1995 District FFA
Farm Management Contest
Multiple Choice Section
The Farm Management Contest is designed to test understanding of
the application of economic principles in farm management. Each
question is worth three (3) points.
Please place your answers in the appropriate box on the answer
sheet provided. There is only one correct answer to each
question.
1. Fred Brown raises corn and feeds it to his hogs. This type
of business structure is an example of
A. vertical integration.
B. horizontal integration.
C. supply company.
D. marketing cooperative.
E. None of the above
2. You are having a good business year and it looks as if
taxable income is going to be a lot more than it was last
year. Which of the following steps would be the best tax
management before the end of the tax year?
A. Buy $20,000 of feeder steers
B. Postpone buying the $45,000 tractor until next year
C. Buy $15,000 worth of fertilizer for the next crop year
D. Sell 5,000 bushels of corn right now
E. Put up a $15,000 pole barn this year
3. A soybean producer decides to store his soybeans in the local
elevator for six months. The price at harvest is $5.50 per
bushel and the elevator charges 1.5› per bushel per month for
storage plus a 5› per bushel handling charge. He has 4,000
bushels to sell and must borrow $22,000 at 10% annual
interest while he stores the soybeans. What price must he
receive for his soybeans to break even and cover his storage
and opportunity costs?
A. $5.825
B. $5.865
C. $5.915
D. $6.160
E. None of the above
4. In 1994, Pat Parker had net farm income of $35,000. Pat had
total business assets of $600,000 and total liabilities of
$350,000. Pat paid $32,000 in interest. Rate of return on
equity for 1994 would be:
A. 5.8%
B. 11.2%
C. 12.8%
D. 14.0%
E. None of the above
5. Which of the following would produce a change in the quantity
of beef supplied?
A. An increase in the average cost of production of beef
B. A shift in the demand for chicken
C. A shift in the demand for beef
D. A change in consumer incomes
E. All of the above
6. A farmer purchases 500-pound feeder steers for 95› per pound
and plans to sell the steers at 750 pounds. The farmer
estimates the total cost of gain to be 50› per pound. The
nearest breakeven price when the steers are sold at 750
pounds is
A. 60.7›/pound
B. 64.7›/pound
C. 74.3›/pound
D. 80.0›/pound
E. None of the above
7. At the beginning of last year, a farmer had an outstanding
loan for $100,000. The interest rate was 10% APR. If the
farmer made one loan payment at the end of the year of
$25,400, what was the outstanding balance at the end of the
year?
A. $74,600
B. $84,600
C. $90,000
D. $95,400
E. None of the above
8. A farmer has total assets of $500,000 of which land is
$300,000. The farmer's debt:equity ratio is 1.0. What will
the farmer's debt:equity ratio be if the land appreciates by
5%?
A. .64
B. .943
C. 1.064
D. 1.430
E. None of the above
9. Return to management is net cash farm income
A. minus debt payments.
B. minus the value of unpaid labor, depreciation, interest
on equity capital, and net inventory changes.
C. minus the value of operator's labor and interest on debt
payments.
D. minus the interest on equity capital, depreciation, and
adjustments for inventory changes.
E. None of the above
10. Specialization in crops or livestock in a farm business tends
to
A. increase income and increase risk.
B. decrease income and increase risk.
C. decrease risk and increase income.
D. decrease risk and decrease income.
11. An enterprise system of accounts
A. separates taxable income from nontaxable income.
B. differentiates between the value of the operator's
labor, management, and capital.
C. involves keeping separate records of receipts and
expenses for each individual product or class of
products.
D. is required for income tax purposes.
12. The process of finding the future value of a dollar is known as
A. compounding.
B. discounting.
C. forwarding.
D. ratio analysis.
13. If the price of a commodity is too low, the demand will be
greater than the supply resulting in a
A. surplus.
B. boycott.
C. monopoly.
D. shortage.
14. A farmer is purchasing a new baler at a cost of $26,000. His
dealer will finance the baler under the following terms: 15%
down payment with the balance repaid in equal payments over
the next three years at 9% APR. The farmer expects the baler
to last for 9 years and have a salvage value of $1,000. How
much interest will the farmer pay the first year of the loan?
