CAPRICORN SOUTH DISTRICT

NATIONAL
SENIOR CERTIFICATE

GRADE 12

AGRICULTURAL SCIENCES PAPER 2

REVISION PACK 3 2024

REVISION PACK 3
QUESTION 3: PRODUCTION FACTORS SET 1

3.1 The graph below shows an economic characteristic common to land as a

production factor with regard to inputs and outputs.

30

25

20

15

10

Quantity of inputs (kg)

3.1.1 Identify the economic characteristic shown in the graph above. (1)

3.1.2 Describe the implication of the economic characteristic identified in

QUESTION 3.1.1. (2)

3.1.3 Compare the output response with regard to the quantity of inputs
that increases from 5 to 10 and from 10 to 15. (2)

3.1.4 Name TWO measures the farmer can take to improve the
productivity of land. (2)
3.2 The picture below shows a farming enterprise.

3.2.1 Indicate the management strategy undertaken by the farmer to

reduce the impact of risk shown in the picture above. (1)

3.2.2 Give a reason for the answer to QUESTION 3.2.1. (1)

3.2.3 Name the risk management strategy when the cost of a farming
enterprise is distributed equally among the group of farmers. (1)

3.2.4 Indicate the source of the risk that may be due to a disease
outbreak. (1)

3.2.5 Name TWO management principles a farm manager could employ

to deal with risks. (2)
3.3 Below is part of a contract between a farmer and a farm worker.

CONTRACT OF EMPLOYMENT

1. Particulars of employer: Mybag Farms

2. Name: TR Trevor
3. ID: 5113110123187
4. Particulars of employee:
4.1 Name: MN Chukucha
4.2 ID: 9613259876087
5. Job title: Machine Operator
6. Payment details:
6.1 Mode of payment: Monthly cheque
6.2 Amount: R2 300
7. Terms of employment:
7.1 Duration of contract: 2 January 2021 to retirement
7.2 Working hours: 06:00 to 18:00
7.3 Leave: Five days paid leave per annum
8. Protective clothing: None
Employee's signature: …………………………. Date: 02/01/2021

Employer's signature: …………………………. Date: 02/01/2021

3.3.1 Define the term contract. (2)

3.3.2 Indicate the type of farm worker who has to sign the contract above
based on the term of employment. (1)

3.3.3 Give a reason to support the answer to QUESTION 3.3.2. (1)

3.3.4 Name the labour legislation that has been violated by the employer
in EACH of the following sections of the contract above:

(a) Number 7 (1)

(b) Number 8 (1)

3.3.5 Identify, in the contract above, TWO reasons that may lead to the
movement of farm workers from the farm to other industries. (2)
3.4 The picture below shows a farm with different types of capital.

A B

3.4.1 Identify the type of capital represented by A, B and C in the picture

above. (3)
3.4.2 Indicate TWO methods by which a farmer can create more capital. (2)
3.4.3 Name TWO problems associated with capital as a
production factor. (2)

3.5 The table below shows assets and liabilities of a farming business for the year
ending on 28 February 2021.

ASSETS VALUE (R) LIABILITIES VALUE (R)

A CURRENT LIABILITIES
Positive bank balance 10 000 Sundry creditors 20 000
Farm produce sold 15 000 Production loans 35 000
Growing crops 6 000
Subtotal 31 000 Subtotal 55 000
Medium-term assets Medium-term liabilities
Vehicles and Machinery 420 000 Vehicle finance 280 000
Livestock 60 000 Loan repayment 60 000
Subtotal 480 000 Subtotal 340 000
Long-term assets Long-term liabilities
Farm land 950 000 Bond repayment 450 000
Buildings 400 000 Loans 120 000
Subtotal 1 350 000 Subtotal 570 000
TOTAL ASSETS 1 861 000 TOTAL LIABILITIES B

3.5.1 Name the financial statement above. (1)

3.5.2 Identify A in the financial statement above. (1)

3.5.3 Calculate the value of B in the financial statement above. Show

ALL calculations. (2)

3.5.4 Calculate the net worth of the farming business above.

Include the formula. (3)
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QUESTION 3: PRODUCTION FACTORS SET 2

3.1 Match the following economic characteristics of land with the statements below.
Write down only the question number and the answer, e.g. 3.1.4 durability.

specific environment; durability; indestructibility; availability; restrictedness

3.1.1 The life of soil is unlimited if used correctly. (1)

3.1.2 Only 12% of the soil in South Africa can be cultivated. (1)
3.1.3 Soil may be damaged, but cannot be destroyed. (1)

3.2 State TWO economic functions of land. (2)

3.3 Government proposed a 5% increase in the minimum wage for farmworkers.

Some farmworkers work 10 hours and more per day for six days a week.
Researchers have also reported the highest number of new HIV/Aids infections
on farms.

