AGEC 4690 - Agricultural Finance

3 unit(s)

(Offered under the subjects ECON and AGEC) Application of economic principles to the financing of agricultural operations. Analysis of agricultural financial statements and ratios; institutional sources of farm credit; legal aspects of credit; time value of money and capital budgeting for agricultural investment; risk management strategies; insurance, tax, and estate planning.

Prerequisites: ECON 2500 and ECON 2510; and a lower-division Accounting course or consent of instructor. An Agricultural Economics course may be substituted for ECON 2510.

Course Learning Outcomes List
Students will be able to:

Provide an overview of the field of agricultural finance;
Apply the appropriate economic principles for various agricultural finance decisions;
Identify and describe the role of credit in the farm business and how lenders evaluate applications for farm operating loans;
Explain legal aspects of credit;
Define the “Time Value of Money”;
Develop and analyze agricultural finance reports (Balance Sheets, Income Statement, and Cash Flow) to determine the financial position and progress of the agricultural operation;
Calculate annual depreciation and develop depreciation schedules for depreciable agricultural capital investments;
Utilize the techniques of financial analysis to evaluate the usefulness of credit under different conditions;
Identify and correctly interpret various agricultural financial analysis ration measures; and
Evaluate business risk and financial risk in agricultural businesses and to describe alternative methods of risk management.

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