Course:FRE515/Syllabus

COURSE INFORMATION

Course duration: January 8th – April 12th, 2024

Class location: MCML 154

Credits: 3

Class times:

Part 1: January 8th – February 17th, 2024

Mondays: 2:30 pm – 5:30 pm

Part 2: February 27th – April 7th, 2024

Mondays: 2:30 pm – 4:00 pm

Wednesdays: 2:30 pm – 4:00 pm

Fridays: 9:00 am – 2:00 pm Site Visits – details TBD. We intend on going on at least 4 site visits in March.

COURSE DESCRIPTION

FRE 515, Agribusiness Management, is a course in agribusiness management designed specifically for Master of Food and Resource (MFRE) students. This course can be taken by students with or without previous business experience. Topics covered include: accounting, finance, valuation, marketing, operations and production management, leadership, sustainability, and overall evaluation/analysis of an agribusiness.

This course is designed to further develop and analyze concepts learned in FRE 516 and apply them in a practical context with real-life examples in the agriculture, food and resource sectors. This is done as a combination of in-class lectures and site-visits in the Lower Mainland so students can see first-hand agribusiness in action! Topic coverage includes financial statement analysis and how it is used by owners, investors, lenders, and industry stakeholders to make decisions. We discuss how to value a business in terms of its assets, earnings, cash flow, and market factors. Students learn in depth about the real-world financing of agribusinesses, sources and uses of capital, and how sustainable finance is currently utilized. We discuss various production management techniques (JIT, LEAN, vertical integration, etc.), and what successful leadership looks like. The class will dive into what is recently occurring related to sustainable finance and how lending and businesses are preparing and learning to adapt to upcoming changes related to climate-change and sustainability reporting. We will also delve into how Artificial Intelligence (AI) is being used in the agriculture and food sectors, as well as by banks.

BIG QUESTION & REAL-WORLD APPLICATIONS IN CLIMATE, FOOD AND THE ENVIRONMENT:

How is an agribusiness analyzed to make strategic decisions, to determine value, and ensure future sustainability?
How are firms, investors, and lenders going to tackle climate-change and sustainability together?

INSTRUCTOR

Instructor: Dr. Karen W. Taylor, PhD, MBA, P.Ag.

Email: kwtaylor@mail.ubc.ca

Phone: 604-812-3356

Office Hours: upon request. I will stay after each class to answer questions and discuss. Office hours may be booked via email and held in person or online, whichever is most convenient.

Office location: 3rd floor MCML or via Zoom (upon request of student)

LEARNING OUTCOMES

After this course, students will be able to:

Financial Analysis

evaluate agribusiness financial statements, identify key ratios and metrics, utilize findings to make decisions.

Business Valuations

critically examine a business’s assets, earnings (EBITDA), cash flow, and other factors to determine the value of a business for purchase, sale, and/or financing.
utilize enterprise value, discounted cash flow as well as asset values to calculate the value of a business.

Financing the Agribusiness & Sustainable Finance

explore the various short-term and long-term sources of capital and capital requirements for a business., the role of debt, sub debt, VC, and other financing sources.

discover how sustainable finance is being used in the market today and planned for the future, how banks and agribusinesses are working together to achieve the common goal of reduced emissions.

Production Management & Sustainable Leadership

analyze various production management techniques (JIT, LEAN, vertical integration, etc.) and see these techniques during site visits.

learn about sustainable leadership from many successful business owners.

Overall

visit successful agribusiness operations and learn from ownership / management about running a succession operation (challenges, opportunities, etc.)

have an overall better understanding of agriculture and food business in Canada, and how they fit into the national & global framework of the industry.

ASSESSMENTS


Class & Site Visit Participation	Throughout the term	15%
Assignments 6 (Best 5 of 6 assignments)	Throughout the term	20%
Midterm	View schedule online	20%
Group Presentation	View schedule online	20%
Final Exam	View schedule online	25%
TOTAL		100%

Group Presentation: This is a Group Project involving Business Analysis & Valuation Determination.

Objectives: Students will have the opportunity to utilize the tools learned in class and take a deep dive into a business, analyze it, determine a valuation, and recommend if they would or would not invest in the business.

