Syllabus is posted on AGEC 310 Blackboard Home Page.
S/13
AGEC 310, Agricultural Economics—Farm Organization
KRAN G-16 Tuesday and Thursday 10:30 – 11:45 am
Professor: Dr. Nicole J. Olynk Widmar, Krannert 629, Office: 765-494-2567 E-mail: nwidmar@purdue.edu
Graduate Student Assistants – Krannert 603
Melissa McKendree
mgsm@purdue.edu
Emily Lord
elord@purdue.edu
Attendance is important. If you will miss a class, it would be appreciated if you would email Dr. Widmar in
advance with your name and the date you will miss along with a brief explanation. Attendance is not required,
however you alone are responsible for your attendance and obtaining missed materials.
Office hours: Dr. Widmar, Emily Lord, and Melissa McKendree will be available for office hours at various
scheduled times throughout the semester. Note that there is also an entire regularly scheduled class period
dedicated to reviewing material for the exam and a “Question and Answer” session before each exam.
Scheduled office hours for Spring 2013 are as follows:
Week Number:
Week of
1: Jan 7th
2: Jan 14th
3: Jan 21st
4: Jan 28th
5: Feb 4th
6: Feb 11th
7: Feb 18th
8: Feb 25th
9: March 4th
10: Spring Break
(March 11th)
11: March 18th
12: March 25th
13: April 1st
14: April 8th
15: April 15th
16: April 22nd
Dr. Widmar
Emily Lord
10:00-11:30 am
Melissa
McKendree
3:30 – 5:00 pm
Thur, Jan 17th
Thur, Jan 24th
Thur, Jan 31st
Thur, Feb 7th
Thur, Feb 14th
Thur, Feb 21st
Thur, Feb 28th
Tue, Jan 15th
Tue, Jan 22nd
Mon, Jan 28th
Mon, Feb 4th
12:00 pm – 2:00 pm
12:00 pm – 2:00 pm
10:00 am – 12:00 pm
10:00 am – 12:00 pm
Wed, Jan 16th
Wed, Jan 23rd
Wed, Jan 30th
Mon, Feb 18th
Tues, Feb 26th
Mon, March 4th
10:00 am – 12:00 pm
12:00 pm – 2:00 pm
10:00 am – 12:00 pm
Wed, Feb 20th
Wed, Feb 27th
Wed, March 6th
th
Mon, March 25
Mon, April 1st
Tues, April 9th
Mon, April 15th
Tues, April 23rd
10:00 am – 12:00 pm
10:00 am – 12:00 pm
12:00 pm – 2:00 pm
10:00 am – 12:00 pm
12:00 pm – 2:00 pm
Wed, March 20th
Wed, March 27th
Wed, April 10th
Wed, April 17th
Wed, April 24th
Thur, March 21st
Thur, March 28th
Thur, April 4th
Thur, April 11th
Thur, April 25th
If you are unable to attend office hours during these scheduled time periods, please e-mail Dr. Widmar to set up an
alternative time.
S13
Agricultural Economics 310
Farm Organization
Agricultural Economics 310 is the basic undergraduate course in Farm Management. It is oriented to the junior level
of undergraduate students in the College of Agriculture. It is assumed that students enrolling in this course have
some training in and a working knowledge of the physical production sciences--Agronomy, Animal Sciences,
Agricultural Engineering, Horticulture, etc.
AGEC 310 involves the study of the farm business from the standpoint of maximizing after-tax returns over time.
Major emphasis is on the fundamental principles underlying sound farm organization and operation. The principles
and techniques developed are general enough to have validity through time, in any geographic area under any
conditions. On the other hand, they are specific enough to be applied to an individual farm. It may be followed by
AGEC 311, Farm Business Accounting, and AGEC 411, Advanced Farm Management.
Course Objectives:
1. To provide an understanding of the economics and analytical tools that farmers use to maximize farm profit.
2. To provide a procedure for analyzing farm financial information and suggest possible improvements to increase
profit after taxes.
3. To develop the ability to plan, organize and operate a farm business which accomplishes the operator’s most
important goals.
Class communications: Monitor your Purdue email to receive communications from me about AGEC 310.
Text (Optional): "Farm Management”, McGraw Hill, Kay and Edwards, Sixth Edition, 2006,
ISBN 978-0-07-302829-3.
Class Meetings:
AGEC 310 will meet Tuesdays and Thursdays from 10:30 – 11:45 am in Krannert G-16.
Web Information:
Our class website on Blackboard Learn, http://www.itap.purdue.edu/tlt/blackboard/, will have all labs, supplemental
material with links to cost data that will be used for doing labs, excerpts of current lecture notes, and readings (may
be available from time to time).
