FEDERAL UNIVERSITY OF AGRICULTURE, ABEOKUTA

(FUNAAB)
College of Agricultural Management and Rural Development
(COLAMRUD)

FPY 421- FARM MANAGEMENT,RECORDS KEEPING AND

ACCOUNTING
Farm Practice Year Report-
Submitted To:
Dr. Ayodeji
Course Coordinator:
Dr. Ayodeji
Submitted By: GROUP 7 TEAM 1
LIST OF TEAM MEMBERS

S/N MATRICNO SURNAME FIRSTNAME OTHER NAME COLLEGE DEPT

20204525 BABAJIDE Godwin Gbolahan COLAMRUD AGAD
2 20204627 TAIWO Esther Ayomide COLANIM ANN
3 20200071 IDOWU Daniel Ayomide COLAMRUD AEFM
4 20201011 OYEBANJI Stephen Feranmi COLANIM APH
5 20200125 OTUNAIKE Precious Ayomide COLAMRUD AEFM
6 20204685 APOOYIN Habeeb Ayomide COLANIM APH
7 20204000 AKANO Samuel Oluwasegun COLPLANT PBST
8 20200152 ADEBISI Fathia Adebukola COLAMRUD AERD
9 20203952 OLOGUNLEKO-J Caleb Titilope COLPLANT HRT
10 20200580 ADEGBOYEGA Wasilat Adenike COLANIM ANN
11 20200978 OKI Joseph Okeowo COLANIM APH
12 20200653 KAKA Jumoke Modina COLANIM ANN
13 20201057 AKINWANDE Mubarak Ayomide COLANIM PRM
14 20200227 MUDASHIR Qoreeb Ademola COLAMRUD AERD
15 20200868 ADEDEJI Boluwatife Demilade COLANIM APH
16 20200882 ADESINA Suliat Folasade COLANIM APH
17 20204276 AWOTUNJI Damilare Nurudeen COLPLANT SSLM
18 20203862 ABULUDE Oluwaseun Peter COLPLANT HRT
19 20204523 AYODELE Victor Adebola COLAMRUD AGAD
20 20200409 OMIJORI Kafayat Oluwadamilola COLAMRUD AGAD
 FPY 421 QUESTIONS

GROUP 1

a) During your FPY year (2024), you were allocated a plot of land to cultivate Jute mallow and
Okro. You incurred the following expenses as follows: Land preparation N58,500, weeding (20
labourers @ N7500 each) only 9 of those labourers work on jute farm while the remaining worked
on okro farm. Vegetable seeds was N4800 (N2000/kg for jute mallow and N2800/kg for okro
seeds), 9 bags of 50kg NPK fertilizer @ N8,600/bag (51/2 bags was used for jute and 31/2 bags was
used for okro), 10 litres of force-up @ N4,500/lt was used to prime the land after ploughing. At the
end of the production cycle, you realized the following proceeds; 22,000kg of jute was harvested
and sold @ N300/kg, okro harvested was 25,000kg and sold at N200/kg. You are required to prepare
the gross margin for each farm enterprise and estimate the Net farm income for the farm as a whole
for the year 2024 (25 marks).

b) Distinguish between variable cost and fixed cost (2 marks)

(c). Give 5 examples each of the variable items and fixed items used on your vegetable plot? (0.5
marks Mentksion each = 5 marks)
(d) Define the term ‘Farm Management (3 marks)
(e) 5 responsibilities of a farm manager? (1 mark each = 5 marks)
Total score: 40 mark
 SOLUTION

PROFIT AND LOSS ACCOUNT FOR FPY (2024)

OKRO FARM

EXPENDITURE INCOME

ITEM AMOUNT (#) ITEM VALUE(#)

LAND PREPARATION 58,500 SALES OF OKRO 5,000,000

WEEDING 82,500

OKRO SEED 2,800

FERTILIZER 30,100

FORCE- UP 45,000

GROSS MARGIN 4,781,000

TOTAL 5,000,000 TOTAL 5,000,000

FOR JUTE FARM

EXPENDITURE INCOME

ITEM AMOUNT(#) ITEM VALUE(#)

