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AGRICULTURE.

FORM FOUR NOTES .

BY :KARIUKI KEN KIRIMI.

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CHAPTER ONE: Livestock production V. poultry………………………..4.

Parts of an egg……………………………………………………………………………….4.
Selection of eggs for incubation……………………………………………………………..6.
Brooding…………………………………………………………………………………….10.
Brooder and brooder management………………………………………………………10.
Rearing systems……………………………………………………………………………12.
Stress and vices in chicks………………………………………………………………….18.
Marketing of poultry products…………………………………………………………....20.

CHAPTER TWO: livestock production VI. Cattle……………………21.

Raising of young stock………………………………………………………………….21.
Methods of calf rearing…………………………………………………………………22.
Routine management practices…………………………………………………………25.
Milk and milking…………………………………………………………………………27.
Milk secretion and let-down……………………………………………………………..28.
Essentials of clean milk production…………………………………………………….29.
Dry cow therapy………………………………………………………………………….32.

CHAPTER THREE: Farm power and machinery………………………33.

Sources of power in the farm……………………………………………………………..33.
The tractor…………………………………………………………………………………38.
Systems of a tractor………………………………………………………………………..47.
Fuel system……………………………………………………………………………….47.
Electrical system…………………………………………………………………………..49.
Ignition system……………………………………………………………………………50.
Cooling system……………………………………………………………………………52.
Lubrication system………………………………………………………………………54.
Power transmission system…………………………………………………………….56.
Power transmission mechanism……………………………………………………….57.
Farm implements………………………………………………………………………58.
Tractor drawn implements……………………………………………………………60.
Animal drawn implements……………………………………………………………70.

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CHAPTER FOUR: Agricultural Economics III. Production

Economics.........................................................................................................72.
National income…………………………………………………………………………….72.
Production function………………………………………………………………………..81.
Types of production functions…………………………………………………………….81.
Zones of production function curve……………………………………………………….86.
Farm planning……………………………………………………………………………93.
Farm budgeting…………………………………………………………………………..93.
Agricultural support services available to the farmer………………………………...97.
Risks and uncertainties in farming…………………………………………………….103.
Chapter five: Agricultural Economics IV. Farm Accounts……………..106.
Financial documents……………………………………………………………………106.
Books of accounts……………………………………………………………………….111.
Ledger…………………………………………………………………………………..112.
Inventory……………………………………………………………………………….113.
Journal………………………………………………………………………………….116.
Subsidiary books of the journal……………………………………………………….119.
Financial statements…………………………………………………………………...119.
CHAPTER SIX: Agricultural Marketing and Organisations………….126.
Market and marketing………………………………………………………………….126.
Demand, supply and price theory……………………………………………………..127.
Factors influencing demand of a commodity…………………………………………128.
Elasticity of demand……………………………………………………………………131.
Supply………………………………………………………………………………….133.
Elasticity of supply……………………………………………………………………..135.
Determination of market prices………………………………………………………..139.
Marketing functions……………………………………………………………………..140.
Marketing organisations and Agencies………………………………………………...143.
Problems in marketing agricultural produce………………………………………….144.

CHAPTER SEVEN: Agroforestry…………………………………..156-165.

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CHAPTER ONE.

LIVESTOCK PRODUCTION V.

(POULTRY)

Parts of an egg.

Consist of:

 Shell.
 Air space.
 Egg white (Albumen).
 Chalaza.
 Shell membrane.
 Yolk.

The shell.

10-12%.

 Made of calcium and phosphorus.

 Gives the egg its shape.
 Provides protection to the inner contents.
 Porous thus allow gaseous exchange.

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\Shell membrane.

1%.

 Forms inner lining of the shell.

 Air trapped between the two membranes is used by the developing embryo.

Albumen. (Egg white)

55-60%.

Divided into four parts.

 Chalaza and chalaziferous membrane.

 Thin albumen.
 Thick albumen.
 Outer thin albumen.

Functions.

Serves as a food reserve for the developing chick.

Chalaza.

3% of Albumen.

Hold the yolk allowing the yolk to move the germinal disc always to the top position.

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The yolk.

30-33%

Contains food reserve for the developing embyo. Rich in vitamins, fats, minerals and
proteins.

Incubation of eggs.

Embryonic development of a fertilised egg into a chick.

Selection of eggs for incubation.

Characteristics.

i. Should be fertile.
ii. Should be of medium size 55-60 grams in weight. Lighter or heavier weight lowers
hatchability.
iii. Should have smooth shells.
iv. Should be oval in shape.
v. Free from any cracks in the shells.
vi. Should be clean to ensure that pore remain open.
vii. Should not have any abnormality e.g., blood spots, meat spots or double yolk.
viii. Should be fresh that is collected within one week.

Egg candling.

Method of examining internal conditions of an egg for abnormalities by looking at it against a

strong light in a dark room.

What is observed during candling?

i. Size of air space (cell)

ii. Whether the egg is fertilised (germinal disc will be seen as a black spot) or not.
iii. Whether the yolk has air cracks.
iv. Whether the egg shell is broken.

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v. Whether the shell is very porous.

First candling 5th and 7th day to check for fertility (presence of blood veins or clear)

18th day to confirm presence of a chick.

Method of incubation.

Natural incubation.

Signs of broodiness.

i. The hen stops laying.

ii. Continuous staying of the hen in the laying nest after laying.
iii. Hen produces a characteristic sound and is aggressive when approached in the nest.
iv. Hen plucks off her feathers to use in incubation nest.
 Broody hen should be dusted with appropriate insecticides to rid her of parasites eg
stick fast fleas.
 Provide bedding (saw dust, wood shaving) to help maintain warmth in the nest.
 Keep the nest in well ventilated place.

Advantages of natural incubation.

i. Less laborious as there is no need of turning of eggs and checking temperatures.

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ii. Little skills required.

iii. Margin is risk is reduced.

Disadvantages of natural incubation.

i. Only a few chicks can be hatched at a time by one hen.

ii. One cannot plan when to incubate.
iii. Diseases and parasites spread to chicks after hatching if the hen is infected.
iv. Hens can only be used when broody.

Artificial incubation.

Providing all the necessary conditions for hatching eggs are provided artificially in an
incubator.

Conditions necessary for artificial incubation.

Temperature.

Should be 37.5-39.4 degrees Celsius.

Lower or higher temperatures would kill the developing embryos.

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Fresh air (ventilation)

Ventilation facilitates gaseous exchange and helps to control humidity.

Oxygen is necessary for embryonic development.

Relative humidity.

Should be about 60%.

Low humidity. Causes embryos to lose moisture and die.

High humidity. Lowers hatchability and leads to production of bigger chicks that look
marshy.

Egg turning.

To avoid germinal disc sticking onto the egg shell causing embryonic mortality.

Wrong turning may result in breakage of blood vessels.

Advantages of artificial incubation.

i. Many chicks can be hatched at one time.

ii. It is possible to plan when to hatch chicks.
iii. Under good management, parasites and diseases are not transmitted to chicks.

Disadvantages of artificial incubation.

i. Incubator is expensive to buy. High capital investment is required.

ii. More labour demanding.
iii. Requires more skills than natural method.
iv. High risk involved.

Sources of chicks.

Factors to consider in sourcing chicks.

i. Reputation of the supplier.

ii. Time taken during transit from hatchery to the farm.
iii. Type of chicks available or required such as breed desired, size of chicks, sex of the
chicks.

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Brooding.

Rearing of chicks. There are two methods.

 Natural brooding.
 Artificial brooding.

BROODER AND BROODER MANAGEMENT.

Requirements in an artificial brooder.

Litter.

Should be placed on the floor to maintain warmth and absorb moisture.

Fresh air.

Holes should be made on the brooder for ventilation but should not allow draught into the
brooder.

Heat source.

Wire guard round the heat source prevents chicks from being burnt.

Chicks

Brooder

P Heat Q
source

R S

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1st week 32-35

2nd week 29.7-32.

3rd week. 26.6-29.7

Brooder should be lighted to allow chicks to see food and water.

Too much light blinds chicks and influence toe-pecking.

Equipments.

Feeders.

Should be clean to reduce infection.

Should discourage chicks from defecating on the feed and should be impossible to tilt.,

Waterers.

Should have pointed tops on which the chicks cannot perch.

Should be clean always.

Shape of the brooder.

Should be round in shape because corners encourages overcrowding causing suffocation.

Rearing of growers.

Green vegetation should be provided to keep them busy.

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Provide soluble grit/oyster shell to provide calcium and aids in digestion of food in the
gizzard.

Feed them on growers mash ad lib.

16th week introduce layers ‘mash gradually.

Growers mash contains 16-17% DCP

Rearing of layers.

give clean water at all times.

Green leaves should be provided to keep them busy and prevent cannibalism.

Culling of hens that do not lay should be done.

Provide soluble grit to encourage strong shelled eggs and efficient digestion.

Layers mash contains 14-16% DCP.

Rearing systems.

Factors determining choice of system.

i. Land availability.
ii. Topography of the land, to facilitate easy drainage.
iii. Availability of labour.
iv. Capital availability.
v. Security.
vi. Knowledge of the farmer.
vii. Availability of market.

Categories of rearing systems.

Extensive systems.

Semi-intensive systems.

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Intensive systems.

Free range.

Birds are allowed to move freely in a fenced ground which has a simple house to provide
shelter at night. Laying nests are also placed in the house.

Requirements.

Land.

Land must be large, well-drained with trees for shade.

External fence should be established for preventing straying of birds

Runs.

Land should be portioned to allow rotation. This reduces diseases and parasite build up.

House.

This provide shelter and an area for laying nests.

Advantages.

i. Cannibalism and egg eating are reduced because birds are free within the run.
ii. Birds have plenty of exercise thus helping to keep good health.
iii. No need of providing grit as birds can pick it from the soil.
iv. Less feed is used as birds pick insects and grass.
v. Manure is evenly spread to the runs helping vegetation to regenerate.
vi. Requires low capital outlay for simple perimeter fence and shelter provision.

Disadvantages.

i. Requires large tract of land.

ii. Birds can be stolen or eaten by predators.
iii. Eggs get lost in the runs.
iv. Difficult to have close supervision on individual birds.
v. Range area may become contaminated with diseases and parasites.

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vi. Breeding programme is not easy to follow.

vii. Birds may cause damage to crops if perimeter fence has not been properly
constructed.

Fold system.

It is a semi-intensive system.

Birds are confined in small portable structures called arks/folds.

One third of the fold is roofed to provide shelter.

Folds should be moved daily to a fresh ground to reduce build-up of diseases, provide fresh
grass, allow spread of manure and avoid accumulation of droppings.

Advantages of fold system.

i. Manure is evenly spread in the field.

ii. Less feed is used because the birds eat grass.
iii. Reduces build-up of parasites and diseases.

Disadvantages.

i. Few birds are kept per fold. Expensive to keep many birds.
ii. Laborious in moving the folds daily.

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iii. Difficult to keep individual egg production records.

iv. Folds are not long lasting.

Intensive systems.

Deep litter.

Birds are totally confined in a house and stay indoors. All facilities are provided in the house
(feeding and watering troughs, nest boxes and perches)

Requirements.

Site.

Should be well drained.

House.

The roof should be leak proof.

The leeward side should be open from 60-90 cm above the ground and covered with a wire
mesh for ventilation.

Floor should have litter to keep the floor warm and absorb moisture.

Frequent turning of litter to mix droppings and prevent caking.

In introducing new litter, mix it with the old to introduce bacteria that helps it to rot.

Litter should be 15-30 cm deep.

Feeders and waterers.

Should be enough and clean placed randomly to avoid overcrowding in one area.

Roosts and perches.

Roosts are timber frames where birds perch to rest. They should be moveable to prevent
accumulation of droppings causing dampness.

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Nests.

 They are laying boxes.

 Should be large enough to accommodate the bird comfortably.
 Should be dark to discourage egg eating and cannibalism.
 Provide soft dry grass/wood shavings to prevent egg breakages.

Advantages of deep litter system.

i. Many birds can be kept in a small area that is, it allows a high stocking rate.
ii. Labour requirements e.g. collection of eggs, feeding and turning litter is low.
iii. Can be used to rear breeding stock.
iv. Birds are safe from predators and thieves because they are indoors.
v. There is fast accumulation of manure.
vi. There is no loss of eggs.

Disadvantages.

i. High incidences of cannibalism, egg eating, feather plucking and toe pecking.
ii. There is likelihood of pests and disease accumulation in the litter.
iii. Individual records of egg production per bird is not possible due to common laying
nests.
iv. Litter may be difficult to find in some areas.
v. Eggs may become dirty if laid on the floor or if laying nest are not clean.
vi. Contamination of feed hoppers and waterers by litter is common.

Battery cage system.

System whereby birds are confined in cages throughout their laying period.

Cages are made of wire mesh. Should allow space of 0.2M2 /bird.

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Water troughs and feeders are fitted along the front sides of cages.

Cage floor should be slanting to allow rolling of eggs to the tray.

Advantages of batter cage system.

i. Higher egg production due to less energy wastage by the birds.

ii. Accurate eggs records can be kept because it is easy to know which bird has laid.
iii. Cannibalism and egg eating are controlled.
iv. Eggs are clean because hens do not step on them.
v. The system can easily be mechanised.
vi. Birds do not contaminate food and water.
vii. Handling is easy as hens are restricted to a small place.
viii. Broodiness is discouraged as the birds do not reach the eggs.
ix. High stocking rate.
x. Sick birds can be detected and isolated for treatment.
xi. Low labour requirements.

Disadvantages.

i. Requires high initial capital.

ii. Requires high level of management.
iii. In case of disease outbreak, spreading is very fast.
iv. Birds do not have enough room for exercise.
v. Not suitable for brooding purposes and rearing of chicks.
vi. Birds develop bruises on combs, breast and toes as they stick their necks out to eat
and walk in the cages.

Feeding layers.

Layers mash (11-12% protein) is introduced at 4 ½ months. It is rich in calcium and

phosphorus required in egg shell formation. Feed 120 grams per day per bird.

Oyster shell and limestone improves the quality of the shell.

Feeding broilers.

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High vitamin and protein feeds should be given.

STRESS AND VICES IN CHICKEN.

Stress.

Any cause of discomfort to the birds.

Causes of stress in birds.

i. Any sudden change e.g. change of feed.

ii. Strangers and predators like mongoose in the bird’s house.
iii. Poor handling of birds e.g. during vaccination, culling or debeaking.
iv. Sudden noise e.g. thunder, passing tractors.
v. Sudden change of weather.
vi. Diseases and parasite infestation.
vii. Inadequate food and water.

Control measures.

i. Keep the poultry house quiet by building it away from the road.
ii. Insulate the poultry house to maintain uniform temperatures.
iii. Control diseases and parasites.
iv. Change of routine must be gradual.
v. Provide enough feed and water.

Vices.

Abnormal behaviour.

Egg eating.

Causes.

i. Presence of broken or soft-shelled eggs.

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ii. Bright light in the nests allowing birds to see the eggs.
iii. Idleness.
iv. Inadequate laying nests forcing birds to lay eggs on the floor.
v. Inadequate minerals e.g. calcium in the diet.

Control measures.

i. Collect eggs regularly.

ii. Make laying nests dark.
iii. Feed birds on a balanced ration.
iv. Debeak perpetual egg-eaters.
v. Supply green leaves to keep birds busy.
vi. Scatter grains in the litter to enable the birds to scratch for them thus reducing
idleness.

Cannibalism.

Condition where the birds peck each other. May result in death of large number of birds.

Causes of cannibalism.

i. External parasites.

As birds remove parasites from combs of other birds they cause injury that results in blood
coming out of the wound making birds peck on the wound.

ii. Overcrowding.

Makes birds see each other closely and it is easy to detect something to peck at.

iii. Bright light.

Makes toes of chicks shine, resulting in toe pecking.

iv. Prolapse.

When the cloaca does not retract after laying of egg thus the cloaca is pecked at by others.

v. Mineral deficiency.

Makes birds to look for alternative source of the minerals.

vi. Introduction of a new bird in a flock.

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Causes fighting resulting in cannibalism after an injury.

Control measures.

i. Avoid bright light in the house.

ii. Avoid overcrowding by providing adequate spacing to the birds.
iii. Provide birds with balanced feeds.
iv. Birds should be kept according to age groups.
v. Control external parasites.
vi. Keep birds busy by hanging green leaves or vegetables in the house.
vii. Debeak hens that peck others.
viii. Cull perpetual cannibals.

MARKETING OF POULTRY PRODUCTS.

Eggs.

 Sorting and grading.

Factors considered.

i. Cleanliness.

Clean eggs command highest price, wipe dirty eggs with damp piece of cloth.

ii. Size of the egg.

Larger eggs fetch higher market prices than smaller eggs.

Pack eggs size wise that is, small, medium and large.

iii. Candling quality.

Eggs of high candling quality are preferred. Fresh eggs have a small air space.

iv. Egg colour.

Some consumers prefer brown shelled eggs to white shelled eggs.

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 Packing of eggs.

Pack with the broad end facing upward to maintain gaseous exchange. This is because the
broad side contains air space.

CHAPTER TWO.

LIVESTOCK PRODUCTION VI

(CATTLE)

Raising of the young stock.

Feeding calves.

Should be fed on colostrum within the first six hours of birth.

Importance of colostrum.

i. It is highly digestible. Suitable for the digestive system of the calf.

ii. Highly nutritious and contains vitamins for growth and diseases resistance.
iii. It has antibodies that enables the calf to resist early disease infection.
iv. Has a laxative effect. Good in cleaning the bowels of the calf.
v. It is highly palatable.

Preparation of artificial colostrum.

 Whip a fresh egg in 0.86 litres of water.

