Key Questions About Farm Machinery -Chapter 22
What are the alternatives for acquiring machinery
2. What are the advantages of new versus used?
3. What factors influence the best size of machinery?
Machinery Costs per Acre
by farm profit groups
Farm Business AnalysisCh.18
What are the strengths and weaknesses of the farm business?
How can we measure how well the farm is doing?
Which farm would you prefer?
Net worth $400,000
Net income $50,000
Net worth $800,00
Farm Income Tax Management
Chapter 16-Key Questions
What types of income are taxable?
What are the differences between income tax and self-employment tax?
What strategies can be used to maximize after-tax income?
Types of Taxable Farm Income
Cash Flow Budgeting: Chap.13
What is a cash flow budget used for?
What items are included in cash inflows and cash outflows?
What adjustments can be made to project a positive cash balance?
Uses for a Cash Flow Budget
Project credit requirements and repay
1. What are enterprise budgets used for?
2. What are the typical parts of an enterprise budget?
3. How are the various types of costs and returns calculated?
Purpose: summarize all expected revenue & costs of an e
How are enterprises defined?
How are income and expenses allocated by enterprise?
How are internal transactions made?
Reasons for Enterprise Accounting
Identify which enterprises are most profitable
Chap 19: Capital and Credit
Brenda and Matt have arranged to rent
200 acres of land from Brendas grandmother.
They will need some funding for crop inputs.
She has also offered to sell them the land, instead.
1. Where can they go to get financing to purcha
Cost ConceptsKey Questions
Chapter 9, pp. 137-141
How do operating and ownership costs differ?
How are ownership costs calculated?
In the short run?
In the long run?
How do cash and noncash costs differ?
What is an opportunity cost?
Farm Information Systems
Key Questions: Chapter 3
Why do farmers keep records?
What are the alternatives for farm accounting?
What information is contained in a farm information system?
Why Do Farmers Keep Records?
Income tax returns
Human Resource Management
What are the most effective ways of obtaining farm employees?
What information should a farm employment agreement contain?
How are farm employees compensated?
What important laws affect farm employees?
FARMSIM is a computerized model of a typical Midwest farming operation. All participants in FARMSIM
begin with identical resources and receive identical information. Each year for ten years you will be asked to
make decisions regarding
Whole Farm Planning
Chapter 12 (except linear programming)
What are the uses for a whole farm budget?
What are the steps in preparing one?
How do short-run and long-run budgets differ?
Successful farming is an individual,
How can we analyze decisions that affect only part of the farm business?
What is the format of a partial budget?
How can we find the breakeven value for a key variable?
Step 1. Define the proposed change
Key Questions about Managing Risk on the Farm-Chap. 15
What are the sources of risk
that farmers face?
What strategies do farmers use to control risks?
How do attitude and risk bearing ability affect willingness to bear risk?
What tools can be used to ana
Farmland Values and Leasing
What determines the value of farmland?
What are the advantages and disadvantages of owning vs. leasing?
What are the common types of farm leases?
How can a fair cash rent be determined?
Agriculture in the 21st Century
Major Changes in U.S. Ag
in the 20th Century
end of the frontier (1900)
application of scientific production
rising consumer incomes and changing tastes
Fewer and Larger Farms
Fewer and L