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A farmer has 150 ha of arable land, 55 of which is under wheat, 30 ha under maize, 10ha under pasture. She wishes to know...

      

A farmer has 150 ha of arable land, 55 of which is under wheat, 30 ha under maize, 10ha under pasture. She wishes to know whether replacing 12 ha of maize with Irish potato the following year would be worthwhile. The fertilizer rates would have to be increased from 5 bags per ha. For Irish potatoes and extra 100 man – days of casual labour per ha will be necessary as a result of change.

The average yield of maize and Irish potatoes is 40 bags and 110 bags /ha respectively. The prices are Sh. 1,300 per bag for maize and Sh. 1,100 per bag for Irish potatoes. Seed costs are 2,400 per ha for maize and 25,000 per ha for Irish potatoes. Fertilizer costs are 1,300 per bag labour is paid Sh. 150 per man day. Draw up a partial budget and indicate the effects of the change.

  

Answers


Kavungya
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Kavungya answered the question on October 3, 2019 at 11:59


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