 Add ½ a litre of warm water.
 Add one tablespoon of cod liver oil.
 Add one tablespoon of castor oil.
 Mix the ingredients thoroughly.
 Omit castor oil when the calf start to pass dung normally.

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METHODS OF CALF REARING.

 Natural.
 Artificial.

Natural method of calf rearing.

Advantages.

i. The calf takes milk at body temperatures.

ii. Milk is free from contamination.
iii. Scouring is minimised.

Disadvantages.

i. Difficult to keep accurate records of milk yields.

ii. Cows used to be stimulated by calves will not let down the milk in the absence of the
calf.
iii. The calf may suckle too much milk resulting in digestive disorders.

Artificial/bucket feeding.

Procedure for training a calf to drink milk from the bucket.

 Put clean milk in a clean bucket.

 Place the index finger into the calf’s mouth. The calf start suckling.
 Lower the finger slowly until it is submerged in the milk as the calf sucks.
 Slowly withdraw the finger while the calf is suckling.
 Repeat the steps above until the calf learns to drink milk from the bucket without any
assistance.

Advantages of artificial method of rearing.

i. Easy to keep accurate records of milk yield.

ii. Easy to regulate the amount of milk taken by the calf.

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iii. Cows continue to produce milk even in the absence of theirs calves.
iv. Easy to maintain high standards of sanitation.
v. There is likelihood of the farmer to sell more milk hence maximising profits.

Weaning of calves.

 Early weaning.
 Late weaning.

Late weaning programme.

The calf is fed on whole milk up to the 10th week. Feed milk at 10% of its body weight up to
8th week. Reduce thereafter gradually by 1Kg until the calf is weaned.

Provide early weaning concentrates and soft forage.

Early weaning programme.

The calf is fed on whole milk which is replaced gradually with a mixture of whole and skim
milk from the 3rd week.

Provide calf pellets from the third week and introduce green fodder.

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CALF HOUSING.

Types of calf pens.

i. Raised permanent pens.

It is raised 0.5M above the ground with slatted floor to allow easy draining of dung and urine.

ii. Permanent calf pens with concrete floor.

It is 1.5M long and 1M wide. Floor is slanted to allow drainage to take place.

iii. Mobile calf pens.

It is movable with slatted floor. It should be roofed as they are kept outside.

REQUIREMENTS OF CALF PENS.

i. Cleanliness.

Should be easy to clean. Concrete floors are easy to clean.

ii. Dryness and warmth.

Place dry litter (straw or dry grass) on the floor to maintain dryness and warmth.

Change the litter when wet (once a week).

Wetness encourages infections such as pneumonia, naval illness and scours.

iii. Adequate space.

Should be large enough to allow calve s to exercise and accommodate feeding and watering
equipments.

iv. Proper lighting.

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Light is necessary for synthesis of vitamin D. the front walls should be open at 90Cm and
above.

v. Proper drainage.

Should be in a well-drained area. Poor drainage causes dampness.

vi. Draught free.

Should have solid walls to prevent cold winds from entering.

The side facing the wind direction should be completely solid.

vii. Proper ventilation.

Should allow fresh air circulation.

viii. Single housing.

Calves should be housed singly for the first three months. This is to prevent licking one
another which may lead to formation of hair balls in their rumen.

Single housing also minimises spread of worms and diseases.

Routine management practices.

i. Parasite control.

Drenching should be done to control internal parasites.

Spraying weekly to control ticks.

ii. Diseases control.

Calves should be vaccinated against prevalent diseases.

4months against black quarter.

6 months against anthrax and black quarter.

3-8 months. Brucellosis in heifers.

iii. Castration.

Calves that are not required for breeding should be castrated.

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Advantages of castration.

i. Castrated males are docile.

ii. Steers fatten faster.
iii. Inbreeding is controlled.
iv. Breeding is controlled.
v. Helps to control breeding diseases such as brucellosis and vaginitis.

vi. Identification.

It facilitates proper records keeping.

Removal of extra teats.

Some calves are born with extra vestigial teats. They should be cut using a sterilised scissors,
sharp knife or teat clipper and the wound disinfected with antiseptic (iodine)

Reasons for removing the vestigial extra teats.

 They may obstruct machine milking.

 May be source of bacterial infection such as mastitis.
 May interfere with development of normal teats.
vii. Dehorning/disbudding.

Dehorning is the trimming of horns to stop it from growing. While disbudding is the removal
of the horn bud, before it develops into a horn.

Reasons for dehorning.

 It makes animals docile and easy to handle.

 Facilitates economic use of space during feeding/drinking and transportation.
 Reduces chances of causing injury to the farmer.

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MILK AND MILKING.

Milk.

White substance secreted in the mammary glands of female mammals after parturition.

Milk contains proteins, fat, carbohydrates (lactose), minerals and water. Therefore milk is a
complete food.

Factors affecting milk composition.

i. Age of the animal.

Percentage butter fat declines with age of the animal.

ii. Condition of the animal.

Physiological condition of the animal such as emaciation, sickness and pregnancy.

iii. Stage of lactation and pregnancy.

Butter fat content and minerals increase in the second phase of lactation.

Lactose increases slightly in the first 2 months and decline gradually.

Hormonal changes in pregnant animals is responsible for lactation trends.

iv. Completeness of milking.

The last drawn milk from the udder carries 10% of total fat in milk.

Milk in the morning has lower fat content than milk drawn in the evening.

v. Season of the year.

Fat percentage increase during the cold season.

Lactose, proteins and SNF (solid not fats) decrease during the cold season.

vi. Other factors.

Diseases such as mastitis reduce lactose composition as it attacks the milk sugars.

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Milk secretion and let-down.

The structure of the mammary gland.

Milk secretion.

Milk secretion or synthesis is known as lactogenesis. Lactogenesis, which is controlled by

hormones secreted towards the end of gestation period. Low levels of oestrogen activates the
pituitary gland to secrete prolactin hormone which initiate lactogenesis. Lactation, which is
the copious flow of milk from the udder, starts just before or immediately after partition.

Milk let-down.

It is the flow of milk from the upper region of the udder (alveolar region) to the gland and
teat cistern and out of the teat.

Ways of stimulating milk let down.

 Washing the udder with warm water.

 Making familiar noise such as whistling.
 Feeding the cow.
 Presence of milking equipments.

This causes the pituitary gland to release oxytocin which causes contraction of muscle fibres.

Reasons cows may hold back milk during milking.

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 Presence of strange people or if it is in a strange environment.

 Change of milk man or routine.
 Fear, anxiety and pain.
 Manhandling the cow during milking e.g. beating the cow.

The above factors cause the adrenal glands to secrete adrenalin hormone which causes
relaxation of muscle fibres. It also limit blood supply to the udder.

Characteristics of clean and high quality milk.

i. It should be free from diseases-causing organisms.

ii. Has no hair, dust or dirt.
iii. It is of high keeping quality.
iv. Has good flavour.
v. Its chemical composition is within the expected standards.

Essentials of clean milk production.

i. Healthy milking herd.

 Cows should be tested annually for milk borne diseases such as tuberculosis and
brucellosis.
 They should be tested against mastitis with a strip cup before milking.

Characteristics of mastitic milk.

 Has high bacterial count.

 Poor keeping quality.
 Bad odour.
ii. Clean milking cows.
 The flanks, underline and the whole udder should be washed and dried before
milking.
 Long hair on the udder and flank should be clipped off regularly.
iii. Healthy and clean milkman.
 Should not be suffering from contagious diseases.
 Physically clean with white overall. Should have short finer nails and the hair should
be covered.

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iv. Clean milking shed.

Should be built on well drained area away from roads, poultry houses. Should be easy to
clean and should be cleaned after every milking.

v. Clean milking utensils.

 Should be seamless and smooth to facilitate easy and thorough cleaning.
 They should be washed with hot water and a detergent and then sterilised by keeping
them in the sun.
vi. Milk filtration, cooling and storage.

Milk should be filtered and cooled to 5 degrees Celsius to slow bacteria multiplication.

vii. Avoid flavours in milk.

May be caused by feedstuff and oxidation.

Silage, Mexican marigold, onions, pineapple fruit waste causes bad flavours.

Oxidation flavours. Due to oxidation of milk fats when exposed to sunlight or kept in iron or
copper containers

MILKING MATERIALS AND EQUIPMENTS.

i. Udder cloths/towels.

Have two towel for each one, one for washing the udder and the other one for drying the
udder.

ii. Filtering pads.

For straining milk. They are hygienic than the ordinary white cloths.

iii. Milking jelly.

Smeared on the teats after milking to prevent cracking of teats.

iv. Warm water.

For washing the udder before milking. It also stimulates milk let down.

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v. Milking pails/buckets.

Should be free of copper and iron traces on their surfaces to avoid oxidation of the milk fat.

vi. Strip cup.

Used for detecting mastitis.

vii. Milking can/churns.

Used to hold milk during storage and transportation. Should be free from copper and iron
traces.

viii. Other equipments.

Refrigerators, charcoal coolers, milking stool and weighing scale.

Milking procedure.

Milking has the following stages:

Pre-milking procedure.

The milking materials and equipments should be available and within reach of the milkman.
The cow is put in the milking parlour, restrained and given food. The udder is washed and
dried with towel or udder cloth and the checked for presence of mastitis.

Milking technique.

The aim of using proper milking technique is to obtain all the milk from the udder. If a poor
method of milking is used, some milk is retained in the udder.

Procedure of proper milking.

In hand milking, the teat is grasped tightly at its base between the thumb and the forefinger
and the other three fingers are closed in tightly applying pressure from the top to the bottom
forcing milk to drain from the teat to the bucket. The base of the teat is held firmly to prevent
the backflow of milk into the gland cistern.

Rules to be observed during milking.

Milk quickly and evenly.

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The effect of oxytocin lasts for five to seven minutes thus quick and efficient milking is
required.

Milk at regular intervals.

Milking should be done at regular intervals twice or thrice a day depending on cow’s
production.

Avoid use of wet hands.

Use of dry hands is recommended as it is hygienic.

Complete milking.

All milk should be removed during milking. Incomplete removal of milk from the udder
leads to the cow drying off too soon. Where machine milking is practised, the final hand
stripping is necessary to completely empty the udder.

Post-milking practices.

Includes: weighing and recording milk, straining, cooling and storing it, cleaning the utensils
and cleaning the parlour.

Dry cow therapy.

During drying off period the little milk which is left in the teat canal acts as a culture medium
for bacterial infection which cause mastitis. To control this, antibiotic is applied into the teat
canal after drying off the cow.

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CHAPTER THREE.

FARM POWER AND MACHINERY.

SOURCES OF POWER IN THE FARM.

Power. Amount of work done per unit of time.

i. Human power.

It is limited to very light tasks and quality of work produced is low.

They give0.07kw to 0.1kw for healthy human being.

ii. Animal power.

Power from animals such as donkeys, oxen and camels.

Advantages of animal power.

i. It does not require skilled workers as compared to engine power.

ii. Animals are cheaper to buy and maintain compared to tractor engine power.
iii. Work out from animals is higher than from human beings.
iv. Animals can work in areas where it would be impossible for tractors such as in hilly
terrain.
v. Animals work better on small holdings than tractors.

Disadvantages of using animal power.

i. Animals need a pig portion of land for grazing as part of their maintenance.
ii. They are slower than tractors and cannot cope with very large amount of land.
iii. Animals can damage crops when they are used for weeding.
iv. Animals sometimes get sick hence reducing their work output.

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A yoke.

Piece of wood which is made in such a way that it can rest on the animal’s neck.

v. Wind power.

Provides power to do light jobs in the farm such as winnowing of crops.

It may be used to pump water.

However wind is rarely used because of its unreliability in direction, strength and availability.

vi. Water power.

It is limited because:

 Most rivers are small and seasonal.

 It is expensive to harness the power.

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 Most farms do not have access to large quantities of moving water.

Used to drive maize grinding mills, drive hydraulic pumps, for pumping water.

vii. Biomass.

Include biogas and wood/charcoal.

Wood and charcoal.

Modern jikos have being designed to reduce energy loss from burning charcoal. Alternatives
have also being sought in the use of sawdust and coffee husks.

Biogas.

Gas produced when organic wastes e.g. animal dung is fermented in a digester producing
methane.

Stage 1.

Insoluble organic substances are broken down by microbes in digestive system of the animal
coming out in form of waste.

Stage 2.

Soluble substances in the dung are broken down by the microbes in the digester.

Uses of biogas.

i. Cooking and lighting.

ii. Internal combustion engine.

Advantages of biogas.

i. It is economical for farmers with enough zero grazing animals and resources to
construct a biogas plant.
ii. The liquid by-product of fermentation process (effluent) is a better quality fertiliser
(has more available nitrogen).
iii. Potentially harmful wastes of cows and pigs are removed from the zero grazing
enclosures. That is, flies cannot breed and unpleasant odours are removed.

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Disadvantages.

 The initial capital is high. Construction of a biogas digester is expensive.

 Requires high management to produce the gas.
 Requires large number of farm animals to sustain the production of the gas.


Solar radiation.

Radiant energy from the sun.

Needed for drying of most crops prior to storage and processing.

General uses of solar energy.

i. For drying some farm produce and other materials.

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ii. For heating water.

iii. For distillation of clean drinking water.
iv. For cooking.
v. For generating electricity.

Electrical power.

May be obtained from geothermal power station, hydropower station, nuclear station or a
storage battery.

Hydropower.

Energy contained in moving water as it descends a lower level or towards a sea level. The
power of moving water is harnessed to produce electricity in the farm.

Storage battery.

It stores electrical energy which is supplied when required to operate farm machinery and for
general lighting.

Fossil fuel.

These include fossil fuel such as petroleum oils, coal and natural gases.

Petroleum.

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Extracted from oil wells. It is then refined to get by-products such as petrol, disesel, kerosene,
jet oil, lubricants and petroleum gas.

Coal.

Fossil fuel made up of vegetable matter laid down in swampy areas and buried under other
materials. Consist mainly of amorphous deposits. Coal is bulky.

Peat. A young coal consisting of partially decomposed organic matter and inorganic minerals
that have accumulated in water saturated environment.

Natural gases.

Consists of liquid hydrocarbons from animal and vegetative matter laid in sedimentary rocks.

THE TRACTOR.

Tractor engine.

The modern tractor has an internal combustion engine which burns petrol or diesel to
produce power.

Tractor is a mechanical device which converts fuel to mechanical energy.

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The tractor engine is a four stroke cycle engine that uses diesel or petrol as fuel.

Four stroke cycle engine.

The cycle is completed in four strokes during which the crankshaft makes two total
revolutions. The cycles are;

 Induction stroke.
 Compression stroke.
 Power stroke.
 Exhaust stroke.

Induction stroke.

The piston is moved down the cylinder causing the inlet valve to open drawing in fresh
supply of petrol vapour and air into the cylinder.

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Compression stroke.

In this phase, the valves are closed and the piston moves up the cylinder. This compresses the
fresh fuel mixture in the combustion chamber.

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The power stroke.

Both valves are closed. The fresh fuel mixture is fully compressed and a spark is produced by
the spark plug. This causes the fuel mixture to ignite and expand resulting in pressure that
force the piston down the cylinder.

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The exhaust stroke.

This is the last phase where the piston move up the cylinder to eliminate the burned fuel
mixture through an open exhaust valve.

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Advantages of four stroke engines.

i. The engines produce high power and can do heavy farm work.
ii. They have efficient fuel and oil utilisation.
iii. They perform a wide range of farm operations.
iv. The engines are efficiently cooled with water thus allowing the production of large
engine size.
v. The exhaust gases are effectively expelled from the cylinders.

Disadvantages.

i. They are expensive to buy and maintain.

ii. Their use is limited in areas.
iii. They require skilled personnel and support services.

The two stroke cycle engine.

Commonly found in small machines like; mowers, chain saws, motor bikes and water pumps
that do light jobs.

It has no valves, instead it has three ports namely; inlet, transfer and exhaust.

The ports are located on the cylinder wall and are opened and closed by movement of the
piston.

Induction and compression stroke.

At the start of the cycle, the piston is at the bottom. As the piston moves upward, it uncovers
the inlet port and the mixture is drawn in., when the piston reaches the top, ignition occurs
and the piston is forced downwards compressing the mixture in the crankcase.

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Power and Exhaust stroke.

The ignited gases cause a build-up of pressure in the combustion chamber which forces the
piston downwards. This covers the inlet port and traps fresh fuel mixture in the crankcase. As
the piston moves further down, it uncovers the exhaust port and the transfer of the fuel
mixture from the crankcase to the combustion chamber.

Advantages of two stroke cycle engines.

i. They are not expensive to buy and maintain.

ii. They are economical in fuel consumption.
iii. They can be used in a wider range of farm land including hilly areas.
iv. They can do small tasks within the farm which would be uneconomical to do using
four stroke engine.

Disadvantages.

i. They produce less power hence cannot be used for heavy duties.
ii. They are inefficient in burning fuel to produce power.
iii. They are air cooled thus limiting the size of the engine.

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Systems of a tractor.

Fuel system.

Categorised into two depending on the fuel used.

The petrol fuel system.

Petrol is put in a tank and passed to the carburettor through a pipe which is fitted with a filter
or an on-off tap.

The carburettor is a device that turns liquid petrol into vapour and mixes it with definite
amount of air. When air is passes over the end of a narrow tube or a jet that contains the fuel,
some of the fuel is drawn out and passed into the air stream.

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Maintenance of petrol fuel system.

 The carburettor jets should be cleaned regularly to avoid blockage.
 The fuel filter should be cleaned by washing in petrol.
 The hole in the fuel tank cap should always be kept clean.

Diesel fuel system.

