PT139.S3.P1.Q5

PrepTest 139 - Section 3 - Passage 1 - Question 5

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P1

The prevailing trend in agriculture toward massive and highly mechanized production, with its heavy dependence on debt and credit as a means of raising capital, has been linked to the growing problem of bankruptcy among small farms. ███

Problem · Modern agriculture has bankrupted lots of small farms
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Solution · Watley: guidelines for small farms
Watley proposes guidelines which, in addition to smart management and hard work, can help small farms become profitable again.
P2

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Solution Details · Grow a variety of crops
Grow at least 10 different crops to hedge against crop failure and generate year-round cash flow.
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Solution Details · Clientele membership club
Instead of loans, get consumers to pay first. Get them to harvest the crops for you. Grow only what your consumers want. Grow it how they want (e.g. pesticide free?).
P3

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Solution Details · Decrease costs
50% of costs are from harvesting so outsourcing that to your consumers allows you to lower your price.
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Solution Details · Sell direct to consumers
Eliminate middle man (distribution) costs.
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Solution Details · Estimates
25 acre farm needs about 1,000 people from metropolitan areas.
P4

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Solution Requirements · Location
Locate farm near big towns. Have your consumers travel to you to get the food.
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Solution Requirements · Irrigation and liability insurance
Some crops don't be drought resistant. Someone is going to fall and hurt themselves on your farm.
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Main Point · This solution will enable small farms to operate profitably
Passage Style
Problem-analysis
Single position
Show answer
5.

The passage provides the most ███████ ███ █████████ █████ ███ ██ ███ █████████ ███████████

a

A corporate farm ██ ████ ██████ ██ ████ █ ████ ████ █ █████ ████ ███

Not supported. If anything, a small farm would be more likely to need a loan than a corporate farm, which is why small farms are facing problems of debt and bankruptcy.

3%
b

If small farms ███████ ████ ████████████ ██████ ███ ███████ ████ ██ ███████ ████ ████ ████ ██ █████████████ ████ █████ █████ █████ ███ ██████ ███████ ██ ███ ████ █████

Not supported, because the author never comments on the potential of small farms to earn “higher” profits than supermarkets. Whatley recommend charging lower than what supermarkets charge, so we have no reason to think that charging the same prices would help small farms.

4%
c

Consumers who live ██ █████ █████ ███ █████████ ████ ████████ ████ █████ ███ ████ ██ ████████████ █████ ██ ████ █ ████

Not supported, because the author never comments on what kind of customer is more likely to join a CMC.

15%
d

If a CMC ████████ █████ ████ ███ █████████ █████ ██ ██ ██████ ████ ██ █████ ███ ██ █████████ ███████████████ ████ ███ ██ █████████

Supported. Whatley recommend growing at least 10 different crops.

60%
e

Distribution costs are █████████ ███ ██ ███ ██████ ██ █ █████ ████ ████ █ ███ ███ ███ ████ ████████ ██ ██████████

Not supported, because there are no distribution costs with Whatley’s system. The farmer doesn’t need to distribute the crops to customers, since the customers will harvest the crops themselves.

17%

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