Agricultural Finance

1. Define and explain the scope of agricultural finance.
2. Classify credit based on various criteria.
3. Apply economic principles to agricultural finance decisions.
4. Identify and evaluate methods of acquiring capital for agricultural businesses.
5. Assess and manage risks in agricultural lending.
6. Understand the role of agricultural insurance.
7. Analyze marketing channels for agricultural products.

13 weeks, about 50 hours in total. Yours will differ.

1. Week 1Module 1: Agricultural Finance

   • Unit 1: Meaning and Scope of Agricultural Finance · 2 hours

     Define agricultural finance and its importance.. Describe the nature of agricultural finance in traditional and developed agriculture.. Explain the role of financial intermediaries in agriculture..

   • Unit 2: Classification of Credit · 2 hours

     Classify credit by length of time, purpose, security, and lenders' policies.. Differentiate between production and consumption credit.. Understand the implications of each credit classification..

2. Week 2Module 1: Agricultural Finance

   • Unit 3: Importance of Credit to the Farmer · 2 hours

     Explain the importance of credit to farmers.. Discuss the essential conditions for credit to facilitate agricultural development.. Analyze the advantages of an efficient credit program..

   • Unit 4: Farm Records Keeping for Financial Decision Making · 2 hours

     Identify the importance of keeping farm records.. Describe the different types of farm records.. Understand how farm records aid in financial decision-making..

3. Week 3Module 1: Agricultural Finance

   • Unit 5: Farm Accounts for Financial Management · 2 hours

     Explain the principles of keeping farm accounts.. Understand the importance of farm accounts for financial management.. Apply accounting principles to manage farm finances effectively..

4. Week 4Module 2: Basic Economic Principles for Agricultural Finance

   • Unit 1: Input-Output Relationships (Law of Diminishing Returns) · 2 hours

     Define the law of diminishing returns and its decision rules.. Determine the most profitable level of production.. Apply the principle of marginalization in farm decisions..

   • Unit 2: Input-Input Relationships · 2 hours

     Differentiate between isoquant and isocost.. Determine least-cost combinations of factors of production.. Explain types of substitution between inputs..

5. Week 5Module 2: Basic Economic Principles for Agricultural Finance

   • Unit 3: Product-Product Relationships · 2 hours

     Explain the production possibility curve and the iso-revenue line.. Determine maximum revenue output combination.. State the different types of product-product relationships..

   • Unit 4: Principles of Equi-marginal Returns and Opportunity Cost · 2 hours

     Explain average and marginal returns to capital.. Describe the equi-marginal returns principle.. Analyze the uses of the equi-marginal returns principle..

6. Week 6Module 2: Basic Economic Principles for Agricultural Finance

   • Unit 5: Law of Comparative Advantage · 2 hours

     Define the law of comparative advantage.. Discuss the importance of comparative advantage.. Describe how decision rules are used for the concept of comparative advantage..

   • Unit 6: Cost Functions · 2 hours

     Define the various cost functions.. Sketch the shapes of the cost functions.. Explain relationships between the cost functions..

7. Week 7Module 3: Capital

   • Unit 1: Internal Methods of Acquiring Capital · 2 hours

     Explain inheritance and its role in acquiring capital.. Describe the role of gifts in capital acquisition.. Discuss the importance of savings and family arrangements..

   • Unit 2: External Methods of Acquiring Capital · 2 hours

     Explain incorporation and its advantages and disadvantages.. Describe leasing and purchase contracts.. Discuss vertical integration and borrowing as external capital sources..

8. Week 8Module 3: Capital

   • Unit 3: Internal and External Sources of Capital · 2 hours

     Explain internal sources of finance.. Describe non-institutional and institutional external sources of finance.. Differentiate between formal and informal lenders..

   • Unit 4: Agricultural Credit Banks · 2 hours

     Describe at least five agricultural credit banks.. Explain the roles of different agricultural credit banks.. Understand the functions of each bank in supporting agricultural finance..

9. Week 9Module 4: Economic Financial Tools

   • Unit 1: Concept of Interest Rates · 2 hours

     Define interest rate and explain why it is charged.. Enumerate factors affecting interest rates.. Calculate interest rate using different methods..

   • Unit 2: Analysis of Interest Rates on Loans · 2 hours

     Discuss the functions of commercial banks.. Explain the conceptual framework of commercial banks.. Describe the principles of lending..

10. Week 10Module 4: Economic Financial Tools

    • Unit 3: Three R's and Five C's of Credit · 2 hours

      Explain the 3 R's of credit: Returns, Repayment capacity, and Risk-bearing ability.. Explain the 5 C's of credit: Character, Capacity, Collateral, Capital, and Condition.. Understand how these principles are used in credit assessment..

    • Unit 4: Seven P's of Credit · 2 hours

      Explain the seven P's of credit: Productive Purpose, Personality, Productivity, Phased Disbursement, Proper Utilization, Payment, and Protection.. Discuss how these principles guide effective credit management.. Apply these principles to real-world agricultural lending scenarios..

11. Week 11Module 5: Economic Financial Tools

    • Unit 1: Acquisition of Capital and Attendant Risks · 2 hours

      Explain the principle of owner's equity and increasing risk.. Discuss the procedural formalities in sanction of farm loans.. Explain different repayment plans..

    • Unit 2: Planning and Budgeting · 2 hours

      Define planning and budgeting.. Explain the need for planning.. Describe the budgeting technique and its advantages..

12. Week 12Module 5: Economic Financial Tools

    • Unit 3: Net worth Statement · 2 hours

      Prepare a net worth statement.. Estimate test ratios.. Interpret test ratios to assess financial health..

    • Unit 4: Income Statement · 2 hours

      Determine net farm income.. Determine financial test ratios.. Determine management ratios to evaluate farm performance..

13. Week 13Module 7: Costs and Risks in Agricultural Lending

    • Unit 1: Types of Risks and Strategies to Reduce Risks · 2 hours

      Explain why lenders face high financial transactional costs.. Describe the risks associated with agricultural lending.. Describe the risks faced by small-scale farmers..

    • Unit 2: Problems Encountered by Government Financial Institutions · 2 hours

      Explain the various problems encountered by government financial institutions.. Discuss the challenges in providing agricultural credit effectively.. Analyze the impact of these problems on agricultural development..