Agricultural Finance and Government Programs Quiz

What law refers to the amount of profit generated by additional inputs (at what point does the cost of adding more fertilizer outweigh the benefit of getting a higher yield)?

• Law of Comparative Advantage

• Law of Diminishing Return

• Law of Input Profit

• Law of Resource Substitution

What government owned credit source provides loans for specific crops like grain and peanuts?

• Commodity Credit Corporation

• Farmers Home Administration

• Production Credit Association

• Small Business Administration

In terms of agribusiness finance, a loan of what type is usually used to make a capital investment such as the purchase of land?

• Add on Loan

• Amortized loan

• Discount loan

• Long term loan

Anything a business owns, including cash on hand and equipment is known as?

• Assets

• Debt

• Liabilities

• Net Worth

When seeking a production loan, what information must you provide to a potential credit source?

• Ag business plan and method of repayment

• Personal financial statement and cash flow projections

• Assets and liabilities

• Net worth and capital

Which government agency within the USDA provides landowners advice and assistance with soil and water practices?

• Environmental Protection Agency

• Farmers Collation Support

• Natural Resources Conservation Service

• United States Department of Agriculture

What is the purpose of the Environmental Protection Agency?

• To conserve wetlands and habitats for endangered species

• To establish good management practices for wildlife environments

• Provide advice, assistance, and funds to assist land owners with soil and conservation practices

• Monitor groundwater quality and enforce pollution laws to help protect the land and water

What type of organization is licensed to manage the buying and selling of goods using a licensed broker?

As an agribusiness manager, what is one of the best ways to minimize risk?

• Have a variable repayment schedule

• Maintain a proper debt to income relationship

• Minimize all insurance policies

• Try new business ventures

Career opportunities such as financial planning, marketing, and market analysis fall into what sector of agriculture?

• Agribusiness

• Ag Profession

• Banking

• Financial