A. $1,989
B. $2,106
C. $2,340
D. $2,600
E. None of the above
15. A new form of business organization approved by the Missouri
legislature in 1993 is:
A. Limited Partnership
B. Family Corporation
C. Limited Liability Company
D. Individual Cooperative
E. None of the above
16. On April 1, 1994, Lynn borrowed $25,000 to buy seed and
fertilizer. On December 1, 1994, she repaid the $25,000
along with $1875.00 interest. What annual interest rate did
she pay?
A. 9.75%
B. 11.25%
C. 11.75%
D. 12.25%
E. None of the above
17. For 1995, the self-employment tax rate for Social Security
and Medicare is
A. 4.58%.
B. 7.65%.
C. 15.30%.
D. 25.00%.
E. None of the above
18. A farmer who buys feeder pigs could use the options market to
reduce his price risk by
A. buying a hog Put option
B. selling a hog Put option
C. buying a hog Call option
D. selling a hog Call option
E. All of the above
19. A feedlot operator purchases a pen of 100 feeder steers with
an average weight of 700 pounds and sells them at an average
weight of 1050 pounds. Total feed cost for the pen is
$15,000. Feed cost per pound of gain is equal to
A. $0.429
B. $0.514
C. $0.600
D. $0.720
E. None of the above
20. A farmer placed too low a value on his calves in his closing
inventory while all other records were accurate. Net capital
ratio in his record summary is
A. too high.
B. too low.
C. not affected.
D. fixed.
21. A decrease in the value of the U.S. dollar relative to the
currency of other countries should result in
A. more costly imports.
B. less costly imports.
C. increased imports.
D. no effect on imports or exports.
22. When the size of the wheat harvest exceeds locally available
farm and elevator storage, what happens to the basis?
A. Basis narrows
B. Basis widens
C. Basis goes out of existence
D. Basis is usually the same all year long
23. How many total acres are included in "S 1/2 of NE 1/4 and NW
1/4 of SE 1/4 of Section 15, Twp. 10N, R4W of the 5th
Principle Meridian"?
A. 80 acres
B. 120 acres
C. 160 acres
D. 320 acres
E. None of the above
24. How much perimeter fence would be required to completely
enclose the parcel of land described in question 23?
A. 1.0 mile
B. 1.5 miles
C. 2.0 miles
D. 2.5 miles
E. None of the above
25. A grain farmer who normally stores his soybeans at a local
elevator has decided to use the options market to create a
synthetic storage. To do so he will sell his beans at
harvest and
A. buy a put option.
B. sell a put option.
C. buy a call option.
D. sell a call option.
26. A Subchapter S corporation can have no more than
A. 10 shareholders.
B. 15 shareholders.
C. 25 shareholders.
D. 35 shareholders.
E. There is no limit on number of shareholders.
27. The money you must deposit with a broker to insure
performance in order to trade in the futures market is called
A. basis.
B. margin.
C. commission.
D. spread.
E. None of the above
28. A feeder cattle producer has 57 head of 750 pound steers and
can sell them for $82 per cwt. or send them to a custom
feedlot which guarantees the feeder 55› per pound cost of
gain. What price per cwt. will the producer have to receive
if he sends them to the feedlot in order to break even with
the offer he has at $82 per cwt. when they weigh 750 pounds?
Assume he plans to feed them to a weight of 1100 pounds.
Disregard the opportunity cost of capital, death loss, and
shrink.
A. $70.55 per cwt.
B. $72.05 per cwt.
C. $73.41 per cwt.
D. $79.25 per cwt.
E. None of the above
29. Sometime back you bought a $71.00 live cattle future Put for
$3.00. It's now mid-September and October futures are $65.
The option expires next week and the $71.00 Puts are selling
for $6.00. Your cattle are ready for market and a buyer has
offered you $64.00/cwt. What is your most likely course of
action?
