Agricultural Economics and Farm Management
Farm accounting
A candidate must distinguish fixed costs (land tax, equipment depreciation, buildings) from variable costs (seed, fertiliser, labour, fuel). Understand gross margin = gross product − variable costs, and net income = gross margin − fixed costs. Know how to build a simple income statement and a cash-flow plan. Trap: labour hired for the season is variable, but a permanent worker's salary is often fixed; depreciation is a non-cash cost and must not be confused with a cash outflow.
Marketing
Understand value chains for millet, maize, cotton, sesame, and livestock. Know the role of market intermediaries, price formation, storage and post-harvest losses, and the difference between producer price and consumer price. Trap: candidates confuse a cooperative's turnover with its profit.
Cooperatives and farm management
Know the legal framework of cooperatives in Burkina Faso, the roles of the general assembly, the board and the manager, and the principles of democratic governance. Understand record keeping, inventory management, and simple budgeting. Trap: a cooperative is not a private company; profits are shared according to the statutes, not only by capital share.
Worked example
A maize farmer has 2 ha, yields 1.5 t/ha, sells at 150,000 FCFA/t. Gross product = 3 t × 150,000 = 450,000 FCFA. Variable costs: seed 30,000 + fertiliser 90,000 + labour 80,000 = 200,000 FCFA. Gross margin = 450,000 − 200,000 = 250,000 FCFA. If fixed costs are 50,000 FCFA, net income = 200,000 FCFA. Always show the calculation steps in exams.