Does not have a carburettor and the fuel is pumped and distributed in the system by steel
pipes. The pump meters inject the exact volume of diesel needed in each cylinder. Deliver
pipes are fitted with series of fuel filters where dirt is trapped and the fuel enters the injector
pump when it is clean. In the injector pump, it is subjected to very high pressure and it is
delivered to the cylinders in spray like drift. A permanent bleed line is fitted to connect the
bleed points to the fuel tank. This helps to return excess fuel back to the fuel tank.

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Maintenance of a diesel fuel system.

Filters should be replaced as recommended by the manufacturers.

Bleeding should be done in case air is trapped in the system.

The sediment bowl should be cleaned regularly.

Structural and functional differences between petrol and diesel engines.

Petrol engine. Diesel engine.

It has a carburettor. It has an injection pump.
Fuel and air are mixed in the carburettor The fuel and air are mixed within the
before it gets into the engine. cylinder.
Fuel is ignited by an electric spark. Fuel is ignited by compression of air and
fuel mixture in the cylinder.
It produces little smoke because petrol is It produces a lot of smoke since the diesel is
completely burnt. not completely burnt.
Petrol engine is light in weight and suited It is relatively heavy in weight and suited to
for light duties. heavy duties.

Electrical system.

Consist of the ignition circuit generator (dynamo) circuit, starter motor circuit and lighting
circuit. The battery stores electrical energy supplied by the charging system. The electrical
energy produced by the running engine which is driven by a generator charges the battery.

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Care and maintenance of a tractor battery.

i. The level of electrolyte should be kept just above the plate by topping with distilled
water.
ii. Corroded terminals should be scrapped clean and smeared with grease.
iii. The battery should be tightly fixed in a box to avoid spillage and damage.
iv. The battery should be fitted correctly on the tractor.
v. The battery should be charged regularly and periodically.
vi. In case of long storage the battery the contents should be emptied and the battery kept
upside down.
vii. The generator fan belt should always be functional to ensure the battery is always
charged.

The ignition system.

The ignition system of petrol engine consists of ignition coil, the distributor, contact breaker
and the condenser. In spark ignition system, the battery or generator supplies the sparks
required for ignition.

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The ignition coil.

Converts the battery voltage from 12 volts to about 600 volts. Provides a spark at the
sparking plugs located in the engine cylinders.

The distributor.

Causes the spark to occur at each cylinder in the required firing sequence.

Contact breaker.

It interrupt the normal flow of current in the primary circuits. This results in the generation of
high voltage from the coil that produces the required spark.

Condenser.

Absorbs the self induced current in the primary circuit thus preventing the contact breaker
points from excessive heating.

Common faults of ignition system.

Sudden stopping.

Caused by:

 Poor terminal connection.

 Faulty ignition system.

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Remedy.

 Proper tightening of the terminals.

 Proper cleaning and readjustment of the terminals.

Continuous engine running.

Causes.

 Broken leads.
 Poor terminal connection.
 Faulty contact breaker.

Remedy.

 The broken leads should be replaced.

 The leads should be cleaned and tightened regularly.

Maintenance of ignition system.

i. The carbon deposits on the spark plug electrodes should be removed.

ii. The spark plugs whose electrodes are worn out should be replaced.
iii. The contact breaker points should be cleaned.
iv. The breaker points should be adjusted so that they lie between 0.3mm and 0.5mm.
v. The condenser should be replaced regularly.

Cooling system.

Power production gives a lot of heat. This heat should be reduced. Too much heat within the
engine may lead to overheating and hence expansion of engine components. Expansion of
engine components distorts its shape causing gas leakage, valve burning, and loss of engine
power and even cracking of the cylinder or its end.

Cooling system aims at preventing the engine from overheating which would cause piston
seizure in the cylinder.

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Types of cooling systems.

Air cooled system.

Commonly used in light weight farm machine such as mowers, motor-bikes and landmasters.

Characteristics of air cooled engines.

 They are simple in construction.

 They have a fan blade which assist the circulation.
 They are light in weight as they have no radiators and water jackets.

Problems of air cooled Engines.

 They get hot quickly and use heavy lubricating oils.

 The cooling is not adequate under all conditions especially when carrying heavy
loads.

Water cooled system.

Water is used to absorb heat from the engine block. The major components of water cooled
engine are the radiator, water jackets, water hoses, water pump, thermostat and a fanning
mechanism. Cooled water is sucked from the bottom part of the radiator with the help of a
water pump. It is pushed through the water jackets and circulates within the engine block and
the cylinder head. Thermostat is used to regulate the temperature of water in the engine at 80-
90 degree. When water is too hot it is forced back to the radiator for further cooling.

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Care and maintenance of water cooling system.

i. The water pump should be lubricated regularly.

ii. Clean water should be used in the radiator and trash removed from the fins.
iii. All pipes should be fitted tightly to avoid leakage.
iv. The radiator should be filled with clean water before starting day’s work.
v. Fan belt tension should be checked regularly and if too tight or too loose should be
adjusted accordingly.

Lubrication system.

Aimed at supplying oil to all parts of the engine where friction is likely to occur.

Importance of lubrication system.

i. Helps to increase efficiency of the machine and reduces the rate of wear and tear of
moving parts.
ii. Reduces the heat created by the rubbing surfaces and acts as a seal between them.
iii. Acts as a cleaning agent because it washes off all the dust, dirt, soot and meat
chippings from the oil paths to the sump.
iv. Oiling prevent rusting of stationery machines.

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Types of lubrication systems.

1. Splash feed type,

The cranks of the crank shafts are dipped in the oil and splashed up as they move. Not a good
type of lubrication.

2. Force feed type.

The oil in this case circulates around the engine and drips back to the oil sump. A dip stick is
used as an indicator of how much oil is in the oil sump. The components of this system are:
oil sump, pump, filters and oil ways around the cylinder block, pistons, connecting rod,
camshaft, crankshaft and the valves.

3. Oil mist type.

Common with two stroke cycle engines. The oil is mixed with fuel mainly petrol in the tank
at the rate of 0.25L of oil to 6L of petrol.

Types of lubricants.

The type of lubricant is identified with its thickness (viscosity index) which is indicated by
S.A.E scale (Society for Automobile Engineers). The lower the SAE number, the thinner the
oil.

i. SAE 10. Thin engine oil that gives little protection when heated.
ii. SAE 50. Thicker engine oil recommended for protecting the bearings.
iii. SAE 90-150. Transmission oils recommended for clutch, gear box, wheel lubrication
and ball bearings.

Care and maintenance of lubrication system.

i. Old or contaminated oil should not be used for lubrication.

ii. Oil; should be drained when still hot to avoid sticking on the walls of the sump.
iii. The oil filters should be replaced when necessary.
iv. The correct type of oil should be used as per the manufacturer’s instructions.

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The power transmission system.

The function if this system is to transfer power from the engine to the drive shaft, the axle
wheel, the power take off shaft and the hydraulic system.

The clutch.
Functions.
 Connect or disconnect the drive shaft to and from the engine respectively.
 Enables the driver to take off gradually and smoothly.
The clutch uses friction force to transmit power from the engine. The friction depends on
resistance motion and the roughness. Has three basic parts: crank shaft, friction disc and the
pressure plates

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Pressure plate.
Provides force on the friction disc when the clutch is engaged. Made up of either brass,
copper or asbestos which are good conductors and hard to break.
Crankshaft.
Has external splines which are meshed with internal splines of the friction disc.

The gear box.

Provides different forward speeds. Allows the driver to select any forward or reverse gear to
suit the operation.
Can also allow change in the speed. Allows the driver to stop the tractor without suddenly
stopping the engine or without keeping his foot pressed on the clutch.

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The differential.
It allows change in direction of the drive to right angles so that power is transmitted to the
rear wheels. Enables the rear wheels to travel faster or slower than the other especially when
negotiating a corner. Thus enables the tractor to turn without skidding. Wheel skidding would
make it difficult to control the tractor and increase rate of wear of the tyres.
The presence of differential lock avoids the wheel slip or skidding.
Composed of the drive pinion, the ring pinion gear, differential side gears and the axial drive
to the wheel.

Propeller shaft.

Ring pinion gear.

Final drive.
This is where the wheels propel the tractor machine either forward or backward enabling the
tractor to move and do useful work. The tyres allow maximum grip/traction. The wheel
provide large surface area of contact between the tyres and the ground.

Power transmission mechanism.

Power from the engine is made available through the following.
 The propeller shaft.
 The power take off shaft.
 The hydraulic system.
 The draw bar.

i. The propeller shaft.

Connect the gearbox to the differential that has axles which drive the wheels making the
tractor to move.

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ii. The power take off shaft. (PTO)

Located at the rear part of the tractor and rotates at same speed as the crankshaft. Can be
connected to machines such as mowers, planters, Rotavators, sprayers and fertiliser
spreaders.
iii. The hydraulic system.
It is operated by use of a lever near the driver’s seat. Attached to the three point linkage
which lowers or raises the mounted implements such as ploughs, mowers, planters and
sprayers.
iv. Draw bar.
Located at the rear part of the tractor. Serves for the attachment of trailed implements used
during harrowing, transportation or rolling.

TRACTOR SERVICING.
Short term service.
i. The engine oil should be checked daily by use of a dip stick. If the oil level is low it
should be added.
ii. The fuel level should be checked at the start of every day’s work and added if
necessary.
iii. Water level in the radiator should be inspected and if necessary topped up.
iv. The level of the electrolyte should be checked daily and if it drops below the
recommended level, it should be topped up withy use of distilled water.
v. The nuts and bolts should be tightened every day if loose. Lost nuts and bolts should
be replaced before the day’s work.
vi. Grease should be applied by use of grease gun through the nipples.
vii. Large sediments from the sediment bowl should be removed.
viii. The tyre pressure should be checked every morning before the day’s work by use of
pressure gauge. It should be inflated or deflated as required in the machines manual.
ix. The fan belt tension should be checked to ensure that it deflects between 1.9cm-2.5cm
when pushed.
x. The brake shaft bearing should be greased. Ensure that the brake fluid level is
maintained at the recommended level.
Long term service.
i. The engine oil should be drained completely from the sump and replaced with new
oil.
ii. The steering gear box oil should be inspected and refilled if it goes below the
recommended level.
iii. The oil in the differential should be replaced as recommended.
iv. The linkage and the pulley attachment should be replaced. The pulley oil level should
also be checked and added if necessary.
v. The dirty oil should be removed and replaced with clean one.

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Farm implements.
Tractor drawn implements.
Categorised depending on the attachment method.
Attachment methods.
i. One-point hitch implements.
Attached to the tractor at only one point that is the drawbar. Include: trailed implements such
as trailers, heavy harrows, planters and rollers.
ii. The three-point hitch implements.
Attached to the tractor at three points that is the top linkage point and two lower link
attachment points. Are operated by the hydraulic system of the tractor. Include: ploughs,
most harrows, sub-soilers, planters, mowers, ridgers, sprayers, Rotavators etc.

TRAILER.
Used mainly for transporting goods. Attached to the rear by means of the drawbar. They have
double rear wheels. Some are fitted with a hydraulic mechanism for off-loading.
Maintenance.
i. All the moving parts of the trailer should be lubricated.
ii. The tyre pressure should be checked regularly. If the pressure is low or high, it should
be adjusted to the correct pressure.
iii. Worn-out tyres should be replaced.
iv. Nuts and bolts should be checked. If loose they should be tightened and those worn-
out should be replaced.
v. The implement should be kept under a shed if not in use.

THE PLOUGHS.
Implements for primary cultivation. There are two types of ploughs.
 Disc ploughs.
 Mouldboard ploughs.

Disc plough.
Has heavy concave discs of about 60-70cm in diameter. Each disc is mounted on a standard
an all standards are fixed to the beam. Most ploughs have three discs. The discs may be plain
or notched. Notched discs are more effective in cutting into hard soil. The disc plough does
not turn the furrow slice completely. The rolling action of the disc enable the plough to ride
over obstacles.
It also works well in wet, sticky, non-scouring and black waxy soil.
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Parts of a disc plough.

i. The beam.
Long heavy bar that provides attachment for all parts of the plough.
ii. Disc.
Concave in shape. They cut, turn and invert the furrow slices.
iii. Scrapers.
Each disc has a scarper to remove wet from the disc. They also aid in turning and inverting
the furrow slice.
iv. Standards.
Also known as hangers. Connect the disc to the plough beam. Have hubs fitted to them which
facilitate the movement of the discs.
v. Furrow wheel.
Fitted at the rear of the plough. Rides over the dead furrow counteracting the thrust created
by the discs thereby balancing the whole equipment. Also used to adjust the depth of
ploughing.
Maintenance of a Disc plough.
i. The hubs and furrow wheel bearings should be lubricated as recommended.
ii. The plough should be cleaned after a day’s work.
iii. Broken discs should be repaired immediately.
iv. All unpainted surfaces of the plough should be smeared with old engine oil during
long storage.
v. Loose nuts and bolts should be tightened.
vi. Blunt discs should be hammered.

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Mouldboard plough.
Plough suited to fields that do not have many obstacles such as roots, stones and stumps.

During operation the plough cuts and turns over the furrow slice completely thus covering
surface vegetation. It operates at a uniform depth once adjusted.
Components of the mouldboard plough.
Share.
Made of cast iron thus can break easily. Makes horizontal cutting on the furrow slice, and
thereafter starts turning it over. Wears off easily.
Mouldboard.
Continues with the action of turning the furrow slice that had been initiated by the share.
Completes the turning of the furrow slice.
The disc coulter.
Rotating disc with a sharp edge. Located above the share. Cut the furrow slice separating it
from the unploughed land. Also cuts trash.
Landside.
Presses against the wall of the land being ploughed hence helps to counteract side pressure
excreted by furrow slices on the mouldboard and share thus stabilising the plough.

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Depth wheel.
Fixed at the back of the plough. Used to control the depth of ploughing.
Maintenance of mouldboard ploughs.
i. The moving parts of the plough should be lubricated.
ii. Shares should be kept tight and sharp.
iii. All nuts and bolts should be checked regularly and if loose they should be tightened.
iv. All trash and wet soil should be scarped clean or washed from the surface of the
implement at the end of the day.
v. All unpainted surfaces should be coated with old engine oil in order to preventing
rusting during storage for long periods.
vi. Worn-out parts should be replaced.

Operational differences between a disc and a mouldboard plough.

Disc plough. Mouldboard plough.

Can be used on a field with obstacles such It is rigid and slides along in operation
as stones, roots and stumps because of the therefore it cannot be used on fields which
rolling action of the disc. have hard soils, stones or stumps because it
cannot ride over them.
Does not invert the furrow slice completely. Inverts the furrow slices completely leaving
Therefore it leaves a rough field. a clean filed.
More secondary operations are necessary Fewer secondary cultivation are needed.
after a disc plough has been used.
Cuts at varying depths because whenever it Operates on uniform depth because once the
comes across obstacles it rides over them. share is in the soil it follows the same depth.
It is not easily broken by obstacles because It is rigid and therefore can easily be broken
it rides over them. by obstacles it comes across.
Requires less power to pull when operating. Requires more tractor power to pull when
operating.

HARROWS.
Used for secondary tillage. Their main uses are to level the seedbed, break soil clods, stir the
soil and destroy weeds. They may also be capable of burying trash.
Types of harrows.
Disc harrows.
Has concave discs which are in series f 5-8 discs. Are joined together on a shaft to form
gangs and are set at a certain angle to the direction of travel. Discs can be plain or notched.
Notched discs tend to cut the furrow slice and the soil better. Gangs on discs are arranged in
patterns called tandems. Tandem arrangement makes operations more effective.

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Maintenance of Disc plough.

i. The disc bearings should be lubricated after a day’s work.
ii. The discs that are damaged should be repaired or replaced.
iii. Trash or soil should be removed from the harrow after use.
iv. Old engine oil should be applied on all parts of the harrow before storage for long
periods.
v. Bolts and nuts that are loose should be tightened.

Spring tine harrows.

Has coiled steel tines which are mounted on a frame of beams. They break the soil colds by
means of a vibrating effect of the tines. It also collects trash and level the ground.

Maintenance of spring tine harrows.

i. The worn out tines should be replaced.
ii. Bolts and nuts should be checked and those that are loose tightened and the lost ones
replaced.
iii. Should be cleaned at the end of the day’s work.
iv. Unpainted parts should be oiled if the implement is to be stored for a long time.

Spike tooth harrow.

Has several strong pointed spikes or tines which are mounted on a frame of beams. Spikes are
either curved or pointed at the tips. Used for incorporating fertilisers into the soil, breaking
the soil clods, levelling the surface and to remove trash from the field.
Maintenance of spike tooth harrow.
i. Worn out parts should be replaced.
ii. Should be cleaned at the end of the day’s work.
iii. Loose nuts and bolts should be tightened.
iv. Unpainted parts should be oiled before long storage.

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SUB-SOILERS.
Heavy implements used for breaking hard pans and facilitating aeration and water infiltration.
Maintenance of sub-soilers.
i. Worn out parts should be replaced or repaired.
ii. Unpainted parts should be oiled during long storage to prevent rusting.
iii. Should be cleaned after the day’s work.
iv. Should be stored in a shed when not in use.

RIDGERS.
Implements used to make ridges. Made of two mouldboards fixed on the standard back to
back.
Maintenance of ridgers.
i. The soil sticking onto the mouldboards should be scrapped off after a day’s work.
ii. The worn out shares should be replaced and broken parts repaired.
iii. Should be stored in a shed when not in use.
iv. Loose nuts and bolts should be tightened.
v. Unpainted parts should be oiled to prevent rusting for long storage.

ROTARY TILLERS (ROTAVATORS).