A. Sell your cattle for $64 and let the option expire
B. Hold the cattle until the cash price equals the futures
price
C. Sell both your cattle and your Put now
D. Sell your cattle now and buy another Put
30. The capitalized value of land that yields $50 per year in net
returns to land is $__________ if the interest rate is 8%.
A. $5
B. $50
C. $500
D. $625
31. An advantage of making an estate the beneficiary of a life
insurance policy is to
A. reduce estate tax liabilities.
B. decrease the size of the estate.
C. provide insurance protection to heirs.
D. provide liquid funds to satisfy tax liability.
E. All of the above.
32. Corn has an expected yield of 95 bushels per acre and has a
production cost of $140.00 per acre. Current market prices
are $2.50 per bushel for corn and $6.50 per bushel for
soybeans. Soybeans can be raised at a production cost of
$110 per acre. At what breakeven yield per acre would
soybeans generate the same net return per acre as dryland
corn?
A. 29.1 bushels
B. 31.9 bushels
C. 34.2 bushels
D. 38.7 bushels
E. None of the above
33. The maximum amount that a wife can inherit from her husband
without owing any federal estate tax is
A. $10,000.
B. $600,000.
C. $600,000 less excess gift tax.
D. unlimited.
E. None of the above
34. Individual Retirement Accounts (IRAs) have become very
popular. The maximum annual IRA contribution per worker is
$2,000 plus an additional $____________ for a non-working
spouse.
A. $200
B. $250
C. $1,000
D. $2,000
E. None of the above
35. In order for limited partners to maintain their limited
liability, they can not
A. share in the profits of the limited partnership.
B. own more than one-third of the limited partnership.
C. participate in the management of the limited
partnership.
D. own more than 49.9% of the limited partnership.
E. Both C and D.
36. You are considering the purchase of a combine, rather than
continuing to hire a custom operator at $22.00 per acre. If
you purchase the machine, the annual fixed costs (interest,
depreciation, etc.) will be $12,000. The variable cost is
$10 per acre including the extra labor. There would be no
other changes in costs and returns associated with ownership
and no savings other than the custom charges. How many acres
must be harvested each year in order to justify (on a
breakeven basis) purchase the combine?
A. 500
B. 833.3
C. 1,000
D. 1,200
E. None of the above
37. Effective 1/1/94 a cancelled check is no longer adequate
proof of a charitable contribution that is greater than
A. $ 250
B. $ 1000
C. $ 5000
D. $ 10,000
E. None of the above
38. Farmer Jones has $10,000 in equipment he uses exclusively for
corn. He assumes that this equipment will last 5 years and
have a salvage value of $0. He plans to plant 100 acres of
corn each year. Assuming an interest rate of 8%, what will
be his average fixed costs per year for the next 5 years
(depreciation and interest) for this machinery per acre of
corn?
A. $10
B. $20
C. $24
D. $30
E. None of the above
39. Effective for tax years beginning after 1992, the maximum
amount that can be claimed as a section 179 expense deduction
on your tax return has been changed to:
A. $0
B. $5,000
C. $15,000
D. $17,500
E. None of the above
40. Individuals age 55 and over can exclude from income up to
$________ of gain from the sale of their principal residence.
A. $25,000
B. $50,000
C. $100,000
D. $125,000
E. None of the above
1995 DISTRICT FFA FARM MANAGEMENT CONTEST
Problems Section
For the following problems, place your answer for each question
in the corresponding numbered space on the answer sheet.
Computations may be done in the margins or on the back of the
paper. Each question is worth four (4) points. There is only
one correct answer for each question.
