FM District 18 pt 1

A producer purchases soybean meal to feed to their hogs. They are concerned with the price they have to pay. To hedge the soybean meal purchase, the producer would do which of the following?

• Sell a futures contract

• Buy a put option

• Buy a futures contract

• Sell a call option

• None of the above

Which of the following land characteristics is used to determine an agricultural land's value for Missouri property tax calculation?

• The slope of the land

• The erosion potential of the land

• The color of the soil

• The productivity potential of the land

• All of these

When an increase in production of one enterprise causes a reduction in the production of another enterprise, the two enterprises are said to be:

• Independent

• Complementary

• Supplementary

• Competitive

• None of the above

Missouri agricultural land productivity vales are set by:

• An average of current agricultural land sales

• Using the values set at the federal level

• Using 83.3% of Iowa's values

• The Missouri State Tax Commision

• None of these

How many bushels of corn are in a futures contract?

• 1000

• 3000

• 5000

• 7000

• none of these

The demand curve shows the relationship between:

• Consumer tastes and quantity demanded

• Price and the quantity demanded

• Price and production costs

• Money income and quantity demanded

• None of the above

An example of a flat tax is

• Estate Tax

• Corporate Income Tax

• Individual income tax

• Employment tax

• None of the above

The process of finding the future value of a present sum is called:

• Amortizing

• Budgeting

• Compounding

• Discounting

• None of the above

An upward trend in market prices is referred to as a

• Bear market

• Bull market

• Boar market

• Buck market

• None of the above

In Missouri, agricultural land productivity vales are:

• Set every other year

• Different for every Missouri county

• Only allowed to vary based the land is pasture or crops

• Used to determine state income tax paid on agricultural land

• None of these