AGEC $271$ Farm and Ranch Management

Please complete the blanks based on the provided information $($use the last page for the enterprise budget$).$ Assume you are currently farming and have the opportunity to rent an additional $300$ acres to grow only corn. Answer Questions $7$ to $10$ based on your completed enterprise budget $(\backslash (\backslash$mathbf$\{50\}\backslash )$ points total, Deduct $3$ points per item$).$

$-$ Corn price is expected to be $\backslash (\backslash$$ $4\mathrm{.}60\backslash )$ per bushel, with an expected yield of $175$ bushels per acre.

$-$ Seed price is $\backslash (\backslash$$ $3\mathrm{.}50\backslash )$ per thousand seeds, and you need to plant $25,000$ seeds per acre.

$-$ Nitrogen costs $\backslash (\backslash$$ $0\mathrm{.}75\backslash )$ per pound, with a required application of $150$ lbs $.$ per acre.

$-$ Weed control costs $\backslash (\backslash$$ $40\backslash )$ per acre.

$-$ Crop insurance costs $\backslash (\backslash$$ $20\backslash )$ per acre.

$-$ Machinery variable costs are $\backslash (\backslash$$ $100\backslash )$ per acre.

$-$ You aim to earn $\backslash (\backslash$$ $15\mathrm{.}00\backslash )$ per hour for your labor, working $0\mathrm{.}7$ hours per acre.

$-$ The opportunity cost of your capital is $\backslash (5\backslash \%\backslash ).$

$-$ Machinery and tractor fixed costs are as follows: machinery depreciation is $\backslash (\backslash$$ $50\backslash )$ per acre, machinery interest is $\backslash (\backslash$$ $19\mathrm{.}50\backslash )$ per acre, and machinery taxes and insurance are $\backslash (\backslash$$ $4\mathrm{.}50\backslash )$ per acre.

$-$ Land rent is $\backslash (\backslash$$ $60\mathrm{.}00\backslash )$ per acre.

Question $7.$ What is the interest values, and how was it calculated? $(5$ pts$.)$

Question $8.$ What is the cost of production? $(5$ pts$.)$

Question $9.$ At what price will production stop in the short run? $(5$ pts$.)$

Question $10.$ What is the break$-$even yield to cover all costs? $(5$ pts$.)$

$***$ If units are not indicated, $1$ point will be deducted $($e$.$g$.,\text{'}5\text{'}$ is incorrect; it should be $\text{'}\backslash$$$5$ per head or $\backslash$$$5\text{'}).$

$***$ If the formula used for calculations is not shown, $\backslash (\backslash$mathbf$\{50\backslash \%\}\backslash )$ of the total points for the question will be deducted. AGEC $271$ Farm and Ranch Management

Please complete the blanks based on the provided information $($use the last page for the enterprise budget$).$ Assume you are currently farming and have the opportunity to rent an additional $300$ acres to grow only corn. Answer Questions $7$ to $10$ based on your completed enterprise budget $(\backslash (\backslash$mathbf$\{50\}\backslash )$ points total, Deduct $\backslash (\backslash$mathbf$\{3\}\backslash )$ points per item$).$

$-$ Corn price is expected to be $\backslash (\backslash$$ $4\mathrm{.}60\backslash )$ per bushel, with an expected yield of $175$ bushels per acre.

$-$ Seed price is $\backslash (\backslash$$ $3\mathrm{.}50\backslash )$ per thousand seeds, and you need to plant $25,000$ seeds per acre.

$-$ Nitrogen costs $\backslash (\backslash$$ $0\mathrm{.}75\backslash )$ per pound, with a required application of $150$ lbs $.$ per acre.

$-$ Weed control costs $\backslash (\backslash$$ $40\backslash )$ per acre.

$-$ Crop insurance costs $\backslash (\backslash$$ $20\backslash )$ per acre.

$-$ Machinery variable costs are $\backslash (\backslash$$ $100\backslash )$ per acre.

$-$ You aim to earn $\backslash (\backslash$$ $15\mathrm{.}00\backslash )$ per hour for your labor, working $0\mathrm{.}7$ hours per acre.

$-$ The opportunity cost of your capital is $\backslash (5\backslash \%\backslash ).$

$-$ Machinery and tractor fixed costs are as follows: machinery depreciation is $\backslash (\backslash$$ $50\backslash )$ per acre, machinery interest is $\backslash (\backslash$$ $19\mathrm{.}50\backslash )$ per acre, and machinery taxes and insurance are $\backslash (\backslash$$ $4\mathrm{.}50\backslash )$ per acre.

$-$ Land rent is $\backslash (\backslash$$ $60\mathrm{.}00\backslash )$ per acre.

Question $7.$ What is the interest values, and how was it calculated? $(5$ pts$.)$

Question $8.$ What is the cost of production? $(5$ pts$.)$

Question $9.$ At what price will production stop in the short run? $(5$ pts$.)$

Question $10.$ What is the break$-$even yield to cover all costs? $(\backslash (\backslash$mathbf$\{5\}\backslash$mathbf$\{$~ p t s $.)\}\backslash )$

$***$ If units are not indicated, $1$ point will be deducted $($e$.$g$.,\text{'}5\text{'}$ is incorrect; it should be $\text{'}\backslash$$$5$ per head or $\backslash (\backslash$$ $5\backslash )\text{'}).$

$***$ If the formula used for calculations is not shown, $\backslash (\backslash$mathbf$\{50\backslash \%\}\backslash )$ of the total points for the question will be deducted.