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*
*Core unit
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. Quizzes - 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.