Solved by verified expert :Exercise 5Print IntroductionRural land-use decisions are influenced by a multiplicity of factors (as covered in the Lesson Five). The following exercise provides you with an opportunity to apply what you have learned in Lesson Five.InstructionsFarmer Jethro Tull currently owns and farms 160 acres of good farm land in West-Central Ilinois (about five miles from the city of Kewanee in Henry County). The land has been in his family since his great-grandfather first settled on it in the 1870s. Although the family has experienced a few bad years, the Tull family corn/hog farm has generally made enough money to support one extended family (father, mother, two children, and two grandparents). Recently, Jethro has experienced declining profits as his operational costs have increased, and farm produce prices have remained relatively stagnant. Yesterday, he learned that a 100 acre parcel of good farm land about three miles east of his farm is for sale for 1.4 million dollars. He is thinking about buying this land, but he knows that in order to get the loan he needs (at 6% interest) it will be necessary for him to pledge his farm (which is mostly debt free) for collatoral. Additionally, he knows that his current equipment (tractor, discs, cultivators, corn harvester, etc.) does not have sufficient capacity to farm another one-hundred acres. Given this information, design a research model that will help Jethro determine whether or not he should enlarge his farm by purchasing his neighbors one-hundred acre parcel. In other words, does it make sense for him to buy-out his neighbor in order to create a much larger farm operation? What does he need to know in order to make an informed decision? Remember to consider factors such as economies of scale and equipment costs, opportunity costs, and transportation costs? Write a 1-2 page paper (single-spaced text using 12-point Times New Roman font with one inch margins). You must have a title and your name on the paper as well as in the file name to upload your assignment. Review the rubric below to fully understand the criteria on which your essay will be graded.
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