Changes may be made to the assessment, to the discretion of the Instructor, and will be relayed to the students.

COURSE MATERIAL & LEARNING RESOURCES

Class Notes: Class notes (in online format) will be available on the Canvas website prior to class. You may print and bring these notes to class each time, or you may view them electronically in class. These notes will generally be in power point and only provide basic information. Additional notes will need to be taken by student during class.

Reading Materials: A combination of theory and real-world examples will be used in this class. Readings from a variety of textbooks and online websites will be made available to students to read and learn the theory. Case information will be provided to students, including information on the industry and the agribusiness.

There is no textbook required for this course. Articles, book chapters, etc. will be provided to students and posted online. Below is a list of textbooks that may be of interest, but any information presented will be given in the power points slides or posted online through Canvas.

Source Textbooks:

Barnard, Freddie L., et al. Agribusiness Management (5th Edition). New York: Routledge, 2016.
Berk, Jonathan, et al. Fundamentals of Corporate Finance (Canadian Edition). Ontario: Pearson Education Inc., 2013. (or similar textbook)
Higgins, Robert C. Analysis for Financial Management (6th Edition). New York: Irwin-McGraw Hill, 2001.
Schmitz, Andrew, et al. Agricultural Policy, Agribusiness, and Rent-Seeking Behaviour (2nd Edition). Ontario: University of Toronto Press, 2010.

Case Studies: Case studies will be handed out to students during the term. These are sourced from Harvard Business Publishing and/or Ivey Publishing.

COURSE POLICIES

Assignments

Unless otherwise indicated, assignments are due at 11:59 pm via Canvas on the due date. For each assignment, specifications will be provided of what to include in the final product. The grade received by the student for the assignment will be based on how well the student met the stated specifications, as well as any additional insight the student brings to the assignment. Therefore, for each assignment, it is important for each student to make sure that they understand the objectives and specifications, and ask questions if clarification is needed. This is the same approach that each student should take in their professional life. It is the responsibility of the student to fully understand assignment and course expectations.

Assignments are designated as Individual Assignments and must be submitted individually. Discussion and collaboration among students are strongly encouraged. However, for Individual Assignments, each student must do their own work and submit their original work. Identical submissions are a form of academic dishonesty and immediately receive a grade of zero and possibly negative affect your academic record.

Late Assignments

Late assignments will incur a 10% deduction for each day the assignment is late, including weekends, unless previously arranged for a qualified extension with the Instructor.

Missed Assignments

If you miss an assignment or need to reschedule an assignment, you must discuss this with your Instructor. If you have not discussed with your Instructor prior to the submission date, you will receive a grade of 0.

Writing Exams

All exams will be in-person and will follow MFRE exam protocol (See Student Portal). Exams may be online, e.g., in Canvas, but students must be physically present, use the lock-down browser, and invigilated. If a student is unable to write an exam, they must have a verifiable doctor’s note and must contact the Course Instructor, Course Assistant, and MFRE Program Coordinator before the scheduled exam date/time. If the documentation is considered legitimate, the Course Instructor will let you know how to proceed. If you miss an exam and you have not previously discussed this with the Instructor, you will receive a grade of zero. Notification after the exam date is not acceptable and will result in a grade of zero. Calculators may be utilized in class, on assignments, and during the exams.

Generative Artificial Intelligence (AI) Use

The use of Generative AI tools at UBC is a course or program-level decision. Students are permitted to use AI tools for formative work such as gathering information or brainstorming but may NOT use it on any assessed work or final submission. Students are ultimately accountable for the work they submit, and any content therein. Note: AI is a developing area and guidelines of its use may change. Students are encouraged to learn the material and produce their own output, rather than AI generated output.

Attendance and Missing Classes/Labs

Students are expected to attend all classes, labs, or workshops. If you cannot make it to a class, lab, or workshop due to a medical or personal emergency, email your Instructor, your Course Assistant, and Olivier Ntwali, MFRE Program Coordinator ahead of time to let them know.

Recordings

There is no required distribution of recordings of class. Recording will be provided based upon on the decision of the course instructor. Classes are designed as and are intended to be in‐person.