Class material management:
Use some system to keep printed supplemental material, labs, quizzes, exams, etc.
Laboratory:
Labs will be collected at the start of class on lab due dates. If you are not present to submit your lab at the
time when I collect them – your lab is late and grades will be impacted as specified below.
*YES – if you arrive to class 15 minutes late and turn in your lab AFTER I have collected them – your lab is late.
Work problems first on a preliminary copy of the lab and when you are satisfied with your answer copy it neatly
onto a fresh lab sheet. The laboratory is for you to gain understanding and experience in putting principles to use in
solving farm organization and management problems. There will be lab reports due throughout the semester. Lab
reports submitted after the in-class collection on the due date but within 48 hours will be down-graded by 5 points.
Between 48 hours late and one week late a 10 point grade reduction on the lab report will be taken. Zero credit
will be given for reports turned in more than one week late. But, be sure to complete lab reports and turn them in
before the last class of the semester to receive feedback (useful in exam prep) and because each missing lab report
will result in one letter grade reduction in the final course grade if not turned in by the last class of the semester!
The key factor in grading these reports will be the clarity of analysis as well as the soundness of conclusion. Show
your work for partial credit. You MAY work in groups on lab reports BUT you MUST include the names of those
people you worked with. The maximum number of people in a group is four. Failure to report having worked in a
group – when work was obviously completed together – will be penalized. The purpose of working together is to
exchange ideas while problem solving and to exchange knowledge of technical practices. It is important that each
person participate on each part of the exercise to gain the greatest value from it. Therefore, cooperation should be
limited to four people and each should answer the question with the benefit of idea exchange but in their own words.
Each person's answers should be uniquely their own. Any lab report that even whiffs of being done by one
person and copied by another will be severely penalized.
Reports are to have clearly identified on the cover page your name, date submitted and the names of your
collaborators. Each report is to be neatly and clearly organized in question order number, and securely stapled.
A five point penalty will be applied to labs that are not clearly organized as specified above – and – stapled.
Exams:
There will be three exams. Exam dates are on the Lecture Topic page. Contact Dr. Widmar immediately if you
require an alternate exam. Exams will contain a combination of short answer, essay, and problem questions. The
examinations will be closed book unless Dr. Widmar specifically specifies that certain materials can be used. This
will be made abundantly clear in class at least one week prior to each exam date. (Announcements regarding
materials which may be able to be used on the exam will be made in class only and not duplicated on Blackboard.)
Quizzes:
I reserve the right to conduct pop quizzes. Bring your calculator every class period. The quizzes can cover all
previous lecture, laboratory and assigned reading material. They are designed to see that you are rewarded for
keeping up-to-date and to uncover problem areas. There will be no makeup quizzes given.
Scores recorded incorrectly and papers not returned in class:
If a score is reported incorrectly, bring the paper to Dr. Widmar to fix it. Recording errors must be reported within
a week of receiving the grade. Dr. Widmar will return papers the next class hour after they are graded whenever
possible. Papers not turned in with the rest of the class or not picked up when returned in class will be available from
Dr. Widmar during office hours (or an arranged appointment).
Extra Credit:
I reserve the right to offer extra credit throughout the semester. I reserve the right to offer extra credit in class, via
Blackboard, or both. I do not guarantee that extra credit offered in class will be available via Blackboard, or vice
versa. It is your responsibility to attend class and regularly check Blackboard in order to remain informed regarding
possible extra credit offered.
Students with Disabilities:
Please make an appointment within the first three weeks of the semester for a visit in Dr. Widmar’s office to discuss
the appropriateness of the instructional methods in this class or any academic adjustments that you may require.
If you require, and have made arrangements for special exam accommodations, you must email Dr. Widmar
7-10 days before the exam with your name and the special accommodation agreed to so that she can have
accommodations in order. Failure to notify Dr. Widmar 7-10 days in advance of each exam means that you
will take the exam with the rest of the students.
Academic Honesty:
Each student enrolled in AGEC 310 is encouraged to study and work lab problems with others, to study past labs,
quizzes, and exam questions and answers and to elicit help from the full range of helpful people and information
sources. The lab reports submitted are to be uniquely the student’s and represent their own work. The quiz and exam
answers submitted are to represent their own work at the time. Academic dishonesty in AGEC 310 will be
prosecuted to the limit of reason, including expulsion from the University.
(See Purdue's University Regulations, Student Conduct, Sec. III, A5 and B.2a or
www.purdue.edu/oop/univregs/pages/stu_conduct/stu_conduct.html).
Without integrity, interpersonal relationships are meaningless.
Grades:
Your grade will be based on the following: Three Exams at 200 points each, Quizzes totaling 100 points and
Laboratory Reports totaling 300 points (25 points per lab).
