DESCRIPTION AND OBJECTIVES

This course will cover a broad range of finance topics and applications. In addition to a broad overview of finance, it will also cover in some detail several fundamental concepts of finance, including the nature of financial markets, financial instruments and techniques that are critical in financial decision-making. The objectives of the class may be summarized as 1. Introduce students to agricultural finance and highlight the importance of finance in real-world decision-making and the uniqueness of finance related to agriculture. 2. Introduce the fundamental concepts and techniques that are at the heart of financial decision-making. This course will cover various topics including the time value of money, financial statement analysis, capital budgeting and structure, investment decisions, farmland valuations, credit, banking, agricultural lending, risk management and financial markets.

INTENDED LEARNING OUTCOMES

At the end of the course students will have a general overview of the fundamentals of finance and its application in agriculture and agribusiness.

COURSE CONTENTS

Nature and scope of agricultural finance; Sources and types of financial instruments and intermediaries in Pakistan’s perspective. Credit assessment and decision criteria, Agricultural credit markets; Agricultural credit policies and their problems, Role of central bank and other financial institutions in agricultural financing; Classification of loans; insurance in agricultural sector, Micro-credit and role of NGO’s in agricultural lending and development. Nature and scope of financial management, time value of money, capital budgeting, capital and its cost, financial analyses, capital structure, liquidity and lender-borrower relationship and credit evaluation, risk management, financial markets.

READINGS

TEXT BOOKS:

1. Reddy, S. S., & Ram, P. Raghu.(1996). Agricultural Finance and Management, Oxford & IBH publisher Co.

SUGGESTED READINGS:

1. Barry, P. J., Ellinger, P. N., Hopkin, J.A., & Baker, C. B.  (2000). Financial Management in Agriculture.  6th Edition.  Prentice Hall.
2. Pandey, U.K. (1990).  An Introduction to Agricultural Finance. New Delhi: Kalyani Publishers,
3. Downey, W.D. & Enieson, S.P. (2002). Agribusiness Management, Singapore: McGraw Hill.