College of Agricultural Science

Department of Agribusiness and Value Chain Management

Course outline: Farm management: 3CrHrs
Course code: ABVM 3171
 Instructor and Contact Information
Prerequisite: No
 Instructor Name; Gedisha K.(GAII)
Academic year: 2019/20
 Phone: +251932614691
Semester: II
 Email: gedishakatola@gmail.com
Target group; 3rd year ABVM
1. Course Description
The overall aim of this Farm Management course is to introduce the fundamental principles and their
applications in farm management. The objective of this Learning Task is to train professionals with
basic principles and tools of economics and management for effective farm level decisions and thus
improve the performance of farm business. The course will consist of 8 units which involves basic
knowledge about principles and application of farm management. You need a minimuim of 47 hours
study to work on this learning task. Try to use your time effectively.
2. COURSE OBJECTIVES:

Upon completion of the learning task, you will be able to:

 Apply management science and economics tools to solve farm related problems,
 Analyze farm business investment opportunities for effective farm planning,
 Apply farm planning and budgeting techniques in farm management decision-making,
 Indentify various production relations in pursuit of optimal resources combination that suites specific
farm situation,

 Apply economic principles and theories for optimum resource allocation and utilization,
 Expect the various risks and device different methods to avoid and/or reduce impact of risk and
uncertainty in farm operations,

 Analyze gender roles in farming activities

 Prepare farm plan and recommend on the feasible alternative activities.

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Course Outline: ABVM farm management
 3. Course content
Farm management
Chapter one: Concepts of Farm Management and Decision Making (5
Hours)
1.1 Definitions and concepts
1.2 Nature and Characteristics of Farm Management
1.3 Objectives and Scope of Farm Management
1.4 Farm Management Problems in Developing Countries
1.5 Characteristics of Farming as a Business
1.6 Farm Decision Making Process
chapter two: Production Resources and Management (5 Hours)
2.1 Farm Resources
2.2 Farm Resources Valuation
2.2.1 Annual Revaluation Method
2.2.2 Straight Line Depreciation Method
2.2.3 Declining Balance Method
2.2.4 Sum-Of-Years Digit Method (SOYD)
Chapter three:. Analysis of Farm Records and Accounts (6 Hours)
3.1 Farm Records and Accounts
3.2 Measures of Financial Success and Capital Position
Chapter four: Production Functions and Relations (6 Hours)
4.1 Forms and Types of Production Functions
4.2 Concept of Isoquants
4.3 Production Possibility Curve (PPC)
Chapter five: Farm Planning and Budgeting (9 Hours)
3.1 Farm Planning
3.2 Farm Budgeting and Types of Budget
3.3 Linear Programming
Chapter six Risk and Uncertainty in Agriculture (3 Hours)
6.1 Types of risk and uncertainty in agriculture
6.2 Decision making under risk
6.3 Methods of Reducing Risk and Uncertainty
Chapter seven: Role of gender in Farm Business and Its
Management (2 Hours)
7.1 Division of labour in farm production
7.2 Decision-making on farm production
7.3 Decision making on resource allocation and
disposal of produce
Chapter eight: Natural Resource and Environmental
Economics (4 Hours)
8.1 Concepts and Definitions of Natural Resource
and Environmental Economics
8.2 Important concepts in Natural Resource and
Environmental Economics
8.3 Property Rights and Externalities
8.4 Common Property and Open Access Resources

4. Method of Evaluation .
Grades for this course will be based on the following assessments:
No. Assessment Methods Percentage Period of assessment

1. Quiz 1&2 10% occasional

2 Test 1&2 20% mid of April
3 Assignment 1 group 10% End of may
4 Assignment 2 individual 10% To be arranged
5 Final exam 50% According to AMU academic
calendar.
Total 100% …………

*The Final Exam questions cover all the material presented in the course.

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Course Outline: ABVM farm management
 5. References
Cramer, G.L.; Jensen, C.W.; and Southgate, D.D. (1997) Agricultural Economics and Agribusiness (7th edition). John Willy &
Sons inc. New York
Halcrow, G. (1981) Eoconomics of Agriculture, International Student Edition. McGraw-Hill international Book Company
Ronald D. Kay and William M. Edwards, 1999. Farm Management (4th edition). WCB/McGraw Hill.
Tony Prato, 1998. Natural Resource and Environmetal Economics. Iowa State University Press, Ames, USA.
V.T. Raju, & D.V.S. Rao (1990), Economics of Farm Production and Management, Oxiford & IBH publishing co., New Delhi,
India

More references will be sited on handout.

*All University of Arbaminch Policies will be upheld at all times!

Name sign date

Seaction leader
1. . . .
Departmeent head
2. . . .

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Course Outline: ABVM farm management