AGR4701
ASSIGNMENT 2 2025
UNIQUE NO. 664595
DUE DATE: 17 JUNE 2025
, lOMoARcPSD|21997160
Assessment 2 Unique no: 664595 Due: 17 June 2025
Continuation of Assignment 1
Instructions
• Assignment 2 contributes to your year mark. It is compulsory for all students, to submit
this assignment before the due date to ensure that they build their year mark.
• Attend your online classes to learn more about the module
Part 2 – focus on operational cost
2.1 Human resource
2.1.1 Develop the job description for the supervisor with an annual payment
package for his/her duties. (10)
2.1.2 Develop the job description guide for general farm workers for each of the two
commodities. (15)
2.1.3 Create the practical daily operational activities of farmworkers by demonstrating
activity for each of two commodities within normal working 8½ hours as required
by South African or your residing country Labour law. Remember to factor the
worker wage rate in Rand or other currency per hour by using the latest
minimum wage for this year that is readily available at www.labour.co.za or
labour site of residing country to sub-total of each activity. (15)
2.1.4 Based on the design job descriptions and daily activities, develop the yearly
worksheet for estimated labour hours required to perform all activities of two
chosen commodities. (10)
2.2 Determine the activity operational cost (financial cost for every work you
do) for the proposed farming enterprise of two or more chosen
commodities. In the case where you chose two plant commodities for your title,
you should outline the activity operational cost of each commodity. Present your
activities costs as follow:
a) Description Quantity Unit price Sun-total
1
2.2.1 Animal commodities:
1
, lOMoARcPSD|21997160
Assessment 2 Unique no: 664595 Due: 17 June 2025
a) Work out total annual feeding cost for all animals, medication, and veterinary
cost. (5)
b) Maintenance cost for farm structure like (camps, boreholes or water system,
piggery houses, poultry house, milking parlour, silage storage cost). (5)
c) Energy repayment (electricity or solar) and all other animals’ consumable
expenses. (5)
d) Workout the machinery cost for activities done on an animal section like:
(preparation of silage, feeding activity using the tractor and implement by
factoring the fixed cost of a tractor, implement, fuel, maintenance and repair
cost). (10)
e) Work out all activity transport costs considering the annual vehicles repayment,
fuel, maintenance & repair and all assigned transport activities that occurred
under the animal section. (5)
f) Based on your answers for 2.1.1 to 2.1.4 above – on hours allocated for animal
commodity, the job description of supervisor and farmworkers using practical
daily operational activity hours; workout the monthly to annual human resource
cost for animal section (considering peak work where extra workforce are
required for temporary activities). (10)
2.2.2 Plant commodities
a) Work out total crop activities: tilling, disc harrowing, planting, weeding, irrigation
and harvesting cost for targeted plant annually if is spread over seasons. (5)
b) Maintenance cost for farm structure like: (boreholes & irrigation system,
hydroponics, net shading, tunnels, processing and package facility, cold storage
and others that you know about). (5)
c) Energy repayment (electricity or solar) and all other plants consumable
expenses related to energy. (5)
d) Workout the machinery cost for activities done on plant section like: (preparation
of soil, organic or inorganic fertilizer and lime spread on-field activity using the
tractor and implement by factoring the fixed cost of a tractor, implement, fuel,
maintenance and repair cost). (10)
2
, lOMoARcPSD|21997160
Assessment 2 Unique no: 664595 Due: 17 June 2025
e) Work out all transport costs considering the annual vehicles repayment, fuel,
maintenance & repair, and all assigned transport activities that occurred under
the animal section. Your working should factor the size of truck capacity on how
many tons can be transported at a time. Then consider target production in tons
from planted space to determine how many deliveries may be required to
transport all farm plant products. (5)
f) Based on your answers for 2.1.1 to 2.1.4 – on hours allocated for plant
commodity, the job description of supervisor and farmworkers using practical
daily operational activity hours; workout the monthly to annual human resource
cost for plant section (considering peak work where extra workforce are required
for temporary activities). (10)
2.3 Develop the enterprise budget of each commodity according to the size of the
production share on the farm. Refer to the example of enterprise budgets
presented in your study guide.
2.3.1 Enterprise budget for commodity 1 (consider total capital requirements fund and
all operational cost for this commodity). (10)
2.3.2 Enterprise budget for commodity 2 (consider total capital requirements fund and
all operational cost for this commodity). (10)
2.4 Determine the breakeven point of each commodity production line to determine
whether the farm will be run sustainably and profitably.
2.4.1 Break-even point for commodity 1 (10)
2.4.2 Break-even point for commodity 2 (10)
There is a formula for calculating the breakeven point. But first, get to know the
acronyms:
Y = Breakeven point
TFC = Total fixed cost
To determine your fixed cost, use the total capital requirements under
assignment 1 question 1.5. Use estimated loan interest rate and
repayment period. Workout the fixed cost for each commodity to get your
3
ASSIGNMENT 2 2025
UNIQUE NO. 664595
DUE DATE: 17 JUNE 2025
, lOMoARcPSD|21997160
Assessment 2 Unique no: 664595 Due: 17 June 2025
Continuation of Assignment 1
Instructions
• Assignment 2 contributes to your year mark. It is compulsory for all students, to submit
this assignment before the due date to ensure that they build their year mark.