Grades with minimum points of:
A+
B+
C+
D+
930
830
730
580
A
B
C
D
900
800
650
550
ABCD-
870
770
620
Less than 520
If this does not result in about 15% A's, and 40% A's and B's the grade break points may be lowered. They will not
be raised. Plus grades will be assigned for scores more than three percent above the breaks listed above. Minus
grades will be assigned for scores up to three percent below the breaks listed above.
When you are frustrated with the class:
It is especially important for Dr. Widmar to hear from you when this class is not meeting your expectations.
Send an e-mail to nwidmar@purdue.edu.
Score Revisions:
Occasionally a scoring mistake will be made--professors are human, too. If you feel that you deserve more credit
than you received, see Dr. Widmar before or after class or in her office. Come with a "perfect" answer in mind to
compare that to what you have written. If the score is too low, it will be raised immediately. Recording errors must
be reported within a week of receiving the grade.
Campus Emergency:
In the event of a major campus emergency, course requirements, deadlines and grading percentages are subject to
changes that may be necessitated by a revised semester calendar or other circumstances. You can get information
about changes in this course from our Blackboard web page or directly from Dr. Widmar.
REFERENCES
The texts listed below are available for reference in the Krannert Library. You may desire to purchase a text for
future reference.
Author
E.N. Castle, M.H. Becker and F.J. Smith
Sydney C. James and Stoneberg
Title
Farm Business Management
Farm Accounting & Business Analysis
R.D. Alpin, G.L. Casler and C.P. Francis
Capital Investment Analysis: Using Discounted
Grid 2nd Edition
Cash Flow
D. Lynn Forster and Bernard L. Erven
Foundations for Managing the Farm Business
Stephen B. Harsh, Larry Connor, Gerald D. Schwab Managing the Farm Business
William B. Richardson, William G. Camp, William
Managing the Farm and Ranch
G. McVay
Farm Business Management: Successful
Peter H. Calkins, Dennis D. DiPietre
Decisions in a Changing Environment
J.H. Herbst
Farm Management, Principles, Budgets, Plans
Donald D. Osburn
Modern Agricultural Management
Michael D. Boehlje, Vernon R. Eidman
Farm Management
Farm Management Decisions, Operation,
John E. Kadlec
Control
Kenneth C. Schneeberger
A Systems Approach to Farming, 2nd Edition
Publisher
Date
MacMillan
1972
Iowa State Univ. Press 1974
1977
Grid
Prentice Hall
1981
1984
Reston
1982
MacMillan
1983
Stipes
Reston
Wiley
1983
1983
1984
Prentice Hall
1985
Dr. Nicole Olynk Widmar
AGEC 310 Tue, Thur 10:30 a.m. KRAN G-16
Spring 2013
Tentative Schedule; Subject to Change
Lecture Topics
LAB
Notes
Due @ start of
class
January
February
March
8
10
15
17
22
24
29
31
Introduction; Farm Management I
Farm Management II; Farm Planning
Human Resources & Farm Management; Farm and Family
Opportunity Cost; Ownership Cost; In-Class Example
Introduction to Farm Budgeting and Decision Making
Enterprise Budgeting; Whole Farm Budgeting and Planning
Partial Budgeting; Budgeting Review
REVIEW PERIOD
5
7
12
14
19
Exam 1
Financial Records: Balance Sheet & Balance Sheet Analysis
No Class - Class on your own time. REQUIRED Video
Financial Records: Income Statement & Income Statement
Financial Records: Cash Flow Statements & Income Tax
Management
Time Value of Money; Discounting & Compounding
Net Present Value Analysis
Catch up; Financial Records Review & Lab Discussion
REVIEW PERIOD
21
26
28
5
7
12
14
19
21
26
28
April
2
4
9
11
16
18
23
25
(Exam
Schedule
April 29
– May 3)
Exam 2
Spring Break
Spring Break
Borrowing Money; Loan Amortization
Lease Versus Buy
Most Profitable Level of Output? ; Microeconomics and Farm
Decisions
How much? ; What combination of inputs? ; Input-output
combinations
What combination of products?
Risk Management and Probability
Risk Management and Probability
On-Farm Decision Making & Management
REVIEW PERIOD
Exam 3
On-Farm Decision Making: Farm Case Study – In Class Lab &
Discussion
On-Farm Decision Making: Farm Case Study – In Class Lab &
Discussion
Labs 10, 11, and 12
Lab 1
Lab 2
Lab 3
Key
Available
Lab 4
Lab 5 & 6
Lab 7
Lab 8
Lab 9
Lab 10, 11, 12
Key
Available