EC400 Agribusiness Economics and Finance

DESCRIPTION

This unit analyses the fundamentals of economics and its applications to agricultural production and agribusiness. It provides a perspective and understanding of the key components of agribusiness management, with a focus on the application of economic principles used to measure farm business performance. The unit provides students an opportunity to apply demand and supply concepts to analyse the real-world situation of agricultural commodity markets. It will equip students with understanding of production and pricing strategies (e.g. in international trade) required for profitable agribusinesses. The unit also analyses financial models to mitigate farm risks.

RELEVANT COURSES

Master of Business Administration (Agriculture)*
Master of Agricultural Information Management)*
Graduate Diploma of Agribusiness*
Graduate Certificate in Management*

Elective unit

CREDIT POINTS

10

DELIVERY MODE

On campus
Mixed mode
Online
Intensive
Extensive

PREREQUISITE OR CO-REQUISITE

Nil

UNIT LEARNING OUTCOMES

ULO1 Demonstrate and apply an understanding of basic principles of agricultural production and costs relationships and effecient allocation of resources

ULO2 Reflect critically on demand and supply relationship and the factors affecting market equilibrium

ULO3 Understand and utilise the economic concepts in the analysis of agricultural markets and apply the learning to agribusiness and financial management approaches

ULO4 Develop an understanding of farm level investment decisions making and cost benefits analysis and assets the role of financial institutions in food security through efficient credit systems

ULO5 Evaluate farm production risk mitigation strategies using financial risk management

ULO6 Discuss the role of agricultural sector in international trade and analyse how exchange rates affect international trade and competitiviness of agriculture

CONTENT

  • Introduction to agricultural economics
  • The economics of production and uncertainty
  • Consumer choices, markets and distribution, utility maximisation and demand
  • Producer behaviour and agricultural supply
  • Market structure: Characteristics of perfect and imperfect markets and real-world applications
  • Agribusiness management and farm financial decisions
  • Agribusiness finance and investments strategies
  • Capital investment and farm financing models
  • Agriculture risk management strategies
  • Government policy and agricultural markets: Macro and micro economic agricultural policies
  • Globalisation, international trade, and trade agreements
  • Sustainable development and the environment

ASSESSMENT METHODS

  1. Online – 20%
  2. Report and Oral Presentation – 30%
  3. Case Study – 50%

PRESCRIBED READINGS

Barkley, A., & Barkley, P. W. (2020). Principles of agricultural economics, 3rded. Routledge.

Check with the lecturer each semester before purchasing any textbooks