FBM General Questions
Terms in this set (48)
On a crop insurance policy, APH stands for
Actual Production History
There are how many acres in a hectare?
There are how many sq ft in an acre
The USDA agency that administers the federal crop insurance program is
Risk Management Agency
The turnover ratio is calculated by dividing _______ by average total assets
value of farm production
Chapters of bankruptcy include
7, 13, 11, 12
A CME Group live cattle futures contract covers how many pounds of steers?
The crop insurance program that offers cattle producers protection against dry weather is called
Pasture, Range and Forage
A price ceiling set BELOW the equilibrium price creates
shortages or black markets
Increasing leverage during a period when a farm's percent return to total capital is less than the interest rate will mean
lower returns to equity
Which is NOT a policy plan for multi-peril crop insurance?
For an individual under age 50, the maximum allowable IRA contribution in 2016 was:
For an individual over age 50, the maximum allowable IRA contribution in 2016 was:
here is not a CME Group feeder cattle futures contract for which of these months?
Capital gains and losses are reported to IRS on
A farmer is "liquid" if
they have enough current assets to cover all current liabilities
How many sections are in a township?
When the size of the corn harvest exceeds locally available farm and elevator storage, what happens to basis?
The USDA agency with primary responsibility for providing children and low-income people access to food is:
A farmer should issue an IRS Form 1099 for which of the following?
$650 paid to a neighbor for land rent
The type of life insurance which provides protection for a limited time and is usually cheaper per dollar of protection is called
A farmer raises corn and feeds it to his hogs. This is a example of
For depreciation, which of the following is "listed property"?
Diminishing marginal returns to a factor of production are most likely to occur when
one factor is increased and all others are fixed
Purchase of a call option on corn means the buyer
has the option to buy (not required), a corn futures contract at a set price
For self-employed individuals whose income is above the wage base, the Medicare tax rate is
If quantity supplied changes by 10% when price changes by 5%, the price elasticity of supply is
The income that could have been received if the input had been used in its most profitable alternative use is
In a livestock enterprise budget prepared on July 1, home-grown feed
should be included, valued at its net market price
In order to claim the maximum allowable Section 179 expensing deduction in 2016, the amount of qualified property placed in service during 2016 must be no more than
A speculator with a short position in the futures market
profits when prices go down, loses when prices go up.
A cord of fire wood is a stack that contains
128 cubic ft
A Subchapter S corporation can have no more than
Salvage values do not need to be considered when comparing a cash outright purchase to
a credit purchase
Using leverage to expand your business will increase your profitability if your
return on assets is higher than the interest rate
The price of a product changes from $100 to $90 and, as a result, the quantity demanded increased from 50 to 60 units. From this we can conclude that
demand is elastic
There is not a CME Group soybean futures contract for which of these months?
An increase in the value of the U.S. dollar relative to the currency of other countries should result in
less costly imports
Chris has net farm income of $48,155 and no other taxable income. He must pay the self- employment tax on what percent of his net farm income?
If a farmer is to carry a hedge through to completion, the farmer
must be prepared to meet all margin calls
Corn and grain sorghum are substitutes for each other in many livestock feed rations. Assuming they are substitutes, an increase in the supply of corn would cause the demand for grain sorghum to
shift to the left
The maximum Section 179 expensing deduction that could be claimed in 2016 was
The capital gains taxes that would be due should a farmer sell his land is an example of a
A CME Group hog futures contract covers how many pounds of market hogs?
For tax year 2016, the social security wage base was
The two primary methods of describing the size and location of farmland are rectangular survey and
metes and bounds
The money you must deposit with a broker to insure performance in order to trade in the futures market is called
Which is lighter, a bushel of shelled corn or a bushel of soybeans?