PROBLEM I - Balance Sheet
Using the information below, complete the net worth statement for
January 1, 1995:
Land . . . . . . . . . . . . . . . . . . . . . . . . $103,000
Autos . . . . . . . . . . . . . . . . . . . . . . . 15,000
Machinery and equipment. . . . . . . . . . . . . . . 95,000
Cows . . . . . . . . . . . . . . . . . . . . . . . . 61,000
Calves . . . . . . . . . . . . . . . . . . . . . . . 19,000
Sows and boars . . . . . . . . . . . . . . . . . . . 76,000
Market hogs . . . . . . . . . . . . . . . . . . . . 170,000
Checking and savings . . . . . . . . . . . . . . . . 6,947
House. . . . . . . . . . . . . . . . . . . . . . . . 69,000
Fences . . . . . . . . . . . . . . . . . . . . . . . 22,000
Hog buildings . . . . . . . . . . . . . . . . . . . 50,000
Feed and hay . . . . . . . . . . . . . . . . . . . . 5,100
Accrued interest owed. . . . . . . . . . . . . . . . 3,750
Accrued taxes owed . . . . . . . . . . . . . . . . . 7,400
25-year land loan balance is $22,000.
$3,000 plus interest is due October 1 of each year.
5-year equipment loan balance is $71,000.
$18,000 plus interest is due August 31 of each year.
Current Assets: Short-term Liabilities:
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
Total _________________ Total __________________
Intermediate Assets: Intermediate Liabilities:
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
Total _________________ Total __________________
Fixed Assets: Long-term Liabilities:
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
______________________________ _______________________________
Total _________________ Total __________________
Total Assets________________ Total Liabilities____________
Net Worth _________________
Questions 1 through 7 refer to PROBLEM I
1. The total value of current assets on January 1, 1995, was:
A. $201,047
B. $261,047
C. $301,047
D. $323,047
E. None of the above
2. The total value of intermediate assets was:
A. $162,000
B. $181,000
C. $242,000
D. $257,000
E. None of the above
3. The total value of fixed (or long-term) assets was:
A. $103,000
B. $172,000
C. $244,000
D. $289,000
E. None of the above
4. The total value of short-term liabilities was:
A. $11,150
B. $14,150
C. $32,150
D. $85,150
E. None of the above
5. The total value of intermediate liabilities was:
A. 0
B. $18,000
C. $53,000
D. $71,000
E. None of the above
6. The total value of long-term liabilities was:
A. $3,000
B. $19,000
C. $22,000
D. $75,000
E. None of the above
7. The current ratio is:
A. 0.150
B. 0.160
C. 6.253
D. 6.645
E. None of the above
PROBLEM II -- Enterprise Budget
Use the following alfalfa budget to answer Questions 8 through
16.
-----------------------------------------------------------------
ALFALFA HAY 3.5 TONS PER ACRE ANNUAL PRODUCTION
Owned Equipment, Custom Hauling
Operating Inputs: Units Price Quantity Value
Alfalfa insect. Acre 14.630 2.000 29.26
Storage Tons 4.000 3.250 13.00
Custom hauling Tons 0.380 3.250 1.24
Estab. prorate Acre 192.630 0.200 38.55
Baling wire Bl. 0.120 97.00 11.64
Annual operating capital Dol. 0.086 28.037 2.42
Machinery labor Hr. 4.65 2.323 10.80
Livestock labor Hr. 4.65 0.750 3.488
Mach. fuel, lube, repair Dol. 22.12
Total operating costs 132.52
Fixed Costs: Amount Value
Machinery
Interest at 9.25% 194.68 18.01
Depr., taxes, insurance 15.95
Total fixed costs 43.96
Production: Units Price Quantity Value
Alfalfa hay Tons 90.00 3.25 292.50
Total receipts 292.50
Returns above total operating cost 159.98
Returns above all costs except
overhead, risk, and management 116.02
Establishment cost prorated over five years.
---------------------------------------------------------------
8. Total operating cost per acre is:
A. $116.02
B. $132.52
C. $159.98
D. $292.50
E. None of the above
9. The return above total operating cost per acre is:
A. $116.02
B. $132.52
C. $159.98
D. $292.50
E. None of the above
10. How many hours of labor are budgeted per acre?
A. 0.750
B. 2.323
C. 3.073
D. 3.488
E. None of the above
11. What price per bale is paid for baling wire?
A. 12 cents
B. 45 cents
C. 97 cents
D. 111 cents
E. None of the above
12. What is the total budgeted interest cost per acre?
A. $10.80
B. $18.01
C. $20.43
D. $25.95
E. None of the above
13. How many tons of hay are produced in a 80-acre field?
A. 40
B. 90
C. 130
D. 260
E. None of the above
14. What was the cost per acre to establish the stand of
alfalfa?
