Farm and Agribusiness Management
This event is designed to test the participant's understanding of basic economic principles essential in the successful management of a farm business.
- To provide high school agriculture students with farming or farm business interests a practical experience that will help them make analysis and decisions in the management of a farm.
- To develop students' understanding of basic economic principles.
- To develop students' skills in analysis, computation, and decision-making.
- To provide experience in individual as well as group decision-making activities related to the management of a farm.
Emphasis will be placed on analytical procedures rather than recall of specific facts. Among other things, contestants will be expected to know how to keep and analyze net worth, farm earnings, and cash flow statement of a case farm; use partial budgeting to evaluate purchase versus lease and other options; and determine the proper use of credit. Contestants should be familiar with the use of economic principles, logic to determine the proper combination of resources (capital, labor, land, and management) for enterprises (dairy, swine, corn, etc.), and the economic relationships between resources and enterprises. Some understanding of agricultural programs and their effects upon individual farmers will also be expected. Basic commodity trading terms will be used.
The contest will consist of an individual written exam plus a group team activity. Students are reminded that calculators may be used. The rules for the contest are explained below.
- Each team can have four members.
- Each team member will take an individual exam that consists of 50 questions worth two points each.
- The individual score will be the score earned on this exam.
- The individual exam will be limited to 90 minutes.
- Each individual must work independently of other members of the team.
- No books or other sources of information shall be used during the event.
- Calculators may be used, but cell phones cannot be used.
Failure to comply with the above provisions will subject the team to disqualification.
Before the individual exam, the team members will cooperate to solve a team activity. The team activity will be limited to 90 minutes. After a team has completed the group activity, the members can begin the individual exam portion of the contest.
The team score will be the total of the scores of the top three of the four team members plus the score of the team activity. The possible score will be 400 points.