Implements used in soft soil conditions. Useful in rice paddy fields where they produce a fine
mud in preparation for planting. Operated by P.T.O.
Maintenance of Rotavators.
i. Should be cleaned after day’s work.
ii. Worn out parts should be replaced.
iii. Moving parts should be lubricated.
iv. Loose nuts and bolts should be tightened.

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MOWERS.
Machines used for cutting grass for hay making and cutting silage crops where forage
harvesters are not available. Used to clear vegetation before ploughing.
Many are driven by P.T.O shaft and mounted onto the tractor.
Types of mowers.
 Reciprocating mower.
 Rotary mower.

Reciprocating mower.
Has fingers fixed on a cutter bar held horizontally during the operation. Has a set of cutting
blades fixed on a long metal bar to form the cutting knife.

Maintenance of reciprocating mowers.

i. Blades of the cutting knife should be kept sharp.
ii. Worn out blades should be removed and then replaced.
iii. Loose bolts and nuts should be tightened.
iv. Moving parts should be lubricated with grease before the start of the day’s work.

Rotary mower (Gyro-mower).

Driven by P.T.O. some are trailed while others are mounted on the three hitch point. Cutting
of the vegetation is done by blades fitted on a horizontal disc. Blades are rotated at a high
speed by the rotating disc. The blades and the disc are enclosed in a metal cover on the upper

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side. This prevents flying objects thrown by the blades from causing damage. Works better
on uneven ground.
Maintenance of rotary mower.
i. The blades must be checked for sharpens. If blunt they should be sharpened.
ii. Worn out blades should be replaced.
iii. The mower should be cleaned after a day’s work.
iv. Loose nuts and bolts should be tightened.
v. Worn out guard should be repaired or replaced to ensure total protection.
vi. Rotating parts should be lubricated.
vii. Unpainted parts should be cleaned and oiled before long storage.

PLANTERS AND SEEDERS.

Machines used for placing seeds at the correct spacing, depth and density. Have a mechanism
for opening seed drills which enable the seeds to be planted in rows. The depth of planting
can be controlled by adjusting the coulter. There is a mechanism for covering lightly by the
trailing wheels.

Maintenance of planters and seeders.

i. Moving parts should be lubricated.
ii. Seed hoppers and fertiliser containers should be cleaned after use.
iii. Loose nuts and bolts should be tightened.
iv. Broken parts and worn out parts should be repaired or replaced.
v. The coulter tubes should be free of any blockage for efficient seed passage.

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CULTIVATORS/WEEDERS.
Implements used for shallow cultivation in light soils. The beam is fitted with adjustable tines
which make it suitable for weeding crops of different spacing.
Maintenance of cultivators.
i. Loose nuts and bolts should be tightened.
ii. Trash and soil should be removed from the implement after use.
iii. Broken and worn out tines should be replaced or repaired.
iv. Should be kept in the shed during long storage.

SPRAYERS.
Used for applying either pesticides, herbicides or foliar feeds. Consist of a pump that lifts the
chemical from the tank to a boom containing a number of spray nozzles. Have a mechanical
agitator that continuously mixes the liquid for uniformity.

Maintenance of sprayers.
i. The tank of the sprayer should be drained before and after use.
ii. All the nozzles should be removed and cleaned when blocked.
iii. The tank and all other parts should be washed thoroughly with clean water and dried.
iv. All parts that are prone to rusting should be cleaned and painted.

HARVESTING MACHINES.
Include:
i. Combine harvester for harvesting grain crops.
They are not tractor drawn or mounted implement but are self-propelled machines which do
all the harvesting operations including threshing and cleaning the grains. Harvest different
cereal crops with appropriate adjustments.

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ii. Root-crop harvesters.

Harvest crops like potatoes and groundnuts. Most common root harvesters are the ridgers.
iii. Forage harvesters.
Implement use to harvest forage crops such as maize, sorghum and nappier grass. Mounted
on the tractor and operated by P.T.O shaft. The harvest and chop the forage materials to
appropriate size. Other implements that may be used are hay balers and mowers.
Maintenance of forage harvester.
i. Moving parts should be lubricated.
ii. Cutting edges should be sharpened.
iii. Bolts and nuts should be tightened if loose.
iv. Trash and dirt should be removed after use.
v. Should be kept under a shed when not in use.
vi. For long storage it should be oiled to prevent rusting.

SHELLERS.
Stationary implements which are either hand or tractor-driven depending on the size. Consist
of rotating serrated disc, which scrapes off maize from the cob as they are fed into the
machine.

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ANIMAL DRAWN IMPLEMENTS.

OX-PLOUGH.

Used for ploughing, weeding, opening furrows for planting and harvesting crops such as
groundnuts.

Parts of ox-plough.
i. Beam.
Component onto which all other parts of the plough are attached. Also adds weight to the
plough for better penetration.
ii. Handles.
There are two handles. Enables the operator to set the implement in the proper direction when
ploughing.
iii. The mouldboard.
Inverts furrow slices.
iv. Share.
Cut the furrow slice horizontally.
v. Landside.
Presses against the wall of the unploughed land thus helps to stabilise the plough.
vi. Land wheel.
Regulate the depth of ploughing.

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vii. Draft rod.

Metal bar attached to the main beam of the plough. At the front end of the draft rod there is a
chain that connects it to the yoke. The rod and the chain forms the draught mechanism of the
plough.
Maintenance and repairs of an ox-plough.
i. The land wheel bearing should be lubricated.
ii. Worn-out shares should be replaced.
iii. Blunt shares should be sharpened by hammering.
iv. Before the day’s work check for loose nuts and bolts and tighten them if they are
loose.
v. If the ox-plough is to kept for long periods, its surfaces should be coated with old
engine oil.
vi. Should be kept in a shed when not in use.

Ox-tine harrow.
Used for breaking soil clods. Collecting trash, levelling the seed-bed and covering planted
seeds.
Maintenance of ox-tine harrow.
i. Any broken or worn out tine should be repaired or replaced.
ii. Should be cleaned after use.
iii. Should be stored in a shed.
iv. For long storage, oil should be applied to prevent rusting.
Ox-carts.
These are harnessed to the animals by means of a yoke.
Maintenance.
i. The moving parts should be oiled or greased regularly in order to reduce friction
wearing.
ii. The yoke should be properly maintained.
iii. Tyre pressure should be checked daily before the start of the work and adjusted
accordingly.
iv. Other visible damages on the cart should be repaired.

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Advantages of animal drawn implements compared to tractor drawn implements.

i. The initial cost of purchasing the animals, the yoke and the implements is much lower
than that of buying the tractor and the implements drawn by the tractor.
ii. A person who operates animal drawn implements requires less training than one who
operates the tractor.
iii. Tractor need regular maintenance and minor repairs which most farmers do not have
the skill to carry out. These are also expensive.
iv. Animal drawn implements can be used in areas where land is steep which are not
suitable for tractor drawn implements.
Disadvantages of animal drawn implements as compared to tractor drawn implements.
i. They are more tedious than tractor drawn implements. The operator has to keep on
guiding the implement and the animal.
ii. More than one person is required to guide the plough and the animal while cultivating
whereas one person is required to plough using a tractor.
iii. Animal drawn implements are slower than tractor drawn implements.
iv. Animals get tired at times and this slows down the work.
v. There are diseases in some areas which makes it difficult to use some animals.
vi. A farmer need to set aside a piece of land where he can either grow a fodder crop or
develop a pasture for the animals.

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CHAPTER FOUR.
AGRICULTURAL ECOMONICS III.

(PRODUCTION ECONOMICS)

Economics.

Study of how man chooses to allocate scarce resources to produce goods and services.

Production economics.

Branch of economics that deal with allocation of resources (factors of production) to produce
goods and services.

Parameters of measuring national income.

 National income.
 Per capital income.
 Level of technology.
 Literacy levels.
 Gender parity.

Micro economics.

Study of economic activities at the individual level.

Macroeconomics.

Study of economic activities at national level.

NATIONAL INCOME.

Total value of all goods and services produced by citizens of a country in a given year.

Household-firm relationships.

Household. Unit comprising of the farmer and members of his family.

Firm. Business unit involved in production.

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House hold

Firm

The household as a producer and a consumer.

As a producer, the household produces raw materials e.g. sisal, tea and coffee to be used in
the industries.

Income earned by the sale of the product is used to buy household goods and services. E.g.
farm inputs. More household revenue leads to higher consumption of industrial goods and
services.

The firm as a consumer and a producer.

As a consumer, it buys raw materials from the household.

As a producer, the firm processes the raw materials into finished goods. It also provides
services for use by the household.

The role of the household and firms in a country’s economic development.

Interaction between households and firm leads to income generation.

The income is used in expansion of firms creating employment and revenue.

Government taxes incomes of households and firms to earn revenue used to finance national
development and public services.

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Gross domestic product

Total goods and services produced by a country within a period of one year.

Include goods and services from foreigners within the country.

Kenyans nationals and firms board also leads to income inflow.

Gross national product

Total output from resources owned by nationals of a country wherever the resources happen
to be

GNP=GDP + (income inflow-income outflow)-gross national income

GNI (GNP) expressed in monetary terms

Per capita income

Average income of citizens of a country

Per capita income=GNI÷population

Developed countries have higher per capita income than developing countries

Why per capita income is not a good measure of economic wellbeing to the people

There is uneven distribution of income with most income being controlled by a few people

Better parameters of economic development

i. Number of persons per doctor

ii. Number of pupils per teacher.
iii. Number of people owning TV and radio

Contribution of agriculture to national development

i. Food supply
ii. Provision of market for industrial goods
iii. Provision of foreign exchange earning
iv. Supply of raw materials
v. Source of government taxes

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Factors of production

Factor-anything that contribute directly to the output

 Land.
 Capital.
 Labour.
 Management.

Land

Solid part of earth where capital can be placed

Land is viewed in forms of;

Ability to produce crops and livestock

Productivity is important than its size

Size is important when considering economies of scale in production.

Too small size of land may not be economically viable

Productivity is determined by soil fertility and climatic conditions

 Can be improved by
 Proper tillage
 Fertiliser application
 Water and soil conservation
 Irrigation

The space for construction of farm buildings, agro-industries, intra structures

Which are important in agricultural production

Methods of land acquisition

i. Inheritance

Most common method of acquiring land

ii. Settlement and resettlement by the government

Government settle land by buying the landless in government or idle land.

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iii. Buying land

One may acquire land by buying from willing sellers

iv. Compensation

Traditional way of settling disputes

Labour

Human force employment to work.in a production process for a certain period of time

Types of labour

i. Family labour

Consist of members of the family

Members are of different ages thus labour is assigned according to age and ability

ii. Hired labour

Are of 2 types

 Casual labour

Supplement family and permanent labour when there is a lot of work i.e. during labour peak
periods

 Permanent labour

Labour hired on monthly basis

Labour may also be;

 Skilled
 Semi-skilled
 Non-skilled.

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Measurement of labour

Work output of labour is expressed in forms of amount of work done within a specific period
of time

One man-day=8hrs

Methods of improving labour productivity

i. Training

May be formal or informal

By training in schools, farmers training centres, field days, agricultural shows

Demonstration farms workshops

ii. Farm mechanization

Incorporation machinery assist labour to perform work more efficiently

Br use of tractors, milking machines etc.

iii. Giving incentives and improving terms and conditions of services

Motivate the labour force to work hard and efficiently by provision of medical facilities,
housing, and security

iv. Labour supervision

Entails keeping proper and up to date records on time work commences, type and amount of
work done, records of absenteeism.

Cases of theft and dishonesty

Capital

All man made assets used in production of desired goods by form machinery, tools, seeds,
money

Types of capital

i. Liquid capital

Money. Can be easily converted into other forms of capital.

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ii. Working capital

Raw materials used for production

Consumed completely in the process of production

Examples;

 Fertilisers
 Fuel
 Pesticides.
 Feed stuffs.
iii. Fixed/durable capital

Asset employed in the process of production but are not used up/diminished completely in the
process.

Examples.

 Farm machinery.
 Permanent crops.
 Irrigation systems.
 Buildings.

Source of capital

i. Savings

Part of one’s income set aside over a period of time to accumulate. They become capital
when they are withdrawn and used in production process

ii. Credit facilitates

Capital may be acquired by borrowing loans in kind or cash by private money lenders,
commercial banks

iii. Grants

Sponsorship from non-governmental organisation inform of money or assets

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Use and quality of capital

The higher the level of capital the higher the output

The management

Process of planning and decision making in organisation of other factors of production in a

production process

Manager/entrepreneur is the vision bearer of the enterprise, acquires and plans for the other
factors of production

Functions of a manager in the farm

i. Short term planning

Involves taking quick decision. Quick decision making should be taken to avoid losses

By planting and weeding, pest and diseases control

ii. Long-term planning

Involves making decision linked to the future plans and operations

Should have enough time to study the plans before making decisions

iii. Information gathering

Collects information related to the enterprise by price trends, markets, production techniques,
constrains

iv. Comparing standards on ones enterprise with the set standards

v. Detecting weakness and constrains and finding ways and means of overcoming
them
vi. Keeping farm records up-to-date and using them in day to day running of the farm
vii. Implementing farm decisions and taking responsibility

Qualities of a good farm manager

i. Should have knowledge about specific agricultural principles, marketing and

accounting
ii. Hardworking and time conscious
iii. Should have practical farming skills

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iv. Should be responsible, dynamic, prudent and ambitious

v. Should be flexible in decision making in order to adjust to the changing social and
economic trends in the society

THE PRODUCTION FUNCTION.

Physical relationship between inputs and outputs

Shows quantity that may be expected from a given combination of inputs

Types of inputs

 Variable inputs
 Fixed inputs

Variable inputs

Inputs that vary with the level of production

Characteristics of variable inputs

 Changing in quantity required with level of production in a given time

 Being added to fixed inputs for production
 Their cost vary depending on kind and quantity used (variable cost)
 They are allocated to specific enterprises
 Their cost value is used to calculate gross margins of various farm enterprise i.e. value
of TP less variable costs

Examples casual labour, fertilisers, seeds, feeds, fuels, pesticides, livestock and drugs

Fixed inputs

Inputs that do not vary with level of production of an enterprise

Characteristics of fixed inputs

i. Constancy-once required their cost to the business are acquired whether they are used
or not.
ii. They do not vary with the level of production in a given time
iii. Their cost are not allocated to specific enterprises or product
 Examples -farm machinery
 Permanent labour

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Example 1

Land Input(kg of seed) Output

90 bags product
1ha 0 0
1ha 5 10
1ha 10 20
1ha 15 35
1ha 20 45
1ha 25 60

Land is fixed while maize seed is varied from 0-25kgs all other inputs applied as required

Yield varies with respective seed rates

Example 2

Land and seed rate on fixed 1ha and 25kg respectively

Land Seed rate CAN Marginal TP MP

hectare(ha) Kgs Kgs inputs 90Kgs 90Kgs
1 25 0 0 6 6
1 25 20 20 12 6
1 25 40 20 19 7
1 25 60 20 29 10
1 25 80 20 36 7
1 25 100 20 42 6
1 25 120 20 48 6
1 25 140 20 53 5
1 25 160 20 57 4
1 25 180 20 59 2
1 25 200 20 60 1

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Explanation

 Land and seed are fixed at 1ha and 25kgs respectively

 CAN is varied at 20kgs units
 Maize yield increases as shown by TP and graph curve
 Marginal product is additional return realised above the above the previous TP as a
result of the marginal input
 Marginal inputs are additional inputs above the previous inputs

Types of production functions

 increasing returns production function

 constant returns production function
 Decreasing returns production function

Increasing returns production function

Production in which each additional unit of inputs results in a longer increase in output than
this proceeding unit of inputs

Shows that resources are underutilised..

Rare PF in agriculture

Occurs in initial low levels of inputs application e.g. application of fertilisers, seed rate
application, labour inputs

Egg production with varying amounts of layers mash

100 layers Layers mash Total egg production Marginal production

Kg/week per week per week
100 0 140 0
100 10 155 15
100 20 180 25
100 30 240 60
100 40 340 100
100 50 470 130

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Explanation

The first few additional units of inputs resulted in layer increase in output up to 40kg/week

Constant returns production functions

Amount of product increases at the same rate (amount) for each additional unit of input

I.e. returns are constant due to biological, economical, and human factors.

Common in industries

Table production of loaves of bread at varying quantities of wheat flour.

Labour Wheat flour Total number of Marginal product

man-days loaves
5 10 25 0
5 20 50 25
5 30 75 25
5 40 100 25
5 50 125 25
5 60 150 25

Explanation

PF curve is a straight line

The slope of the curve remains the same

MP is constant at 25 loaves

Decreasing returns production function

Each additional unit or inputs results into a smaller increase in output than the proceeding
unit input

Common in agriculture

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Table; maize production in 90kgs at varying amounts of NPK fertiliser.

Land 1ha NPK fertiliser input Total maize Marginal production

Kgs production 90kgbag
90Kgbag
1 0 5 5
1 30 12 7
1 60 28 16
1 90 47 19
1 120 59 12
1 150 65 6
1 180 68 3
1 210 70 2
1 240 70 0
1 270 68 -2

At firs there is an increase in output (MP) at an increasing rate.ie each additional unit of input
leads to a larger increase in output then the preceding one

This continues up to a point when total output start to increase at a decreasing rate (as
evidenced by MP) and the low at diminishing returns set in at this stage

Thereafter maximum level of output is reached and any further addition at NPK results in
decline in output

Explanation

Marginal product diminish for each additional unit of input at the later high levels of input
application

Slope of the curve on graph becomes less steep as from where MP starts decreasing with each
additional unit of input

Decreasing returns gives rise to the low diminishing returns.