3.3.1 Name the labour legislation used to address the wage issue in the
scenario above. (1)
3.3.2 Identify TWO problems experienced by farmworkers in the scenario
above. (2)
3.3.3 State TWO ways in which the impact of HIV/Aids infections on farms
could be addressed. (2)
3.3.4 Name TWO types of temporary farmworkers based on the terms of
employment. (2)

3.4 The table below illustrates a record of income and expenses of a farm with
three different enterprises.

EXPENSES (RAND)
DATE ITEM BOUGHT CATTLE TOMATOES MAIZE GENERAL
06/01 Mineral lick 3 510
08/02 Medicines 4 190
10/03 Fuel 6 250
11/04 Truck licence 720
20/06 Fertilisers 14 500 2 500
25/07 Seeds 2 800 800
30/09 Pesticides 5 341 10 000 1 930
TOTAL 13 041 27 300 5 230 6 970
INCOME (RAND)
DATE ITEM SOLD CATTLE TOMATOES MAIZE GENERAL
10/01 Maize 45 000
30/08 Tomatoes 160 000
20/12 Cattle 455 000
TOTAL 455 000 160 000 45 000
PROFIT/LOSS - 132 700 39 770
 3.4.1 Calculate the profit or loss of the cattle enterprise from the record of
income and expenses above. Show ALL calculations, including the
formula. (3)
3.4.2 Compare the tomato and maize enterprises in terms of their profit. (2)
3.4.3 Identify TWO overhead expense items in the income statement above. (2)

3.5 A farmer inherited a 20 ha farm with machinery, vehicles, livestock and

investments in cash, all worth R20 300 000, and credit of R420 000 for a truck.

3.5.1 Identify the TWO types of capital in the scenario above. (2)
3.5.2 Give the total value of the assets in the scenario above. (1)
3.5.3 Deduce the type of credit obtained by the farmer from the scenario
above. (1)
3.5.4 Justify the answer to QUESTION 3.5.3. (1)
3.5.5 Name the capital item that is regarded as a liability in the scenario
above. (1)

3.6 The table below shows agricultural products and the prices in 2010 and 2020.

PRODUCT 2010 2020

Yellow maize (R/ton) 1 000 2 900
Chicken (c/kg) 820 2 400
Wheat (R/ton) 2 200 5 400
Beef (c/kg) 1 100 6 200
Soy beans (R/ton) 2 500 5 700
Lamb (c/kg) 1 700 9 200
Pork (c/kg) 950 2 600
White maize (R/ton) 1 100 3 100

Draw a bar graph to compare the prices of animal products in 2010 with those
in 2020. (6)

3.7 Differentiate between internal and external forces that influence a farming
business. (2)
3.8 Define risk sharing as a strategy of management. (2)
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QUESTION 3: PRODUCTION FACTORS SET 3

3.1
Land is an area of ground, especially one that is used for a particular
purpose such as farming or building.
3.1.1 Explain the meaning of each of the following economic characteristics of
land:

(a) Urban development (1)

(b) Land is limited (1)

(c) Land is subject to the law of diminishing returns (2)

3.1.2 A farmer observed that farm yields on his farm have been declining for the
past three years. Suggest THREE methods this farmer can use to improve
the productivity of his land. (3)

3.2 The illustrations below shows two types of labour found on farms.

A B

3.2.1 Deduce the type of farm workers represented by images A and B above. (2)

3.2.2 Motivate your answers to QUESTION 3.2.1 above. (2)

3.2.3 (a) Identify the farm worker that is most likely to be exploited by the
employer. (1)

(b) Justify your answer to QUESTION 3.2.3 (a) above. (1)

3.2.4 Name a piece of legislation that protects farm worker A from exploitation. (1)
3.3 Below are aspects of either an enterprise or a whole farm budget.

overhead costs; variable costs; net profit; gross margin

3.3.1 Use the terms in the table above to differentiate an enterprise budget from
the whole farm budget. Write only the correct term next to the letters A–D.

