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CIPS Exam L4M2 Topic 2 Question 29 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 29
Topic #: 2
[All L4M2 Questions]

Which of the following factors is most likely to be a barrier to new entrant in agriculture?

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Suggested Answer: B

Barriers to Entry to Agriculture: If stakeholders are going to address the need for new, conserva-tion-minded farmers, they must understand the barriers these farmers encounter when transitioning into the profession. A review of the literature revealed a number of barriers---most of them structural---to entry to agriculture. While each barrier is distinct, they are all interconnected. Though not an exhaustive list, the following barriers are ones that were most frequently mentioned in the literature:

- Access to Affordable Land

- Startup Capital

- Lack of Agricultural Knowledge and Experience

- Lack of Knowledge about Farm Business Planning

- Discrimination

- Student Loans

- Limited Access to Markets

- Affordable Housing and Affordable Healthcare

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Source: Exploring the Barriers to Entry to Agriculture: Challenges Facing Beginning Farmers in North Carolina - Kelley Robbins-Thompson


LO 2, AC 2.2

Contribute your Thoughts:

Zona
4 months ago
True, without the necessary funds, it's difficult to even get a foot in the door in the agriculture industry.
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Kenia
4 months ago
I see your point, but I think capital requirement is still the biggest barrier as it limits the ability to even start building a brand.
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Lucina
4 months ago
But what about brand recognition? Wouldn't that make it difficult for new entrants to compete with established companies?
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Zona
4 months ago
I agree with that. Investing in agricultural equipment and land can be very expensive.
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Estrella
4 months ago
I think the most challenging barrier for new entrants in agriculture is capital requirement.
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Jacklyn
5 months ago
True, brand recognition can come later, but you need money upfront.
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Ashlyn
5 months ago
That could be a barrier too, but without capital, you can't even get started.
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Rosamond
6 months ago
But what about the reputation within the industry?
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Jacklyn
6 months ago
I agree with Ashlyn, starting a farm is expensive.
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Ashlyn
6 months ago
I think the capital requirement is the biggest barrier.
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