AGEC210 - Introduction to Agricultural
Economics Aim: (a) To understand the basic economic principles of production, market demand and
supply and how these principles can assist
farm decision-makers in making improved
decisions, and (b) to learn basic accounting
principles to develop a sound farm record-
keeping system. Content: Market demand for agricultural products. Market supply of
agricultural products. Price movements. The
firm (farm) as a decision-making unit.
Production functions of the farm business.
Determining the optimum level of production.
Farm costs of production. Agricultural input substitution. Decisions on the choice of
agricultural products. Practicals: Elementary farm accounting. AGEC220 - Farm Management Corequisite: AGEC210 or (ECON110, 120). Aim: To understand the economic and management principles which guide the
practice of managing farms. Content: Farm
management - definition, planning environment,
managerial functions and management by
objectives. Key economic principles and
planning concepts. Farm information systems, data analysis and budgeting. Organisation of
capital. Farm machinery management. Land
economics. Labour management. Practicals: Application of economic principles to farming, analysis of farm records,
budgeting, capital use and machinery and
labour management decisions. AGEC240 - Applied Farm Financial
Management Prerequisite: AGEC220 (Bioresources Engineering students are exempt). Aim: To learn and apply the principles and tools of finance to managerial problems in
agriculture. Content: Farm financial
management objectives. Information flows in
farm financial management. Financial leverage,
farm firm growth and liquidity. Risk
management in agriculture. Impact of time and risk on managerial decisions. Farm land
values. Estate duty and the farmer. Practicals: Risk analysis, information flows, farm firm growth model, capital budgeting and
discounted cash flow problems. AGEC270 - Agribusiness Finance &
Marketing Corequisite: AGEC220 or (MGNT21M, 21P). Aim: (a) To apply finance principles to solve managerial problems in agriculture, and (b) to
study food marketing principles, and to craft
and implement strategy in food and agricultural
firms. Content: Financial management
objectives and information flows. Financial
leverage, farm firm growth and liquidity. Risk management. Impact of time and risk on
managerial decisions. Farm land values. Estate
duty. Food marketing margins and marketing
efficiency. Agricultural and food business
strategy. Marketing alternatives. Practicals: Risk analysis, information flows, farm firm growth model, capital budgeting and
discounted cash flow problems, and
agribusiness case studies. AGEC370 - Production Economics &
Price Analysis Corequisite: AGEC270, FINA202 or 16C in level 200 Economics modules. Aim: To apply principles of production economics in making enterprise choices, to
quantify demand and supply relations in
agriculture, and to assess the economic
effects of policies that distort markets.
Content: Empirical farm-level production
functions. Cost minimising and profit maximising criteria. Linear programming. Farm
planning under risk. Market demand and
supply functions in agriculture. Relationships
between price, income and cross-price
elasticities. Import tariffs and export subsidies.
Econometric and non-econometric price analysis. Practicals: Application of production and cost functions to agriculture. Farm planning
with linear programming. Regression analysis
of demand functions. AGEC380 - Agricultural Development Corequisite: AGEC220 or 32C in level 200 Economics modules. Aim: (a) To identify constraints which limit agricultural and economic growth in less-
developed regions, and (b) to analyse policies
that will alleviate these binding constraints.
Content: Characteristics of developing regions.
Role of agriculture in economic development.
Theories of economic and agricultural growth. Adoption of technology. Impact of property
rights (land tenure), credit, risk and information
on technology adoption. Demand for children. Practicals: Field Trip AGEC730 - Applied Linear Programming Prerequisite Modules: AGEC370 or
(MATH130, 140). Aim: (a) To identify and formulate farm and agribusiness problems as linear programming
(LP) problems, and (b) to solve these LP
problems by computer and interpret their
solutions. Content: LP models for farm planning. MOTAD and game theory models for
income risk. Multiperiod models for cash flow.
Mixed Integer Programming for plant selection.
Transport and trans-shipment models. Least
cost ration and forage planning models.
Economic equilibrium models. Practicals: Using the computer to solve farm planning, cash flow, plant selection, feed
blending and policy orientated models. AGEC740 - Agriculltural Policy Analysis Prerequisite Modules: AGEC370 Aim: To provide insight into the application of economic theory to a wide range of issues in
South African agriculture. This module
contributes towards an understanding of the
macro-economic situation facing South African
agriculture. Content: Private versus collective choice. Product and resource market policies.
Forecasting product demand. Trade issues.
Demand for resources. Farmland use and
value. Agricultural risk and crop insurance.
Environmental policy, recreation and
conservation. Policy Analysis Matrix. AGEC790 - Agricultural Economics Projects and Seminars Aim: To equip students with the ability and confidence to: (a) Critically review literature,
write scientific papers, and formally present
and defend their work; and (b) integrate theory
and techniques covered in earlier modules. For
the project, students must identify a relevant
research problem, develop models to test hypotheses, collect and analyse data, intepret
results, recommend how to solve the problem,
and prepare a comprehensive research report. Content: This module integrates topics covered in earlier modules. Latest News Latest Events Undergraduate Modules All general enquiries can be directed to :
