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This contest is designed to test the contestant's understanding of basic economic principles essential in the successful management of a farm business.

Emphasis will be placed on analytical procedures rather than recall of specific facts. Among other things, contestants will be expected to know how to keep and analyze net worth, farm earnings, and cash flow statement of a case farm; use of partial budgeting to evaluate purchase versus lease and other options, and determine the proper use of credit. Contestants should be familiar with the use of economic principles, logic to determine the proper combination of resources (capital, labor, land and management) for enterprises (dairy, swine, corn, etc.), and the economic relationships between resources and enterprises. Some understanding of agricultural programs and their effects upon individual farmers will also be expected. Basic commodity trading terms will be used.

The Farm Management test will be limited to a specific time period beginning at 8:30 a.m. and ending at noon. The individual test will last until 10:30 a.m. The team test will start at that time. One four-member team per school may enter. Each team member will independently complete the first test, and the team score will be the total scores of the three top team members. All four members of the team must be present for the team to get an exam. They will have one hour to complete the exam. One answer sheet will be returned and the points earned added to their team score. Each contestant should report with two sharpened No. 2.5 lead pencils. Ball point pens cannot be used in this contest. Calculators may be used.

The current test may be kept by the team members. The answers to the individual test will be provided after the contest.