmers
• Misuse/diversion of loans to other purposes
• Inadequate information on sources of finance
• Cumbersome administrative requirements/bureaucracies in assessing capital e.g. bank loans
• Land tenure system/ Small farm holding holdings
• Illiteracy

(c)        Explanation of terms used in agricultural business

(i)  Farm valuation

• This is the determination of the financial/monetary worth of all items of production in a farm
• Carried out at the beginning and end of the accounting year.
• The value at the beginning is called opening valuation while the value at the end of the accounting year is called closing valuation                                                                                                                                                                                                        

           (ii)  Cash record

• This is the record of cash transactions on the farm
• Shows the income and expenditure of a farm
• Purchases and expenses/expenditure are recorded on the right-hand side while receipts/income on the left-hand side

 
(iii) Balance sheet
-    This is a statement showing the financial position of the farm at the
end of the accounting year
-    It lists all assets on the right-hand side and liabilities on the left-hand side
-   Shows the net worth of the farm

(d)  Uses of poultry eggs to humans
-      Manufacturing of paints
-      Production of cosmetics
-      Beverages
-      Pharmaceuticals
-      As food/ source of protein
-      Confectionaries
-      Egg shell as feed for livestock
-      Egg shell as abrasive/ scouring powder
-      Adhesives
-      Vanishes
-      Ink