ASFMRA AFM case studies
ASFMRA AFM · Put your knowledge to work in context.
The Accredited Farm Manager (AFM) is a professional designation awarded by the American Society of Farm Managers and Rural Appraisers (ASFMRA) to individuals who manage agricultural land and production operations on behalf of farmland owners. AFMs combine expertise in crop and livestock production, commodity marketing, soil conservation, financial analysis and accounting, leasing and tenant selection, improvement project management, and real estate brokerage to help clients protect asset value and generate cash returns. The ASFMRA AFM case studies are 5 cases and about 2,059 words.
1Irrigation Allocation Under a Curtailed Water Right
A 640-acre almond and tomato operation holds a pre-1914 riparian right historically delivering 3.0 acre-feet per acre, but the state water board has curtailed deliveries to 1.6 acre-feet per acre for the coming season due to drought. The owner has 300 acres of mature almonds (a perennial crop that cannot be fallowed without multi-year loss) and 340 acres of tomatoes (an annual crop that can be idled, though contracts carry a 180,000 penalty if not planted).
461 words, about 2 min2Lease Renewal With a Tenant Who Improved the Land
A 1,200-acre row-crop farm has been leased for 12 years to a tenant paying 210/acre on a cash basis. Over the term the tenant installed 4,000 feet of subsurface drainage tile ( 88,000), built a 60,000-bushel grain bin with a concrete pad ( 140,000), and corrected a longstanding erosion gully with grassed waterways.
423 words, about 2 min3Valuation Adjustment When Comparables Are Thin
You are asked to appraise a 480-acre irrigated parcel with a center pivot, a 40-acre homesite, and a modest shop. The county has only three closed sales in the past 18 months: Sale A, 320 acres, pivot, no homesite, sold at 4,100/acre; Sale B, 600 acres, dryland, sold at 2,600/acre; Sale C, 200 acres, pivot plus a newer home, sold at 6,300/acre.
401 words, about 2 min4Capital Improvement Decision on a Working Ranch
A 3,000-acre cow-calf ranch runs 450 head and nets roughly 95,000 annually after debt service. The owner is considering a 420,000 investment in cross-fencing and water development to enable rotational grazing, which an extension study suggests could raise carrying capacity 15% and improve range condition.
376 words, about 2 min5Pressure to Soften an Unfavorable Conclusion
You complete a farm management review for a client seeking a 2.4 million operating loan. Your analysis concludes the operation's working capital is negative 85,000, the current ratio is 0.8, and projected cash flow covers debt service only 1.05 times - below the lender's 1.25 threshold.
398 words, about 2 min