IBPS Agricultural Field Officer (Specialist Officer) · India · Institute of Banking Personnel Selection
Original practice questions written to the published syllabus · not past papersThe economics of milk production, processing and markets, cooperative organisation and how milk is priced. The agribusiness track (cooperatives-fpos, agricultural-marketing-price-analysis) covers the general theory.
In the exams: ICAR AIEEA-PG and AICE dairy economics option at NDRI (Agricultural/Livestock Economics); IBPS AFO professional knowledge (animal husbandry and dairy); NABARD dairy model projects
IBPS Agricultural Field Officer — Professional Knowledge (animal husbandry and dairy)
Dairy loan appraisal: unit cost, margin money, repayment schedule, EMI, DSCR, breakeven, NABARD refinance and the role of dairy cooperatives in loan recovery; cost of milk production; Operation Flood, the Anand pattern and national dairy schemes.
How our questions for IBPS Agricultural Field Officer spread across the units of Dairy Economics, Cooperatives & Milk Pricing. Difficulty: 6 easy, 13 medium, 5 hard.
| Financing dairy enterprises | 13 | |
| Cost of milk production | 8 | |
| Dairy market structure and price spread | 2 | |
| Milk pricing: fat-SNF two-axis and component pricing | 1 |
Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.
In most cost-of-production studies of dairy animals, which item makes up the largest share of total cost?
C. Feed and fodder
Green fodder, dry fodder and concentrates are the largest cost item in almost every study, commonly more than half of total cost. Veterinary care and depreciation on buildings are real costs but much smaller.
A cow gives 12 litres a day sold at 40 per litre, and her daily feed costs 260. What is her income over feed cost per day?
A. 220
Income over feed cost = milk revenue − feed cost = 12 × 40 − 260 = 480 − 260 = 220 per day. 480 is revenue alone, 740 adds feed cost to revenue, and 18.33 is the margin per litre rather than per day.
A study reports a cost of milk that includes the imputed value of family labour and interest on the farmer's own capital. What question does this full-cost figure answer that a paid-out cost does not?
B. Whether dairying pays family labour and owned capital what they could earn elsewhere
Paid-out cost shows whether cash expenses are covered; adding imputed family labour and owned capital tests whether the enterprise rewards all resources at their opportunity cost. The farm-management subject explains the same distinction for crops through the cost concepts A1 to C3.
A society pays for buffalo milk on fat basis at 800 per kg of fat. A farmer supplies 50 litres at 7.0% fat; the milk density is 1.030 kg per litre. What is the payment?
B. 2,884
Mass = 50 × 1.030 = 51.5 kg; fat = 51.5 × 0.07 = 3.605 kg; payment = 3.605 × 800 = 2,884. 2,800 treats litres as kilograms, 28,840 misplaces the decimal, and 3,605 is the fat in grams mistaken for money.
A farmer receives 38 per litre and the consumer pays 54 per litre for milk of the same composition. What is the producer's share in the consumer's price?
B. 70.4 percent
Producer's share = 38 ÷ 54 × 100 = 70.4 percent. 29.6 percent is the spread as a share of the consumer price, 142.1 percent inverts the ratio, and 16 is the spread in money, not a percentage.
Consumers pay 56 per litre. Collection costs 2, processing 4, distribution 3 and the retail margin is 5 per litre. If there are no other costs or margins, what is the producer's share?
A. 75.0 percent
Spread = 2 + 4 + 3 + 5 = 14, so the producer price = 56 − 14 = 42 and the share = 42 ÷ 56 = 75.0 percent. 25 percent is the spread's share; 80 percent and 66.7 percent come from leaving out or double-counting an item.
What does a debt service coverage ratio below 1 show about a dairy project?
B. Its cash cannot meet the instalments
DSCR = cash available for debt service ÷ instalments due; below 1 means the project's own cash falls short of debt service. Lenders look for a margin above 1.
Why do banks often link repayment of dairy loans to the borrower's milk payments from a cooperative?
C. Instalments are deducted at source
Deducting instalments from the cooperative's milk payment collects repayment from the cash the loan generates, which lowers default. The cooperative does not insure animals, and insurance is still required.
Which item is part of working capital rather than fixed capital for a new dairy farm?
A. Feed for the first months
Working capital funds recurring inputs such as feed until milk income starts. Sheds, equipment and animals are fixed capital financed by a term loan.
A farmer's milk price is 40 per litre and her cost per litre is 34 including imputed family labour, but 27 counting only paid-out costs. What can be concluded?
B. Dairying covers cash costs and rewards family labour
The price of 40 exceeds both the paid-out cost of 27 and the full cost of 34, so cash costs are covered with a margin and family labour and owned capital earn at least their imputed value.
Ten here, 24 in the app. The Laisha app has every practice question we have written to IBPS Agricultural Field Officer in this subject, marked as you go, with timed papers, a jump-to-unanswered list and a certificate when you pass at 70 per cent.
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