Financial Management in Agriculture

Description

Modern concepts and tools of finance are developed and applied–to the agricultural sector, with case studies, practical problems, and a lucid presentation.

• Introduces students to the characteristics of agricultural firms; the financial accounting , analysis, and planning approaches;  credit risk assessment from a lender’s point of view; and other topics related to the capital structure and risk management of agricultural firm.
• Time value of money concepts and applications are introduced and extensively applied in evaluating investment profitability, costs of financial capital, risk analysis, and leasing of farmland and non-real estate assets.
• The market structure of agriculture, including more extensive use of contracting and integration, is analysed in terms of the consequences for financial and risk management. Financial markets for agriculture are also presented in a global setting, with new emphasis on management issues by financial institutions.
• Covers new approaches to the lender’s management of economic capital, loan pricing, and the related credit, market, and operational risks. Financial intermediaries serving agriculture receive detailed analysis.
• The legal aspects of agricultural finance are extensively covered, as are business organisation in agriculture and outside equity capital sources for agriculture.  

Effective pedagogy throughout every chapter–guides students and reinforces concepts along the way.

• Each chapter is introduced by a clear set of objectives for readers and students, and a list of keywords that are bold when the first appear in the text.
• Each chapter concludes with a summary section, topics for review and discussion, review problems, and a reference list for further study. The review problems are keyed to various tools and practices presented in chapters, and rely heavily on brief case studies.

Chapter 1: Nature and Scope of Financial Management

Chapter 2: Financial Statements and Information Flows

Chapter 3: Financial Analysis and Control

Chapter 4: An Overview Of Financial Planning

Chapter 5: Credit Risk Assessment and Lender-Borrower Relationships

Chapter 6: Capital Structure, Leverage, and Financial Risk

Chapter 7: Risk Management

Chapter 8: The Time Value of Money

Chapter 9: Investment Analysis

Chapter 10: Costs of Financial Capital

Chapter 11: Investment Analysis: Inflation, Risk, and Financial Planning

Chapter 12: Ownership and Leasing of Farm Land

Chapter 13: Leasing Non-Real Estate Assets

Chapter 14: Market Structure of Agriculture: Contracts, Integration, and Financing

Chapter 15: Financial Markets in a Global Setting

Chapter 16: The Management Environment for Financial Institutions

Chapter 17: Loan Pricing and Profitability Analysis

Chapter 18: Financial Intermediaries In Agriculture

Chapter 19: Legal Aspects of Agricultural Finance

Chapter 20: Business Organization in Agriculture

Chapter 21: Outside Equity Capital in Agriculture

Financial Management in Agriculture, Seventh Edition, introduces students to modern concepts and tools of finance, developed and applied to the agricultural sector. Using case studies, practical problems, and a lucid presentation, the text focuses on planning, analyzing, and controlling business performance in agriculture and related financial markets. This new edition addresses recent structural changes in the food system, covering important topics such as the growth in vertical coordination within the food and fiber system, and the significant implications for financial analysis and risk management by those managing or financing the agricultural sector.

The Seventh Edition covers the latest in agricultural finance–including the following major changes and updates:

• The treatment of credit risk assessment and lender-borrower relationships in a separate chapter (chapter 5) that is intended to provide a bridge between the perspectives of borrowers and lenders.
• The adoption of the weighted average cost-of capital in investment analysis.
• The inclusion of the new concepts of economic capital and risk-adjusted returns on capital into a chapter on management of financial institutions.
• Extended treatment of competition, financial regulation, and policy issues.
• A streamlined treatment of controlling farmland.
• Updated data, reference lists, institutional changes in financial markets, and other new developments.

For courses in Agricultural Finance.

Financial Management in Agriculture, 7th Edition, introduces students to modern concepts and tools of finance, developed and applied to the agricultural sector. Using case studies, practical problems, and a lucid presentation, the text focuses on planning, analysing, and controlling business performance in agriculture and related financial markets. This new edition addresses recent structural changes in the food system, covering important topics such as the growth in vertical coordination within the food and fiber system, and the significant implications for financial analysis and risk management by those managing or financing the agricultural sector.