COMPREHENSION ASSESSMENT - Farmageddon: A Farmer's Story of Collapse in Year One (reading)

TEXT - Farmageddon: A Farmer's Story of Collapse in Year One

Farmageddon: A Farmer's Story Comprehension Assessment

The Farmer's Story: A Comprehension Quiz

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1. In Phase 1, the timeline states that John's monthly mortgage and equipment payment was $14,660. How was he expected to make this payment before his first harvest?

A) He was given a six-month grace period by the bank.

B) He had to get a separate part-time job to make the payments.

C) The money was budgeted as part of his annual operating loan from the bank.

D) He was not required to make payments until after the harvest.

2. In Phase 2, two government policies created a "perfect storm." What were the immediate impacts of these two policies?

A) Higher crop prices and lower labor costs.

B) Lower crop prices and lower labor costs.

C) Higher crop prices and higher labor costs.

D) Lower crop prices and higher labor costs.

3. What was the primary purpose of the $200,000 annual operating loan?

A) To act as a down payment for the farm's mortgage.

B) To cover the costs of seed and fertilizer only.

C) To pay for all farm expenses AND the family's living expenses for the year.

D) To be put into a savings account as an emergency fund.

4. Which of the farmer's loans was structured to be paid back in a single lump sum after the harvest?

A) The 30-year mortgage on the land.

B) The 7-year equipment loan.

C) The annual operating loan for seed and fertilizer.

D) All of the loans were due after the harvest.

5. In Phase 2, how did the new tariff policy directly impact the farmer's potential income?

A) It increased the price of his crops by making them more valuable.

B) It caused a trade war, which erased his export market and led to a price collapse.

C) It had no effect on crop prices, only on imported goods.

D) It provided a government subsidy that guaranteed him a high price.

6. How did the new immigration policy directly impact the farmer's costs?

A) It created a labor surplus, which made it cheaper to hire workers.

B) It provided government-paid workers for the farm.

C) It created a severe labor shortage, which caused the cost of labor to double.

D) It did not affect his labor costs.

7. The "Weather Paradox" in the timeline describes a situation where a perfect growing season was a curse. Why?

A) The good weather made the fertilizer less effective.

B) It increased the farm's property taxes.

C) It increased the crop yield, adding to the domestic supply glut and pushing prices even lower.

D) It attracted pests that destroyed the crops.

8. Which of the following best summarizes the "perfect storm" that hit the farmer in the winter of 2025?

A) His income went up, but his costs went up even more.

B) His costs went down, but his income went down even more.

C) His potential income went down while his projected costs went up.

D) His income and his costs both stayed the same.

9. In Phase 3, what was the very first sign that the farmer was in financial trouble with the bank?

A) He received a "Notice of Default."

B) He missed his first monthly payment in March.

C) The bank's lawyers called him.

D) He sold his harvest at a loss.

10. What did the bank's "Notice of Default" signify?

A) It was an offer to lower his monthly payments.

B) It was a simple reminder that a payment was late.

C) It was a formal legal warning that the foreclosure process was about to begin.

D) It was a notice that his interest rate was going up.

11. When did the bank's lawyers get involved in the process?

A) The day the farmer signed for the loans.

B) After the first missed payment.

C) After the farmer was more than 120 days delinquent.

D) After the government proposed the bailout.

12. The bank's final move to file a foreclosure lawsuit means it is legally trying to do what?

A) Send the farmer to jail for not paying his debts.

B) Take legal ownership of the farm and equipment to sell them.

C) Ask the government to pay for the farmer's loans.

D) Forgive the farmer's debt.

13. In the "Bailout Happens" scenario, what is the most likely consequence for the U.S. economy?

A) The national debt decreases.

B) The farm crisis is stopped, but the national debt increases as taxpayers fund the solution.

C) The banks all fail.

D) Food becomes much cheaper for consumers.

14. In the "No Bailout" scenario, what is the most likely consequence for the local bank?

A) The bank makes a large profit from selling the farm.

B) The bank could become financially unstable if it has to sell many farms at a loss.

C) The government would shut the bank down.

D) The bank would forgive all the farmer's debts.

15. The "Bailout Happens" scenario describes a potential "cycle of dependency." What does this mean for the farmer?

A) He becomes dependent on good weather to have a successful harvest.

B) He learns to expect government help instead of changing his business to deal with new problems.

C) He becomes dependent on one specific crop and cannot diversify.

D) He becomes dependent on the bank for all of his financial advice.