Economic Sustainability

Question 1

A farm is economically viable when

Answer 1

Levels of annual cash income sufficient to cover
operating costs, meet the household minimum
consumption needs, replace capital items at a rate
that ensures constant serviceability of the capital
stock and finance loan retirement as scheduled

Question 2

Important concepts associated with Economic Sustainability

Answer 2

Its not the size of the check, but how much you keep
- There is a cost to replace and repair
- Can you make more money by investing in something else (bank interest)
- Don’t forget to pay yourself
ANSC 24000

Question 3

Profit and Loss Statement (P&L)

Answer 3

Compares total income of a business against its debt and expenses
- Financial health statement

Question 4

Stocker op

Answer 4

Lightweight cattle raised primarily on cereal grains target 2-4 lbs ADG
- Business focus, realize low cost gain in preparation for entrance to a feedlot