Test Bank for Farm Management updated
Edition 2026 All Chapters
Future Farms Will Be: - answers-1) making decisions, just like they do now
2) will be using economic principles, budgets, record summaries, interest analysis, financial
statements, and other management tools, just like they do now
3) will still be deciding on input and output levels, choosing enterprise combinations, and
analyzing risk and returns, seeking new markets and adjusting farm size
In the future: - answers-broad types of decisions will be the same but:
-technology will continue to provide new inputs
-more specialized products will be available
-competition with non-agricultural businesses for use of land, labor and capital resources will
likely increase
-better managers will adapt to these changes
Structure of Farms and Ranches: - answers-1) Number of farms in U.S. decreasing
2) Size of farms increasing
Changes in Structure caused by: - answers-1) labor saving technology
2) greater off-farm employment opportunities
3) desire of farm operators for higher incomes
4) high fixed costs of some technology
Four general business strategies: - answers-1) Low-Volume, High Value Producers
1
, 2) High Volume, Low Margin Producers
3) Specialty Product and Service Providers
4) Part-time operators
Low Volume, High Value Producers: - answers-lack of land, labor and capital force managers to
produce higher valued commodities such as "organically grown", requiring high production
risks, uncertain markets, and intensive management
High Volume, Low Margin Producers: - answers-produce demanded goods and expand to
increase income, squeezing production costs is critical, profit margins are thin, and crucial to set
a floor under market prices and total revenue by insurance products and marketing contracts
Specialty Product and Service Providers: - answers-specialize at 1-2 skills and be the best by
making maximum use of expensive, highly specialized equipment and facilities, marketing and
interacting with customers
Part-Time Operators: - answers-part-time farmers (59%) produce 15% of total agricultural sales
with potential profits being low but maybe providing the most acceptable level of financial
security and job satisfaction
strategic alliance - answers-benefiting both/all farmers, but still allowing them to be separate
entities
New Technology: - answers-1) agriculture technology has been evolving for many decades
2) biotechnology provides gains in production efficiency
3) livestock performance may improve through introducing new genetic characteristics and
improving nutrient use
4) Global Positioning Systems (GPS) increasingly adopted
2
Edition 2026 All Chapters
Future Farms Will Be: - answers-1) making decisions, just like they do now
2) will be using economic principles, budgets, record summaries, interest analysis, financial
statements, and other management tools, just like they do now
3) will still be deciding on input and output levels, choosing enterprise combinations, and
analyzing risk and returns, seeking new markets and adjusting farm size
In the future: - answers-broad types of decisions will be the same but:
-technology will continue to provide new inputs
-more specialized products will be available
-competition with non-agricultural businesses for use of land, labor and capital resources will
likely increase
-better managers will adapt to these changes
Structure of Farms and Ranches: - answers-1) Number of farms in U.S. decreasing
2) Size of farms increasing
Changes in Structure caused by: - answers-1) labor saving technology
2) greater off-farm employment opportunities
3) desire of farm operators for higher incomes
4) high fixed costs of some technology
Four general business strategies: - answers-1) Low-Volume, High Value Producers
1
, 2) High Volume, Low Margin Producers
3) Specialty Product and Service Providers
4) Part-time operators
Low Volume, High Value Producers: - answers-lack of land, labor and capital force managers to
produce higher valued commodities such as "organically grown", requiring high production
risks, uncertain markets, and intensive management
High Volume, Low Margin Producers: - answers-produce demanded goods and expand to
increase income, squeezing production costs is critical, profit margins are thin, and crucial to set
a floor under market prices and total revenue by insurance products and marketing contracts
Specialty Product and Service Providers: - answers-specialize at 1-2 skills and be the best by
making maximum use of expensive, highly specialized equipment and facilities, marketing and
interacting with customers
Part-Time Operators: - answers-part-time farmers (59%) produce 15% of total agricultural sales
with potential profits being low but maybe providing the most acceptable level of financial
security and job satisfaction
strategic alliance - answers-benefiting both/all farmers, but still allowing them to be separate
entities
New Technology: - answers-1) agriculture technology has been evolving for many decades
2) biotechnology provides gains in production efficiency
3) livestock performance may improve through introducing new genetic characteristics and
improving nutrient use
4) Global Positioning Systems (GPS) increasingly adopted
2