ENTERPRISE BUDGET WHOLE FARM BUDGET

Type of costs A B
Type of returns C D (4)

3.3.2 Justify the use of enterprise budgets in farm business management. (2)

3.4 The diagrams below show various types of capital.

A B

3.4.1 Deduce the types of capital represented by the images A–C above. (3)

3.4.2 Give the letter of the capital item which is funded using medium term credit. (1)

3.4.3 Describe TWO problems that are associated with capital. (2)

3.4.4 Suggest TWO methods farmers use to create capital. (2)

3.5 Read the scenario below and answer the questions which follow.

A farm manager drafts budgets and prepares production plans. The

manager then decides which activities are going to be done by who, when
and how. During various production activities the manager monitors
progress and ensures that everything is done as planned. The manager
finally takes time to evaluate his/her decision-making.

3.5.1 Deduce THREE main management principles described in the

passage above. (3)

3.5.2 Identify TWO management skills that the manager above possesses. (2)

3.5.3 Motivate your answer to QUESTION 3.5.2. (2)

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QUESTION 3: PRODUCTION FACTORS SET 4

3.1 Below is a list of production factors.

A Capital
B Management
C Land
D Labour

3.1.1 In the list above, identify the production factor where each of the
following is applicable:

(a) Used as collateral (1)

(b) Used to pay the salaries of farm workers (1)

(c) The farmer (1)

3.1.2 Justify the answer to QUESTION 3.1.1(a). (1)

3.2 The table below shows the projection of a population size and arable
land in a certain region from 1983 to 2023.

YEARS POPULATION SIZE ARABLE LAND

(million) (million hectares)
1983 24 12
1993 29 10
2003 34 8
2013 39 6
2023 44 4

3.2.1 Deduce the economic characteristic of land illustrated in the table

above. (1)

3.2.2 Give TWO functions of land that are evident in the table above. (2)
3.3 HIV/Aids has a negative impact on the productivity of farm workers.

3.3.1 Indicate TWO implications of HIV/Aids for the agricultural sector. (2)

3.3.2 Name ONE measure farmers can take to address the problem of
HIV/Aids on the farm. (1)

3.4 The following personnel are employed on the farm:

 A dairy foreman
 Two general workers
 A brick-layer
 An electronic feeding machine operator

3.4.1 Identify, in the list of personnel above, an example of each of the

following:

(a) Casual worker (1)

(b) Manager (1)

(c) Unskilled worker (1)

(d) Skilled worker (1)

3.4.2 Indicate the legislation that regulates each of the following:

(a) Payment as a result of an accident in a work place (1)

(b) Provision of security when workers become unemployed (1)

(c) Hours of work, leave and working on public holidays (1)

3.5 The table below shows a financial record showing the expected expenditure
and income of a horticultural farming enterprise.

EXPECTED EXPENDITURE EXPECTED INCOME

ITEM AMOUNT (R) ITEM AMOUNT (R)
Irrigation 10 300 Flowers (shop) 150 000
Manure 22 400 Flowers (nursery) 40 000
Fuel 13 300 Compost 7 500
Labour 24 500
Potting soil 8 800
Vegetative material 45 500
Chemicals 18 700
TOTAL EXPENDITURE TOTAL INCOME

3.5.1 Identify the type of financial record represented in the table above. (1)

3.5.2 Use a formula to calculate the profit or loss of this enterprise.

(Show ALL calculations.) (4)

3.5.3 Indicate whether the farmer should continue or not with the
enterprise. (1)

3.5.4 Give a reason for the answer to QUESTION 3.5.3. (1)

3.6 The graph below represents the value of different types of assets in a crop
production enterprise.

0 Time (Years)

3.6.1 Identify the curve (A or B) that represents the following:

(a) Movable capital assets (1)

(b) Fixed capital assets (1)

3.6.2 Give a reason to support the answer to QUESTION 3.6.1(b). (1)

3.6.3 State TWO problems of capital as a production factor. (2)

3.7 A farming business should be managed well to be financially successful and to
ensure that the business achieves its intended goals and objectives. The
farmer should therefore be able to cope with risks that may prevail.

3.7.1 Name TWO types of risks that can influence a farming business. (2)

3.7.2 Give TWO sources of risks in farming businesses. (2)

3.7.3 State TWO risk management strategies. (2)

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