WAEC Agricultural Science 2023 Theory — Question 6

Model answer

(a) Wellness Farms Profit and Loss Account for the year ended 31st December 2016: Income: Sale of eggs N240,000; Sale of spent layers N100,000; Eggs consumed by farmer N10,000; Closing valuation N600,000. Total Income = N950,000. Expenditure: Opening valuation N400,000; Cost of point-of-lay N200,000; Cost of feed N150,000; Cost of drugs N10,000; Transportation costs N10,000; Wages paid to workers N80,000. Total Expenditure = N850,000. Net Profit = Total Income - Total Expenditure = N950,000 - N850,000 = N100,000. (b) Problems faced by financial institutions in granting credit to crop farmers: High risk of loan default due to crop failure; Lack of collateral security by farmers; High cost of administering small loans to scattered farmers; Poor record keeping by farmers; Unpredictable weather/climate affecting repayment ability; Fluctuating market prices for produce affecting farmers' income. (c) Characteristics of Centrosema pubescens: It is a leguminous cover crop; It is drought resistant; It suppresses weed growth; It fixes nitrogen in the soil; It has trifoliate leaves; It is a perennial climbing/twining plant.