Factors of Agricultural Production JSS 1 Agriculture

AGRICULTURE

JUNIOR SECONDARY SCHOOL (JSS 1)

THEME – CONCEPTS AND MEDIUM OF AGRICULTURAL PRODUCTION 

TOPIC 2 – FACTORS OF AGRICULTURAL PRODUCTION

INSTRUCTIONAL MATERIALS

Flow chart of production processes.

LEARNING OBJECTIVES

By the end of the lesson, students should be able to:

1. list the basic factors of production.

2. describe the uses of each in agricultural production.

CONTENTS OF THE LESSON

FACTORS OF PRODUCTION 

Land, labour, capital and management are the most essential elements or factors of production in agriculture. For productive purposes, the four are employed in combination.

1. LAND 

Land can be defined as one of the factor of agricultural production used for cultivation of crops, rearing of animals and agricultural factories.

Land is the free gift of nature available and used in the process of agricultural production.

It includes: plains/mountains, water, forest, air, etc.

 

CHARACTERISTICS OF LAND

• It is a free gift of nature.

• It is fixed in supply.

• It has no cost of production. Land cannot be produced.

• The price of land is varies depend on their location.

• It is not movable.

• The reward for land is rent.

REWARDS FOR LAND

Land can be bought or rent.

METHODS OF LAND IMPROVEMENTS

Land improvements are the actions taken to improve the quality of land and its availability for more usability.

Ways of improving the quality and its availability include –

• Good drainage system

• Good irrigation systems

• Fencing

• Landscaping

• Parking lots and walkways

• Source – Accounting Tools Dot Com

2. LABOUR 

Labour is both physical and mental efforts of man used in production.

It is human factor of production that work on other factors of production.

The reward for labour is wages and salaries.

 

TYPES OF LABOUR 

A. Professional Labour

Professional labour is labour with highest level of knowledge based education and managerial skills.

For example – the farm manager also known as the entrepreneur.

 

B. Skilled Labour

Skilled labour is labour that can operate complex machines to perform their task.

This labour received training and education in order to increase production.

C. Unskilled Labour

Unskilled labour is the labour that worked with their hands.

This lack the skills or training to perform other tasks.

D. Semi Skilled Labour

Semi skilled labour is the worker that had basic skills or training to operate simple machine.

This labour received more wages than unskilled labour.

For more info on types of labour – Prezi Dot Com

CHARACTERISTICS OF LABOUR

• Labour is human factor of production.

• Labour is mobile. That’s, it is movable factor of production.

• Labour costs money.

• The reward for labour is wages and salaries.

• The reward is negotiable.

 

IMPORTANCE OF LABOUR

• It aids growth and development.

• It provides special skills.

• It provides variety of skills.

• It is an act factor of production.

3. CAPITAL 

Capital is the resource (money, wealth, machines or equipment) used for the production of more resources.

Capital is very important for setting up a farm business.

The reward for capital is interest.

CHARACTERISTICS OF CAPITAL 

• It is man made factor of production.

• Its reward is interest.

• It made production of goods and services possible.

• It requires hardworking and savings to organize.

• Source of capital is saving, gift from family and friends, loans, etc.

TYPES OF CAPITAL 

The two (2) major types of capital include:

A. Fixed Capital

Fixed capital includes physical assets of the agricultural business such as land and building, furniture and fittings, equipments and tools, machineries, etc.

Fixed capital is used on daily basis and using depreciated in value with time.

 

B. Current Capital 

Current capital is also known as working capital. It is the different between assets and liabilities of the agricultural business.

IMPORTANCE OF CAPITAL

• It aids production.

• It attracts business investors.

• It is used for buying raw materials.

• It settles wages and salaries of labour.

• It promotes goods and services.

• It produces more capital.

4. MANAGEMENT (FARM MANAGER) 

Farm manager is one of the factors of agricultural production that organizes, manages and coordinates all other factors of agricultural production.

Farm manager minimums cost and maximums production in order to make profit.

The reward is profit and loss.

FUNCTIONS OF FARM MANAGER

• He/she provides capital.

• He/she bears the risk of business.

• He/she formulate business policies.

• He/she makes the business decisions.

• He/she coordinates other factors of production.

• He/she determines what to produce.

• He/she employs labour.

LESSON PRESENTATION

TEACHER’S ACTIVITIES

The teacher,

1. states the factors of production.

2. discusses the importance of each factor in production.

 

 

STUDENT’S ACTIVITIES

The students pick one factor of production and write a short essay on it.

 

LESSON EVALUATION

Teacher asks students to,

1. mention three basic factors of production.

2. state the importance of each factor in production.