Certified Crop Advisor Practice Exam

If the value of a crop is $3/bu and a production practice costs $11.50/acre, what yield increase is necessary for the practice to be profitable?

1. 2 bu/acre

2. 3 bu/acre

3. 4 bu/acre

4. 5 bu/acre

The correct answer is: 4 bu/acre

To determine the necessary yield increase for the production practice to be profitable, we need to find out how many additional bushels per acre are required to cover the cost of the practice with the value of the crop. The cost of the production practice is $11.50 per acre. The value of the crop is $3 per bushel. To find out the yield increase needed, you would divide the cost of the practice by the value per bushel. Calculating this gives us: $11.50 (cost of practice) ÷ $3 (value per bushel) = 3.83 bushels per acre. Since only whole bushels can be produced, this means that in order for the practice to be profitable, it would require a minimum of 4 bushels per acre to cover the cost and start generating profit. Therefore, a yield increase of 4 bushels per acre is necessary for the practice to be profitable.