100+ Free ASFMRA AFM Practice Questions

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Key Facts: ASFMRA AFM Exam

75%

Management Plan Passing Score (Overall)

ASFMRA

70%

Minimum Per Subcategory

ASFMRA management plan

85+ hrs

Required Coursework

ASFMRA-approved

4 years

Required Management Experience

ASFMRA

BS/BA

Required Education

4-year degree

Farm Management Plan

Comprehensive submission

The AFM is awarded by ASFMRA to candidates with a 4-year degree, 4 years of farm/ranch management experience, 85 hours of approved coursework, a graded farm management plan (75% overall, 70% per subcategory), and a passing score on the AFM Comprehensive Exam. AFM holders manage land for trusts, banks, investors, and retired farmers. The designation signals competency across leases, finance, tax, conservation, and succession to landowner clients.

Sample ASFMRA AFM Practice Questions

Try these sample questions to test your ASFMRA AFM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under a typical cash lease, who bears the production risk from low yields and price declines?

A.The landlord

B.The tenant

C.Shared 50-50

D.The lender

Explanation: In a cash lease, the tenant pays a fixed rent regardless of yields or prices, so the tenant bears the production and price risk. The landlord receives a predictable rent stream with low risk.

2A flexible cash lease typically adjusts rent based on:

A.Actual yields, prices, or gross crop revenue

B.Landlord's mortgage payment

C.Local property tax rates only

D.Tenant's input costs only

Explanation: Flexible cash leases tie rent to outcomes such as yields, harvest-time prices, or gross revenue. They balance landlord risk-sharing with tenant predictability. Iowa State Extension data show many flex leases set rent at 25-40% of gross crop revenue.

3Which Schedule F line item is generally NOT a deductible expense for a cash-method farmer?

A.Seed and fertilizer purchased for the current crop

B.Pre-paid expenses exceeding 50% of other expenses (excess portion)

C.Hired labor and wages

D.Crop insurance premiums

Explanation: IRC Section 464 limits cash-basis farmers to deducting prepaid farm supplies only to the extent they do not exceed 50% of other deductible farm expenses. Prepaid expenses above that threshold are deferred to the year used.

4Under USDA's Agriculture Risk Coverage (ARC) program, payments are triggered when:

A.Actual county or individual revenue falls below the revenue guarantee

B.Actual price falls below the reference price

C.Acres are taken out of production

D.Crop insurance is purchased

Explanation: ARC provides revenue protection: payments trigger when actual county revenue (ARC-CO) or individual farm revenue (ARC-IC) falls below the benchmark revenue guarantee, which is based on historical Olympic average yields and prices.

5Price Loss Coverage (PLC) payments are calculated based on:

A.The difference between the effective reference price and the marketing year average price, times payment yield and 85% of base acres

B.Cash rent paid

C.Crop insurance indemnities

D.Actual yields and prices on planted acres

Explanation: PLC pays when the marketing year average price falls below the effective reference price. Payment = (Effective Reference Price - MYA Price) x Payment Yield x 85% of Base Acres. It is decoupled from current planting.

6The Conservation Reserve Program (CRP) general signup typically requires:

A.A 10-15 year contract with annual rental payments and cost-share for establishing cover

B.A perpetual easement and no payments

C.Annual cash payments for actively farming the land

D.Surrender of all mineral rights

Explanation: CRP general signup contracts run 10-15 years and pay annual rental plus up to 50% cost-share to establish approved conservation covers. Highly erodible or environmentally sensitive land is prioritized for enrollment.

7In farm financial analysis, the current ratio is calculated as:

A.Current assets divided by current liabilities

B.Total assets divided by total liabilities

C.Net income divided by gross sales

D.Total liabilities divided by net worth

Explanation: The current ratio (current assets / current liabilities) measures short-term liquidity. A ratio of 2.0 or higher is generally considered strong for agricultural operations, though the standard varies by enterprise type.

8A common 'safe' debt-to-asset ratio threshold used in farm financial analysis is approximately:

A.Below 0.30 (30%)

B.Above 0.70 (70%)

C.Exactly 1.00

D.Above 1.50

Explanation: Farm Financial Standards Council guidelines typically classify debt-to-asset ratios below 0.30 as strong, 0.30-0.60 as moderate, and above 0.60 as vulnerable. Ratios above 0.70 indicate financial stress for most operations.

9In a crop-share lease where landlord and tenant share 50-50, the landlord typically contributes:

A.The land plus a share of fertilizer, chemicals, and crop insurance

B.All labor

C.All machinery and labor

D.Only the land

Explanation: In a typical 50-50 share lease, the landlord provides the land and shares some input costs (fertilizer, chemicals, crop insurance) in the same proportion as the crop. The tenant provides machinery, labor, and management.

10For a corn crop, what is the typical N-P-K starter fertilizer placement that minimizes seedling burn?

A.2x2 placement (2 inches beside and 2 inches below the seed)

B.Direct seed contact (in-furrow at high rates)

C.Broadcast and incorporated only

D.Foliar applied at planting

Explanation: The 2x2 placement positions starter fertilizer 2 inches beside and 2 inches below the seed, supplying nutrients to young roots without seedling injury from salt or ammonia. High in-furrow rates can cause seedling burn, especially with N and K.

