Fundamentals of Agribusiness Finance
January 2001, Wiley-Blackwell
1. Introduction to Agribusiness Finance; Agribusiness Finance; Agribusiness Producers; Flow of Funds in the Economy; Importance of Finance to Agribusiness; Domestic Trends in Agribusiness Finance; International Trends; Questions and Problems.
2. Agribusiness Loans: Legal Issues, Terms, and Interest Rates; Promissory Note; Parties to Loan Transactions; Security Agreement; Mortgages Versus Deeds of Trust; Other Loan Terminology; Life Cycle of a Loan; Default and Foreclosure; Determinants of Interest Rates; Questions and Problems.
3. Time Value of Money, Loan Calculations, and Analysis; The Time Value of Money; Compound Interest; Intraperiod Compounding; The Process of Discounting; Annuities; Present Value of an Annuity; Basic Loan Calculations; Building an Amortization Schedule; Loan Balance; Determining the Annual Percentage Rate; Refinance Analysis; Cash Budgeting; Graphing Loans; Questions and Problems.
4. Capital Budgeting and Leasing; The Cost of Capital; Capital Budgeting Techniques; Income Taxes and Capital Budgeting; Other Considerations Regarding Capital Budgeting; Leases and Leasing; Questions and Problems;.
5. Financial Statements; Generally Accepted Accounting Principles and the Farm Financial Standards Council; The Income Statement; The Statement of Owner's Equity; The Balance Sheet; The Accrual-Adjusted Income Statement; The Statement of Cash Flows; Questions and Problems.
6. Financial Statement Analysis; Liquidity Ratios; Solvency Ratios; Profitability Ratios; Repayment Capacity Ratios; Financial Efficiency Ratios; Loan-to-Value Ratio; Common-Size Statements and Horizontal Analysis; Questions and Problems.
7. Risk in Agribusiness; Financial and Business Risk; Attitudes Toward Risk; Sources of Business Risk in Agriculture; Risk Management in Agriculture; Questions and Problems.
8. The Agricultural Lending Industry: Commercial Banks and the Farm Credit System; Commercial Banks; The Farm Credit System; Questions and Problems.
9. Other Agribusiness Lenders; Vendor/Trade Credit; Life Insurance Financing; Farm Service Agency; Federal Agricultural Mortgage Corporation (Farmer Mac) and the Secondary Market; Private Financing; Beyond the Year Two Thousand; Questions and Problems.