10090386Agriculture Finance and Economics
Course Information
Description
Students explore the diversity and impact agriculture plays on the economy. Learn major aspect of agribusiness financial management through extensive problem solving, financial analysis and financial planning. Describe and calculate sweet 16 ratios, business cash flows, inventory controls, budgeting and borrowing considerations of various types of agribusinesses. Students explore agricultural economic dimensions and impacts, economic principles, calculation of economic returns, and evaluation of economic alternative.
Total Credits
3
Course Competencies
  1. Define your land ethic
    Assessment Strategies
    Written Product
    Criteria
    Use Aldo Leopold’s vision for land ethic
    Demonstrate the connection to your financial strategies
    Develop your land ethic in connection with the principles of sustainable agriculture
    Explain how you demonstrate your land ethic in your farm management systems

  2. Evaluate farm financial management systems
    Assessment Strategies
    Written Product
    Criteria
    System includes costs to start or maintain a farm
    System includes a business plan
    Includes cash flow plan
    Explain the purpose of farm financial management

  3. Create a farm accounting and record keeping system
    Assessment Strategies
    Written Product
    Criteria
    You identify when data collection occurs
    You choose bookkeeping tools
    You enter data
    System tracks financial and non-financial data

  4. Organize farm financial information
    Assessment Strategies
    Written Product
    Criteria
    Balance sheet includes assets and liabilities
    Utilize a balance sheet to interpret farm’s current net worth
    Track longitudinal changes in net worth
    Income statement includes items as indicated by instructor
    Utilize income statement to interpret
    Develop a statement of cash flow
    Cash flow statement includes items as indicated by instructor
    Evaluate cash flow needs throughout the year

  5. Use ratios to analyze farm financials
    Assessment Strategies
    Written Product
    Criteria
    Calculate sweet 16 ratios
    Ratios follow the Farm Financial Standard Scorecard system
    Ratios identify farm liquidity, solvency, profitability
    Ratios determine credit capacity of farm
    Ratios determine debt repayment capacity and margin
    Ratios are calculated correctly
    Make financial decisions based ratio data
    Seek benchmark data if appropriate

  6. Analyze production, pricing, and marketing of farm enterprises
    Assessment Strategies
    Written Product
    Criteria
    Develop enterprise budgets according to given template
    Develop a partial budget according to given template
    Develop a monthly cash flow budget according to given template
    Compare expected revenue to costs
    Identify breakeven point/conduct breakeven analysis
    Calculate costs of production
    Set pricing to cover costs of production
    Develop up a cash flow budgeting system
    Adjust pricing and marketing strategy of product to meet demand
    Determine best timeline of product release
    Manage distribution of product to meet market demand
    Relate labor needs to cost (FINPAK)
    Use benchmarking data to improve practices
    Budgets are calculated correctly
    Budgets follow given templates

  7. Set up a monitoring plan
    Assessment Strategies
    Team/Group Project
    Criteria
    Assemble an advising team (Wisconsin Farm Center)
    Determine need for private financial consultant
    Identify specialists available
    Locate resources for future professional development and education
    Assess need for new action