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Economic laws and principles

1) THE LAW OF DIMINISHING RETURNS

It successive units of one inputs are added to fixed quantities of other inputs, a point is
eventually reached when the additional (and average) produced per additional unit of input
well decline

Table; production of maize at various level of NPK application

Fixed factor Variable inputs Total product Marginal Average

Land 1ha NPK Kgs maize in 90 kg product maize product maize
bag 90 kg 90kg
1 30 10 10 10
1 60 27 17 13.5
1 90 42 15 14
1 120 56 14 14
1 150 63 7 12.5
1 180 65 3 10.8
1 210 65 0 9.3
1 240 60 -5 7.5
1 270 52 -8 5.8
1 300 42 -10 4.2

AP=TP/units of fertiliser used.in this case unit

E.g. 10/1unit, 24/2units, 42/3units, 36/4units, 63/5units

Zones of a production function curve

According to the law of diminishing returns if variable inputs of one resource are applied
beyond a certain limit, a point is reached when TP begins to decline.

It is thus helpful in order to determine the most profitable point at which to produce.

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Zone I (irrational zone)

End where MP=AP.

The resources are underutilised e.g. land and NPK fertiliser.

TP increases at an increasing rate up to where MP reaches its peak. Farmers should not
produce at this zone as the resources available can yield more.

Zone II (rational zone of production)

Starts at MP=AP to AP=0.

Resources are utilised to the maximum.

TP increases at a decreasing rate. Starts where MP starts declining and stops where MP=0.

TP is at its maximum. AP reaches maximum at the start of this zone that is, where MP=AP
(at the intersection)

It is economical to produce at this zone.

Zone III (irrational zone of production)

MP becomes negative suggesting NPK fertiliser is excessively applied resulting in production

decline. TP is also declining.

It is not economical to operate in this zone because it is a loss making zone.

2) THE LAW OF SUBSTITUTION.

If the output is constant, it is profitable to substitute one input factor for another, as long as it
is cheaper than the one being substituted.

E.g. substituting dairy meal (less expensive) for dairy cubs (more expensive)

It is based on the concepts of input-input relationships and product-product relationships.

It enables the producer to substitute a less profitable enterprise for one which is more
profitable.

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Input-input relationship.

The way the factor inputs are combined in production, to maximise profit and revenue.

Ways of combining inputs;

i. Fixed proportions.

There is no substitution of inputs involved. For production to take place both inputs must be
present in the same proportions.

ii. Constant rate of substitution.

Input factors substitute one another at a constant rate for each level of output regardless of the
ratio of the two input factors used.

E.g. maize and sorghum as livestock feeds.

iii. Varying rate of substitution.

The factor inputs substitute each other at varying rates.

Examples.

 Hay and grain in feeding livestock.

 Poultry manure and nitrogenous fertiliser.
 Use of homemade feed rations versus commercial feeds.

Product-product relationship.

Combination of enterprises with the aim of maximising revenue.

i. Joint products.

Situation where a farmer aims at producing one product but automatically ends in getting
another product.

Examples.

 Mutton and skin.

 Honey and wax.
 Milk and butter.
 Cotton and lint.
 Beef and hides.

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ii. Competitive products.

Situation where the production of one is increased then production of another is reduced.
Occurs where the available resources are limited.

From example where land is fixed wheat and maize production. If the acreage under wheat is
increased then the acreage under maize has to be reduced.

iii. Supplementary products.

Situation whereby one product may be increased without decreasing the other. Applicable
where resources available are not fully utilised.

E.g. a poultry enterprise can be introduced to supplement other enterprises.

Growing an intercrop between rows of a main crop.

iv. Complementary products.

Situation whereby an increase in the production of one product means a simultaneous

increase in production of the other.

E.g. introducing a pig enterprise to be maintained on the by-products of grains.

3) THE LAW OF EQUI-MARGINAL RETURNS.

States that: if the amount of productive resources are limited, they should be allocated in such
a way that the marginal returns to those resources is the same in all alternative uses to which
they are put.

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THE PRINCIPLE OF PROFIT MAXIMISATION.

It is based on the concepts of cost and revenue.

The concept of cost.

Cost. Price paid for goods and services rendered in a production process.

Cost of production. Quantity of input factor used multiplied by price of each unit of input
factor.

Production cost= QxX Px

Q= quantity.

P=price.

x=input factor.

Role of cost in production.

i. Quantity of a product depends on amount of costs incurred during the production

period.
ii. When costs are analysed and converted into monetary value, they help to indicate the
most profitable level of production.
iii. Used to calculate gross margins.

Types of costs.

i. Fixed costs (FC)

Inputs costs which do not vary with the level of production e.g. rent, depreciation of farm
buildings and machinery and salaries of permanent labour.

ii. Variable costs (VC)

Input costs that vary with level of production. E.g. cost of feeds, fertilisers, fuel and wages of
casual labour.

iii. Total cost (TC)

Sum of all fixed and variable costs used in production of a given quantity of product.

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TC=FC+VC.

iv. Average cost (AC)

Total cost divided by the number of units of outputs.

AC=TC÷Y.

Y= number of units of outputs.

v. Average variable cost (AVC)

Total variable cost divided by total output.

AVC=VC÷Y

vi. Average fixed cost (AFC)

Total fixed cost divided by total output.

AFC=FC÷Y.

vii. Average total cost (ATC)

Sum of average variable coast and average fixed cost.

ATC= AFC+AVC.

viii. Marginal cost (MC)

Extra cost incurred in production of an additional unit of output.

MC=∆VC÷∆Y

Where ∆ (delta) = change.

VC= variable cost.

Y= output.

Note that costs are defined in terms of units of outputs and not in terms of units of inputs.

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THE CONCEPT OF REVENUE.

Revenue. Amount of money accruing from the sale of produce.

Types of revenue.

i. Total revenue (TR)

Total physical product multiplied by the unit price of the product.

R=QyXPY

Q= quantity of commodity.

P= price per unit of commodity.

ii. Net revenue (NR) /profit.

The difference between total revenue and total cost of production.

NR= TR-TC.

iii. Marginal revenue (MR)

The extra income obtained from the sale of one additional unit of output.

THE CONCEPT OF PROFIT MAXIMIZATION.

The aim of a producer is to obtain as much profit as possible while attempting to minimise
cost of production.

When maximum net revenue is obtained profit is maximised.

Profit is maximised when marginal revenue (MR) is equal to marginal cost (MC) at the point
where NR is at its maximum.

Example.

In maize production project carried over a period of 8 seasons, a farmer uses 1ha of land each
time and applies various quantities of DSP at a cost of Kshs 280 per 50KG bag. The produce
is sold at 200 per 90Kg bag.

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DSP in Maize Total Total cost. Marginal Marginal Net

50Kg bag yield revenue. revenue. cost. revenue.
90Kg bag
0 15.5 3100 0 0 0 3100
1 35.6 7120 280 4020 280 6840
2 52.7 10540 560 3420 280 9980
3 68.5 13700 840 3160 280 12860
4 70.0 14000 1120 300 280 12880
5 70.5 14000 1400 10 280 12700
6 70.5 14000 1680 0 280 12420
7 68.5 13700 1960 -400 280 11740

In calculating profit fixed costs and other variable costs are ignored.

Explanation.

As more units of fertiliser are applied, the net revenue increases to reach a maximum at
12,880 Kshs at 4 bags of fertiliser.

At the level of four bags of fertiliser/ha, MR is almost equal to MC. This is the point of
maximum profit.

FARM PLANNING.

Involves establishing the organisational objectives and defining the means of achieving them.

Factors to consider in drawing a farm plan.

i. Size of the farm.

It determines the number of enterprises that can be established.

ii. Environmental factors.

Include aspects such as climate, soil type and topography. They determine the specific
enterprises to be established on the farm.

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iii. Current labour trends.

Determines availability of labour. It is important to put into consideration the cost and
requirements of labour especially during labour peak periods.

iv. Farmer’s objectives and preferences.

The interests of a farmer should be put into consideration. It makes one to have a sense of
ownership of the plan hence becomes motivated.

v. Possible production enterprises.

The requirements of each enterprise in relation to environmental factors, size of the farm,
existing markets and price trends should be put into consideration.

vi. Existing market conditions and price trends.

Price trends in the market may discourage farmers from growing certain crops.

It affects production schedule (market synchronisation)

vii. Availability and cost of farm inputs.

Choose an enterprise that is easily affordable and whose inputs are readily available.

viii. Government regulations/policies.

Government regulations that controls establishment of enterprises on farms should be put into
consideration. E.g. it is prohibited to cultivate near river banks.

ix. Security.

Certain enterprises must be established near the farm house for security reasons and close
supervision.

x. Communication and transport facilities.

Some enterprises require transport facilities to the market thus infrastructure should be
considered.

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Steps in making a farm plan.

i. Determining the farm size by surveying and calculating out the acreage.
ii. Determining environmental situation by collecting information on climate, soils and
vegetation. Analysing the data to establish feasible enterprises.
iii. Determining the farmer’s objectives and preference to eliminate production
possibilities that are not desirable.
iv. Developing a tentative schedule that involves listing the selected enterprises and
stating the types and cost of physical resources required. This leads to selection of one
enterprise or a combination of enterprises and a farm layout.
v. Determining the technical feasibility of the plan to make it realistic. Taking into
consideration external influences.
vi. Determining the expected yields and returns of various enterprises.
vii. Determining a budget by translating the physical plan into monetary value.
viii. Developing a financial flow in order to ensure that it is consistent, workable and
desirable.
ix. Implementation.
x. Observe and calculate the plan in course of the implementation.

FARM BUDGETING.

Estimate of future income and expenses of a proposed farm plan.

Budgeting. Process of estimating the future results of a farm plan.

Importance of farm budgeting.

i. Helps in decision making, helps to avoid over expenditure and impulse buying.
ii. Enables the farmer to predict future returns. Thus one can plan ahead.
iii. Helps to avoid incurring losses by not investing in less profitable enterprises.
iv. Enables the farmer to acquire loans from financial institutions.
v. Enables periodic analysis of the farm business.
vi. Acts as a record that can be used for future reference.
vii. Pinpoints efficiency or weakness in farm operations.

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Types of farm budgets.

 Partial budget.
 Complete budget.

Partial budget.

Represent financial effects of minor changes in a farm organisation.

Reasons for drawing up a partial budget.

i. What would happen if a farmer expanded an enterprise?

ii. What would happen if a new technology is introduced?
iii. What would happen if a farmer replaced one enterprise with another?

Guiding questions in preparing partial budget.

1. What extra cost is to be incurred as a result of the prosed change?

2. What revenue is to be foregone as a result of the proposed change?
3. What extra revenue is to be earned from the proposed change?
4. What costs are to be saved as a result of the proposed change?

Complete budget.

It is necessary when the farmer wants to start a new business where both the variable costs
and fixed costs or semi-fixed costs are likely to be affected. It involves a major change in the
farm.

It covers every item of expenditure and income.

Guidelines.

1. Formulation of farming goals.

State the reasons for setting up the farming business.

2. Taking the farm inventory.

Items listed on the inventory includes; farm buildings, land improvement structures, such as
fencing, funds available and farm equipments.

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3. Planning for resources.

Involves showing how various resources are utilised.

4. Estimating production.

Find out the gross production and assets in the farm emanating from crops, livestock and
other activities.

5. Estimating income and expenditure.

Prepare a stamen of the income and expenditure based on existing prices and costs.

6. Analysing the input-output relationship that exist on the farm.

7. Analysing existing production weakness in the farm

Determine the order in which weakness in the farm are to be eliminated.

8. Making of alternative plans and choosing one for adoption.

9. Putting the best chosen plan into operation and supervising its implementation.

AGRICULTURAL SUPPORT SERVICES AVAILABLE TO THE FARMER.

1. Extension and training.

Extension. Giving informal education to farmers on production techniques.

Done through:

 Field days.
 Seminars and short courses.
 Demonstrations.
 Agricultural shows.
 Training and visits.

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2. Banking.

Bank account. Page in a ledger where financial transactions are systematically recorded.

Types of bank accounts.

 Current account.
 Saving account.

Current account.

Bank account from which cheques are paid but money does not earn interest.

Saving account.

Bank account in which the customer accumulates some money and interest is allowed but
cheques are not drawn on it.

Advantages of transacting using the bank.

1. Money is safer in the bank than in the farm, office or house.

2. In transacting involving large sums of money it is easier and quicker to write a cheque
than count out large sums of money.
3. A farmer with a bank account may get some credit from the bank in form of an overdraft
or loan. Overdraft where the account holder of current account can withdraw, more
money than what is in the account.
4. The bank gives advice to farmers on how to use the credit given for maximum returns.
5. A banker’s statement is necessary as evidence of a financial standing when a farmer
wants to acquire or lease some property.

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3. Credit.

This is borrowed capital.

Loans are given against security such as; land title deed, machinery etc.

Types of credits.

i. Short-term credit.

It is given as working capital such as seeds, feeds and fertiliser and is repayable within one
year.

ii. Medium-term credit.

Used for farm development projects and is repayable within 2-5 years.

iii. Long-term credit.

It is repayable within a period of 15 years.

It is used to purchase land and effect major improvement on land.

 Credit could be hard or soft. Hard loan is offered against substantial security
(immovable assets).
 Soft loan is offered without or with little security.

Sources of agricultural credit.

i. Co-operative societies.

Their interest rates are lower than those from commercial banks.

ii. Crop boards.

Some crop boards gives credit to farmers. E.g. national irrigation board and pyrethrum board.
They recover their money through deductions made on farmer’s payout.

iii. Commercial banks.

They have higher interest rates and farmers are required to have security. Offers short-term
and medium-term loans.

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iv. Agricultural Finance Corporation. (AFC)

Parastatal body set up by the government to give loans (short-long term) to farmers. The
interest rates are reasonable.

v. Settlement Fund Trustees.

They lend short-term to long-term credits to new settlers in settlement schemes.

vi. Others.

Hire purchase companies, individuals, insurance companies and traders.

Problems associated with credits.

i. Lack of collaterals. Most farmers lack adequate security to enable them to

obtain loans.
ii. Loans are diverted to other uses for which they were not intended.
iii. The interest rates are usually high such that repayment becomes a problem
since the investment made do not guarantee an equivalent amount.
iv. Non-payment of loan may lead to assets used as security being auctioned.
v. Lack of knowledge and appropriate skills in the management of credits may
lead to misappropriation or misuse of the funds.
vi. Lack of proper farm records may disqualify framers from getting and
management of the funds.

4 .Artificial insemination (AI) services.

AI services have being liberalised and private practioners are also providing these servicers to
farmers.

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5 Agricultural research.

Objectives of agricultural research.

i. To improve crop and livestock production techniques.

ii. To develop improved varieties and types of crops and livestock.
iii. To improve pastures and fodder quality.
iv. To develop techniques for controlling diseases and pests of various crops and
livestock.
v. To determine suitable ecological zones for various crops.
vi. To co-ordinate research in order to avoid duplication of work.

Examples of research stations.

1) Coffee research station in Ruiru.

2) Kenya Agricultural and Livestock Research Organisation. (KALRO).
3) National Plant Breeding station at Njoro. Conducts research on wheat, barley, rye and
oil seed crops.
4) Pyrethrum Research station at Molo.
5) Horticultural Research station at Thika. Conducts research on fruits, cut flowers and
pulses/grain legumes.
6) National Sugar Research station at Kibos. Conducts research on sugar-cane.
7) Tea Research Foundation at Kericho.
8) Dryland Farming Research station at Katumani in Machakos. Caries out research on
soil moisture use, plant breeding, pest management and animal nutrition.
9) Sunflower Research station at Wanguru near Embu.
10) ICIPE. Nairobi and Mbita in south Nyanza.
11) Coast Agricultural Research station at Mtwapa. Conducts research on maize and
sugarcane.
12) International Livestock Research Institute (ILRI) in Nairobi.

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6. Marketing.

They assist farmers in marketing farmers’ .produce. They include:

1. National Cereals and Produce Board. (NCPB). Helps in marketing cereals (maize and
wheat.), pulses (beans, groundnuts, pigeon’s peas).
2. Kenya Co-operative Creameries (New KCC). Markets milk.
3. Pyrethrum Board of Kenya. Markets pyrethrum.
4. Kenya Planters Co-operative Union (KPCU). Markets coffee.

7. Veterinary services.

Helps in treating and controlling livestock diseases and parasites.

8. Farm inputs supplies.

Some organisations e.g. co-operatives and private companies bring farm inputs closer to
farmers.

9. Tractor hire services.

Involves hiring of tractors and implements that farmers do not have.

i. Government Tractor hire services.

Falls under the ministry of agriculture. Available where large scale or intensive farming is
practised.

It is cheaper than private hire services however, due to high demand the services are not
available to all farmers.

ii. Private contractors.

Individual contractors or companies that own several tractors and equipments for hire.

Are available on demand but they charge slightly more than government tractor hire service.

iii. Individual farmers.

They may hire to neighbouring farms once they have finished preparing their farms.

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iv. Others.

E.g. some co-operatives societies own tractors that they hire to their members.

Advantages of tractor hire services.

i. Farmers who cannot afford to buy a tractor can get access to tractor services.
ii. Farmers do not incur the cost of servicing and maintenance of tractor and its
implements.
iii. The services are more efficient than hand tools.

Disadvantages of tractor hire services.

i. They are not available to most farmers when they need it.
ii. Some farmers may be overcharged especially by private and individual farmers.

RISKS AND UNCERTAINTIES IN FARMING.

Uncertainty.

Imperfect knowledge about future events or outcome.

Risks.

Divergence between the expected and actual outcome/ difference between what is predicted
and the actual outcome.