Copyright

All materials of this course (course handouts, lecture slides, assessments, course readings, etc.) are the intellectual property of the instructor or licensed to be used in this course by the copyright owner. Redistribution of these materials by any means without permission of the copyright holder(s) constitutes a breach of copyright and may lead to academic discipline and could be subject to legal action. Further, audio or video recording of classes are not permitted without the prior consent of the instructor.

Respectfulness in the Classroom

Students are expected to be respectful of their colleagues at all times, including faculty, staff and peers. This means being attentive and conscious of words and actions and their impact on others, listening to people with an open mind, treating all MFRE community members equally and understanding diversity.

Respect for Equity, Diversity, and Inclusion

The MFRE Program strives to promote an intellectual community that is enhanced by diversity along various dimensions including status as a First Nation, Métis, Inuit, or Indigenous person, race, ethnicity, gender identity, sexual orientation, religion, political beliefs, social class, and/or disability. It is expected that all students and members of our community conduct themselves with empathy and respect for others.

Centre for Accessibility

The Centre for Accessibility (CfA) facilitates disability‐related accommodations and programming initiatives designed to remove barriers for students with disabilities and ongoing medical conditions. If you are registered with the CfA and are eligible for exam accommodations, it is your responsibility to let Olivier Ntwali, Academic Program Coordinator, and each of your Course Instructors know. You should book your exam writing with the CFA using its exam reservation system: for midterm exams or quizzes, at least 7 days in advance; and final exams, 7 days before the start of the formal exam period.

ACADEMIC HONESTY

Plagiarism and Academic Dishonesty

Academic dishonesty and plagiarism are taken very seriously in the MFRE program. All incidences of plagiarism will be escalated to the MFRE Academic Director with penalties ranging from a mark of zero on the assignment, exam or course to being required to withdraw from the program. Note: If a student needs to extend his/her program due to a failed course or unsatisfactory progress, they will have to pay the full MFRE tuition fees for that term/s.

Academic misconduct that is subject to disciplinary measures includes, but is not limited, to the following:

Plagiarism, which is intellectual theft, occurs where an individual submits or presents the oral or written work of another person as his or her own. In many UBC courses, you will be required to submit material in electronic form. The electronic material will be submitted to a service which UBC subscribes, called TurnItIn. This service checks textual material for originality. It is increasingly used in North American universities. For more information, review TurnItIn website online.
Using Generative Artificial Intelligence (AI) tools like ChatGPT, Bard, or other Generative AI models to generate content or conduct analysis for evaluations, without proper citation and or if asked not to use AI, is considered plagiarism and academic misconduct. If students use AI in their submissions, they must cite the AI generator using citations consistent with the UBC Academic Honesty Standards.
Cheating, which may include, but is not limited to falsification of any material subject to academic evaluation, unauthorized collaborative work; or use of unauthorized means to complete an examination.
Working with Others on an Assignment: You are encouraged to work with other students, but you must turn in your own individual assignment. If you have an answer that is too close to another student’s answer, this will be considered academic dishonesty and this will be handled according to the MFRE and UBC policies.
Resubmission of Material, submitting the same, or substantially the same, essay, presentation, or assignment more than once (whether the earlier submission was at this or another institution) unless prior approval has been obtained from the instructor(s) to whom the assignment is to be submitted.
Use of academic ghostwriting services, including hiring of writing or research services and submitting papers or assignments as his or her own.

Student Responsibility: Students are responsible for informing themselves of the guidelines of acceptable and non‐acceptable conduct for examinations and graded assignments as presented via MFRE Code of Conduct; MFRE Turn it in, Course Syllabus, MFRE Instructors; Canvas and UBC academic misconduct policies.

Penalties for Academic Dishonesty: Penalties for academic dishonesty are applied at the discretion of the MFRE program. Incidences of academic misconduct may result in a mark of zero on the assignment, examination, or course, required withdrawal from the program, and/or the matter being is referred to UBC Graduate Studies.

