Lesson Notes By Weeks and Term v4 - SHS 3

Lesson Video

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Performance objectives

• Define fixed and variable inputs in agriculture.
• Illustrate production curves showing the relationship between inputs.
• Analyze the impact of changing variable inputs on output.
• Differentiate between fixed and variable costs.
• Identify fixed and variable inputs on a farm.

Lesson summary

This lesson introduces the fundamental economic principles that govern agricultural production. We will explore how a farmer combines different types of resources (inputs) to get a certain amount of produce (output). Understanding this relationship is crucial for any farmer who wants to run their farm as a profitable business, not just a hobby. In Ghana, where many livelihoods depend on farming cocoa, maize, cassava, or poultry, knowing how much fertilizer to apply or how many workers to hire can be the difference between making a profit and suffering a loss.

Lesson notes

This topic revolves around the Production Function, which is the technical relationship between the inputs a farmer uses and the output they get. We can write it simply as:

Output = f(Inputs)

In the short run (e.g., one planting season), a farmer cannot change all their inputs. This leads to two main categories of inputs or factors of production. a) Fixed Inputs vs. Variable Inputs Fixed Inputs: These are resources or factors of production whose quantity does not change as the level of output changes in the short run. The cost of these inputs is called Fixed Cost (FC). Characteristics: They are used repeatedly over several production cycles. The farmer incurs their cost even if they produce nothing (zero output). Ghanaian Examples: The size of the farmland (e.g., a 2-hectare cocoa farm). Farm buildings like a storage barn or a poultry house. Major farm machinery like a tractor or a corn sheller. The salary of a permanent farm manager. Rent paid on the land. Variable Inputs: These are resources or factors of production whose quantity changes directly with the level of output. The cost of these inputs is called Variable Cost (VC). Characteristics: They are used up within a single production cycle. If production is zero, the use of these inputs is also zero. Ghanaian Examples: Bags of NPK fertilizer for a maize farm. Seeds or seedlings (e.g., maize seeds, tomato seedlings). Wages for casual labourers hired for weeding or harvesting. Fuel (diesel/petrol) for a water pump or tractor. Poultry feed and medications. Pesticides and herbicides. b) The Law of Diminishing Marginal Returns

This is one of the most important laws in economics and is especially visible in agriculture.

Evaluation guide

• Draw production curves showing the relationship between fixed i nputs and
• variable inputs for given resour ces in Agricultural production.
• Inquiry -based learning: In mixed -ability groups, learners brainstorm to come
• up with the meaning of fixed input and variable input in Agricultural production.