AGEC 325 Exam 1 questions with
complete solutions passed
**Describe the structure of farms and ranches today:
-
- - correct answer ✔✔-number of farms in the US decreasing
-average farm size is increasing
(fewer but larger farms)
**What are the 4 main causes of structure changes in farms and ranches today? - correct
answer ✔✔-Labor-saving technology
-Greater off-farm employment opportunities
-Desire of farm operators for higher income
-High fixed costs of some technology -specialization
What are the 4 General Business Strategies? - correct answer ✔✔-Low Volume, High Value
Producers
-High Volume, Low Margin Producers
-Specialty Product and Service Providers
-Part-Time Operators
**Describe 4 characteristics of New Technology. - correct answer ✔✔-Agricultural technology
has been evolving for many decades
-Biotechnology offers possible gains in efficiency for crop production
-Livestock performance may improve through introducing new genetic characteristics or
improving nutrient use
,-Global positioning systems (GPS) increasingly adopted
**Describe 5 characteristics of the Information Age. - correct answer ✔✔-Improvements in data
collection
-Very specific data
-Automatic recording
-Personal computers
-A new problem of "too much" information?
**Describe 6 characteristics of Controlling Assets. - correct answer ✔✔-Need for outside capital
-Vertical integration in traditional sources of farm credit
-Urban and rural financial markets will move closer together
-Increased need for documentation
-Need for standard accounting practices
-Increase in renting/leasing assets
**Describe 3 characteristics of Human Resources. - correct answer ✔✔-Increased dependence
on teams of employees or partners with division of labor
-Farm businesses will need to be competitive with off-farm employment
-Increased use of consultants and paid advisors
**Describe 5 characteristics of Producing to Meet Consumer Demands. - correct answer ✔✔-
More specialized and processed food
-Buyers are implementing stricter product standards
-Producers who can provide high-quality, uniform standard product will receive premium price
-More agricultural products will go to industrial uses
-Niche markets will also gain in importance
, **3 characteristics of Contracting and Vertical Integration. - correct answer ✔✔-Some
producers will specialize in a phase of production..........Examples: raising dairy replacement
heifers, custom harvesting crops, producing bedding plants
-Marketing contracts provide assured market for intermediate products
-VERTICAL INTEGRATION- occurs if buyer supplies some of inputs and management
What is vertical integration? - correct answer ✔✔occurs if buyer supplies some of inputs and
management
**4 characteristics of Environmental and Health Concerns - correct answer ✔✔-Concerns about
food safety and environmental preservation are high priority
-Increased rural population means more contact between farm and non-farm residents,
increased concern about animal waste, air and water quality
-Environmental audits becoming routine in farm sales
-Each decision must be evaluated for its effect on the environment as well as profit
**3 characteristics of Globalization - correct answer ✔✔-Expansion of markets can occur
through international trade
-Many governments, including U.S. government, have tried to protect their own farmers from
foreign competition using trade barriers
complete solutions passed
**Describe the structure of farms and ranches today:
-
- - correct answer ✔✔-number of farms in the US decreasing
-average farm size is increasing
(fewer but larger farms)
**What are the 4 main causes of structure changes in farms and ranches today? - correct
answer ✔✔-Labor-saving technology
-Greater off-farm employment opportunities
-Desire of farm operators for higher income
-High fixed costs of some technology -specialization
What are the 4 General Business Strategies? - correct answer ✔✔-Low Volume, High Value
Producers
-High Volume, Low Margin Producers
-Specialty Product and Service Providers
-Part-Time Operators
**Describe 4 characteristics of New Technology. - correct answer ✔✔-Agricultural technology
has been evolving for many decades
-Biotechnology offers possible gains in efficiency for crop production
-Livestock performance may improve through introducing new genetic characteristics or
improving nutrient use
,-Global positioning systems (GPS) increasingly adopted
**Describe 5 characteristics of the Information Age. - correct answer ✔✔-Improvements in data
collection
-Very specific data
-Automatic recording
-Personal computers
-A new problem of "too much" information?
**Describe 6 characteristics of Controlling Assets. - correct answer ✔✔-Need for outside capital
-Vertical integration in traditional sources of farm credit
-Urban and rural financial markets will move closer together
-Increased need for documentation
-Need for standard accounting practices
-Increase in renting/leasing assets
**Describe 3 characteristics of Human Resources. - correct answer ✔✔-Increased dependence
on teams of employees or partners with division of labor
-Farm businesses will need to be competitive with off-farm employment
-Increased use of consultants and paid advisors
**Describe 5 characteristics of Producing to Meet Consumer Demands. - correct answer ✔✔-
More specialized and processed food
-Buyers are implementing stricter product standards
-Producers who can provide high-quality, uniform standard product will receive premium price
-More agricultural products will go to industrial uses
-Niche markets will also gain in importance
, **3 characteristics of Contracting and Vertical Integration. - correct answer ✔✔-Some
producers will specialize in a phase of production..........Examples: raising dairy replacement
heifers, custom harvesting crops, producing bedding plants
-Marketing contracts provide assured market for intermediate products
-VERTICAL INTEGRATION- occurs if buyer supplies some of inputs and management
What is vertical integration? - correct answer ✔✔occurs if buyer supplies some of inputs and
management
**4 characteristics of Environmental and Health Concerns - correct answer ✔✔-Concerns about
food safety and environmental preservation are high priority
-Increased rural population means more contact between farm and non-farm residents,
increased concern about animal waste, air and water quality
-Environmental audits becoming routine in farm sales
-Each decision must be evaluated for its effect on the environment as well as profit
**3 characteristics of Globalization - correct answer ✔✔-Expansion of markets can occur
through international trade
-Many governments, including U.S. government, have tried to protect their own farmers from
foreign competition using trade barriers