About the ASFMRA AFM Exam

The ASFMRA Accredited Farm Manager (AFM) is the premier designation for professionals managing farm and ranch real estate for institutional and individual landowners. Candidates demonstrate competency in lease analysis, agricultural finance, FSA programs, tax planning, conservation, and succession planning.

Assessment

Question count not published by the exam provider

Time Limit

Proctored multi-hour exam

Passing Score

Management plan: 75% overall, 70% per subcategory; exam pass/fail

Exam Fee

Application + exam fees through ASFMRA (ASFMRA)

ASFMRA AFM Exam Content Outline

20%

Farm and Ranch Lease Analysis

Cash, crop-share, and flexible cash leases; tenant due diligence; lease document construction; market rent from USDA NASS surveys; pasture rentals (AUM); program payment allocation

20%

Agricultural Finance and Financial Analysis

Farm Financial Standards Council sweet 16 ratios across liquidity, solvency, profitability, repayment capacity, and financial efficiency; balance sheet, income statement, cash flow; NPV and IRR analysis

15%

FSA Programs and Crop Insurance

ARC and PLC payment calculations and elections, CRP enrollment, Marketing Assistance Loans, $125K payment limits, actively engaged in farming rules, MPCI/RP/YP/WFRP crop insurance, APH calculation

10%

Agricultural Tax

Schedule F cash basis, MACRS 5-year farm equipment, Section 179 expensing, 1031 like-kind exchanges, Section 1245/1231 recapture, NOL carryforwards, self-employment tax (15.3%)

15%

Crop and Livestock Production

Crop rotations, growing degree days, fertilizer 4Rs and 2x2 placement, cover crops, soil health and pH, livestock vaccinations, stocking rates and AUMs, feed conversion, biosecurity, dairy SCC

10%

Conservation and Environmental Compliance

EQIP and CSP enrollment and cost-share, ACEP-ALE easements, HEL and Swampbuster compliance, FIFRA pesticide certification, NPDES CAFO permitting, NRCS CPS 590 nutrient management

10%

Succession Planning and Business Entities

Section 2032A special-use valuation, installment sales, family limited partnerships, LLCs, S vs C corporation, buy-sell agreements funded by life insurance, GSTT, revocable vs irrevocable trusts

How to Pass the ASFMRA AFM Exam

What You Need to Know

Passing score: Management plan: 75% overall, 70% per subcategory; exam pass/fail
Assessment: Question count not published by the exam provider
Time limit: Proctored multi-hour exam
Exam fee: Application + exam fees through ASFMRA

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

ASFMRA AFM Study Tips from Top Performers

1Master cash, crop-share, and flexible cash lease structures - know who pays which expenses and who receives program payments under each

2Learn the FFSC sweet 16 ratios cold; you must recognize whether a ratio measures liquidity, solvency, profitability, repayment capacity, or efficiency

3Study FSA program rules including ARC vs PLC elections, $125K payment limits, and 'actively engaged in farming' tests

4Understand Schedule F cash-basis tax mechanics, Section 1245 recapture, and the post-TCJA 5-year MACRS life for farm equipment

5Practice partial budget and whole-farm budget construction with real numbers - the exam tests both formulation and interpretation

Frequently Asked Questions

What are the requirements for the ASFMRA AFM designation?

AFM candidates must have a 4-year college degree (typically in agriculture, business, or related), 4 years of professional farm or ranch management experience, completion of at least 85 hours of approved ASFMRA coursework, submission of a farm management plan scoring 75% overall and 70% in each subcategory, and a passing score on the AFM Comprehensive Exam. ASFMRA membership in good standing is required.

How does the AFM management plan scoring work?

Candidates submit one comprehensive farm management plan demonstrating competency across multiple subcategories (property analysis, leasing, financial analysis, tax, conservation, marketing, human resources). The plan must score 75% overall AND 70% or higher in each subcategory. Failing any subcategory requires revision and resubmission. ASFMRA's Accreditation Committee grades the plan.

What does an AFM actually do?

AFMs manage farm and ranch real estate on behalf of landowners (often non-operating owners, trusts, banks, or investors). Day-to-day duties include selecting tenants, negotiating cash and share leases, collecting rents, overseeing conservation practices, monitoring tenant performance, reporting to owners, managing repairs and capital improvements, and coordinating tax and succession planning with the owner's other advisors.

How much do Accredited Farm Managers earn?

Compensation varies by region, portfolio size, and firm type. Many AFMs are compensated as a percentage of gross cash rent collected (typically 7-12%), plus consulting fees. Bureau of Labor Statistics reports median annual wages for agricultural managers vary widely. Senior AFMs managing large portfolios in high-value land regions earn well into six figures.

How long does it take to complete the AFM accreditation?

Most candidates complete the AFM over 3-5 years while gaining the required 4 years of experience. The 85+ hours of coursework can be completed concurrently. The management plan typically requires 3-6 months of focused work plus committee review time. The exam is offered periodically. Plan for 18-24 months from application start to designation award after meeting experience minimums.

What is the difference between AFM and ARA?

The AFM focuses on farm and ranch MANAGEMENT (tenant selection, lease negotiation, ongoing operational oversight). The ARA focuses on farm and ranch APPRAISAL (estimating market value). Many ASFMRA professionals hold both designations and serve clients across the lifecycle of farm ownership and management.