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1. A Farm is producing groundnuts and soya bean on 100 acres of land and 16 goats on 2 hectares of land. Suppose groundnuts
1. A Farm is producing groundnuts and soya bean on 100 acres of land and 16 goats on 2 hectares of land. Suppose groundnuts occupies 65 percent and soya bean 35 percent of the total crop area. Yield of groundnuts and soya bean per unit of land is 120 kilograms and 95 kilograms respectively. The price for a goat is MWK40,000, soya bean is MWK15/Kg and groundnuts is MWK20/Kg. To produce these enterprises, the farm incurred the following variable costs: Input Inoculants Labour Seeds Repairs and maintenance Fuel Drying management Forage management Herding Cost (MWK) 4,000 10,000 50,000 7,000 50,000 10,000 100,000 50,000 Using the income capitalization rate of 15.6 percent, estimate total value of land and the value per unit of crop land. 2. Table 2 shows 7 years data on groundnuts and soybean yield. Year Groundnuts (Kg/Acre) Soybean (Kg/Acre) 1 55 15 2 80 34 3 54 23 4 67 45 5 120 67 6 95 72 7 20 33 (15 marks) Using the information provided in table 2 above, a. Calculate the variability of each enterprise using coefficient of variation and standard deviation. (10 marks) b. As a farm manager, which enterprise can you recommend for production? Explain your answer. (5 marks)
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Step: 1
1 To estimate the total value of land and the value per unit of crop land we need to calculate the net operating income NOI and then use the income ca...Get Instant Access to Expert-Tailored Solutions
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