1. Handbook
  2. Subjects
  3. Farm Management Economics

Farm Management Economics (AGRI30033)

Undergraduate level 3Points: 12.5On Campus (Parkville)

You’re viewing the 2024 Handbook:
Or view archived Handbooks
You’re currently viewing the 2024 version of this subject

Overview

Availability
Semester 2
FeesLook up fees

The aim of this subject is for students of agricultural science and agricultural economics to understand the principles of management economics applied to the operation of agricultural business; to understand decision analysis under risk and uncertainty; to be able to model and analyse agricultural systems; to be able to analyse agricultural investment and evaluate the profitability and sources, and business risk and financial risk of alternative resource uses in agricultural businesses; evaluate business growth strategies; and understand agricultural price risk management strategies.

The content of the subject is as follows:

  • The whole farm approach
  • Farm business management
  • Farm activity analysis
  • Production economic and financial analysis
  • Agricultural systems analysis
  • Farm benefit cost analysis
  • Risky decision analysis
  • Agricultural risk management

A number of case studies will be completed based on real farm business situations.

Intended learning outcomes

Upon completion of this unit, students will be able to:

  • Collect and interpret financial and economic agricultural systems data
  • Demonstrate appropriate knowledge and ability to critically evaluate economic and financial information
  • Demonstrate practical economic and risk management as well as decision making skills
  • Undertake risk analysis for agricultural businesses and agricultural investments
  • Interpret, analyse and evaluate the financial and economic performance of an agricultural business
  • Identify appropriate strategies for agribusiness analysis by interpreting management objectives, resource implications, risk factors and applying optimisation techniques
  • Analyse profitability, cash flows and business structures
  • Use computer-based techniques and tools of farm management analysis and risk analysis

Generic skills

Successful completion of this subject will further develop the following skills:

  • Problem-solving skills (especially through practicals and tutorial exercises and case studies) including engaging with agricultural systems and farm management problems, and identifying relevant strategies
  • Communication skills in a business context
  • Research, problem solving, critical thinking
  • Documentation, preparation and presentation skills through assigned tasks and the case study exercise
  • Commercial awareness
  • Independent learning skills

Last updated: 8 November 2024