AGEC 310, Agricultural Economics—Farm Organization KRAN G-02; MWF 9:30 a.m. and Thursday 7:30 a.m. KRAN G-04

Lecture Topics LAB Due in class

TEXT Read Chapter #

Supplemental Material Item # Posted on Blackboard

August 23 Introduction **Print and bring to class 25 Most Profitable Level of Output 7 1, 2 27 How Much Lab 1 7 3 30 What Combination of Products to Produce 8 4 September 1 Ownership Cost 22 5 3 Ownership Cost, Opportunity Cost Lab 2 4 6 Labor Day—No class 8 Budgeting—Farm Management Tool 9 6 10 Budgeting Lab 3 17 13 Budgeting 20 7 15 Budgeting 8 17 Farm Budgeting Lab 4 10 20 Review 9, 10 22 EXAM I (Wednesday) 24 Financial Records—Balance Sheet 5 27 Income Statement and Evaluation 3 11 29 Cash Budget 6 October 1 Cash Budget Lab 5 13 12 4 Income Tax Management 16 6 Income Tax Management 16 8 Keeping the Farm Competitive Lab 6 18 11-12 Fall Break—No classes Mon/Tues 13 Getting a Farm Loan 18 15 Home Farm Planning Report Due 15 Getting a Farm Loan Lab 7 19 18 Review 19 9, 10 20 EXAM 2 (Wednesday) 22 Farm Planning 13** 25 Farm Planning 27 Farm Planning (Last day to drop class, Oct. 27) 2 29 Cropping Systems Lab 8 2 14** November 1 Livestock Systems 2 3 Getting Started Farming 12 5 Farm Planning Lab 9 8 Old Master 12 10 Getting Started Farming—Sharing Management 21 12 Farm Planning IV Lab 10 21 15 Getting Started Farming—Sharing Income 21 17 Getting Started Farming 21 15 19 Last date late assignments earn credit 19 Farm Ownership Forms Lab 11 21 22 Farm Ownership Forms 24-27 Thanksgiving Vacation—No classes 29 Farm Ownership Forms 14 16 December 1 Incorporation, Taxation, Business Transfer 14 17 3 Discuss Analyzing Farm Problem Lab 12 18** 6 Farm Leasing 15 8 Negotiating Land Rental Arrangements 15 10 Review (Classes end on Saturday, Dec. 11) 9, 10 Final Date: Time: Place:

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AGEC 310, Agricultural Economics—Farm Organization KRAN G-02; MWF 9:30 a.m. and Thursday 7:30 a.m. KRAN G-04

Professor: Robert W. Taylor, Krannert 635, Office: 765-494-4211 (Home: 765-743-4235 only 7-10 p.m.). E-mail: rtaylor2@purdue.edu.

Office Manager: Mrs. Klotz, lrklotz@purdue.edu Krannert 631, 8-Noon, 1-4 p.m. M-F, 765-494-4208.

AGEC 310 will meet Monday, Wednesday and Friday at 9:30 a.m. in KRAN G-02 with a lab on Thursday at 7:30 a.m., in KRAN G-04. Attendance is important. If you will miss a class, email Prof. Taylor in advance with your name, seat number, the date you’ll miss and a brief explanation. Failure to notify Dr. Taylor will hurt your grade. If you have the lab report finished for the week, you may be excused from coming to lab, but the Thursday lab is required for those who are not up to date submitting lab reports.

Office hours: Drop by Krannert 631 and sign in at the front counter to see Dr. Taylor (first come basis). Tuesday 9:30-10:20 a.m. and 10:30 – 11:45 a.m.; Thursday 9:00-10:00 a.m.

Office Appointments: Sign on open slots on Dr. Taylor's office calendar located on the front desk in each class.

If You Have Trouble with Blackboard Vista - Helpful links:

The latest version of Mozilla Firefox is recommended for use with Blackboard Vista. Download Mozilla Firefox free at http://www.mozilla.com/en-US/firefox/personal.html

Computer and Browser Troubleshooting Tips http://www.itap.purdue.edu/tlt/blackboard/tips-browser.cfm First time users to Blackboard Vista or users that have recently purchased a new computer.