LAND PREPARTION 58,500 SALES OF JUTE 6,600,000

WEEDING 67,500

JUTE SEED 2,000

FERTILIZER 47,300

FORCE- UP 45,000

GROSS MARGIN 6,379,700

TOTAL 6,600,000 6,600,000

GROSS MARGIN OF JUTE = #36,379,700

GROSS MARGIN OF OKRO = #4,781,000

NET FARM INCOME = GROSS MARGIN OF JUTE + GROSS MARGIN OF OKRO

#6,379,700 + #4,781,000 = #11,160,700

(b) Distinguish between variable cost and fixed cost

Variable costs are expenses that change in proportion to the level of production or sales. These
costs are directly related to the production process and vary with the quantity produced. Examples
of variable costs include:

- Cost of raw materials

- Labor costs

- Packaging costs

- Transportation costs

Fixed costs, on the other hand, are expenses that remain the same even if the level of production
or sales changes. These costs are not directly related to the production process and do not vary
with the quantity produced. Examples of fixed costs include:

- Rent

- Salaries

- Insurance

- Depreciation

For instance, a farmer who produces vegetables may have variable costs such as seeds, fertilizers,
and labor, which vary depending on the quantity produced. However, the farmer's fixed costs,
such as rent and insurance, remain the same regardless of the quantity produced.

(c) Give 5 examples each of variable items and fixed items used on your vegetable plot?

Variable Items:

1. Seeds: The cost of seeds varies depending on the quantity and type of vegetables planted.

2. Fertilizers: The cost of fertilizers varies depending on the quantity and type of fertilizers used.

3. Labor: The cost of labor varies depending on the quantity of vegetables produced and the
number of laborers employed.

4. Packaging materials: The cost of packaging materials varies depending on the quantity of
vegetables produced and sold.

5. Transportation costs: The cost of transportation varies depending on the quantity of vegetables
produced and sold.

Fixed Items:

1. Rent: The cost of renting the land remains the same regardless of the quantity of vegetables
produced.

2. Insurance: The cost of insurance remains the same regardless of the quantity of vegetables
produced.
3. Depreciation: The cost of depreciation remains the same regardless of the quantity of
vegetables produced.

4. Salaries: The cost of salaries remains the same regardless of the quantity of vegetables
produced.

5. Equipment maintenance: The cost of equipment maintenance remains the same regardless of
the quantity of vegetables produced.

(d) Define the term Farm Management

Farm management refers to the process of planning, organizing, and controlling the activities
involved in the production of agricultural products. It involves the use of management principles
and techniques to optimize the use of resources such as land, labor, capital, and technology to
achieve the farm's objectives.

Effective farm management involves:

- Planning and budgeting

- Organizing and coordinating farm activities

- Controlling and monitoring farm operations

- Making decisions on the use of resources

- Managing risk and uncertainty

The goal of farm management is to maximize the efficiency and profitability of the farm while
minimizing the risks and uncertainties associated with agricultural production

(e) Mention 5 responsibilities of a farm manager?

1. Planning and budgeting: The farm manager is responsible for planning and budgeting for the
farm's activities, including crop selection, planting, and harvesting.

2. Organizing and coordinating farm activities: The farm manager is responsible for organizing
and coordinating the farm's activities, including labor management, equipment maintenance, and
supply chain management.

3. Controlling and monitoring farm operations: The farm manager is responsible for controlling
and monitoring the farm's operations, including crop yields, soil health, and pest management.

4. Making decisions on the use of resources: The farm manager is responsible for making
decisions on the use of resources such as land, labor, capital, and technology.

5. Managing risk and uncertainty: The farm manager is responsible for managing risk and
uncertainty, including weather-related risks, market fluctuations, and disease outbreaks.