AFM Agricultural Management & Operations 4

Question 1

Which of the following best describes 'precision agriculture' in a farm management context?

Accepted Answer

Using site-specific data to vary inputs spatially, matching application to actual field variability

Answer

Precision agriculture uses GPS, remote sensing, and variable-rate technology to apply inputs where and in the amount they are actually needed.

Question 2

A farm manager is creating a cash flow projection for the coming year. Which item would NOT be included in an operating cash flow statement?

Accepted Answer

Principal payment on a land mortgage

Answer

Principal repayments on long-term debt are financing cash flows, not operating cash flows, and appear in the financing section of a cash flow statement.

Question 3

Which tillage system is MOST associated with reducing soil erosion while maintaining crop residue on the surface?

Accepted Answer

No-till farming

Answer

No-till farming leaves the maximum amount of crop residue on the soil surface, providing erosion protection from wind and water.

Question 4

In a SWOT analysis applied to a farm business, which quadrant would 'aging farm equipment with high repair costs' fall under?

Accepted Answer

Weaknesses

Answer

Aging equipment with high repair costs is an internal limitation of the farm business, classifying it as a weakness in SWOT analysis.

Question 5

A poultry integrator pays a grower a base rate plus a performance bonus tied to feed conversion and mortality. What type of production arrangement is this?

Accepted Answer

Production contract (tournament/ranking system)

Answer

This describes a production contract where the integrator owns the birds and pays a base rate plus bonuses based on performance relative to other growers in the 'tournament.'

(AFM) Accredited Farm Manager Certification Practice Test

(AFM) Accredited Farm Manager Certification Practice Test

AFM Agricultural Management & Operations 4