Review the Blackboard tune-up page on your home computer to determine that your computer is ready to use Blackboard Vista. http://www.Blackboard.com/tuneup/

Tips and Hints: Make sure you turn off pop-up blockers that may be running on your computer. Use the latest browser that is available for your computer. (IE 6 or better, Netscape 7+) Make sure you have the plug-ins you will need for the course. (such as Adobe Reader for PDF files) Make sure Java is enabled. To test for Java, go to http://java.sun.com/getjava/index.html Enable Cookies on your computer.

http://www.agecon.purdue.edu/support/software.asp - This is the Ag Econ software support area. You may download Windows updates, and the latest versions of Mozilla Firefox especially recommended for use with Blackboard Vista.

Login link to Blackboard Vista class website. http://www.itap.purdue.edu/tlt/blackboard/

If You Have Trouble Opening or Printing PDF documents in ITaP Labs: See instructions posted on AGEC 217 Blackboard Vista Homepage PDF Printing ITaP Labs

http://www.agriculture.purdue.edu/agcomm/ontarget/0703/trouble_opening_pdfs.htm “Fix It” Techniques when you’re having trouble opening PDF documents.

Support Hotlines: ITAP Customer Service Center: G65 Stewart Center, E-mail: itap@purdue.edu Phone: 765-494-4000 http://www.itap.purdue.edu/help/ and http://www.itap.purdue.edu/help/customer/

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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 School 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.

Dr. Taylor offers an acclaimed hour‐long crash course on the fundamentals of Midwest farming.           To enroll in the course, e‐mail Dr. Taylor before Friday of the first week of classes and include your class and work schedule for the second week of classes. 

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; AGEC 411, Advanced Farm Management; and by AGEC 412, Home farm planning workshop.

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 the farm financial information and suggest possible improvements to increase profit after taxes.

3. To develop 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 Monday, Wednesday and Friday at 9:30 a.m. in Krannert G-2, with a help session on Thursday at 7:30 a.m., in KRAN G-4. We will use a seating chart and pictures of each student will be taken the first day of class as the basis for a picture seating chart. Attendance is important. If you will miss a class, email Prof. Taylor in advance with your name, seat number, the date you’ll miss and a brief explanation. If incomplete information is given, the note will be returned to you once reminding you to give complete info. If you have the lab report finished for the week, you may be excused from coming to lab, but the Thursday lab is required for those who are not up to date submitting lab reports.

Web Information: Our class web site in Blackboard Vista, http://www.itap.purdue.edu/tlt/blackboard/, has supplemental material with links to cost data that will be used for doing labs. The livestock costs are from Kansas State, the crop costs are from Iowa State and the machinery costs are from Minnesota. The website has the current lecture notes through the next exam. The day’s quiz with a key will be available the evening of the quiz and for a week afterward. A copy of the previous semester’s exams is available. Readings with due dates may be available from time to time. If you have trouble or any questions, contact Mrs. Klotz at lrklotz@purdue.edu or 765-494-4208.

Class material management: Use some system to keep printed supplemental material, labs, quizzes, exams, etc.

Laboratory: 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 a lab report due each week. Late lab reports submitted after the due date will be down-graded, but be sure to complete and submit them even if late. Between the “Last Date late labs earn credit (April 16) and the Friday of finals week, you may submit a late completed lab for no point credit but your final course grade will not be lowered.

Each missing lab report will result in one letter grade reduction in the final course grade. The key factor in grading these reports will be the clarity of analysis as well as the soundness of conclusion. Do your lab reports individually, and then check them with others. The purpose of working together is to exchange ideas in 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 two or three persons 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 first page your name, assigned seat number, lab due date, date submitted and the names of your collaborators. Each report is to be neatly and clearly organized in question order number, and securely stapled together. Farm planning labs require the coversheet shown in Lab 8. Labs not submitted with the rest of the class will take longer to grade and may be picked up 8-noon and 1-4 p.m. M-F from Mrs. Klotz in Room 635 Krannert.

Exams: There will be two exams, and a final exam scheduled during finals week. Exam dates are on the Lecture topic page. Contact Dr. Taylor immediately if you require an alternate exam. Ignoring the Purdue calendar will result in a penalty. The exams will contain a combination of short answer, essay, and problem questions. The examinations will be closed book. See the question list in the packet. You may bring one individually created 3" x 5" card to the exam with important material written front and back. If the card is copied or typed, the font must be size 12 pt. (the size of this text) or larger. Having notes of a different nature is the basis for a substantial cheating penalty (see Academic Honesty below). Dr. Taylor sometimes electronically monitors student behavior during class time.