• Attend your online classes to learn more about the module
Part 2 – focus on operational cost
2.1 Human resource
2.1.1 Develop the job description for the supervisor with an annual payment
package for his/her duties. (10)
2.1.2 Develop the job description guide for general farm workers for each of the two
commodities. (15)
2.1.3 Create the practical daily operational activities of farmworkers by demonstrating
activity for each of two commodities within normal working 8½ hours as required
by South African or your residing country Labour law. Remember to factor the
worker wage rate in Rand or other currency per hour by using the latest
minimum wage for this year that is readily available at www.labour.co.za or
labour site of residing country to sub-total of each activity. (15)
2.1.4 Based on the design job descriptions and daily activities, develop the yearly
worksheet for estimated labour hours required to perform all activities of two
chosen commodities. (10)
2.2 Determine the activity operational cost (financial cost for every work you
do) for the proposed farming enterprise of two or more chosen
commodities. In the case where you chose two plant commodities for your title,
you should outline the activity operational cost of each commodity. Present your
activities costs as follow:
a) Description Quantity Unit price Sun-total
1
2.2.1 Animal commodities:
1
, lOMoARcPSD|21997160
Assessment 2 Unique no: 664595 Due: 17 June 2025
a) Work out total annual feeding cost for all animals, medication, and veterinary
cost. (5)
b) Maintenance cost for farm structure like (camps, boreholes or water system,
piggery houses, poultry house, milking parlour, silage storage cost). (5)
c) Energy repayment (electricity or solar) and all other animals’ consumable
expenses. (5)
d) Workout the machinery cost for activities done on an animal section like:
(preparation of silage, feeding activity using the tractor and implement by
factoring the fixed cost of a tractor, implement, fuel, maintenance and repair
cost). (10)
e) Work out all activity transport costs considering the annual vehicles repayment,
fuel, maintenance & repair and all assigned transport activities that occurred
under the animal section. (5)
f) Based on your answers for 2.1.1 to 2.1.4 above – on hours allocated for animal
commodity, the job description of supervisor and farmworkers using practical
daily operational activity hours; workout the monthly to annual human resource
cost for animal section (considering peak work where extra workforce are
required for temporary activities). (10)
2.2.2 Plant commodities
a) Work out total crop activities: tilling, disc harrowing, planting, weeding, irrigation
and harvesting cost for targeted plant annually if is spread over seasons. (5)
b) Maintenance cost for farm structure like: (boreholes & irrigation system,
hydroponics, net shading, tunnels, processing and package facility, cold storage
and others that you know about). (5)
c) Energy repayment (electricity or solar) and all other plants consumable
expenses related to energy. (5)
d) Workout the machinery cost for activities done on plant section like: (preparation
of soil, organic or inorganic fertilizer and lime spread on-field activity using the
tractor and implement by factoring the fixed cost of a tractor, implement, fuel,
maintenance and repair cost). (10)
2
, lOMoARcPSD|21997160
Assessment 2 Unique no: 664595 Due: 17 June 2025
e) Work out all transport costs considering the annual vehicles repayment, fuel,
maintenance & repair, and all assigned transport activities that occurred under
the animal section. Your working should factor the size of truck capacity on how
many tons can be transported at a time. Then consider target production in tons
from planted space to determine how many deliveries may be required to
transport all farm plant products. (5)
f) Based on your answers for 2.1.1 to 2.1.4 – on hours allocated for plant
commodity, the job description of supervisor and farmworkers using practical
daily operational activity hours; workout the monthly to annual human resource
cost for plant section (considering peak work where extra workforce are required
for temporary activities). (10)
2.3 Develop the enterprise budget of each commodity according to the size of the
production share on the farm. Refer to the example of enterprise budgets
presented in your study guide.
2.3.1 Enterprise budget for commodity 1 (consider total capital requirements fund and
all operational cost for this commodity). (10)
2.3.2 Enterprise budget for commodity 2 (consider total capital requirements fund and
all operational cost for this commodity). (10)
2.4 Determine the breakeven point of each commodity production line to determine
whether the farm will be run sustainably and profitably.
2.4.1 Break-even point for commodity 1 (10)
2.4.2 Break-even point for commodity 2 (10)
There is a formula for calculating the breakeven point. But first, get to know the
acronyms:
Y = Breakeven point
TFC = Total fixed cost
To determine your fixed cost, use the total capital requirements under
assignment 1 question 1.5. Use estimated loan interest rate and
repayment period. Workout the fixed cost for each commodity to get your
3