A. $38.55
B. $132.52
C. $192.63
D. Not enough information given
E. None of the above
Some adjustments need to be made to the budget. By applying 200
pounds of fertilizer per acre, you should be able to increase the
expected yield by 1.5 tons per acre.
15. If fertilizer costs 15› per pound and spreading costs $2 per
acre, how much will per acre costs increase?
A. $15.00
B. $22.50
C. $24.50
D. $32.00
E. None of the above
16. With fertilization and the increased yield, what will be the
expected per acre return over all budgeted costs?
A. $91.52
B. $221.02
C. $271.52
D. $315.48
E. None of the above
PROBLEM III -- Income Tax Management
Use following tax tables to calculate depreciation for questions
17 through 22.
ANNUAL DEPRECIATION PERCENTAGES FOR 5-YR PROPERTY, 150% DB
_________________________________________________________________
MID-QUARTER CONVENTION
Tax MID-YEAR Quarter placed in service --
Year CONVENTION 1 2 3 4
1 15.000% 26.250% 18.750% 11.250% 3.750%
2 25.500 22.125 24.375 26.625 28.875
3 17.850 16.520 17,062 18.637 20.212
4-5 16.660 16.520 16.763 16.567 16.404
6 8.330 2.065 6.287 10.354 14.355
Total 100.000 100.000 100.000 100.000 100.000
_________________________________________________________________
ANNUAL DEPRECIATION PERCENTAGES FOR 7-YR PROPERTY, 150% DB
_________________________________________________________________
MID-QUARTER CONVENTION
Tax MID-YEAR Quarter placed in service --
Year CONVENTION 1 2 3 4
1 10.714% 18.750% 13.393% 8.036% 2.679%
2 19.133 17.411 18.559 19.707 20.854
3 15.033 13.680 14.582 15.484 16.386
4 12.249 12.160 12.221 12.275 12.874
5-7 12.249 12.160 12.221 12.275 12.182
8 6.124 1.520 4.582 7.673 10.661
Total 100.000 100.000 100.000 100.000 100.000
_________________________________________________________________
ANNUAL FRACTIONS FOR STRAIGHT LINE OVER N YEARS (N less than 26)
_________________________________________________________________
MID-QUARTER CONVENTION
Tax MID-YEAR Quarter placed in service --
Year CONVENTION 1 2 3 4
1 1/2 7/8 5/8 3/8 1/8
2-N 1 1 1 1 1
N+1 1/2 1/8 3/8 5/8 7/8
_________________________________________________________________
Depreciation formula: Basis divided by N times number from above
table.
ANNUAL FRACTIONS FOR 27 1/2 YEAR PROPERTY, REGULAR MACRS
_________________________________________________________________
Tax Month Placed in Service --
Year 1 2 3 4 5 6 7 8 9 10 11 12
1 11.5 10.5 9.5 8.5 7.5 6.5 5.5 4.5 3.5 2.5 1.5 0.5
2-27 12 12 12 12 12 12 12 12 12 12 12 12
28 6.5 7.5 8.5 9.5 10.5 11.5 12 12 12 12 12 12
29 -- -- -- -- -- -- 0.5 1.5 2.5 3.5 4.5 5.5
_________________________________________________________________
Depreciation formula: Basis divided by 27 1/2 divided by 12
times number from above table.
ANNUAL FRACTIONS FOR 39 YEAR PROPERTY, REGULAR MACRS
_________________________________________________________________
Tax Month Placed in Service --
Year 1 2 3 4 5 6 7 8 9 10 11 12
1 11.5 10.5 9.5 8.5 7.5 6.5 5.5 4.5 3.5 2.5 1.5 0.5
2-39 12 12 12 12 12 12 12 12 12 12 12 12
40 0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5 11.5
_________________________________________________________________
Depreciation formula: Basis divided by 39 divided by 12 times
number from above table.
