TAMU AGEC 325 Exam 1 Questions and
Answers Graded A+
Ways in which agriculture has changed over time - Correct answer--Technology
will continue to provide new inputs
-More specialized products will be possible
-Competition with nonagricultural businesses for use of land, labor and capital
resources will likely increase
Four general strategies for farm business management - Correct answer-1. Low
Volume - High Value
2. High Volume - Low Margin
3. Part-time farmers and ranchers
4. Specialty product and service providers
Low Volume - High Value - Correct answer--Land, labor, & capital may be
constraining
-Marketing is critical
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,High Volume - Low Margin - Correct answer--"Commodities"
-Must monitor prices carefully
Part-time farmers and ranchers - Correct answer--Rely on off-farm income to
supplement farm income
-Might enjoy the lifestyle but don't want a career
-Some start farming part-time with plans to go to full-time
Specially product and service providers - Correct answer--Become really good at
one or two things (custom harvesting, hauling and applying manure)
-Usually must maximize use of expensive equipment/machinery
-Marketing is critical
Five driving forces behind changes in agriculture - Correct answer--Technology
-Greater off-farm employment opportunities
-Farmer's desire for higher income
-Consumer preferences
-Globalization (Opportunity & Threat)
Technology force behind change - Correct answer--Substitute for labor
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, -Biotechnology has improved crop production efficiency
-Genetics and nutrition have improved livestock production
-Data collection and management
Greater off-farm employment opportunities force behind change - Correct answer--
Farm managers
-Next generation of would-be farm managers
Farmer's desire for higher income force behind change - Correct answer--Leads
some to leave farm
-Leads others to grow the business
Consumer preferences force behind change - Correct answer--Desire more
specialized and processed foods
-Buyers implement stricter product standards
-Environmental & Health Concerns
Globalization force behind change - Correct answer--Larger markets for producers
-Trade can help those who specialize
-Can affect consumer tastes and preferences through exposure to new foods
-Producers around the world increasingly complete for same resources
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Answers Graded A+
Ways in which agriculture has changed over time - Correct answer--Technology
will continue to provide new inputs
-More specialized products will be possible
-Competition with nonagricultural businesses for use of land, labor and capital
resources will likely increase
Four general strategies for farm business management - Correct answer-1. Low
Volume - High Value
2. High Volume - Low Margin
3. Part-time farmers and ranchers
4. Specialty product and service providers
Low Volume - High Value - Correct answer--Land, labor, & capital may be
constraining
-Marketing is critical
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,High Volume - Low Margin - Correct answer--"Commodities"
-Must monitor prices carefully
Part-time farmers and ranchers - Correct answer--Rely on off-farm income to
supplement farm income
-Might enjoy the lifestyle but don't want a career
-Some start farming part-time with plans to go to full-time
Specially product and service providers - Correct answer--Become really good at
one or two things (custom harvesting, hauling and applying manure)
-Usually must maximize use of expensive equipment/machinery
-Marketing is critical
Five driving forces behind changes in agriculture - Correct answer--Technology
-Greater off-farm employment opportunities
-Farmer's desire for higher income
-Consumer preferences
-Globalization (Opportunity & Threat)
Technology force behind change - Correct answer--Substitute for labor
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, -Biotechnology has improved crop production efficiency
-Genetics and nutrition have improved livestock production
-Data collection and management
Greater off-farm employment opportunities force behind change - Correct answer--
Farm managers
-Next generation of would-be farm managers
Farmer's desire for higher income force behind change - Correct answer--Leads
some to leave farm
-Leads others to grow the business
Consumer preferences force behind change - Correct answer--Desire more
specialized and processed foods
-Buyers implement stricter product standards
-Environmental & Health Concerns
Globalization force behind change - Correct answer--Larger markets for producers
-Trade can help those who specialize
-Can affect consumer tastes and preferences through exposure to new foods
-Producers around the world increasingly complete for same resources
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