Quizzes: There will be a short quiz each lecture. Bring your calculator. 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, but the lowest score will be dropped. You may bring a 3" x 5" card to the exam with important material written front and back. If the card is copied or typed, the font must be size 12 pt. (the size of this text) or larger. Having notes of a different nature is the basis for a substantial cheating penalty--see “Academic Honesty” below. Dr. Taylor sometimes electronically monitors student behavior during class time.

If you are unable to take a quiz because you are ill or for any other reasons beyond your control, you may be excused by emailing Dr. Taylor, preferably in advance. Email Dr. Taylor in advance with your name, seat number, the date you’ll miss and a brief explanation and he may excuse you from the quiz. Failure to include all relevant information will result in it being returned to you without action.

Scores recorded incorrectly and papers not returned in class: If a score is reported incorrectly, bring the paper to Dr. Taylor to fix it. Recording errors must be reported within a week of the distribution of the grade sheet. Taylor 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 in a folder with your seat number on it in under office manager Mrs. Klotz's supervision. You may take these late papers from the file (leave the folder) in Mrs. Klotz's office, KRAN 631, during office hours 8 a.m.-12 N and 1-4 p.m., M-F. They will not be brought to class. Double check to see that your record on the web is corrected.

Extra Credit: The grade on this report may be used to replace a low exam score. Home Farm data for farm planning is due the Friday before Exam Two. You may bring in data from your home farm including field and soils maps as well as a crop and livestock production history to provide the basis for a class farm-planning project. For details see attached instructions. The grade on this report may be used to replace a low exam score. Because your report will be made available to the class you will want to check with Professor Taylor as it is being developed. (See page after references for details.)

Students with Disabilities: Please make an appointment within the first three weeks of the semester for a visit in Dr. Taylor’s office to discuss the appropriateness of the instructional methods in this class or any academic adjustments that you may require. Dr. Taylor has found it easy to make accommodations in the past, but it is important that to discuss talk this at the beginning of the semester.

If you require, and have made arrangements for special exam accommodations, you must email Professor Taylor 7-10 days before the exam your name and seat number and the special accommodation agreed to so that Mrs. Klotz can have accommodations in order. Failure to notify Dr. Taylor 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 lab, quiz, 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: Two Exams 15% each, Final Exam 25%, Quizzes 15%, and Laboratory Reports 30%.

Grades with minimum weighted percents: A+ 93 A 90 A- 87 B+ 83 B 80 B- 77 C+ 73 C 65 C- 62 D+ 58 D 55 D- 52

Seeing your scores in 310: The first day of class each student will give Dr. Taylor a 6 character or more password used to access his/her scores. After Dr. Taylor announces that scores are available, use the secure link on the class homepage to access your scores by entering your seat number and password. (For security, your scores are posted by seat number and password, not your name.) Log out when finished using Blackboard Vista.

Your grades will be updated on the website several times during the semester so that you may know your progress. Check it carefully for errors and report any discrepancy directly to Dr. Taylor within one week. You will earn an A grade if you earn 90%, (scores truncated, not rounded) a B with 80%, a C with 65%, and an F if less than 55%, of the weighted total points. 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. Taylor to hear from you when this class is not meeting your expectations.

Call Dr. Taylor at his office 765-494-4211 7:30 a.m.-5:30 p.m.--leave a message if he is out. Send an e-mail to rtaylor2@purdue.edu. He checks his e-mail daily during the week but not on the weekend.

Call Dr. Taylor at home 765-743-4235, but only between 7:00 p.m. and 10:00 p.m.--leave a message if he is out.

Drop by Office hours: Sign in at the front counter in Krannert 631 to see Dr. Taylor (first come basis). Times

Office Appointments: Sign on open slots on Dr. Taylor’s office calendar located at the front table in each class. Be sure to include your name, correct assigned seat number, area code and phone number. If you cannot keep your appointment, please e-mail lrklotz@purdue.edu and rtaylor@purdue.edu OR call Dr. Taylor at (765) 494-4211 to cancel so another student can take your place.

If you are unhappy with the course for any reason, the sooner you contact Dr. Taylor the better.

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. Taylor before or after class or in his 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. Dr. Taylor remains deeply impressed with the integrity of the several students each semester who come to him to report that an addition error was made and they received too much credit.

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 Vista web page or directly from Mrs. Klotz or Dr. Taylor.

REFERENCES The texts listed below are available for reference in the Krannert Library. You may desire to purchase a text for future reference.

