Financial Management in Agriculture, 7th edition

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.

• 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.