COURSE SCHEDULE

Date	Class Topics
THEME 1: ANALYZING AN AGRIBUSINESS
Monday January 8 2:30 pm-5:30 pm	Introduction to the course and discuss course outline Introduction to Canadian Agriculture and resources available Review of Understanding Financial Statements
Monday January 15 2:30 pm-5:30 pm	Analyzing Financial Statements Calculating Ratio Analysis & identifying key financial metrics Issues affecting Agribusinesses (growing livestock, crops, etc.) Information on supply managed industries – as a Practice Assignment
Monday January 22 2:30 pm-5:30 pm	Assignment #1 Due (Monday) Understanding the Profit Function; how to maximize profits, given the agricultural industry. Cash Flow, Break-even Analysis, Payback period Impact of supply management system on how an agribusiness operates – how is it different than other competitive industries
THEME 2: BUSINESS VALUATION: ANALYZING A COMPANY (FOR SALE OR PURCHASE)
Monday January 29 2:30 pm-5:30 pm	How to analyze a business, the industry, the management team, etc. Critically examining the strengths, weaknesses, opportunities, and threats of a business. Enterprise Value, key ratios for valuing businesses
Monday February 5 2:30 pm-5:30 pm	Assign #2 Due (Monday) Decision factors affecting the purchase and sale of a business. Valuation vs. Appraisal
Monday February 12 2:30 pm-5:30 pm	Clarify Enterprise Value, FCF, etc. Guest Lecturer (details TBD): Valuing Securities
MIDTERM (SPRING) BREAK: FEBRUARY 19th – 23rd
Monday February 26 2:30 pm-4:00 pm	Assign #3 Due Review
Wednesday February 28 2:30 pm-4:00 pm	Midterm
Friday March 1 9:00 am–2:00 pm	Potential Site Visit (details TBD)
THEME 3 – FINANCING THE AGRIBUSINESS / SOURCES & USES OF CAPITAL
Mon & Wed March 4 & 6 2:30pm-4:00pm	Financing an Agribusiness (for purchase, expansion, merger, etc.) Exploring sources and costs of capital The role of debt, sub debt, mezz debt, equity investor, private equity firms, etc. Collateral Discussion – what is taken for security to secure indebtedness
Friday March 8 9:00am–2:00pm	Potential Site Visit (details TBD)
Mon & Wed March 11 & 13 2:30pm-4:00pm	Assign #4 Due (Monday) Exploring short-term and long-term source of capital and capital requirements for agribusinesses. How is AI utilized in the world of finance.
Friday March 15 9:00am–2:00pm	Potential Site Visit (details TBD)
THEME 4 –& PRODUCTION MANAGEMENT / SUSTAINABLE FINANCE / SUSTAINABLE AGRICULTURE
Mon & Wed March 18 & 20 2:30pm-4:00pm	Production Management - Management practices used in Agribusiness such as vertical integration, LEAN, JIT, etc. Cost & benefits of LEAN and other production methods.
Friday March 22 9:00am–2:00pm	Potential Site Visit (details TBD)
Mon & Wed March 25 & 27 2:30pm-4:00pm	Assign #5 Due (Monday) Sustainable Finance, Sustainable Agriculture – what does this mean? What are banks doing to support sustainability? What are agribusinesses doing to become more sustainable? Guest Speaker on Sustainability (details TBD)
Friday March 29 9:00am-2:00pm	NO SITE VISIT. Good Friday. Happy Easter!
Mon & Wed April 1 & 3 2:30pm-4:00pm	Innovation, Leadership, Building & Exiting an Agribusiness Personal Financial Literacy Student Choice of Topic
Friday April 5 9:00am–2:00pm	Potential Site Visit (details TBD)
Mon & Wed April 8 & 10 2:30pm-4:00pm	Assign #6 Due (Monday) Group Presentations Class Wrap Up / Final Exam Review & Discussion
Friday April 12 9:00am–2:00pm	Utilize this time to wrap up Group Presentations, if needed or we may schedule a Potential Site Visit (details TBD)
Final Exam Period: April 16th – 27th We will schedule a review session prior to the Final Exam, if students would like. Final Exam Date TBD

This Course Schedule is dynamic and may change.

Because there are several site visits, guest speakers, discussions with business owners, and changing work schedules, some classes may be rescheduled. Students will be advised in advance as the schedule changes.

An updated course schedule will be posted to Canvas regularly – we advise students to check it frequently.

Welcome to FRE 515!