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CIPS Exam L4M2 Topic 6 Question 43 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 43
Topic #: 6
[All L4M2 Questions]

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

Show Suggested Answer Hide Answer
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:

Mica
28 days ago
High margins? More like high maintenance! Farming ain't for the faint of heart, that's for sure.
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Barabara
8 days ago
C) Reputation within the industry
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Laura
11 days ago
B) Capital requirement
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Kate
16 days ago
A) High margins
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Robt
1 months ago
Gotta be the reputation within the industry. It's all about who you know in this business.
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Royal
23 days ago
A) High margins
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Ty
1 months ago
True, but without enough capital, it's hard to even get started in agriculture.
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Santos
1 months ago
I see your point, Hermila. Brand recognition can help attract customers.
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Ty
1 months ago
I agree with Santos, starting a farm requires a lot of money.
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Talia
1 months ago
Capital requirement, hands down. You need serious investment to get the equipment and land.
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Heidy
2 days ago
C) Reputation within the industry
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Evan
12 days ago
B) Capital requirement
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Chan
1 months ago
A) High margins
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Hermila
1 months ago
But what about brand recognition? Wouldn't that also be important?
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Eve
2 months ago
I'd say the brand recognition. People are loyal to the big names in agriculture.
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Lai
6 days ago
D) Brand recognition
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Merilyn
7 days ago
C) Reputation within the industry
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German
8 days ago
B) Capital requirement
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Chan
9 days ago
A) High margins
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Lavina
10 days ago
Yes, it's hard to compete with well-known brands in agriculture.
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Dean
11 days ago
D) Brand recognition
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Wilda
12 days ago
C) Reputation within the industry
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Man
13 days ago
B) Capital requirement
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Kristian
14 days ago
A) High margins
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Taryn
16 days ago
I agree, brand recognition is definitely a big barrier in agriculture.
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Paris
17 days ago
D) Brand recognition
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Roslyn
23 days ago
C) Reputation within the industry
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Lonna
25 days ago
B) Capital requirement
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Dylan
1 months ago
A) High margins
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Devorah
2 months ago
Definitely the capital requirement. You need deep pockets to get into farming these days.
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Kiley
18 days ago
D) Brand recognition
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Gilma
1 months ago
C) Reputation within the industry
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Emogene
1 months ago
B) Capital requirement
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Edgar
1 months ago
A) High margins
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Santos
2 months ago
I think the capital requirement would be a barrier.
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