On October 15, 1994, Dave traded combines. The old combine had a
remaining undepreciated value of $17,482. Dave paid $55,200
"boot" in the trade for the new combine.
17. The combine is:
A. 3-year property
B. 5-year property
C. 7-year property
D. 10-year property
E. None of the above
18. If Dave does not expense any of the cost of the combine,
then 1994 depreciation will be (use regular MACRS and
mid-quarter convention):
A. $1,010.47
B. $1,947.15
C. $4,041.11
D. $7,787.15
E. None of the above
19. If Dave expenses the maximum on the combine trade, and uses
the mid-quarter convention and regular MACRS, then 1994
depreciation will be:
A. $1,478.33
B. $1,606.92
C. $1,740.87
D. $13,627.88
E. None of the above
20. If Dave does not expense and uses the mid-year convention
and straight line depreciation over the alternate MACRS
life, his 1994 depreciation will be:
A. $3,634.10
B. $5,507.19
C. $7,268.20
D. $1,160.39
E. None of the above
21. In order to use the mid-quarter convention, at least ______
percent of Dave's 1994 purchases of depreciable property
must have been made in the fourth quarter.
A. 60%
B. 50%
C. 40%
D. 33%
E. None of the above
22. Under MACRS, a machine shed is classified as
A. 15-year property
B. 20-year property
C. 27.5-year property
D. 31.5-year property
E. None of the above
PROBLEM IV -- Supply and Demand
(insert graph)
The above graph represents the current supply of wheat in the
U.S. (S), the expected supply of wheat once the CRP program ends
(S1), the foreign demand for U.S. wheat (DF), the domestic demand
for U.S. wheat (DUS), and the total demand for U.S. wheat (DT).
For questions 23-25, use the current wheat supply (S).
23. What is the market equilibrium price of wheat in the U.S.?
A. P1
B. P2
C. P3
D. P4
E. None of the above
24. At the market equilibrium price, how much wheat will be used
in the U.S.?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
25. At the market equilibrium price, how much wheat will be
exported?
A. Q1
B. Q2
C. Q3
D. Q4
E. Q5
26. Without foreign demand, the equilibrium price of wheat would
be
A. P1
B. P2
C. P3
D. P4
E. None of the above
For questions 27 and 28, assume the CRP program ends and the
wheat supply increased from S to S1.
27. The change in supply will cause the market equilibrium price
to
A. increase.
B. decrease.
C. not change.
D. None of the above
28. After the end of CRP, U.S. wheat exports should
A. increase.
B. decrease.
C. stay the same.
D. None of the above
29. If the value of the dollar drops relative to the currency of
our trading partners, the equilibrium price of wheat should
A. increase.
B. decrease.
C. stay the same.
PROBLEM V - Marketing
In January, a farmer has 5,000 bushels of corn in the bin. He
sells the corn on April 5. Ignore storage, commissions, and
interest.
January 15 quotes: April 5 quotes:
May futures price = $2.50 May futures price = $2.55
Expected basis = $0.08 under Basis = $0.05 under the board
the board
Strike ---- Premiums ---- ---- Premiums ----
price Call Put Call Put
$2.10 $0.43 $0.07 $0.33 $0.01
$2.20 $0.33 $0.14 $0.24 $0.02
$2.30 $0.24 $0.22 $0.16 $0.05
$2.40 $0.16 $0.31 $0.09 $0.11
$2.50 $0.09 $0.41 $0.04 $0.20
30. What is the cash price of corn on April 5?
A. $2.50
B. $2.55
C. $2.60
D. $2.65
E. None of the above
31. If the farmer sold a futures contract on January 15 and
bought back the contract on April 5, what would be the
realized price per bushel (cash + net on futures) for his
corn?
