CCA Agricultural Economics and Business Management

Question 1

If total production costs are $480 per acre and expected yield is 160 bushels per acre, what is the break-even price per bushel?

Accepted Answer

$3.00

Answer

$2.50

Answer

$3.50

Answer

$4.00

Question 2

Which of the following is classified as a variable cost in crop production?

Accepted Answer

Seed and fertilizer

Answer

Cash land rent

Answer

Machinery depreciation

Answer

Annual property taxes

Question 3

Gross margin for a crop enterprise is calculated as:

Accepted Answer

Total revenue minus variable (direct) costs only

Answer

Total revenue minus all fixed and variable costs

Answer

Net income plus depreciation

Answer

Total revenue minus machinery ownership costs

Question 4

A cash rent lease arrangement means the tenant pays the landowner:

Accepted Answer

A fixed dollar-per-acre amount regardless of yield or price

Answer

A percentage of the harvested crop value each year

Answer

An amount determined after harvest based on actual costs

Answer

Grain in lieu of cash payment

Question 5

Which marketing tool allows a grain producer to lock in a selling price for a crop before harvest?

Accepted Answer

Forward cash contract

Answer

Spot market sale at harvest

Answer

Basis contract

Answer

Hedge-to-arrive contract

Question 6

Enterprise analysis in farm management is primarily used to:

Accepted Answer

Determine the profitability of each individual crop or livestock enterprise

Answer

Calculate the market value of farmland

Answer

Estimate the cost of a new machinery purchase

Answer

Project future commodity prices