A good number of candidates attempted this question and scored high marks. Most of the candidates provided answers to the question but a few of them mistook subsistence farming for peasant farming and could not really expatiate on how agriculture contributes to economic development. Candidates were expected to answer thus:

(a) (i) Peasant farming is a small scale farming involving the use of simple farm implements. It involves the use of small farm holdings. Production is for home consumption and for export.

(ii) Commercial farming is the large scale farming involving the use of machinery. Other forms of capital such as irrigation, improved seedling, fertilizers are also used for production. Production is both for domestic and international markets.

(b) (i) Agriculture provides food and therefore reduces importation.
(ii) Agricultural exports provide foreign exchange for development.
(iii) Increased food production helps to keep down the rate of inflation.
(iv) Agriculture provides raw materials for industrial development.
(v) Agriculture provides a market for equipment and other agricultural inputs produced by the industrial sector.

(vi) Agricultural incomes also create a market for manufactured consumer goods.
(vii) Savings obtained from agricultural sector increase the saving in the economy.
(viii) Tax on agricultural incomes yields revenue to government for capital formation.
(ix) Agriculture provides employment for the growing labour force.
(x) Development in agriculture releases excess labour to work in industries