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Explain the various ways in which farmers may adjust to risks and uncertainties

Answers

-Diversification- Setting up several and different enterprises on the farm. If one fails the
farmer cannot incur total loss.
- Contracting- farmers can enter into contract with consumers. It guarantees a constant fixed market for goods/services
- Insurance- Taking an insurance cover to compensate them incase of loss
- Input rationing- Farmers can control the quantities of inputs used in various enterprises to reduce losses
- Flexibility in production methods- Ability to change from one enterprise to another in response to demand changes
- Adopting modern methods of production e.g. disease control, irrigation, mechanization e.t.c.

sharon kalunda answered the question on April 15, 2019 at 14:45

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Next: Prepare a profit and loss account for Mr. Rob’s farm for the year ending 31st Dec. 2009, given the following information:-

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Prepare a profit and loss account for Mr. Rob’s farm for the year ending 31st Dec. 2009, given the following information:- (Solved)

a)Prepare a profit and loss account for Mr. Rob’s farm for the year ending 31st Dec. 2009, given
the following information:-
Sale of milk Kshs.10,000
Sold two heifers kshs.10,000
Cabbage sold Kshs. 20,000
Debts payable Ksh.4,200
Sold tomatoes Kshs. 3,000
Veterinary bills Kshs.2,500
Bought livestock feeds Kshs.2,500
Purchase fertilizers Kshs.5,000
Bought seeds Kshs. 4,000
Debts receivable Kshs.20,000
Opening valuation Kshs.150,000
Closing valuation Kshs.200,000
(b) Did the farm make a profit or a loss? Calculate the percentage profit or loss made by the Farm

Date posted: April 15, 2019 . Answers (1)
The following information was obtained from Lang’at’s farm records for the year ending December, 2004. Study it and answer the questions that follow:- (Solved)

The following information was obtained from Lang’at’s farm records for the year ending
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Goats 4,000
Poultry 15,000
Causal workers 12,000
Opening valuation 150,000
His sales and receipts are as follows:
Mohair 75,000
Rabbits 3,600
Eggs to hotel 15,000
Closing valuation 200,000
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Date posted: April 15, 2019 . Answers (1)
At the end year ended 31/12/2005 Bidii farm recorded the following: (Solved)

At the end year ended 31/12/2005 Bidii farm recorded the following:
Perennial crops 250,000
Bank loans 30,000
Cash at hand 5,000
Bank overdrafts 15,000
Land 350,000
Unpaid wages 3,000
Debts receivable 20,000
Stocks in store 25,000
Livestock 200,000
Bank balances 100,000
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Date posted: April 15, 2019 . Answers (1)
The following transactions were extracted from Mr. Tembo’s financial books for the year ending 31st Dec 2003.study and answer the questions that follow: (Solved)

The following transactions were extracted from Mr. Tembo’s financial books for the year ending 31st Dec 2003.study and answer the questions that follow:

i) Prepare a profit and loss account for Mr. Tembo’s farm for the year ending 31st Dec. 2003
ii) Calculate the percentage profit or loss made by the farm

Date posted: April 15, 2019 . Answers (1)