Farm Management Final Exam Questions with Correct Answers Latest Update 2025/2026
False - Answers The definition of a farm as used in the USDA Ag Census is any acreage over 10
acres and producing $1,000 of revenue.
True - Answers Farm management can be defined as the making and implementing of the
decisions involved in organizing and operating a farm for maximum production and profit.
True - Answers Mission is considered the guiding force for near term priorities.
False - Answers "Farm manager" is a term that can only be used by professionals formally
educated for the task.
True - Answers The ability to handle risk strongly influences a managers decision.
False - Answers Vision is considered your near term purpose of your existence.
B. By the end of this semester I will pass this class with an A - Answers Which one of the
following goals is considered complete by the definition of SMART goals.
A)
I hope I pass this test.
B)
By the end of this semester I will pass this class with an A
C)
I would like to buy a farm.
D)
I hope I can find a job with USDA.
__3__Institutions
__1__Resources
__2__Technology
__4__Markets - Answers Below are descriptions of what goes into a farm business. Match each
,set of words to the area of the business that is described by those words.
____ Institutions
____Resources
____Technology
____ Markets
1.
Land, buildings, facilities, equipment, capital, labor.
2.
Computers, global position systems (GPS), irrigation, drones, embryo transfer, genetic coding.
3.
Government programs, lenders.
4.
Auctions, terminal sales, revenue for services provided, contracts.
__4___Planning
__2__Controlling
__1__Organizing
__3__Directing - Answers _____Planning
____Controlling
____Organizing
____Directing
1.
Acquisition and organization of land, labor, machinery, livestock, capital and management
resources.
,2.
Evaluating and taking corrective action.
3.
Physically doing the work, motivating labor, scheduling production.
4.
Setting goals, managing costs, analyzing industry, examining alternatives.
vision statements - Answers The four functions of management put in a timeline is called______.
A)
Keep fences in good repair to keep livestock confined and safe.
C)
Perform regular maintenance on all farm machinery.
D)
Financial records are worked with daily. - Answers Select all actions that a farm manager can do
that would fall into the "important" category.
Question options:
A)
Keep fences in good repair to keep livestock confined and safe.
B)
The levee needs repair. It can wait.
C)
Perform regular maintenance on all farm machinery.
, D)
Financial records are worked with daily.
Financial - Answers The USDA publication "Introduction to Risk Management" discusses five
areas of risk for farmers. Those areas are: Production, Marketing, ______________,Legal and
Human.
1__Pests
__5__Health and well-being
__2__Access to a place to sell commodity or provide a service
__1__Weather
__3__Ability to maintain and grow equity
__4__Laws and regulations
__4__Contractual arrangements
__5__Employee Management
__2__Price volatility/variability
__3__Ability to meet cash flow needs in a timely manner
False - Answers The definition of a farm as used in the USDA Ag Census is any acreage over 10
acres and producing $1,000 of revenue.
True - Answers Farm management can be defined as the making and implementing of the
decisions involved in organizing and operating a farm for maximum production and profit.
True - Answers Mission is considered the guiding force for near term priorities.
False - Answers "Farm manager" is a term that can only be used by professionals formally
educated for the task.
True - Answers The ability to handle risk strongly influences a managers decision.
False - Answers Vision is considered your near term purpose of your existence.
B. By the end of this semester I will pass this class with an A - Answers Which one of the
following goals is considered complete by the definition of SMART goals.
A)
I hope I pass this test.
B)
By the end of this semester I will pass this class with an A
C)
I would like to buy a farm.
D)
I hope I can find a job with USDA.
__3__Institutions
__1__Resources
__2__Technology
__4__Markets - Answers Below are descriptions of what goes into a farm business. Match each
,set of words to the area of the business that is described by those words.
____ Institutions
____Resources
____Technology
____ Markets
1.
Land, buildings, facilities, equipment, capital, labor.
2.
Computers, global position systems (GPS), irrigation, drones, embryo transfer, genetic coding.
3.
Government programs, lenders.
4.
Auctions, terminal sales, revenue for services provided, contracts.
__4___Planning
__2__Controlling
__1__Organizing
__3__Directing - Answers _____Planning
____Controlling
____Organizing
____Directing
1.
Acquisition and organization of land, labor, machinery, livestock, capital and management
resources.
,2.
Evaluating and taking corrective action.
3.
Physically doing the work, motivating labor, scheduling production.
4.
Setting goals, managing costs, analyzing industry, examining alternatives.
vision statements - Answers The four functions of management put in a timeline is called______.
A)
Keep fences in good repair to keep livestock confined and safe.
C)
Perform regular maintenance on all farm machinery.
D)
Financial records are worked with daily. - Answers Select all actions that a farm manager can do
that would fall into the "important" category.
Question options:
A)
Keep fences in good repair to keep livestock confined and safe.
B)
The levee needs repair. It can wait.
C)
Perform regular maintenance on all farm machinery.
, D)
Financial records are worked with daily.
Financial - Answers The USDA publication "Introduction to Risk Management" discusses five
areas of risk for farmers. Those areas are: Production, Marketing, ______________,Legal and
Human.
1__Pests
__5__Health and well-being
__2__Access to a place to sell commodity or provide a service
__1__Weather
__3__Ability to maintain and grow equity
__4__Laws and regulations
__4__Contractual arrangements
__5__Employee Management
__2__Price volatility/variability
__3__Ability to meet cash flow needs in a timely manner
