Agricultural Economic Issues/ US Ag Structure
Name 3 types of farm inputs.
Chemicals, crop insurance, machinery, drying, storage, land, seed
The loss of asset value do to wear and tear and use.
Depreciation
The science of allocating scarce resources among a set of alternatives such that the goals of the business are attained.
Management
A brief overview of the business
Executive Summary
Costs directly attributable to production of the crop
Direct costs
Agriculture has become more concentrated because the # of farms has __________ while the average size of farms has ___________.
# of farms has decreased while the average size of farms has increased.
Who dictates what is produced and how it is produced in the supply chain?
The consumer
_____________ is charting the short-term course of the business
Tactical
The _____________ of the business are the ones owning and operating the business
Principals
Costs related (mostly) to the machinery operations necessary to produce that crop
Power Costs
The USDA defines a farm as an entity producing more than _____________ dollars of agricultural goods annually.
$1,000
Name 3 risks to the agricultural supply chain
weather risk, infrastructure risk, disease/pest outbreaks, commodity price risk
______________ is charting the long term course of the business
Strategic
succession
Under a ____________ lease the operator and land owner split the seed costs.
Share rent or 50/50
The three components of agricultural revenue are:
Livestock/crop sales
Government Program Payments
Crop Insurance
Your lender will require you to buy this for a farm loan.
Crop insurance
The first step in strategic management is to:
Define the mission
The two main ways farms will manage income risk in a business are:
Grain Marketing and Insurance
Custom farm
These three things define the "structure" of US Agriculture
Number of farms
Size of farms
Concentration of farms
_______ % of farmland turns over in Illinois every year.
1-2%
The 3 functions of management are:
Control, implementation, and planning
The 3 financial statements included in a business plan
Balance sheet, income statement, cash flow statement
Under a _________ the operator pays all the real estate taxes.
Owner operator/direct farm