Module Identifier RD24920  
Academic Year 2006/2007  
Co-ordinator Mr Penri James  
Semester Semester 2 (Taught over 2 semesters)  
Other staff Mr Anthony O'Regan  
Mutually Exclusive RD29010 Farm Management  
Course delivery Lecture   1 x 2 hour lecture per week  
  Practical   8 x 3 hour practicals over two semesters  
Assessment TypeAssessment Length/DetailsProportion
Semester Assessment Financial statement exercise Outcomes assessed: 1, 2  20%
Semester Assessment Business development plan Outcomes assessed: 1, 2, 3,4, 5  80%
Supplementary Assessment Re-submit revised business plan based on alternative data  100%

Learning outcomes

On successful completion of this module, students should be able to:

Outcome 1
Preparation of a business plan
Performance criteria:
a. Budgets are prepared and reconciled.
b. Objectives are identified and met.
c. Realism and prudence are demonstrated.
Financial statements - Balance sheet - Cash Flow - Trading Profit and Loss Account - Gross margins
Objectives:- Personal-Business
Resources:- Capital-Labour-Land
Planning:- Physical-Financial-Uncertainty-Risk

Outcome 2
Interpret and analyse a set of financial statements
Performance criteria:
a. Strengths and weaknesses of the financial statements are identified.
b. The underlying trends and variances are established.
c. Key aspects are recognised and reported.
Financial Statements:- Balance Sheet-Cash Flow-Trading Profit and Loss Account -Funds Flow Statement-Gross Margin Account
Data:- Physical-Financial-Comparative Analysis-Net Farm Income-Management and Investment Income
Variances:- Financial-Physical-Timing-Planning-Production

Outcome 3
Prepare an Investment plan, including appraisal and selection of appropriate finance
Performance criteria:
a. Relevant income and expenditure is identified.
b. Cash timings are identified and reported.
c. Suitable financing is suggested and interpretation of results is performed.
Financial:- Capital-Revenue
Timing:- Inflation-Discounting-Risk
Taxation:- Relief-Allowances

Outcome 4
Recognise the functions and scope of UK taxation.
Performance criteria:
a. Different taxes are identified and explained.
b. Income tax liability is calculated.
c. Tax planning is addressed.
Taxation:- IT-IHT-CGT-CT-VAT
Reliefs:- Capital-Revenue-Allowances
Scope:- Business-Personal

Outcome 5
Identify the merits of different business structures
Performance criteria:
a. Alternative business structures are identified.
b. Strengths and weaknesses of the structures are established.
c. A knowledge of the tax consequences is demonstrated.   
Structures:- Partnership-Sole Trader-Company
Operation:- Taxation-Control-Flexibility-Reporting

Brief description

Business planning, decision making, taxation and investment appraisal are all essential aspects of management and necessary for successful business control. This module provides a comprehensive understanding of the concepts and principles involved in managing a business and incorporates analysing and solving business problems. In addition this module provides students with appraisal techniques essential for managers in planning and controlling the business.

Reading Lists

Barnard A and Nix J (1979) Farm planning and control CUP
Norman and Coote The farm business
Secrett M (1993) Mastering Spreadsheet Budgets and Forecasts - A Practical Guide
Throup, G Making profits with dairy cows and quota
Turner and Taylor Applied farm management
Warren, M F (1998) Financial management for farmers 4th. Blackwell Science

Agra Europ
CAP Monitor

Technical Reports
MAFF Farm incomes in the UK (published annually)
Farm Business Survey (published annually)


This module is at CQFW Level 5