2018 MN FBM Exam

Which year did the MN farmer receive their Largest Median farm income?

• 2008

• 2010

• 2012

• 2014

The 2017 MN median farm income was:

• $28,620

• $33,615

• $102,345

• $189,679

Which year did MN farmers receive the lowest median farm income?

• 1998

• 2000

• 2002

• 2004

Since 2013, MN farmer's median farm income has been less than their expenses each year. Why are they still in business?

• Most are married to the banker's daughter

• They sold major financial interests to large agricultural corporations

• MN farmers are drawing reserves from the profitable year (2010-2013)

• Median farm income has no effect on profit

A banker loaning money to farm operators may require a cash flow analysis to:

• Determine the profitability of the farm operation

• Collect data to complete the net worth statement

• Reduce the farmers chance of obtaining a loan

• Evaluate loan repayment potential

A farmer with limited capital who is in need of temporary life insurance protection should purchase:

• A. An universal life policy

• B. A whole life policy

• C. Either a or b

• D. None of the above

One of the most important things for young farmers to consider when beginning to far is:

• Purchasing g a farm

• Purchasing new or used equipment

• Establishing some goals

• Diversifying his business

The person who writes or sells an option

• Is assuming the risk of adverse price changes in the futures market

• is passing the risk of adverse changes in the futures market onto the person who buys the option

• Is the one who makes the money

• Must have possession of the underlying commodity

Incorporating a farm enables the business to:

• Sell cooperatively

• Be more permanent

• Improve production

• Increase personal liability

A written agreement by which an owner of property transfers title to someone for the benefit of beneficiaries is a:

• Trust

• Power of attorney

• Executor

• Estate will