A. $2.40
B. $2.45
C. $2.50
D. $2.60
E. None of the above
32. If the farmer bought a $2.50 Put on January 15 and sold the
Put on April 5, what would be the realized price per bushel
(cash + net on options) for his corn?
A. $2.29
B. $2.40
C. $2.50
D. $2.60
E. None of the above
33. If the farmer bought a $2.50 Put and sold a $2.50 Call on
January 15, and sold the Put and bought back the Call on
April 5, what would be the realized price per bushel (cash +
net on options) for his corn?
A. $2.34
B. $2.45
C. $2.59
D. $2.61
E. None of the above
34. If the farmer sold his corn on January 15 for $2.38 per
bushel and bought a $2.50 May Call, then sold the Call on
April 5, his realized price bushel (cash + net on options)
would be
A. $2.33
B. $2.53
C. $2.63
D. $2.74
E. None of the above
PROBLEM VI - Investment Analysis
Rich Farmer has 2,000 bushels of corn stored on his farm. He can
sell it at the local elevator for $2.30 per bushel. It will cost
him $.10 per bushel to haul it to the elevator. Rich is
considering feeding the corn to some hogs. He can buy 50 pound
feeder pigs for 80› per pound delivered to his farm.
Rich will grind and mix his own hog feed. His ration consists of
80 pounds of corn and 20 pounds of commercial feed additive. He
can get the commercial additive delivered for $180 per ton.
Rich plans to market the hogs at 255 pounds. He thinks it will
take 120 days of feeding to reach that weight. He expects a 3.8
to 1 feed conversion ratio.
35. How many pounds of corn does Rich have? (Hint: Corn weighs
56 pounds per bushel.)
A. 1,500
B. 5,600
C. 84,000
D. 112,000
E. None of the above
36. How much commercial feed additive will he need to buy to mix
with the 2,000 bushels of corn?
A. 21,000 pounds or 10.5 tons
B. 28,000 pounds or 14 tons
C. 50,000 pounds or 25 tons
D. 112,000 pounds or 56 tons
E. None of the above
37. Given the limited corn supply, how many pounds of gain (at
3.8 to 1) can Rich get if he feeds an 80-20 ration?
A. 27,632 pounds
B. 29,474 pounds
C. 35,000 pounds
D. 36,842 pounds
E. None of the above
38. How many feeder pigs should Rich buy (assuming a zero death
loss)?
A. 134
B. 140
C. 166
D. 175
E. 179
Rich decides to feed the pigs. He buys 170 which average 51
pounds each. Five die and he sells 165 which average 257 pounds.
He has 120 bushels of corn left.
39. What feed conversion did Rich actually get?
A. 3.79 pounds of feed per pound of gain
B. 3.82 pounds of feed per pound of gain
C. 3.90 pounds of feed per pound of gain
D. 4.01 pounds of feed per pound of gain
E. None of the above
40. If Rich's costs (other than feed and pigs) were $25 per pig
purchased, what was Rich's breakeven selling price?
A. $41.40 per cwt.
B. $41.66 per cwt.
C. $46.05 per cwt.
D. $47.54 per cwt.
E. None of the above
1995 DISTRICT FFA FARM MANAGEMENT CONTEST
Key
Multiple Choice
1. A 11. C 21. A 31. D
2. C 12. A 22. B 32. B
3. C 13. D 23. B 33. D
4. D 14. A 24. C 34. B
5. E 15. C 25. C 35. C
6. D 16. B 26. D 36. C
7. B 17. C 27. B 37. A
8. B 18. A 28. C 38. C
9. B 19. A 29. C 39. D
10. A 20. B 30. D 40. D
Problems
1. A 11. A 21. C 31. B
2. E 12. C 22. B 32. A
3. C 13. D 23. D 33. A
4. C 14. C 24. B 34. A
5. C 15. D 25. A 35. D
6. B 16. E 26. B 36. B
7. C 17. C 27. B 37. D
8. B 18. B 28. A 38. E
9. C 19. A 29. A 39. C
10. C 20. A 30. A 40. E