AEM 404 -- Advanced Agricultural Finance
The seminar is the on-campus portion of the Farm Credit Fellows Program. Outstanding students are selected to participate during the Spring semester of their junior year. In this class students are assigned to teams that examine a variety of real investment problems faced by farmers. Students work with both local farmers and lenders. The students prepare a consulting report for the farmer with their recommendation on whether the investment project should be undertaken and in some cases how it might be modified. They then prepare a credit committee report for the lender that is considering financing the project.
Syllabus for AEM 404
The Farm Credit Fellows
The Farm Credit - Cornell Study Program is a special undergraduate program in agricultural finance conducted by the Department of Applied Economics and Management at Cornell University with financial support from CoBank Eastern Agribusiness Division and Farm Credit Financial Partners, Inc. on behalf of the four northeastern ACA's (First Pioneer, Western New York, Yankee, and Maine). The objective of the program is to provide an opportunity for students with a strong interest in farm management and finance to gain a better understanding of the agricultural credit system and study special topics in the area of agricultural finance.
The program is open to College of Agriculture and Life Sciences undergraduates in their Junior and Senior years.
Participants are designated as Farm Credit Fellows.
General Features and Requirements for Participation in and Completion of the Farm Credit - Cornell Study Program
1. Farm Credit Fellows will be expected to complete the following coursework by the end of their Senior year: AEM 302 and 405. Equivalent course-work at other institutions will be accepted. It is required that AEM 405 be taken in the Sophomore or Junior year. Fellows are also encouraged to complete related courses in business management and economics.
2. Farm Credit Fellows will be expected to participate in two Spring and Summer activities to improve their understanding of the Farm Credit System. These activities will include:
a. An orientation period of two days at Farm Credit Financial Partners and CoBank Eastern Agribusiness Division in Springfield, MA and the main office of First Pioneer Farm Credit in Enfield, CT during the last few weeks of the Junior year. This orientation will be con-ducted by Farm Credit personnel and is designed to provide an understanding of overall Farm Credit System operation.
b. A one week internship at a Farm Credit Association office during the summer between the Junior and Senior year. During this period, the students will be expected to get an introduction to Association business under the tutelage of Association managers.
3. Between the Fall and Spring semesters, a three day trip will be conducted by a Departmental staff member for the program participants. The purpose of the trip will be to introduce students to elements of the monetary and fiscal system, which cannot be seen on campus. The trip has historically visited New York City financial markets.
4. During the Spring term of their Senior year, participants will register for AEM 404. This course involves team evaluation of actual farm financial problems. Teams of three or four students are assigned to a farm with a financial problem. The teams visit the farm and the farm lender, conduct an analysis and prepare consulting and credit committee reports. The results of these analyses are then presented to the farmer and the lender.
The Fellowship Grant
The Fellowship will cover the following:
1. Defray travel and hotel cost of the orientation visit to Springfield/Enfield.
2. Defray travel and hotel costs of the between-terms trip.
3. Defray costs of Fall and Spring term consulting report and analysis activities.
4. A grant to each student to cover expenses and partially compensate for lost income during the one week summer Farm Credit orientation period.