Types of Risks and Uncertainties.

i. Fluctuation of commodity prices. The farmer may not predict the future market prices.
ii. Physical yield uncertainty. The farmer does not know how much to expect.
iii. Ownership uncertainty. The farmer may lose part or the whole of the produce
through theft, change in government policy, fire, death, association with other
business.
iv. Outbreak of pests and diseases. It will affect the expected outcome.

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v. Sickness and injury uncertainty. The farmer or a member of his family or an

employee may be affected and loses the ability to work due to sickness and injury.
vi. New production technique uncertainty. The farmer may not be certain whether a new
technology is as effective as the previous one.
vii. Obsolescence. A farmer may invest in machinery that may be outdated within a short
time.
viii. Natural calamities. E.g. floods, drought, earthquakes, storms and strong wind may
destroy the crops or kill the animals.

Ways of Adjusting to Uncertainty.

1) Diversification.

Involves setting up several and different enterprises on the farm. This prevent total loss in
case of a failure in one enterprise.

2) Selecting more certain enterprises.

Under uncertain conditions, it is better to choose an enterprise which earns a more steady
income though less profitable than choosing a more profitable enterprise which has a high
degree of income variation.

3) Contracting.

This is entering into a contract to supply goods over a specified period of time at an agreed
price.

It guarantees a constant fixed market. If prices in the market falls, the farmer reaps big from
the contract.

Limitation.

i. If market prices rise the farmer would not benefit.

ii. Contract prices are lower than the average market price.
4) Insurance.

Farmers pay premium as insurance cover to guarantee them compensation in the event of
loss.

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5) Input rationing.

Use of less inputs for uncertain enterprise to lower the loss and the additional inputs are used
in a more stable enterprise.

6) Flexibility in production methods.

Enterprises should be designed such that if a change one enterprise to another is needed it can
be done with minimum expenses.

7) Adopting modern methods.

Used to reduce the amount of risk. E.g. spraying crops against diseases and pests, vaccinating
livestock and irrigating crops.

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CHAPTER FIVE.

AGRICULTURAL ECONOMICS IV.

(FARM ACCOUNTS).

Importance of keeping farm accounts.

1) Helps the farmer to secure loans. Helps to determine whether the farmer is credit
worthy.
2) Helps to make sound management decisions. Provide data that helps in planning and
decision making.
3) Helps to determine whether the farmer is making profits. Records indicate whether
the farm is running at a profit or loss.
4) Helps to prepare farm budget. Helps a farmer to draw estimates for future income and
expenditure especially in preparing partial budget.
5) Evaluating assets and liabilities. Helps in assessing the farm’s ability to pay what it
owes others.
6) Assessing the tax chargeable. Helps to estimate the amount of tax that can be charged
so that the farm is taxed fairly.

Financial documents.

Invoice.

Document used when goods are delivered on credit. It is issued to inform the buyer of the
goods delivered and debits the buyer.

Details contained.

 Date of transaction.
 People involved in the transaction.
 Types and quantities of goods delivered.
 Total amount of money involved.
 Invoice serial number.
 Terms of payment.

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It lists any discounts allowed and specifies period within which payment should be made. It is
the first accounting document in a credit transaction.

Invoice.
No 20175 Date 14.2.2003

M/S Kikwetu Farmers Store

DR……..Kitaro Farmers’ Co-operative Union
P.O BOX 104
Mau Narok.

Particulars. Quantity. Price per unit. Amount.

1 Layers mash 20 bags. 1200:00 24000:00
2 Dairy meal. 5 bags. 850:00 4250:00
3 Maize seed H02 1 (10 kg) bag. 27600:00 27600:00
4 DAP 2 (50Kg) bag 1250:00 2500:00
Delivery details. Totals. 58350:00

Kikwetu farmer’s store

Order No: KFCU
Date……………….
Signature……….
Discount – None. .

Terms of payment: cash payment within 30 days upon receipts of goods.

Statements.

 Statement of account.
 Bank statement.

Statement of account.

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Document sent to the buyer by the seller as a reminder to inform him/her what he/she owes
the seller. It is usually written at the end of the month.

Bank statement.

Financial document sent by the bank to the farmer on a monthly basis to show the position of
the bank account by the end of the month.

Receipt.

Document issued when cash payment for goods delivered or services rendered is made.

Document showing that payment has been made.

Details contained in a receipt.

 People involved in the transaction.

 Date on which payment was made.
 Goods or services for which payment was made.
 Amount of money involved.
 Signature of the person receiving the money.
 Serial number.

Receipts that are not headed must bear the official stamp of the business firm to be varied.

Should have a revenue stamp for money exceeding forty shillings.

It should show the mode of payment that is, is it cash, cheque or money order.

RECEPIT.
Kikwetu Farmers Store.
P.O BOX 74 MAU NAROK.
TEL NO………………..
No………………………..
Date……………………………………
Received from…………………..
Being payment of……………………….
Amount Kshs……………………….. Cash/cheque.
Signature………………………………….

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E&O.E
Revenue Stamp.
A CASH SALE RECEIPT
KIKWETU FARMERS STORE
P.O BOX 74, MAU NAROK
TEL……………………..
Date………………
M/S………………………………
Quantity. Particulars. @ Sh Cts
10 Kgs Maize seeds 700 700 00
H.614.
1 (50kg) bag DSP fertilizer. 1250 1250 00
E&OE No………….. Total. 1950. 00
Goods once sold cannot be returned.

Delivery note.

Document that accompanies goods on delivery. Serves as evidence that goods have been
physically delivered from the supplier to the buyer after a credit transaction.

Details contained in a delivery note.

 Date of delivery.
 Quantity and types of goods delivered.
 Method of delivery.
 The person who receives the goods.
 Condition in which the goods are received.
 Serial number.

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No.30181 Delivery note.

Kikwetu Farmers Store.
P.O BOX 74 MAU NAROK
TEL…………….
To Kitaro farm Delivery No…………………………
P.O BOX 104 Date………………………………..
MAU NAROK

Please receive the following.

Item. Quantity. Particulars.
1 20 bags. Layers mash.
2 5 bags. Dairy meal.
3 1 (10Kg) bag Maize seed H614
4 1 (50 kg) bag. DAP

Delivered by……………………………… received by…………………

Signature and stamp

Purchase order.

Request to a trading business firm to supply specified goods.

Precise details should be given to avoid misunderstanding that may cause delay in supply or
supply of wrong or incorrect quantities of goods. The purchase order number should be quote
when invoicing the buyer.

Details contained in a purchase order.

 Types of goods required.

 Quantities of the goods.
 Date of order.
 Date within which the ordered goods should be delivered (optional).
 The person who orders the goods.
 The authorising person (makes it valid and control expenditure.).

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 Serial number.

Purchase order.
No 2080
Heri Farm
P.O BOX 22 NAKURU.
Tel …………………
Date………………………………..
To: Kenya Farmers Association
P.O BOX 35,
NAKURU

Please supply the following.

Item number. Particulars. Quantity.
1 Dairy meal 2 bags (90 kg bag)
2 Maize seed H 614 1 (25Kg) bag.
3 DAP 1 (50 Kg) bag

Ordered by……………………….. Signature ……………………….

Authorised by…………………….. Signature…………………………

BOOKS OF ACCOUNT.

1) Ledger.
2) Cash book.
3) Inventory.
4) Journal.

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Ledger.

 Main book used in keeping financial records.

 An account is a page or a section in the ledger given to a person/firm on which all
business transactions relating to that person/ firm are entered.
 Account in ledger are divided into two parts drawn in letter T-shape.
 Name or heading for the account is written on the top line.
 The left hand side is debit (DR) side where all decreases (purchases and expenses) are
recorded.
 The right hand side is credit (CR) where all increases (sales and receipts are
recorded.).

Ledger account page.

DAIRY CATTLE
DR CR
DATE Particulars Folio. Amount. Date. Particulars. Folio. Amount.
2003 Sh cts 2003 Sh cts
Feb 20th Bought 1 1800 00 Feb 10th Sold two 1 1200
two bags heifers.
of dairy
meal

Use of columns.

i. Date columns.

Date affecting the account is recorded on the column. It is entered immediately the
transaction takes place.

It is divided into 2 sub-columns. The broader sub-column the month is written in words. The
narrow sub-column date figure (date appears only once at the top of the date column).

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ii. Particulars column.

Short description of the entry. It shows also the name of the account involved in the
transaction being recorded.

iii. Folio column.

Page where a particular account appears in the ledger. Every page in the ledger is numbered.

The folio number of the account being credited should be entered in the folio column of the
account being debited and vice versa.

Debit side. (DR)

 Date of the transaction in the date column.

 Item in the particulars side.
 Folio number of the item in the folio column.
 Amount of money involved in the amount column.

Credit side. (CR)

 Date of transaction in the date column.

 Cash at hand in the particulars column.
 Folio number at the cash in hand folio column.
 Amount received in the amount column.

In separate account, ledgers shows the amount the business owes other people or firms and
vice versa.

Includes all records of all expenses that the farm ought to pay out and money generated by
the farm.

Inventory.

Book in which a record of all assets owned by a business or an individual is kept.

Provide information used during valuation or drawing up balance sheet and profit and loss
account. Values in inventory changes due to appreciation and depreciation of assets.

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Types of inventories.

 Consumable goods inventory. Relates to consumable goods. Includes animal feeds,

fertilisers, drugs and construction materials.
 Permanent goods inventory. Relates to permanent goods. Include tools and
equipments, livestock.

Consumable goods inventory.

Receipts. Issues.
Date. item Quantity. Date. Issued to Quantity. Balance in stock.
7/7/03 DAP 20 (50 Kg 20 bags
fertiliser. bag
19/7/2003 21/7/03 Gardener. 3 bags 17 bags.

22/7/03 12 bags. 5 bags

Gardener.
21/07/03 DAP 20 25 bags.
fertiliser. (50kg)bag

30/7/03 Gardener. 8 bags. 17 bags.

28/7/2003

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Permanent goods inventory

Livestock inventory 31,12,2003

Class of Number Bought born Total Sold or No at Value in
stock at start or dead end of sh; ct
of year received year
Dairy 8 6 2 16 2 14 140,000.00
cattle
Sheep 2 4 2 8 8 16,000.00
Poultry 100 100 50 50 5,000.00
Goat 1 2 2 5 5 7,000.00
donkeys 2 2 2 1,000.00

Tools and equipment inventory 31,12,2003

Farm tools and equipment inventory 31.12.2003

Item number Type of quantity Value Remarks
equipment Sh cts
1 Tractor(Massey 1 800,000 00 Good condition.
Ferguson)
2 Disc plough 1 130,000 00 Good condition.
3 Disc harrow 1 120,000 00 Good condition.
4 Forked jembes 7 2,100 00 Good condition.
5 Jembes 6 1,200 00 Good condition.

Cash book

Book in which all transactions involving the receiving and paying out at cash are recorded.

Cash book is portion of the ledger, conveniently bound independently where receipts of
money are recorded

Consists of sales and receipts side and purchase and expenditure. (Balanced at the end of the
month)

Has the following columns;

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 Date of payment
 Receipt number
 Person/firm from where money is received
 Total amount received

SALES AND RECEIPTS 2003 PURCHASE AND EXPENDITURE 2003

Date. Particulars. Sh. Ct. Date. Particulars. Sh. Ct.
Feb 1 To sale of 2 1000 00 Feb 2 By purchase 1000 00
bag of kale of 5 jembes
To sale of 5 By purchase
trays of 750 00 of 2 slashers
eggs By purchase
of 1 rake 150 00
To sale of By purchase
10 kg carrot 12,000 00 of cabbage
To sale of 1 seeds
bag spinach By purchase 75 00
00
Feb 3 To sale of 1200 of 5 kg DSP
20kg onions Feb 4 fertiliser
To sale of
10 chicken 45 Balance 200 00
00
carried
down
Feb 29 2,500 Feb 24
00
200 00

1625 00
5,475 00

7,100 7,100 00

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Journals

Book where all unclassified transactions are entered.

Information recorded in a journal.

i. Purchase on credit of a capital equipment i.e. things bought to keep and use and not
for resale
ii. The sale on credit of capital equipment
iii. Rectification of errors. Errors are made in other books, new entries, correcting or
cancelling the old entries are made in the journal
iv. Transfers from one account to another in the ledger.
 Information on purchase, sales, returns, stocks and others in the journal
posted in the ledger and used to draw the trading account.
 Information on depreciation is transferred from the journal to profit and loss
account. The entries are referred to as closing entries.
v. Opening entries in new books, when new books have to be opened, the balance from
the old books must be entered into new ones.

The journal entries here are referred to as opening entries

Details recorded in the journal

 Date
 Name of the account to be debited
 Name of account to be credited
 Amount of money involved
 Brief description of the transaction

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Format of a journal

Date Particulars Folio Dr amount Cr amount

Sh ct Sh ct
2003 A/C to be
debited
A/C to be
credited
Brief
description
The
transaction

NB; account to be debited appears first in the journal

Folio column should be entered when the transactions posted to the ledger thus;

Showing the folio number to which the entry is posted

Indicating the entry has been posted to avoid reposting

The use of DR and CR should be posted

Description of the transaction (narration) reference is made to the voucher or supporting

audience

Amount in DR column and CR column must balance

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Journal entries

DR CR
Date. Particulars. Folio. Amount Amount
Sh ct Sh ct
2003 Cash A/C 2 16,000
00
Bought 2 heifers
(dairy animal a/c) 1 16,000 00
Sold milk(milk 3 2,000
A/C)
Bank A/C 4 2,000 00
Cash A/C 2 2,800
Bought 2 goats
Goats A/C 5 2,800 00

Subsidiary books of the journal

Purchase book/creditors account

All details of items bought on credit are entered here

Creditor-someone or a firm to where the firm owes money

Sales book-debtors account

Debtor –firm/person who/which owes money to the firm

It’s a record of all debtors to the farm

Financial statement

Main purpose of keeping farm records and account is to determine the profit made in a given
year or the net farm income and evaluate properties of the farm and liabilities.

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Balance sheet

Financial statement drawn to show the financial position of a farm business at a particular
period of the year.

It is drawn at the end of the accounting period or financial year.

Opening balance sheet.

Drawn at the beginning of the accounting period.

Closing balance sheet.

Drawn at the end of the accounting period.

Balance sheet has two sides.

LHS shows liabilities.

RHS shows assets.

Liabilities.

All the debts the farmer/business owes others.

E.g.

 Loans and mortgages.

 Bank overdrafts.
 Debts payable for goods and services received.
 Services to which other people have paid to the business in advance.

Current liabilities.

Debts that must be cleared or repaid within a period of one year.

Include:

 Rent due.
 Electricity, water and telephone bills.
 Workers’ wages.
 Bank overdraft.
 Debts payable.

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Long term liabilities.

Debts whose repayment period is more than one year.

Example: long term loans.

Assets.

Properties owned by the business and have a monetary value attached to make.

Include:

 Cash at hand and in the bank.

 Valuation of all farm items e.g. stored produce, farm inputs, livestock, growing crops,
farm building, machinery and equipments.
 Debts receivable for goods delivered and services rendered.

Current assets.

Those likely to be held for a short period of less than a year.

Include:

 Cash at hand and in the bank.

 Debts receivable.
 Farm produce to be sold.
 Inputs in store.

Fixed assets.

Property of a durable nature.

Include:

 Farm buildings.
 Perennial crops.
 Equipment and machinery.
 Livestock.
 Land.

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Order of Assets in balance sheet.

Order of permanency. Begin with the least permanent.

Order of liquidity. Begin with the most liquid assets and permanent.

Order of liabilities in a balance sheet.

Permanency order. Capital appears first, followed by current liabilities and then long term
liabilities.

Format of a balance sheet.

Heading……………….
Balance sheet as at ……………
Liabilities. Sh ct Assets Ct
sh
Current liabilities. Current assets.
…… ….
i. Short term debts. i. Cash at hand. …… ……
…… ……
ii. Unpaid rents. ii. Cash in the bank. …… ……
…… ……
iii. Unpaid wages. iii. Debts receivable. …… ……
…… ……
iv. Bank overdraft. iv. Stock in store. ……
Fixed assets.
i. Livestock. …… ……
Long term liabilities. ii. Machinery. …… ……
…… ……
i. Bank loans. iii. Perennial crops. …… ……
…… ……
ii. Interest on loan. iv. Buildings. …… ……
v. Land. …… ……
…… ……
Total liabilities. Total assets. …… ……
…… ……
Net worth/capital/owners’
equity.

Total. …… …… Total. …… ……

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Heading.

It shows the following details.

 Name of the person or business firm for whom the balance sheet is being drawn.
 Title of the statement. (Balance sheet)
 Date on which it is drawn preceded by the words ‘ as at’

Liability side.

It shows the following.

 Current liabilities (short term debts, bank overdraft, rent and wages).
 Long term liabilities (debts payable such as loans).
 Capital usually called owner’s equity or net worth.

Assets side.

It shows the following:

 Current assets e.g. cash at hand and bank, debts receivable, livestock, produce and
inputs in store.
 Fixed assets e.g. machinery, equipments, motor vehicles, perennial crops, farm
buildings and land.

Profit and loss account.

Financial statement showing whether the business made a profit or loss.

Income side.

It is the right hand side. Contains the following.

i. Closing valuation. All assets in the farm/business by the end of the financial year. It
gives the total value of the farm or business.

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ii. Sales and receipts. Include all the produce or items sold from the farm/business and any
debts receivable by the end of the financial year.

The expenditure side.

It is the left hand side and contains the following.

i. Opening valuation. All assets in the firm/business by the beginning of a financial

year. It gives the value of the farm at the start of a financial year. It is capital available
for investment.
ii. Purchases and expenses. Includes items bought and debts payable to the
firm/business for the financial year.

