AD2FBM: Farm Business Management

Module code: AD2FBM

Module provider: School of Agriculture, Policy and Development

Credits: 20

Level: 5

When you’ll be taught: Semester 1 / 2

Module convenor: Dr Sanzidur Rahman , email: sanzidur.rahman@reading.ac.uk

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2025/6

Available to visiting students: Yes

Talis reading list: Yes

Last updated: 24 April 2025

Overview

Module aims and purpose

The structure of the module will enable you to develop your knowledge on the elements of financial management, decision making, business planning and entrepreneurship. Through visits to rural businesses, in-class interactive lectures and real-world scenario assessments, you have an exciting opportunity to gain a detailed understanding of agri-businesses including financials, policy frameworks/legislation and business management. You will be exposed to a variety of farming systems and structures, and you will have the opportunity to explore farm management practices linked amongst others to regenerative farming, organic agriculture, sustainability and farm business diversification and rural entrepreneurship. You will understand the crucial role of the finance function and gain a good grounding in the principles, concepts, analytical techniques, and practical applications of financial management in the context of a business enterprise. You will acquire the skills to assess the financial needs of a business, evaluate alternative investment projects, identify and evaluate possible sources of finance and take decisions regarding the deployment of finance at the level of the non-specialist manager. You will also gain excellent networking opportunities through regular visits and guest lecturers. 

Module learning outcomes

By the end of the module, it is expected that students will be able to: 

1. Be able to analyse and interpret financial statements, estimate the financial needs of a business, identify and select from alternative sources of finance and provide a rationale for the choice from the perspective of management and external users.  
2. Be able to effectively perform tasks of business analysis, planning, decision making and control – analysis of business performance, and application of planning and decision making techniques within the rural sector 
3. Develop the ability to coherently write and present the current status of an agribusiness, including both financial and well supported and argued evidence from published data and research 
4. Perform analytical and critical thinking in reference to a variety of agribusinesses – developing numeracy, literacy, reasoning and appraisal skills  and effective report writing to communicate the outcomes of a business analysis exercise 

Module content

The module will cover the following areas in relation to business planning, financial management and decision making: 

• Introduction to Financial Management - role of the finance function in business. Review of managerial accounting concepts.  
• Financial planning and projected financial statements. Analysis and interpretation of financial statements.  
• Capital investment appraisal: techniques and issues. Risk, return and capital investment appraisal.  
• Sources of finance and financial markets. The cost of capital and the capital structure decision. Management of working capital. Rural Entrepreneurship  
• Farm records, staffing, livestock/crops legislation; wider agricultural legislation, farm assurance and agri-environment schemes 
• The development of the rural economy and agricultural industries over time 

In addition, students will visit and meet a wide range of businesses and professionals working in the rural economy. Visits may include some of the following: Arable and livestock producers; Estates and diversified enterprises; Woodland management; Agri-environment schemes; diversification enterprises.