MSU Agricultural, Food, and Resource Economics  Graduate Education > Finance/Production

Finance and Production Economics

Overview

The focus of this field is on agricultural finance and productivity at both the firm and industry level. The emphasis is on developing a solid conceptual and empirical framework in finance and production economics to support research on firm behavior and performance, and to provide tools and information that contribute to improved management decisions. Although the material in this area is developed from financial and economic theory, training centers on applying the concepts and methods to solve problems faced by food system participants not only in Michigan, but also elsewhere in the United States, and in developing countries. Research and outreach programs in the area focus on such issues as asset valuation, measuring firm performance, measuring and managing risk, and developing methods to improve firm-level decision making.

Faculty

Faculty members in this area have special expertise in the analysis of financial markets, futures and options, crop insurance, risk, mathematical modeling of firm behavior (including bioeconomic models), management information systems (including expert systems), and analysis of firm productivity. Many faculty members have extension as well as research or teaching appointments.

Course Program

Students in this field are encouraged to build a solid base in microeconomic theory and quantitative methods, including econometrics and mathematical modeling. Knowledge of dynamic modeling methods is important. Specialized knowledge in finance or in crop or animal science or ecology can be very helpful.

Research

Topics addressed by faculty and student research in this area are broad. In addition to those mentioned in the Overview, they include, among others, the performance of financial institutions and organizations, the evaluation of tax policies, the adoption and use of improved production practices, and the environmental impacts of agricultural practices. The work of faculty members in this area is often highly complementary to activities underway in the other areas of excellence. Research on these topics is conducted at the state and national level, and also in the context of the department's international projects. (See department research page.)

Course List

The main courses for the field are the first three listed below. A Ph.D. major field in Finance and Production Economics must include the two courses indicated with an asterisk, along with one of three 900-level courses in the Advanced Agricultural Economics minor field: AEC 925–Advanced Natural Resource Economics, AEC 930–Dynamic Analysis in Agriculture and Natural Resources, and AEC 932–Information Economics and Institutions in Agriculture and Natural Resources. A Ph.D. minor field in Finance and Production Economics may consist of any two of the first three courses below. Optional but relevant AEC courses are shown in square brackets.

AEC 851 Agribusiness Operations Management
* AEC 853 Financial Management in Agriculture
* AEC 855 Agricultural Production Economics
[AEC 857 Strategic Management in Agribusiness]
[AEC 874 Field Data Collection and Analysis]
[AEC 930 Dynamic Analysis in Agriculture and Natural Resources]

Courses of Interest in Other Departments

AE 852 Systems Modeling and Simulation
AE 853 Applied Systems Modeling and Simulation for Natural Resource Management
EC 441 International Finance
EC 841 Exchange Rates and Capital Flows
MSC 833 Decision Support Models

Faculty List

  • Richard H. Bernsten, Professor; Ph.D., Illinois, 1977; agricultural development, farming systems, technology assessment.
  • Vera Bitsch, Assistant Professor; Ph.D., University of Hanover, 1994; business management and human resources; performance analysis of horticultural firms.
  • J. Roy Black, Professor; Ph.D., Minnesota, 1975; production economics, firm modeling, crop insurance.
  • Laura M. Cheney, Visiting Associate Professor; Ph.D., North Carolina State, 1994; livestock industry economics, firm management.
  • Eric W. Crawford, Professor; Ph.D., Cornell, 1980; agricultural development, farming systems, technology assessment.
  • Zhengfei Guan, Assistant Professor; Ph.D., Wageningen, 2005; agricultural finance, econometrics, production economics, firm performance measurement.
  • Steven D. Hanson, Professor; Ph.D., Iowa State, 1988; agricultural finance, options and futures markets.
  • Stephen B. Harsh, Professor; Ph.D., Cornell, 1969; firm management, management information systems, operations research.
  • Valerie A. Kelly, Associate Professor, International Development; Ph.D., Michigan State, 1988; agricultural productivity analysis, input supply systems, household economics.
  • James W. Lloyd, Professor; Ph.D., Michigan State, 1989; animal health economics, veterinary science.
  • Robert J. Myers, University Distinguished Professor; Ph.D., Minnesota, 1986; commodity price analysis, agricultural finance, econometrics.
  • Lindon J. Robison, Professor; Ph.D., Texas A & M, 1975; present value models, risk, and social capital.
  • Scott M. Swinton, Professor; Ph.D., Minnesota, 1991; production economics; bioeconomic models, firm-level environmental impacts.
  • Christopher A. Wolf, Associate Professor; Ph.D., Davis, 1997; dairy farm management, Michigan dairy sector performance, risk management and cost of production.

(Web pages for faculty, organized by field)