Chapter 17
Simple rate of return equation
What is average annual net revenue / initial cost
the purpose of an enterprise analysis
What is analyze business opportunities to see if they are profitable or not
A loan term of 10 years or longer
What is
Long-Term Loan
This basic resource supports the production of all agricultural commodities. It is also the most valuable asset on the balance sheet of U.S. Agriculture
What is Land
What is the present value equation
What is FV / (1+i)^n
When should the accounting period start for breeding livestock
What is The first expenses toward the next offspring
Established by the Federal Farm Loan Act passed by U.S Congress in 196 to provide an additional source of funds for agriculture loans
What is The Farm Credit Service (FCS)
What is.....
1. Soil, Topography, Climate
2. Buildings & Improvement
3. Size
4. Markets
5. Community
6. Location
7. Competing Use
8. Ag Program Characteristics
9. Easements & Contracts
10. Environmental Hazards
What is the future value equation
What is PMT x (1+i)^n -1 / i
For crop enterprise analysis, fuel, repairs, depreciation, interest, and wages are difficult to allocate unless...
What is records are kept on the hours of machinery and labor used by each one
A loan that is repayable over more than 1 year, but less than 10 years
What is Intermediate-Term Loan
A systematic process for estimating the current market value of a given piece of real estate
What is Land Appraisal
Investment Analysis methods such as simple rate of return and net present value are used to do....
What is analyze economic profitability
List some examples of cost centers (at least 2)
What are farm machinery services, farm labor, a feed mill, an irrigation system, land acquisition activities
Land, Buildings, Livestock, Machinery, and growing crops can all be used within a loan
What is Collateral
A lease where the landlord provides all the land, machinery, and other variable inputs
What is a Labor Share Lease
information needed for an investment analysis
What is initial cost, net cash revenues, terminal value, and discount rate
type of enterprise, when an activity is intended to increase net income, received from a commodity when its production cycle has ended...
ROA / IR = ?
What is the Maximum Debt/Asset Ratio
The average value of farmland per acre by region (according to the book, what is the average price of farm ground in Nebraska)
What is $2,130