Agricultural Business A.A.S.
Course DescriptionAgricultural Finance
Uses of credit including real estate, capital equipment, and annual operating needs. Long term, short term and lines of credit as means of meeting these needs. Sources of credit including PCA, FLB, FMHA, banks, and individuals. Security instruments such as first and second mortgages, collateral mortgages, liens and contracts. Repayment schedules including amortized loans, balloon payments, and refinancing and variable rate loans. Capital investment analysis with emphasis on net present value and yield on investment. Chattel and real estate appraisals including summation, depreciated replacement value, and capitalization methods. Other topics to include real estate taxation, income statements, balance sheets, cash flow budgets, and trend analysis. Semester project dealing with preparation of and application for farm financing. Computer applications as appropriate. Prerequisites: ESCI 215 or AGBS 210, Pre or Co-requisite: OFFT 110 3 credits (3 lecture hours), spring semester