BEC-51806 Agricultural Business Economics

Course

Credits 6.00

Language of instruction:

English

Assumed knowledge on:

BEC-21806 Introduction to Business Economics, Management and Marketing

Continuation courses:

BEC-30306 Advanced Agricultural Business Economics

Contents:

This course deals with the economic aspects farm owners/managers face when managing the farm. On the one hand they need to control and evaluate their business on a regular basis. For this purpose they need reliable financial data and overviews based on well-defined accounting standards. On the other hand there is a need for continuously adapting their business in order to deal with current problems and to anticipate expected future possibilities.
Keywords: business organization, asset valuation, balance sheet, income statement, accounting, efficiency measures, budgeting, linear programming, risk management, financial planning, investment analysis, time value of money.

Learning outcomes:

After the course, students will be able to:
- understand the basic underlying economic principles of farm evaluation and farm planning;
- read, create and use financial overviews for performing economic analyses;
- calculate optimal production plans, optimal levels of inputs and outputs;
- compare and select different investment options;
- assess the impact of risk;
- make optimal calculations for certain as well as for uncertain, risky production environments.

Activities:

The course includes lectures, practicals and computer practicals.

Examination:

Written exam.

Literature:

Book: Kay, Edwards and Duffy: Farm Management (sixth edition, 2008) Mc Graw Hill ISBN 978-007-125953-8. Reader with practical exercises. Book and reader are for sale at WURshop.