Tung Oil: A Revival

This case illustrates the difficult financial decisions that exist in agriculture. A small group of farmers are considering planting tung nut trees on their land. Historical information about the tung nut industry is included as background. Because tung nuts are grown on trees, farmers deciding to invest in tung orchards must wait years for a return on investment. Instructors can use this case to aid in teaching financial topics, such as net present value, simple rate of return, and other financial measures. Other issues also could be explored, including risk, marketing channels, business planning, and alternative agricultural crops.