Meaning of Agricultural Subsidy Programme
Agricultural subsidy refers to a non-refundable aid granted to a farmer by the government. The agricultural subsidy programme feature is a deliberate government policy aimed at supporting farmers to ensure adequate supply of farm inputs at reduced prices. Examples are reduction in the prices of farm inputs such as fertilizers, improved seeds, machines and implements and agro-chemicals.
Features of Agricultural Subsidy
1. Agricultural subsidy is a non-refundable aids to farmers.
2. Subsidy may be in cash or in kind.
3. It includes reduction in prices of inputs like chemicals, seeds and fertilizers.
4. It is given and never to be returned.
5. Government bears part of the burden of a subsidy.
Effects of Subsidy Withdrawal by the Government
The withdrawal of subsidy by government can have lots of negative effects on agricultural production. Some of such effects are:
1. Lower Production: The withdrawal of subsidy by government will generally lea to low production because farmers cannot afford to buy farm inputs which are now very high.
2. High Cost of Farm Produce: Farm products which are now produced by farmers are going to be associated with high cost because of high cost of production.
3. Reduction in the Number of Farmers: When subsidy is removed, many farmers may withdraw from the business because they cannot afford to buy farm inputs which are now very costly.
4. Inaccessibility to Improved Farm Inputs: Improved farm inputs like seeds and other planting materials may now turn to be inaccessible to the farmers. This will prompt them to start using local and unimproved planting materials that will lead to lower yield.
5. Discouragement in Agriculture: There will be general discouragement in agriculture as many farmers will now find it difficult to cope with the purchase of farm inputs at higher prices.
Meaning of Farm Manager
A farm manager is a person charged with the responsibility of economic and effective planning and regulation of farm enterprise for the purpose of production of crops and animals.
In agriculture, the farm manager is usually regarded as the entrepreneur responsible for organization, administration, production and marketing of produce from the farm.
Qualities of Farm Manager
1. Farm manager is responsible for employee of the business.
2. He must be flexible.
3. He must be innovative.
4. He must be able to adapt to the farm work.
5. Farm manager must be willing to accept responsibility at all times.
6. He must be able to execute decisions.
7. He must be able to organize and take decisions.
8. He must be charismatic in approach to duties.
Functions of a Farm Manager
For proper running of the farm enterprise, the functions of a farm manager can be grouped into six major headings:
1. Organization;
(a) The farm manager secures suitable land for farming.
(b) He determines what to produce.
(c) He determines the scale of production.
(d) He procures loan or capital for farming.
(e) He recruits or employs labor workers for the farm.
2. Administration;
(a) A farm manager supervises the work on the farm.
(b) He arranges work rosters.
(c) He directs staff on day-to-day activities.
(d) He makes arrangement for staff welfare.
(e) He organizes the training of manpower in the farm
3. Production;
(a) A farm manager is responsible for the purchase and use of farm inputs.
(b) He ensures the health of the animals/crops on the farm.
(c) He ensures adequate supply of feeds.
(d) He adheres to modern farming techniques.
(e) He combines resources to yield optimum profit.
4. Marketing;
(a) The farm manager determines the quantity of produce to sell.
(b) He determines the best marketing channel to use to make maximum profit.
(c) He determines when to sell to make maximum profit.
(d) He determines at what price to sell.
(e) He may also be responsible for the processing of farm produce.
(f) He monitors marketing trends in order to decide on commodities to produce in his farm.
(g) He arranges for storage and warehousing of unsold produce.
5. Evaluation;
(a) He keeps the general records of the farm.
(b) He supervises accounts and book keeping of all operations on the farm.
(c) He analyses farm operations with respect to targets and objectives.
(d) He assesses the staffing conditions.
(e) He develops new strategies for further improvement of farm operations.
Problems of a Manager
Problems which a farm manager may face during the course of discharging his duties include:
1. Inadequate Information: He may lack information on where to buy farm inputs, or acquire information on new innovation and current prices of farm produce.
2. Problems of Marketing: He may not know how and where to sell his produce, at what time to sell and at which price to sell to make maximum profit.
3. Inadequate Farm Input: Farm input like seeds, feed, fertilizers and chemicals may be inadequate, scarce and expensive to get.
4. Financial Problems: He may not have enough capital. Banks may not provide loans and produce may not sell at the right price to make more money to reinvest in the business.
5. Inadequate Personnel: He may not get the right management team to work on the farm. The may be too expensive to employ for the farm.
6. Government policies: Bad government polices like importation of food which are also produced by the farm manager may lead to losses, discouragement and may even result in the folding up of the business.
7. Transport Problems: He may not have a vehicle to do the running around, to deliver farm input and to take farm produce to the market.
8. Administrative Problem: He may lack the technical know-how, good human relationship with staff, and the condition of his health may affect the performance of his duties.