Format of a profit and loss account.

Title: profit and loss account of………………for the year ended………………..

Expenditure. Sh cts Income. Sh cts

Opening valuation Sales and receipts.
……………….. --- --- ……………………… --- ---
……………….. --- --- …………………….. --- ---
Purchases and expenses. Closing valuation.
……………… --- --- ……………………. --- ---
……………… --- --- ……………………… --- ---
Total profit………………. --- ---

Total. --- --- Total. --- ---

NET PROFIT= (closing valuation+ sales and receipts) - (opening valuation +purchases and
expenses.).

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Cash analysis.

Financial statement drawn up to show the receipts and payment of cash in the business.

The entry of the receipts and payments of cash is as in the cash book except that analysis
columns are included. It has two sides’ sales and receipts side and purchase and expenses
side.

Each sale or purchase is entered twice once in the total column and once in the analysis
column.

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CHAPTER SIX.

AGRICULTURAL ECONOMICS V.

(AGRICULTURAL MARKETING AND ORGANISATIONS.)

MARKET AND MARKETING.

Market.

Group of buyers and sellers I in sufficiently close contact with each another for exchange to
take place.

Perfect/competitive market.

Where any buyer can purchase from any seller and vice versa.

Equilibrium price.

Price that is acceptable to both the sellers and the buyers.

Imperfect market.

Occurs where some buyers, sellers or both are not aware of the prices offered by others. It is
common for goods that are not graded or where there are few traders and different goods in
the market.

Marketing.

Flow of goods and services from the producer to the consumers. It include all activities
involved in the transfer of goods and services from the producer to the consumer.

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Types of markets.

Monopolistic competition.

Features.

i. The existence of few sellers of the commodity.

ii. Product quality varies from one firm to another.
iii. There is perfect product differentiation between the firms. A single seller may
dominate the market due to technological superiority.

Oligopoly.

Occurs where the number of firms (sellers) is sufficiently small that mutual interdependence
exist among them. Each firm in determining its own policies takes into consideration the
possible effects of the policies upon the actions of competitors.

Monopsony.

Monopsonistic markets are characterised by existence of influence upon price by individual

buyers.

Occurs in case there is only one buyer in the market.

May also arise due to smallness in the number of buyers or due to preference on part of
sellers for dealing with particular buyers.

Sellers may be forced to lower price below the expected price.

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Classes of market.

Pure competition.

Exists where neither individual buyers nor sellers have any control over prices.

Features of a competitive market.

i. Number of buyers and sellers must be sufficiently large enough and the volume of
business handled by each must be sufficiently small that sale or purchase will not
affect the price. Sellers and buyers act independently.
ii. Products must be homogenous and buyers regard products of all sellers as identical
and have no preference for dealing with any particular firms and sellers must have no
preference of dealing with particular buyers.

DEMAND, SUPPLY AND PRICE THEORY.

Demand.

Quantity of goods and services which consumers are willing and able to buy at a specific
price in a given market at a given time.

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Want.

Desire to have a good while demand is the ability to purchase that good at a given price.

Utility.

Anything that satisfies human want and is useful.

Effective demand.

Demand which involves payment for the required goods. It is controlled by one’s purchasing
power.

THE LAW OF DEMAND.

The quantity of goods and services demanded varies inversely with price.

Demand schedule.

List of quantities a given population will buy at different prices.

Individual demand.

List of quantities of a product that a person will purchase at various prices.

Demand schedule or curve relates to specific time and price and are used to predict the
possible price when any quantity of a product is marketed.

Change of demand at a constant price.

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Factors influencing demand for a commodity.

i. Population.

Denotes the number of consumers in the market.

As population increase, the demand for a given good or service at a given price increase and
vice versa.

A high population demands more goods and services than a small one.

ii. Income.

Change in income of consumers results in change of their purchasing power.

Consumers with higher income buy more than those with low income. This lead to increase
in demand for commodities like meat, butter, rice and a decline in demand for commodities
like maize meal and potatoes.

iii. Preference and tastes.

Demand is affected by tastes and preference of consumers and may cause change in demand
from time to time. Taste and preference of other products that are substitutes may affect
demand of another product.

iv. Prices of related Goods.

Demand of a commodity increase if there is an increase in the prices of a substitute.

v. Advertisement.

It promotes the sale of a given good or service subsequently increasing its demand.
Advertisements makes consumers aware of a particular good in the market.

vi. Beliefs, customs and Taboos.

They influence the total demand for a given good or service.

vii. Price expectation.

If in future, the prices of certain commodities is likely to go up then the demand of such
goods may go up currently or vice versa.

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viii. Level of taxation.

An increase in tax will increase the prices thus few will afford them and their demand fall and
vice versa.

ix. Perishability.

If goods e.g. agricultural commodities deteriorate in quality, their demand falls due to loss of
freshness.

x. Future expectation or uncertainty.

If there is fear of shortage of a given commodity in future, consumers tend to more of the
commodity for stocking thus increasing its demand.

ELASTICITY OF DEMAND.

Degree of responsiveness of demand to change in price.

Or. Amount of change in quantity of a product that consumers will buy in response to a given
change in price.

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Ed greater than 1 there will be more than proportional increase in quantity purchased hence
total revenue also rises. The price decline results in an increase in total revenue.

Ed of 1 (unitary) an increase or decrease in price leaves total revenue unchanged.

Ed less than 1, the price is lowered, a less than proportional increase in quantity purchased
occurs and total revenue declines. Price decline causes total revenue to fall.

Ed=%∆Q÷%∆P.

Where Ed is elasticity of demand

%∆Q is percentage change in quantity demanded.

%∆P is percentage change in price.

Example.

The elasticity of demand when 100 loaves of bread are demanded at a price of Kshs 20 per
loaf of bread while only 600 loaves are demanded at Kshs 23 per loaf. Calculate Ed.

Solution.

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Elastic demand segment.

A price change is accompanied by more than proportional change in quantity demanded and
total outlay is greater at lower prices than higher prices.

Inelastic demand segment.

Price change is accompanied by less than proportional change in quantity demanded and the
total outlay is greater at higher prices.

It does not benefits the supplier/producer to reduce price. The price should remain high where
the consumer is willing to pay and producer gets maximum satisfaction for one’s products.

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Unitary Demand segment.

Percentage change in quantity demanded is the same as the percentage change in price.

Reduction of price by half doubles the quantity demanded. The total outlay is the same
regardless of the price.

Factors that determine Elasticity of Demand.

The availability of substitutes.

Commodities with many substitutes have elastic demand. A commodity with no substitute
e.g. salt has inelastic demand and has to be bought at any price.

Degree of necessity.

Commodities like salt or food are of great necessity thus its demand is inelastic and has to be
bought at any price. Luxury commodities can be forgone if prices increases.

The number of uses a product can be put to.

Commodities that can be put to several uses usually have elastic demand.

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Time lag.

A commodity whose use can be postponed to another day has elastic demand. E.g. cement in
construction work.

Time span.

Ed is usually greater in the long run because some adjustment can easily be done while it is
small in the long run.

Proportion.

Commodities that form a very long proportion of the total expenditure e.g. animals feeds,
fertilisers have elastic demand than those that form a very small proportion that have inelastic
demand.

SUPPLY.

Quantity of goods or services which producers (sellers) are willing to sell at each specified
price in a given market and time.

The higher the price, the more will be offered.

Supply does not refer to total production or output. Rather it refers to quantity of output
which particular prices attract to the market.

THE LAW OF SUPPLY.

As the price of goods or services increases the corresponding quantity of goods and services
offered for sale increases and vice versa.

Relationships between price and supply (normal supply curve)

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Change of supply at constant price.

Supply schedule.

List of quantities of an item that will be produced or sold at all probable prices.

Example.

Price of meat supplied per month. Quantity of meat supplied in Kg

25 80
20 70
15 50
10 20
5 10

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Factors influencing supply of a commodity.

i. Number of sellers in the market.

If many sellers bring similar goods to the market at the same time it will increase its supply.

ii. Price of related goods.

An increase of price of related products will result in rise of demand for the product whose
price has not increased thus it supply will increase.

iii. Price expectation.

Supply of a commodity will be low if the future prices of the commodity is expected to
increase. Suppliers will hoard the produce so as to release it when prices has increased and
vice versa.

iv. Technology.

Modern techniques of production lead to increased production of goods thus will also
increase its supply.

v. Weather.

Favourable weather conditions leads to increased production hence more goods are available
for sale hence increase in supply and vice versa.

vi. Government policy.

Increase in tax of inputs will increase their prices thus farmers may cease to apply some
inputs hence production drop and consequently the suppl.

vii. Cost of production.

If cost of inputs is low then it is easy to buy them so many farmers will be able to apply them
increasing yields.

viii. Increase in supply of associated goods.

Increase in supply of associated commodity increases the supply of the other (e.g. joint
products.)

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ix. Transport system.

Improved transport system facilitate delivery of farm produce. This support and increase
supply.

x. Change in price.

Increase in prices of commodities is an incentive to producers to produce more since they

benefit by earning high profit.

Elasticity of supply (Es)

Degree of responsiveness of supply to change in price.

Its main determinant is the amount of time which a producer has to respond to a new price
offered for a product.

Es=%∆S÷%∆P

Where Es is elasticity of supply.

%∆S is percentage change in quantity supplied.

%∆P is percentage change in price.

Example.

If the price of millet changes from Kshs 10 to Kshs 12 per kg resulting in a change of supply
from 400kg to 600kg. Calculate the Es.

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Price theory.

Price. Amount of money paid in exchange for a good or service.

Price theory. Mechanism by which price is determined in the market.

Determination of market price.

After liberalisation, price control is not by the government but price is determined by the
demand and supply forces.

D s
Price offered

Quantity demanded and supplied

When price is high (P2) supply is also high but when price is high (P2) the demand is low
(Q1)

When price is too low P1 the supply is also low but demand is high Q4.

In order to sell goods supplied at price

The resultant price P where quantity of goods supplied equals the quantity of goods
demanded is the equilibrium price or the market price. This occurs in a free market.

Price control.

Price control is mainly done to keep down the cost of living. Some circumstance force the
government to change prices of some essential farm produce.

It also prevent exploitation of consumers by producers.

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Increasing producer price aims at encouraging farmers to produce more. Lowering price may
discourage framers.

Measures taken by the government.

Gives subsidy by reducing cost of production inputs.

Fixes prices of related products.

MARKETING.

All activities and services associated with the flow of goods and services from production to
consumption are marketing functions.

Service. Any function that alters a commodity in form, place, time or possession.

Production services. Occurs before or at point of production.

Marketing services. Occurs after production.

Marketing functions.

All activities involved in the marketing process.

i. Buying and Assembling.

Buying. Acquisition of goods from farmers on payment of cash.

Assembling. Collection of produce from individual farms, concentrating tem at convenient

points or stores.

ii. Transport and Distribution.

Farm produce reach the consumer through transportation. Agricultural produce are perishable
and need specialised transport services. Most are distributed by middlemen.

iii. Storage.

Storage helps to spread seasonal produce over extended periods of relatively stable demand.
Storage may be for a few days awaiting sale or more than a year in case of surplus.

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Processing plants hold reserve stocks or their raw materials so that they are not held up
awaiting new supplies.

iv. Packing.

Facilitates the measurement of commodities into quantities that can be easily handled.

Protect produce against damage, theft and adulteration on its way to the market.

v. Processing.

Involves preparation of produce for consumption. Changing raw materials into finished
products.

It increases the shelf life of produce.

Reduces the bulkiness of goods.

vi. Grading and standardisation.

Grading.

Sorting out produce into different lots each with substantially the same quality with respect to
market quality e.g. size, shape, flavour, degree of ripeness.

Importance.

 Helps buyers to select the most suitable produce.

 Allows buyers to purchase the desired quality of the produce hence avoid time
wastage on Inspection.

Standardisation.

Establishing some uniformity in quality and quantity of products.

Importance.

 Facilitates the establishment of criteria for inspection and control to ensure safety.
 Avoids exploitation of consumers.

vii. Packaging.
 Prevent physical deterioration, theft, tampering with/ adulteration and substitution.
 Acts as an advertising medium thus promotes sales.

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viii. Collecting market information (market research)

Efficient marketing depends on the availability of market information.

There should be information as to the quality of the commodity for various purposes and
prices in alternative markets.

Buyers want to ensure they do not pay more for a particular seller while sellers need the same
information so that they are not paid low for their produce by any particular buyer.

ix. Selling.

Presentation of the product to consumers in the most attractive manner.

Include activities like; advertising, displaying the produce in the market and bargaining for
fair prices.

x. Financing.

Capital is required to finance all the activities from the original buying of the raw produce to
the final sale of finished goods.

xi. Bearing risks.

Uncertainty exist regarding the final outcome of the marketing process due to the time lag
between the buying of the produce and its final sale.

Produce may suffer physical damage such as destruction, fluctuating prices, and change in
consumer taste leading to decrease in demand of the final produce.

Marketing agencies involved must accept and bear the risks involved. The risks are usually
transferred to an insurance company by the marketing agency.

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MARKETING ORGANISATION AND AGENCIES.

Bodies that facilitate the marketing process.

i. Wholesalers.

They buy goods from the producers, processors or manufacturers in bulk and sell to retailers
and other merchant in relatively large lots/quantities.

They may buy in small quantities from farmers or itinerant traders and bulk up for sale to
retailers.

They may sell directly to consumers especially industrial users.

They bear most of the marketing risks.

Speculative buyers. Those willing to accept greater risks by buying when prices are low and
sell them when they are high.

ii. Retailers.

Buy goods in bulk from wholesalers or processors and sell to consumers in small quantities.

They may offer special services to their customers e.g. delivery to restaurants/hotels,
individual consumers and various institutions.

iii. Itinerant traders.

Performs the functions of buying, assembling and transporting. They move from place to
place buying agricultural produce from farmers, assemble the produce and sell them to
markets in town.

iv. Packers and processors.

They change the form of the produce they handle to one more convenient for marketing and
more acceptable to the consumer.

Most processors are manufacturing companies. They may pack or process for farmers,
wholesalers or large retailers for a fee at a fixed rate on a volume.

v. Commission Agents.

Middlemen who act on behalf of other businessmen for a fee or a commission.

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vi. Broker Agents.

Bring potential buyers and sellers together. They do not handle the actual commodities but
have a good knowledge of supplies, requirements and prices of commodities in various
markets.

They are very useful in the export and import market in which the local producer has no way
of meeting the customers overseas.

vii. Co-operative societies and Unions.

They help farmers to market their produce locally and internationally. They are important in
reducing the marketing costs for small scale farmers.

viii. Marketing Boards.

Assist small scale farmers in the production and sale of primary agricultural commodities hey
deal in e.g. Dairy Board, Tea Board and Coffee Board.

ix. Auctioneers.

They offer specialised service in the negotiation of purchase and sales.

Concentrate buyers and sellers at a particular time and place and negotiate sales quickly in a
way that all present are informed of the bids. They take a commission on sales payable by
buyers, sellers or both.

PROBLEMS IN MARKETING AGRICULTURAL PRODUCE AND THEIR

POSSIBLE SOLUTIONS.

i. Perishability.

Most are perishable and deteriorate in quality rapidly. Products must be stored under
refrigeration, sold immediately after production.

Processing into other forms e.g. canning of fruits.

ii. Seasonality.

Production of agricultural commodities is seasonal and available in plenty at harvest periods.

This affects market prices and create shortage problems.

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Supply is inelastic during supply period and it is difficult to determine prices.

Solution.

Storing surplus produce to be released during period of scarcity.

iii. Bulkiness.

Most are bulky, weigh heavily, occupy a large space and have low value per unit weight.

They require large storage spaces.

Transportation increases their prices beyond reach of ordinary producers.

Solution.

Processing of the produce.

iv. Storage.

Due to seasonality, there is need to store the produce. This calls for construction of storage
facilities that are expensive thus increasing cost of marketing.

Solution.

Farmers should pull resources together to purchase the storage facilities.

v. Poor transport system.

Rural areas with the bulk of agricultural production have poor roads and inadequate means of
transport.

Framers thus cannot easily take the produce to the market on time and the produce being
perishable get spoilt in farms.

vi. Change in market demand.

Plans based on today’s demand may yield products years/months later. There is a relatively
long time lag between the decision to produce and actual availability of the product.

In this time consumers tastes and preference may change affecting demand and price.

Solution.

Contracting.

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vii. Limited elasticity of demand.

The bulk of agricultural produce is food produce which has inelastic demand.

Thus an increase in food supplied does not necessarily increase the quantity bought.

The products cannot be converted to serve another purpose. Thus the only alternative is for
farmers to dispose the excess supply at a throw away price.

viii. Lack of market information.

Some farmers lack adequate market information before selling their produce due to low state
of knowledge. This leads to:

 Producing goods not in conformity with market demand.

 Farmers may be exploited by unscrupulous middlemen who buy the produce at low
prices.
ix. Change of supply.

There is overproduction or underproduction of agricultural goods leading to change in supply

in the market. Supply thus is relatively inelastic resulting to fluctuation of market prices.

Solutions.

 Use of modern technology to maintain production.

 Storage of surplus produce to regulate supply.

x. Efficiency in marketing.

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AGRICULTURAL ORGANISATIONS.

Boards that promote agricultural activities.

Include:

i. Statutory Boards.
ii. Farmers’ co-operative societies.
iii. Farmers unions.
iv. Agricultural society of Kenya.
v. Youth organisations.

Agricultural statutory Boards.

1) National Irrigation Board.

Charged with the responsibility of developing and improving irrigation projects.

Some of the irrigation projects include:

 Bura scheme at coast. Grows cotton.

