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AGEC 325 Questions with Answers (100% Correct
Answers)
U.S. Farm Policy Answer: government actions to preserve, retain, or
direct the use of farmland result primarily from aesthetic and
environmental concerns, not from concern about the effects on food
supply or availability
Farm programs Answer: the set of government programs directly
influencing agricultural production, markets and prices
asset fixity Answer: assets used in agriculture are not easily
transferred to other industries
farm Answer: any place from which $1,000 of agricultural products
were produced or sold, or normally would have been sold, during the
census year
Goals of farm policy Answer: expanding farm production, supporting
and stabilizing farm prices and income, expanding agricultural
exports, adjustment of farm production to market needs, resource
conservation and preservation, family farm survival, multifunctional
© 2025 All rights reserved
, 2
free market Answer: no domestic price or income programs focused
on agricultural products. Implies that all other nations discontinue
domestic programs and remove trade barriers
Price supports Answer: minimum flow price that would not let the
market price fall below it
government purchase program Answer: government agrees to buy
excess production at a support price
non-recourse loan Answer: marketing year storage/ government
purchase program for major commodities. Loan rate=support
production controls Answer: government imposed limits on the
quantity of resources used in production or the amount of product to
be marketed
land retirement programs Answer: remove land from production for a
season or longer. Paid or required to remove land to be eligible for
other government programs
direct payments Answer: committing to pay producers the difference
of expected price vs. actual price
© 2025 All rights reserved
AGEC 325 Questions with Answers (100% Correct
Answers)
U.S. Farm Policy Answer: government actions to preserve, retain, or
direct the use of farmland result primarily from aesthetic and
environmental concerns, not from concern about the effects on food
supply or availability
Farm programs Answer: the set of government programs directly
influencing agricultural production, markets and prices
asset fixity Answer: assets used in agriculture are not easily
transferred to other industries
farm Answer: any place from which $1,000 of agricultural products
were produced or sold, or normally would have been sold, during the
census year
Goals of farm policy Answer: expanding farm production, supporting
and stabilizing farm prices and income, expanding agricultural
exports, adjustment of farm production to market needs, resource
conservation and preservation, family farm survival, multifunctional
© 2025 All rights reserved
, 2
free market Answer: no domestic price or income programs focused
on agricultural products. Implies that all other nations discontinue
domestic programs and remove trade barriers
Price supports Answer: minimum flow price that would not let the
market price fall below it
government purchase program Answer: government agrees to buy
excess production at a support price
non-recourse loan Answer: marketing year storage/ government
purchase program for major commodities. Loan rate=support
production controls Answer: government imposed limits on the
quantity of resources used in production or the amount of product to
be marketed
land retirement programs Answer: remove land from production for a
season or longer. Paid or required to remove land to be eligible for
other government programs
direct payments Answer: committing to pay producers the difference
of expected price vs. actual price
© 2025 All rights reserved
