Grade 12
2025
AGRICULTURAL-
MANAGEMENT
PRACTICES 1/1
Previous exam papers were used to compile these notes, SACAI Sep 2018, Sep 2019 & 2021, NSC_
DBE/November 2020, 2021 & 2022. NSC_DBE/November 2023. These are just suggested answers from
the memoranda. Some information is repeated; I want to show you the different ways in which the same
information is asked.
I encourage you to answer the calculation/illustration questions.
Good luck. Juffrou Ansie
CONTENTS
PHYSICAL FARM PLANNING 5
Utilization of resources 8
Farming systems 15
Sustainable farm planning 18
Financial Planning, Management and Marketing 20
Entrepreneurship/Management Components 20
Business plan/Business plan 25
Pricing 26
Budget 30
Marketing 34
Labour 38
FINANCIAL PLANNING - STATEMENTS 43
Product harvesting and processing 45
Food legislation in South Africa 46
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Multiple choice questions
Processing Adding value to an agricultural product by transforming it into a more user-
friendly product for the consumer
Insurance / Assurance A strategy used by a farmer to provide financial protection against
contingencies such as fire, hailstorms, floods, and other risks.
Control The management principle that a farmer uses to ensure that the amount of
equipment issued is the same as the amount received back at the end of the
week
Capital The factor of production that represents equipment, fences, seeds,
fertilizers, and chemicals used in growing crops
Farm gate The marketing channel used when consumers travel to a farm and purchase
products on the farm
Records Records on a farm are important and necessary to make informed
management decisions.
Labor / Workers Labor/Workers refers to the physical and human efforts performed with the
expectation of compensation.
Planters Planters are used to place seeds in the soil on a large scale at predetermined
distances.
Financial records Financial records are compiled from all transactions within the farming
enterprise.
Target market Target market is the part of the marketing plan that describes the type of
customers one wants to attract.
Diversification Expanding the number of activities or branches managed by the farmer to
reduce risk in the farming enterprise
Net cash flow This is the difference between receipts and payments in a particular period.
Soil conservation Prevention of soil degradation, soil pollution, soil erosion and loss of soil
nutrients
Communication The management aspect where a farm manager gives instructions to the
labourers and listens to work-related problems of the labourers
Decision-making An intellectual task that an entrepreneur performs to obtain a result and to
make the action possible, with the aim of identifying the actual problem and
its solution.
Income statement The preferred document used to indicate the profitability of a business
Break-even point The amount a farmer must produce to cover all input costs.
Liabilities Outstanding debts, loans and accounts contained in the Balance Sheet
Loss Obtained after all expenses have been paid and there is less money in the
business than was initially started.
Profit/surplus stock Is achieved in any business when the farmer has surplus capital after all
his/her expenses have been paid.
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Receipt The source document required for entries in the Cash Flow Statement
indicates the amount received.
Cash slip The important source document that serves as proof of purchases.
Cash flow statement If a farm makes a profit, planning can look at how farming can be done even
more efficiently to show more profit at the close of the next financial year.
Deposit Deposits are completed at a financial institution when a person deposits cash
into the farm's business account.
Design Design requirements for packaging materials must, among other things,
protect the product, be easy to print on, and be suitable for the specific
product.
Corrective The type of action taken after you have determined what the problems are
actions/Disciplinary and the reasons for the problems.
action
Profit/surplus stock Is achieved in any business when the farmer has surplus capital after all
his/her expenses have been paid.
Offer The quantity of a product offered to consumers at a certain price at a certain
time
Business description This includes the vision and mission statement, as well as the nature of the
business.
Credit sales invoice The original document is given to the client for future reference or as a
guarantee.
Marketing function The marketing function encompasses all the activities that contribute to
introducing the product to the consumer, determining what the consumer's
needs are, and then satisfying them.
• Transport • Malfunction • Packing • Preservation and food safety •
Marketing information • Processing • Financing and taking risks • Sales •
Standardization and grading.
DBE/November 2022
Marketing The process of satisfying human needs at the right time
The marketing chain The process that the farmer follows to get the product from the farm to the
consumer.
Niche marketing The approach to selling the product in question to a smaller segment of the
market.
Financial plan Is the business showing a profit and if not, how can the business be changed
to increase the profit margin?
Petty cash Cash used for postage, repairing a flat tire and other small payments.
Business plans This helps to distinguish between a mediocre business and a good business.
Inventory A list of resources, their use and associated costs is needed.
Double-row harrow When there is a lot of organic material on the soil surface, this implement is
ideal for chopping material finely and placing it in the topsoil layer.
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Knowledge and skills Entrepreneurs must be well aware of their own limitations and use experts
to provide them with advice and assistance, thereby improving their
performance.
Entrepreneur A person who can identify the opportunity in the market and produce a
product.
Motivation and Motivation has to do with persuading employees to carry out their tasks and
leadership actively participate in achieving the company's goals. It therefore involves
the aspect of human relations, as well as the tasks associated with personnel
management.
Geographic Information To display spatially referenced geographic information in map form.
System
Market share The percentage of a business's sales in relation to the total sales of the
relevant product or service sold by all the businesses in a specific area
Cash flow statement If a farm makes a profit, planning can look at how farming can be done even
more efficiently to show more profit at the close of the next financial year.
Diversification The expansion of the number of activities or enterprises managed by a
business.
Specialization Decide and focus on a specific product.
Product organizations The liaison between the various role players within each industry.
Normal production A farm has a limit within which it can produce profitably and because
years circumstances are unique for each farm, these limits differ.
Cooperatives act as Cooperatives store products (in the case of storable products), resell them
agents and even export them.
Sweet Field A characteristic feature of sweet veld is that the fields retain their nutritional
value at all growth stages, and the veld displays a pale white colour in winter.
Sour field The type of pasture that has a high nutritional value during the summer
months and a very low nutritional value during the winter.
Pneumatic planter The inside of the metering wheel has double disc types that draw a furrow in
which seed is placed. These discs are also known as “coulters”.
HIV/AIDS This has a huge impact on the agricultural sector. On a larger scale, the
productivity of the workforce is affected. This leads to high production costs
and lower outputs.
Optimum temperature The best temperature for plant growth.
Bureau system Data processing for a number of clients takes place centrally, away from the
farms.
Sterility No living organism is present in the product.
Animal Identification Act The law that requires all animals in your possession to be marked with a
specific identification mark.
Food legislation To ensure that products reaching the public are safe and of high quality.
Environmental approach The improved estimation of nitrogen: needs and reduced water runoff and
reducing the impact of agriculture on the environment.
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