 Bunyala scheme (western). Grows rice.
 Pekerra scheme in Baringo. Grows onions, citrus fruits and chillies.
 Ahero scheme in Kisumu. Grows rice, cotton and sugarcane.
 Mwea –Tebere in kirinyaga. Grows rice.

2) National Cereals and Produce Board. (NCPB)

Functions.

i. Regulation and control of production, storage of maize, wheat, pulses and other
cereals. Ensures reserves of maize.
ii. Buying and storing maize, wheat, pulses which are later sold to millers and
consumers.
iii. Advising the CS for agriculture on production, importation or exportation of maize,
wheat etc. in relation to the needs of the country.

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3) The Kenya Sisal Board.

Functions.

i. Promotion of sisal production.

ii. Regulation of production, grading and marketing of sisal.
iii. Registration of all sisal producers.
iv. Licensing sisal factories and sisal exports.
v. The inspectorate department examines all sisal for export to ensure and maintain high
quality.
vi. Re-baling sisal which may be spoilt on transit from sisal estate to the port.

4) Coffee Board of Kenya.

Functions.

i. Licensing coffee producers and processors.

ii. Carrying out research on all aspects of coffee production and processing.
iii. Acting as the sole government agent on all matters related to international coffee
agreements such as prices and quotas.

5) Pyrethrum Board of Kenya.

Functions.

i. Offering advisory services to the farmers.

ii. Managing pyrethrum nurseries which produce planting materials for farmers.
iii. Processing pyrethrum in the factory.
iv. Marketing the processed products.
v. Buying pyrethrum from the farmers.
vi. Carrying out research to obtain the best cultivars through selection and breeding.

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6) Cotton Board of Kenya.

Functions.

i. Planning, monitoring and regulation of cotton growing and ginning.

ii. Licensing and control of cotton ginneries.
iii. Regulation and control of quality of raw cotton.
iv. Regulation of the export or import of cotton lint or cotton seed.
v. Regulation and control of quality and supply of seeds through ginneries.
vi. Carrying out and promotion of research and development in cotton production and
processing technology.
vii. Providing or co-ordinating training for the cotton sector industry.

7) Kenya Sugar Authority.

Functions.

i. Advise on development of sugarcane production for manufacture of white sugar.

ii. Advise on rules and regulations necessary for development of sugar cane industry,
iii. Formulate and advice on price of cane to the out-growers.
iv. Advise on all aspects of sugar cane research.
v. Advise on all aspects of sugar processing.
vi. Register all cane producers within sugar factory zones.
vii. Ensures availability of adequate statistics relating to sugar cane industry.
viii. Advise on utilisation of sugar by-products.

8) Horticultural Crops Development Authority.

Functions.

i. Offering advisory services to farmers through its extension agents.

ii. Collecting produce from farmers.
iii. Sorting and grading the produces.
iv. Marketing the produce both locally and abroad.

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9) Agricultural Finance Corporation. (AFC)

Functions.

i. Providing agricultural credit to farmers at reasonable rates with a grace period.

ii. Providing technical services to the farmers to ensure the best utilisation of the
borrowed capital.
iii. Ensure repayment of the loan.

10) Agricultural Development Corporation. (ADC)

Functions.

i. Running and operation of state farms.

ii. Raising high quality livestock which are sold to farmers as breeding stock.
iii. Bulking planting materials such as maize, Irish potatoes and nappier grass.
iv. Promotion of agricultural production through field demonstrations.

11) Kenya Meat Commission. (KMC)

Deals with marketing of beef. Has factories in Athi River, Mombasa and Ngong.

Functions.

i. Buying cattle from beef farms.

ii. Slaughtering the beef animals.
iii. Grading carcases.
iv. Marketing beef locally and overseas.

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CO-OPERATIVE SOCIETIES.

Organisation of people who have joined together voluntarily with a common purpose for a
mutual economic benefit.

Formation of co-operatives.

Requires a minimum of ten adults to form.

Those interested elect an interim committee that decides on the name of the co-operative,
draws up a constitution and seeks its registration with the commissioner for co-operatives.

Principles of co-operatives.

i. Open membership.

Members join co-operatives voluntarily upon paying membership fee regardless of race,
religion, sex, education or political inclination so long as they are adults and of sound minds.

ii. Equal rights.

They are run democratically where the principle of one-man one-vote operates.

iii. Principle of share limit.

A member may buy shares up to a specific maximum limit to avoid domination by one
member or a group of members.

iv. Interest on shares.

Any money or accruing capital is distributed among the members as dividends on the basis of
share contribution.

v. Withdrawal from membership.

Members are free to join or withdraw voluntarily. Upon withdrawal members get back their
share contribution.

vi. Loyalty.

Members are expected to be faithful and loyal to their co-operative. They should sell their
produce only through their co-operative.

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vii. Education.

Members should be continually be educated to ensure they are knowledgeable in relevant

skills and are conversant with co-operative affairs.

viii. Co-operative principle.

Co-operatives are supposed to join the co-operative movement at the primary, district,
national and international levels.

ix. Non-profit motive.

Their main objective is to improve the living standards of their members.

Types of farmers’ co-operative societies.

Farmers/producer co-operatives.

Formed by group of farmers who poll their resources to buy large tracts of land and operate
the farm as a group.

Each farmer is paid dividends according to the members’ share.

Marketing co-operatives.

Formed to help small scale farmers to market their produce collectively.

The produce is collected at a buying centre from where it is transported to the market thus
reducing the operational costs.

Consumer co-operatives.

Deal with selling farm inputs to farmers. Inputs are bought in bulk thus it is possible to sell
them to members at prices lower than the market prices.

They may also offer marketing services to farmers.

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Functions of farmer’s co-operative societies.

i. Marketing farmers’ produce. May involve collecting, transporting, grading,

processing, packaging, storing, selling the produce and paying farmers.
ii. Negotiating for fair prices for farmers’ produce and also for inputs.
iii. Keeping records of the co-operative activities and informing the members
accordingly.
iv. Paying dividends to the members.
v. Giving loans in kind to the members.
vi. Educating the members on matters relevant to their co-operative through field days,
seminars, workshops and demonstrations.

ASSOCIATIONS AND UNIONS.

The Agricultural Society of Kenya. (ASK).

Functions.

i. Holding competitive agricultural shows and exhibitions of livestock, crops and farm
produce.
ii. Encouraging breeding and importation of pure breeds of livestock and improvement
of useful indigenous animals.
iii. Encouraging and assisting in official milk recording scheme.
iv. Organising the running of Young Farmers Clubs.
v. Organising the National Ploughing Contest.
vi. Publishing the Kenya Stud Book.
vii. Publishing a monthly journal known as ‘The Kenya Farmers’.
viii. Awarding bursaries for local and overseas studies/tours for its members.

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Youth organisations.

4-K clubs. (Kuungana, kufanya, kusaidia Kenya.)

Draws members from the primary schools countrywide. Their motto is ‘Learn by doing’.

Functions.

i. Teaching by carrying out practical projects to show that agriculture can be a profitable
profession.
ii. Exposing the youth to the existing and improved agricultural technologies.
iii. Developing and enhancing leadership qualities among the youth.
iv. Using the youth as agents of change by taking part in competitive shows.
v. Involvement in field trips to places of agricultural interest.

Young Farmers Clubs.

Have members drawn from secondary schools and tertiary institutions. They are run by ASK.

Functions.

i. Participating in exhibitions and competitions at ASK shows.

ii. Involvement in agricultural projects at the club level.
iii. Participation in YFC annual rallies.
iv. Involvement in workshops and seminars related to agriculture.
v. Participating in National tree planting activities.
vi. Involvement and participation in exchange programmes, both locally and abroad.
vii. Participation in national ploughing contest.

Kenya National Federation of Producers. (KNFP).

Functions.

i. Bargaining for better prices of farm produce.

ii. Ensuring adequate and timely supply of farm inputs.
iii. Bargaining for reasonable and affordable prices of farm produce.
iv. Provision of better infrastructure including roads, electricity, telephone services to
facilitate quick delivery of farm produce to the market.
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v. Provision of loan facilities.

vi. Adequate control of crop and livestock pests and diseases.
vii. Looking for markets of farmers produce both locally and overseas.
viii. Offering technical services to farmers.
ix. Representing Kenyan farmers in the International Federation of Agricultural
Producers.
x. Publishing monthly magazine known as the “Farmers’ Voice”.

Agricultural based women groups

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CHAPTER SEVEN.
AGROFORESTRY.

Collective term used to cover a variety of land uses that combine tree growing, pasture and
crop production practices on the same piece of land.

Forms of agroforestry.
i. Agrosilviculture.
Growing of tree/shrubs and crops. It is practised in high rainfall areas.
ii. Silvopastoral.
Growing of trees/shrubs and keeping livestock. It is suitable for ASAL where indigenous and
improved breeds of livestock and hardy tree species do well.
iii. Agrosilvopastoral.
Combination of growing trees/shrubs together with pastures for livestock and crops. Done in
high potential areas.

Importance of agroforestry.
i. Remedy to deforestation (source of wood)
Agroforestry provides sustainable source of fuel wood helping to ease wood shortages and
reduce environmental degradation.
ii. Source of income.
Products from trees/shrubs e.g. fruits, poles, timber and fodder can be sold. They also help in
saving cash that would have been used to acquire them.
E.g. leucaena leucocephala and calliandra calothyrsus provide excellent fodder.
iii. Environmental benefits.
Trees protect soil from strong wind, rain and sun reducing soil erosion.
Litter from leaf fall add organic matter to the soil.
On large scale, agroforestry improves water catchment.
iv. Labour saving.
Time spent looking/fetching firewood could be employed on other productive work in the
farm.

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v. Aesthetic value.
Trees/shrubs helps to beautify the environment and make the place more pleasant to live in.

Important Trees and Shrubs.

Trees and shrubs should be selected properly according to their specific purpose.
Trees and shrubs compete with crops for soil nutrients and space but with correct spacing
management may increase the yields of the crops.

Characteristics of Trees and Shrubs to use in Agroforestry.

i. Fast growth.
Should have fast growth rate so that one do not need to wait too long to get the end products.
E.g.
 Eucalyptus spp.
 Grevillea robusta.
 Calliandra calothyrsus.
 Croton macrostachysus.

ii. Deep rooted.

To reduce competition for minerals, nutrients and moisture with crops. It also enables them to
tolerate drought.
E.g.
 Eucalyptus spp.
 Grevillea robusta.
iii. Nitrogen fixing.
Should be capable of fixing nitrogen into the soil.
E.g.
 Cajanus cajan
 Sesbania sesban
 Leucaena spp
 Calliandra calothyrsus

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iv. Good in by-product production.

Trees should produce by-products without harming the crop plant. E.g. timber, fruits and
poles.
E.g.
 Markhamia lutea
 Grevillea robusta
 Croton macrostachysus

Trees and shrubs to avoid at certain sites.

1. Cypress and eucalyptus leaves have allelopathic effects on crops and should not be
planted in arable land.
2. Bushy trees should not be planted near homestead because they may harbour
predators.
 Trees and crops should be in multi-storey structure to avoid tall trees from shading
other crops.
 Soil fertility restoring species should be planted on land left to fallow.

Tree Nursery.
Types of Nurseries.
Nursery bed is a special seedbed prepared for raising seedling before transplanting. They
should be 1M wide.
i. Direct Nurseries.
Seeds are planted directly on the ground without any container. It is called bare root or
Swaziland beds.
They are easy to establish but survival rates of seedlings is low due to root injury when
uprooting.
ii. Containerised Nurseries.
Seeds are sown directly in containers filled with soil. Containers include; pots, poly bags,
plastic or tins.

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Seed collection and preparation.

Acquiring seeds.
High quality seeds ensures a good start in the nursery. Seeds should be free from diseases and
pest and fresh to ensure high viability.

Seed treatment.
Reasons for treatment.
i. To break seed dormancy and ensure rapid germination.
ii. Seed inoculation which improves vegetative growth associated with Nitrogen Fixing
bacteria.
Methods of seed treatment.
i. Hot water treatment.
It softens the seed coat and makes it more permeable to water. The temperature is 80 degrees
Celsius for 3-5 minutes then water is drained and soaked in cold water for 24 hours until it
swells.
Examples. Acacia, Calliandra and leucaena.
ii. Mechanical breaking.
Done by filling or nickling the seed coat with a knife to facilitate water entry.
Examples. Croton megalocarpus
iii. Light burning.
Applied to seeds of wattle tree. Trash is spread over the seeds covered with a thin layer of
soil and burnt.

Nursery management.
i. Mulching.
A light mulch should be applied on the nursery bed and should be removed as soon as
seedlings starts to emerge. Mulching reduces excessive evaporation and moderates soil
temperatures.
ii. Watering.
Should be watered regularly preferably in the morning and evenings.
iii. Pricking out.
Overcrowded seedlings should be removed and planted on another nursery bed to allow
seedlings to grow strong and healthy without competition.
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iv. Weed control.

Weeds should be removed through uprooting.
v. Root pruning.
Long tap roots makes lifting of seedlings difficult and increase the chances of damage to
seedlings.
Root pruning encourage the development of a strong tap root.

vi. Shading.
Dark conditions should be avoided.
vii. Pest and Disease control.
Soil should be sterilised through heat treatment or application of chemicals (Furadan-banned)
Use appropriate chemicals.
viii. Hardening off.
Helps seedlings to adapt to prevailing ecological conditions in the seedbed.
Involves gradual reduction of shade and watering frequency 1-2 weeks before transplanting.
ix. Transplanting.
Holes should be dug long before transplanting (3 months before)
The top soil is kept separate to be used for refilling the hole halfway.
Transplant at onset of long rains.
Water seedlings well a day before transplanting for the following reasons:
 Makes the soil to stick around the roots.
 Eases the removal of polythene sleeves during transplanting.
Seedlings should be planted on the same depth they were in the nursery bed and soil firmed
around the seedlings.

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After transplanting they should be watered, mulch applied and a temporal shade erected to
conserve moisture.

Care and management of trees.

1) Protection.
Young trees should be protected from damage by animals for one year. To protect trees from
being browsed on.

2) Pruning and training.

Pruning is the removal of extra or unwanted parts of a plant. Unwanted parts may be due to
breakages, overcrowding, pest or disease attack and low productivity.
Tree branches may be pruned for use as fuel wood or for fodder.
3) Grafting old trees.
Compatibility is the ability of scion and rootstock to form a successful union.

Agroforestry practices.
1) Alley cropping/ Hedgerow/intercropping.
This is growing of trees and crops. Trees are cut regularly and the leaves used to mulch the
crops.
Tree species should be leguminous to fix nitrogen.
Aims.
Improvement of the soil.
The spacing should be wide enough to avoid competition for growth resources. Trees should
have an open crown to let sunlight through. Roots should be lateral and shallow but with deep
tap roots system. Tree species include: Leucaena and calliandra.

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2) Multi-storey cropping.
Based on crops that tolerates shading.
Trees and crops form different levels that look like storeys.
Trees are spaced widely and left to grow unchecked. Spacing of 8-20M by 4M (between
crops)
Trees should be planted running east to west to reduce the effect of shade.
Species ideal for thus include:
 Whistling pine (Causurina equisetifolia)
 African Blackwood (Dalbergia melanoxylon)
 Muhugu (a hardwood in ASALS)
 Acacia species.

3) Woodlots.
Plots of land set aside for trees only. Produce large volume of fuel wood, timber, poles and
fodder.
Sites for Agroforestry Trees.
1) Boundaries.
Planting trees and shrubs or hedges on boundaries neighbouring other farms.
Importance.
 Protect the farm as a fence.
 Mark/demarcate the boundary.
 Form wind breaks.
 Provide wood and timber for fuel.
Ideal tree species include:
Jacaranda mimosifolia
Eucalyptus spp
Silky oak.
2) River banks.
Woody plants help to decrease water velocity along river banks and protects exposed soils.
3) Terraces.
Trees planted on terraces and other soil conservation structures makes them more permanent
by reducing speed of water run-off holding soil in situ.
Roots of trees hold the soil together reducing erosivity, the tree canopy intercepts raindrop
reducing raindrop erosion.
Ideal tree species include.

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 Silky oak.
 Mangifera indica
 Persea american
 Papaya carica
4) Slopes.
Woodlots should be established in slopy areas to control erosion. Areas with slope of more
than 55% should not be cultivated (de jure).
Ideal species include:
 Silky oak
 Blue gum.
 Croton
 Pines.
5) Homestead.
Trees around the house provide shade and aesthetic value.
However, they should not be too near the house to avoid damage in case it falls.
Tree harvesting Methods.
1) Pruning.
Removal of branches from the lower part of the tree crown.
It is done to reduce shade and improve quality of the trunk.
It should be done towards the end of dry season to avoid damage to crops. Pruned materials
can be used as fodder and wood.

2) Lopping.

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Removal of branches from trees in haphazard manner. It is common technique used for
harvesting fodder where emphasis is on good green leafy biomass.

3) Pollarding.
Cutting of all the branches and the top part of a tree.
Common pollared tree species are:
 Croton spp
 Jacaranda mimosifolia
 Causuarina equisetifolia
 Silky oak
 Ficus.

4) Coppicing.
Cutting of the whole tree about 30cm above the ground.
Coppicing is done to provide fodder, wood fuel and mulching materials.
Commonly coppiced tree species include:
 Calliandra calothyrsus

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 Eucalyptus spp
 Leucaena leucocephala
 Markhamia lutea
Some coppice well when young e.g. silky oak and casuarina spp

5) Thinning.
Cutting down of some trees to avoid overcrowding. It is done where tree have been
established by direct seeding. It is common in woodlot

END.

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