Farm business Management 1

By selecting multiple auction barns to sell livestock at, you are addressing

• production risk

• human risk

• market risk

• legal risk

• financial risk

MO FFA farms purchased a a sprayer for $300,000 three years ago. The sprayer has been depreciated $110,000 on their machinery inventory. Their lender assigned a market value of $225,000 to the sprayer. The value to list on a Cost Basis Balance Sheet is:

• $300,000

• $110,000

• $225,000

• $190,000

An example of a Current Liability is:

• Stored grain

• market cattle

• prepaid fertilizer

• Accrued Interest

A farmer should issue an IRS Form 1099-NEC for which of the following

• $850 paid to a neighbor for baling the farmer's hay

• $850 paid to a neighbor for hay

• $425 paid to a neighbor for building a fence

• $500 paid to a neighbor for a bull calf

• $600 paid to a neighbor for firewood

Which of the following is not a supply shifter for farm products?

• None of the options

• Government programs.

• New Technology.

• Weather.

• Consumer income.

By purchasing yield protection insurance, you are addressing

• Market risk

• Financial risk

• legal risk

• human risk

• production risk

If anhydrous ammonia (NH3) is 82.3% nitrogen by weight and is selling for $1,600 per ton, what is the cost per pound of actual N?

• $1.40

• $0.53

• $1.49

• $0.66

If the price of a commodity is too low, the demand will be greater than the supply resulting in a:

• boycott

• monopoly

• surplus

• shortage

• None of the options

For Tax year 2022, the social security wage base was

• $137,700

• $142,800

• $147,000

• $116,200

• $132,900

An LLC (Limited Liability Company) is usually

• Not for profit and therefore not taxed

• Taxed like a corporation

• Illegal is Missouri

• Tax exempt if farm related

• Taxed like a partnership.