Page 1 of 53
Grade 12
2026
AGRICULTURAL-
MANAGEMENT
PRACTICES
Preliminary Exam
IMAGES: AI Generated. Based on typical examination questions
Important:
These study notes are revised and updated annually to align with the CAPS curriculum and current exam
requirements. This document is based on past examination papers.
Content was adapted and structured for exam preparation purposes. AI tools were used to assist with
formatting, rephrasing and differentiation.
These notes are designed to help learners:
• Understand key concepts
• Practise exam-style questions
• Identify important themes and patterns in assessments
To ensure learners work with the most relevant and up-to-date content, parents and learners are
encouraged to confirm that they are using the latest version of the notes. If you are unsure whether you
have the latest version, please feel free to contact me at:
Please note that these notes are compiled as a structured study aid for exam preparation and do not
replace the prescribed textbook or classroom instruction. IMAGES: Canva & AI Generated
REMEMBER: You must study Term 1, 2 and Term 3 STUDY NOTES for the Prelim Exam.
Good luck
Juffrou Ansie
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
, Page 2 of 53
CONTENTS
PHYSICAL FARM PLANNING 6
Utilization of resources 9
Farming systems 16
Sustainable farm planning 19
Financial Planning, Management and Marketing 20
Entrepreneurship/Management Components 20
Business plan 25
Pricing 26
Budget 31
Marketing 34
Labour 37
FINANCIAL PLANNING - STATEMENTS 43
Product harvesting and processing 44
Food legislation in South Africa 46
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.
Labour / Workers Labour/Workers refers to the physical and human efforts performed
with the expectation of compensation.
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
, Page 3 of 53
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 Is achieved in any business when the farmer has surplus capital after
all his/her expenses have been paid.
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.
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
, Page 4 of 53
Corrective The type of action taken after you have determined what the
actions/Disciplinary problems are and the reasons for the problems.
action
Supply 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 • Storage • Packaging • 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.
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.
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
Grade 12
2026
AGRICULTURAL-
MANAGEMENT
PRACTICES
Preliminary Exam
IMAGES: AI Generated. Based on typical examination questions
Important:
These study notes are revised and updated annually to align with the CAPS curriculum and current exam
requirements. This document is based on past examination papers.
Content was adapted and structured for exam preparation purposes. AI tools were used to assist with
formatting, rephrasing and differentiation.
These notes are designed to help learners:
• Understand key concepts
• Practise exam-style questions
• Identify important themes and patterns in assessments
To ensure learners work with the most relevant and up-to-date content, parents and learners are
encouraged to confirm that they are using the latest version of the notes. If you are unsure whether you
have the latest version, please feel free to contact me at:
Please note that these notes are compiled as a structured study aid for exam preparation and do not
replace the prescribed textbook or classroom instruction. IMAGES: Canva & AI Generated
REMEMBER: You must study Term 1, 2 and Term 3 STUDY NOTES for the Prelim Exam.
Good luck
Juffrou Ansie
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
, Page 2 of 53
CONTENTS
PHYSICAL FARM PLANNING 6
Utilization of resources 9
Farming systems 16
Sustainable farm planning 19
Financial Planning, Management and Marketing 20
Entrepreneurship/Management Components 20
Business plan 25
Pricing 26
Budget 31
Marketing 34
Labour 37
FINANCIAL PLANNING - STATEMENTS 43
Product harvesting and processing 44
Food legislation in South Africa 46
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.
Labour / Workers Labour/Workers refers to the physical and human efforts performed
with the expectation of compensation.
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
, Page 3 of 53
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 Is achieved in any business when the farmer has surplus capital after
all his/her expenses have been paid.
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.
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
, Page 4 of 53
Corrective The type of action taken after you have determined what the
actions/Disciplinary problems are and the reasons for the problems.
action
Supply 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 • Storage • Packaging • 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.
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.
© 2026 Juffrou Ansie Study Notes. All rights reserved. This material may not be reproduced or distributed without written permission.
