AE 230 - Financial Management

3 Credits
Outline Effective Date: 2023 Fall Version 21
Revised:Jul 20, 2023
Approved: Jul 20, 2023

Lecture Hours: 42 Lab Hours: 28

Course Description:
Students learn to use concepts and tools of economics and financial management as they apply to farming. A large part of the course consists of assignments dealing with time value of money principles, economic analysis, financial analysis, budgeting, and other management tools. Assignments use Office 365 programs such as Excel, Word, and PowerPoint.

Rationale:
This is a required course for the Animal Science Technology and Crop Technology students. Quality financial records help keep the farm manager, as well as interested third parties, better informed as to the performance and position of the farm business. Sound financial management practices aid in making farm management and strategic business decisions. This is especially important in today’s terms where most farms are experiencing high input costs and low output prices.

Prerequisites: AE 202
Corequisites: None

Course Learning Outcomes:
Upon successful completion of this course, students will be able to

prepare and analyze financial statements & ratios for the farm enterprise.
evaluate credit and its influence on the farm business plan.
build a forecasted cash flow budget and use it to assess the viability of farm operation..
identify and describe some risk factors that impact the farm business and consider mitigation strategies.
conduct sensitivity and timing analysis.
utilize time value of money in budgets.
create, evaluate, and present partial budgets incorporating both financial and non-financial factors.
develop key planning documents and budgets for the farm enterprise.

Required Resource Materials:
There is no assigned text so instead the class with utilize:

Class handouts

Internet

Optional Resource Materials:
For those who would like to refer to some support documents.

http://www.saskatchewan.ca/business/agriculture-natural-resources-and-industry/agribusiness-farmers-and-ranchers/farm-business-management/farm-financial-management

Conduct of Course:
This course involves approximately 42 hours of classroom lecture that is a blend of notes and discussion. The laboratory sessions are approximately 28 hours. Lecture, discussion, and case study are used in this course. Each topic is presented in class with opportunities for discussion. There is at least one case study associated with each topic. Budgets are prepared manually and by computer.

Classroom and laboratory attendance is considered vital to the learning process and as significant to the students’ evaluation as examinations and reports.

Students having a combination of excused and/or unexcused absence of 20 percent or higher for the scheduled course hours will be required to withdraw and will automatically receive a “RW” (required withdrawal) for the course, regardless of any other evaluation results. (RW is a failing grade.).
An excused absence is one that is verified with your instructor. Verification should be prior to the absence or the next class day following the absence. Verification of the absence may take the form of a note from your doctor/College nurse regarding illness, or a note from another instructor regarding a field trip or other activity, or authorization by your instructor. An unexcused absence is anything NOT verified by the instructor prior to the absence or the next class day following the absence

NOTE: Any exceptions to the above attendance policy (e.g. timetable conflicts, work-related issues) must be approved in writing by the Department Chair prior to the beginning of the course.

It is the students’ responsibility to know their own absentee record.

Normal hours are 8:30 a.m. to 6:30 p.m., with potential for evening courses, exams or extended field trips. Students are expected to be available for classes during these times.

Content of Course:

Historical Financial Statements
Partial Budgeting
Cash flow Budgeting
Taxation & Succession Planning
Time Value of Money
Enterprise Budgeting
The Complete Farm Budget
Credit and Risk Management

Course Assessments:
The final grade is an aggregate of the following components:

Tests & Quizzes	55-60%
Major Project	25%
Assignments	15-20%
TOTAL	100%

Official final grades will be available on My Lakeland. Grades posted in D2L should be considered interim grades.
“Lakeland College is committed to the highest academic standards. Students are expected to be familiar with Lakeland College policies and to abide by these policies. Violations of these policies are considered to be serious and may result in suspension or expulsion from the College.”

Course Pass Requirements:
A minimum grade of D (50%) (1.00) is required to pass this course.

Letter	F	D	D+	C-	C	C+	B-	B	B+	A-	A	A+
Percent Range	0-49	50-52	53-56	57-59	60-64	65-69	70-74	75-79	80-84	85-89	90-94	95-100
Points	0.00	1.00	1.30	1.70	2.00	2.30	2.70	3.00	3.30	3.70	4.00	4.00

Students must maintain a cumulative grade of C (GPA - Grade Point Average of 2.00) in order to qualify to graduate.

Every effort has been made to ensure that information in this course outline is accurate at the time of publication. Lakeland College reserves the right to change courses if it becomes necessary so that course content remains relevant.

In such cases, the instructor will give students clear and timely notice of changes.

No part of this course outline may be reproduced in any form or resold without written permission from Lakeland College.

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