Author Title Publisher DateE.N. Castle, M.H. Becker and F.J. Smith Farm Business Management MacMillan 1972Sydney C. James and Stoneberg Farm Accounting & Business Analysis Iowa State Univ. Press 1974

R.D. Alpin, G.L. Casler and C.P. Francis Capital Investment Analysis: Using Discounted Cash Flow Grid 2nd Edition 1977

D. Lynn Forster and Bernard L. Erven Foundations for Managing the Farm Business Grid 1981Stephen B. Harsh, Larry Connor, Gerald D. Schwab Managing the Farm Business Prentice Hall 1984William B. Richardson, William G. Camp, William G. McVay Managing the Farm and Ranch Reston 1982

Peter H. Calkins, Dennis D. DiPietre Farm Business Management: Successful Decisions in a Changing Environment MacMillan 1983

J.H. Herbst Farm Management, Principles, Budgets, Plans Stipes 1983Donald D. Osburn Modern Agricultural Management Reston 1983Michael D. Boehlje, Vernon R. Eidman Farm Management Wiley 1984

John E. Kadlec Farm Management Decisions, Operation, Control Prentice Hall 1985

Kenneth C. Schneeberger A Systems Approach to Farming, 2nd Edition

Extra Credit Report Home Farm Data for Farm Planning

Eligibility Requirements:

Student: Must be in top 80% of the 310 class.

Must have discussed this report with Dr. Taylor in his office by two weeks before exam 2 Must have submitted the complete report by one week before exam 2

Farm: Must be located in Indiana Must fully employ at least one person Must have facilities for a substantial livestock enterprise

Must be a home farm or very familiar to you

Report Contents:

1. Brief statement of location and production pattern including average numbers of livestock and acres of crops with yields. Do not include exact location or owner's name. All land operated is included in the report. Rented land is not distinguished from owned land. The value of all land farmed should be indicated, as well as the going cash rent.

2. Soils and field maps of the same size. The field map should have each field numbered and show the acres in the field. Fences, ditches, tile, etc. should be on the field map. A soil map key should be included. Check that all soil names are in AY-212.

3. There should be a farmstead map and a list of all buildings keyed to the map. Each building should have capacity or dimensions as well as a present market value estimate.

4. Take 25-30 digital pictures of the farm showing land and livestock facilities.

Report Format:

1. See example in class website in “Planning Farm Projects”. 2. Prepare a PowerPoint presentation and submit it on a CD or DVD. 3. It is important that AGEC 310, your name, seat number and date appear ONLY on the front cover page of the materials you submit and not within the body of the presentation. 4. Maps should be neatly produced and equally consistent in size, horizontal layout and appearance. Leave adequate margins on all sides. Any identifying road names or county information that identifies where your farm is located should be covered over on the soil maps.

Report Grade: The grade earned may be used to replace either hour exam. The maximum possible grade is 90.

AGEC 310 Farm Visits for extra credit

(A total of two quizzes may be changed to a score to 100)

Extra credit opportunities:

A. One quiz: Deadline: Sept. 10: Submit a half-page farm description/invitation via email to Mrs. Klotz which she will put on the website, inviting classmates to visit your farm. Classmates will study these opportunities and decide which farms they want to arrange to visit. Give Mrs. Klotz a few days and check to see that the information is present under “Farm Planning Projects” and that it is appropriate for general distribution. If there is a problem, email Mrs. Klotz (lrklotz@purdue.edu) If you do not submit a farm visit invitation, you may submit two visit reports.

B. Second quiz: Deadline: December 1: Study the invitations in the “Farm Planning Projects” part of our class’ Blackboard website, arrange with a classmate to visit their farm and submit a typed report. The report will include the following:

a. Your name, seat number b. Farm visited c. Visit date d. Length of visit e. Managers you talked to (include their email addresses) f. Things you saw and discussed g. 2-3 Most important things you learned

   

Help Sessions (Lab) this semester Thursday 7:30 a.m. KRAN G-4 If you have the lab report finished for the week, you may be excused from attending the help session, but the Thursday session is required for those who are not up-to-date submitting lab reports.

Drop in Office hours Sign in at the front counter in Krannert 631 to see Dr. Taylor (first come basis). Tuesday 9:30-10:20 a.m. and 10:30 – 11:45 a.m.; Thursday 9:00-10:00 a.m.

Office Appointments Sign on open slots on Dr. Taylor's office calendar located on the front counter or table in each class. Be sure to include your name, correct assigned seat number, area code and phone number.

If you cannot keep your appointment, please e-mail lrklotz@purdue.edu and rtaylor2@purdue.edu OR call Dr. Taylor at (765) 494-4211 to cancel so another student can take your place.

8/23/2010