2021 Farm Bis Part 1

The USDA Farm assistance program to aid marketing disruptions due to COVID 19 is:

• COVID Farmer Assistance Program

• Coronavirus Food Assistance Program

• Commodities For Agricultural Program

• COVID Farmer Aid Program

The agricultural producer's goal of sound tax management should be to:

• Pay the least taxes possible

• Cheat the government

• Maximize after tax income

• Pay maximum taxes to support the government

The factors that have led to the recent increase in soybean commodity prices:

• Large imports, especially by China

• Uncertain weather conditions in Brazil and the Midwest United States

• Low stocks/supplies of soybeans in the United States

• All of the above factors

Interest that has accumulated on a loan but not yet been paid is called:

• Current interest

• Artificial interest

• Deferred interest

• Accrued interest

When a producer is deciding to spend money on an enterprise:

• Marginal costs need to be greater than marginal returns

• Marginal returns need to be greater than marginal costs

• He/she should consult with his agricultural loan officer

• He/she should consult with their neighbors

In the simplest terms, a market is the interaction of:

• Goods and services

• Consumers and the government

• Supply and demand

• Wholesalers and retailers

Which Farm Financial Ratio is calculated through using the balance sheet:

• Profitability

• Repayment Capacity

• Liquidity

• Financial Efficiency

How is working capital calculated:

• Labor hours divided by value of farm production

• Current assets minus current liabilities

• Current liabilities minus current assets

• Gross income minus total cash expenses

Which of the following is not a depreciable asset:

• Purchased breeding livestock

• A house used for hired workers

• A purchased tractor

• Purchased farmland

Farmers often use trusts and wills in developing estate plans. They do so to:

• Pass their estate onto their heirs and minimize estate taxes

• Avoid income taxes now even if taxes are higher later

• Show their trust in the government

• Ensure all of the heirs are treated equally.