2015 State FBM

Mr. Holmes wants to calculate the yield from his soybean crop needed to breakeven given his expected expenses of $570/acre. What other piece of information will Mr. Holmes need to calculate breakeven yield per acre?

• Net return per acre

• Value of current assets per acre

• Output price

• Total acres harvested

• None of the above

You are considering selling a feeder cattle futures contract to protect against downside price risk on the calves you will sell later this year. How many pounds of feeder cattle are contained in one futures market contract?

• 5,000 bushels

• 25,000 pounds

• 40,000 pounds

• 50,000 pounds

• None of the above

You are considering purchasing a quarter section of land. How many acres would you be purchasing?

• 80 acres

• 160 acres

• 240 acres

• 640 acres

• None of the above

You have purchased a quarter section of land, but there is no perimeter fencing for the cattle in your operation. How much perimeter fencing is needed for the land you have purchased?

• 1.0 mile

• 1.5 miles

• 2.0 miles

• 2.5 miles

• None of the above

What is the name of the USDA agency primarily responsible for providing information on private and public issues related to agriculture, food, the environment, and rural development?

• Agricultural Marketing Service

• Economic Research Service

• Farm Service Agency

• National Agricultural Statistics Service

• None of the above

If a machine’s use is decreased from 500 acres to 400 acres per year, which of the following is true?

• Total fixed cost will decline.

• Total variable cost will increase.

• Variable costs per acre will increase.

• All of the above is true.

• None of the above is true.

What is the largest investment cost associated with ranching?

• Cattle

• Equipment/Machinery

• Fencing

• Land

• None of the above

Which of the following is not considered a current asset?

• Accounts receivable

• Cash

• Growing crops

• Land

• None of the above

Depreciation is an annual, noncash expense that recognizes the amount by which an asset loses value due to use, age, and what other factor?

• Amortization

• Diminishing returns

• Foreclosure

• Technical obsolescence

• None of the above

Which of the following are methods to calculate annual depreciation expenses?

• Declining Balance Method

• Modified Accelerated Cost Recovery System

• Straight Line Method

• All of the above

• None of the above