For agricultural businesses, managing debt capital means choosing from among myriad sources and terms for financing for inputs, machinery, equipment, and land. Providers of debt capital, including input suppliers, equipment dealers, commercial banks, and the Farm Credit System, offer differing interest rates, rebates, points, and other non-interest costs. Microsoft Excel™-based financing decision aids were developed to help agricultural decision makers evaluate options by determining the true cost of capital from supplier financing, machinery and equipment financing, and real estate purchases. These same tools were also used as a teaching aid in senior-level university courses In farm management and agricultural finance to reinforce agricultural cost of capital concepts.
All Science Journal Classification (ASJC) codes
- Agricultural and Biological Sciences (miscellaneous)
- Economics, Econometrics and Finance (miscellaneous)