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Assume that for Jim Swain, a corn producer from Illinois, the only source of farm income is from the ...

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Assume that for Jim Swain, a corn producer from Illinois, the only source of farm income is from the ...

Assume that for Jim Swain, a corn producer from Illinois, the only source of farm income is from the production of corn. Swain produced 150,000 bushels of corn in 2012, receiving $5 per bushel. Assuming this producer had production expenses of $300,000, and assuming the Consumer Price Index (CPI) for 2012 was 2.50, what was his real farm income for 2012?

• $200,000

• $750,000

• $450,000

• $180,000

Textbook

Introduction to Agricultural Economics

Edition: 7^th

Authors: Penson, Rosson, Woodward

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