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Agricultural Finance and Risk

AGEC4109

This unit has two related components. One component concerns risk and risk management in agriculture; the other deals with issues of agricultural producer finance. Risk topics include: risk measurement, subjective probability, adjusting beliefs as a result of new information; risk attitudes; decision making under risk; expected utility theory; valuing information; generalizations of expected utility theory; E-V analysis; stochastic dominance; internal measures to cope with risk including diversification and flexibility; insurance, futures, options and other market instruments for managing risk. Finance topics include the implications of capital market imperfections and consequential differences between corporate and small business finance; financial relationships between debt/equity levels and risk, optimal debt levels; cost of capital; short term working capital management; and longer term capital (investment) budgeting. Techniques of valuation of projects in risk-free and risk situations are examined.

Unit of study details

Unit of study level: Honours

Credit points: 6

Commencing semesters: 2

Further unit of study information

Unit of study handbook: AGEC4109

Costs and scholarships information: Costs and Scholarships

Final dates to withdraw from units of study: Census Dates

Available for study abroad and exchange: No

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