FMTP 042. Budgeting, Finance and Policies (152-042-MC).

At the end of this course, students will be able to produce, interpret and understand all of the budgets necessary for the operation of an agricultural business. These budgets include: whole farm budgets, partial budgets, enterprise budgets, investment budgets and cash flow budgets. Students will explore credit cost estimation, taking into consideration the determinant factors of influence. Students will establish a financing program for an agricultural enterprise. This will include producing an investment plan for the development of the agricultural business. Students will investigate the concepts of the time value of money. Collateral value will be assessed in relation to loan requirements. The principal conditions and steps of the loan negotiation process will be described. Students will also be examine risk management tool available to agricultural enterprise, both internal and external. Finally students will begin to gather the information process in preparation of their farm project.