Farm and Ranch Management Exam 1

What will future farm managers be doing?

a. Making decisions

b. Will be using economic principles, budgets, investment analyses, financial statements etc.

c. Deciding on input and output levels and choosing the combinations that get them the most returns.

What will happen to farming in the future?

a. Technology will provide new inputs

b. More specialized products will be available

c. Competition for land with non-agriculture businesses will increase

1. What are High Volume, low margin producers?

a. Produces generic products

b. Stick with familiar enterprises and expand production as a mean of increasing their income

c. Profit margins are thin

The change in structure is caused by what?

a. Labor-saving technology

b. Greater off-farm employment

c. Desire of farm operators for a higher income

d. High fixed costs of some technology.

1. What are the 4 general business strategies?

a. Low volume, high value producers

b. High volume, low margin producers

c. Specialty product and service providers

d. Part time operators.

1. What are Low Volume, high value producers?

a. The key to higher profits is producing higher valued commodities

b. Lack of access to additional land, labor, and capital

c. Involve high production risks, uncertain markets, and intensive management

1. What are specialty product and service providers?

a. Specializes in one or two skills and become one of the best at performing them.

b. EX. Custom harvesting

c. Have to make maximum use of expense highly specialized equip. and facilities.

1. What are Part-Time operators?

a. Account for 52% of the U.S. farmer total.

b. Produce only 13% of total agriculture sales.

c. Hold other jobs in addition to farming.

1. What is biotechnology?

a. Offers possible gains in efficiency for crop production