FAQs

1. Why does the investment decision say, "The current equipment does not allow this?”

A precise breakdown is not possible for technical reasons. Apart from sufficient capital, many conditions must be fulfilled for some investments. These are explained in more detail in the overview of investment types.

2. I invested in a stable. This is not fully utilised or is not used. Why?

The production planning is taken over by the programme. There are different reasons why a stable may not be fully utilised. The requirements are listed in the overview of investment types. It may be that your farm does not have enough grassland. Dairy cows also need milking capacity. Another reason may be that the production is not worthwhile, since with other products, a higher contribution margin can be achieved or the contribution margin would be negative.

3. What are withdrawals and how are they calculated?

Withdrawals serve to remunerate equity and pay taxes. FarmAgriPoliS charges a flat rate of 80 percent on the profits made.

4. How are investments financed?

All investments are generally 70% financed with long-term loans. The remaining 30% are financed from the farm’s capital or short-term credit (at higher interest rates).

5. When will my operation become illiquid? And what happens then?

If the operation becomes illiquid, short-term debt can be used to prevent bankruptcy. If the equity is negative, the operation goes bankrupt and the game is over.

6. Where do I see how much I pay for a certain plot?

In the region view you can click on individual areas and see the rent price. Under "My farm" there is an overview of leases.

7. What prices can I influence in the game and which are given?

The land rental prices are the result of the player's bids and the bids of the computer agents. All other prices are exogenous and cannot be influenced by the player (e.g. by shortage or expansion of the offer).

8. What is a shadow price?

The shadow price is an abstract quantity and represents the price at which the marginal profit of the additional factor is zero, so the player is indifferent. In other words, the shadow price for the ground corresponds to the increase in the total contribution margin made possible by an additional unit of area.

9. How does the auction of the areas work?

In the land rental market, all players make their bids. The resulting transport costs are automatically taken into account by the program. The highest bidder wins the auction, but only pays the amount that the runner-up bid. Transportation costs are additional, depending on the distance of the area from the production site.

10. How long are the leases?

The length of the leases is determined by the computer at random. It lies with equally distributed probability between 5 and 18 years.

11. Does new land become available each year? If yes, how much?

Every year leases expire. The liberated land will then become available in the auction. If a company goes bankrupt, the land is available to the leasing market.

12. Why do not I have a family labour as a legal person, and what is the difference between family and hired labour?

Only family businesses have family labour. These are remunerated at the expense of the farm through income outside of agriculture.

13. Can I change the legal form of the company?

The legal form of the enterprise is determined right at the beginning with the choice of the enterprise. It remains the same for the duration of a game.

14. What is the management capability?

The managerial capability of a manager expresses their ability to run a business. Good managers can decrease their variable costs by up to 20%. Businesses run by bad managers have variable costs that are up to 20% above average.

15. Can I retrospectively see what I have invested / leased in previous years?

Yes, the lease overviews and operating levels from previous years can be viewed in the "My Operations" menu.

16. Where can I see operating results from previous years?

The profit and loss account, balance sheets, and operating levels of the past years can be viewed in the menu "My Farm".

17. Is the maintenance of liquidity part of the restrictions of the computer proposal?

Yes, the computer expects liquidity restrictions. It is not possible to invest beyond this restriction. When prices fall, however, it can happen that a new investment becomes illiquid or cannot use all the assets and land to maintain liquidity.

18. Why can I not replace expiring investments with the same investments?

The companies are initialised with region-specific equipment and capacities. This data was taken from regional statistics. The available investment opportunities were based on the usual sizes in the region. Due to the different data bases, it may happen that further investments, especially for stables, cannot be replaced one to one in the same size.

Contact

Questions and feedback are always welcome! Please contact us at farmagripolis(at)iamo.de. We will get back to you as soon as possible.

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