Upon successful completion of this course, students will be able to:
1. Discuss career opportunities and requirements for successful employment in agribusiness.
2. Discuss the major components of the traditional circular flow diagram to describe the
macro- operation of an economy.
3. Discuss the structure and evolution of farms and the agri-food system in the United States.
4. Evaluate consumers' role in market demand for agricultural products.
5. Discuss production cost theory and the influence of technological advances on cost of
production and productivity of agricultural firms.
6. Graph and analyze utility maximization and market demand.
7. Define and discuss the law of demand and supply and the factors that affect both
demand and supply.
8. Identify and describe changes and shifts in market demand and supply curve.
9. Compute, graph, and analyze elasticity of demand and supply.
10. Discuss the application of elasticity coefficients to production decisions.
11. Explain price determination and market price of agricultural goods and commodities.
12. Graph, compute, analyze and interpret production costs in agriculture business.
13. Discuss production cost and profit maximization.
14. Identify marketing channels for agricultural commodities.
15. Discuss and explain the characteristics of perfect and imperfect markets.
16. Discuss the role of government policies in agricultural markets.
17. Explain the role of natural and human resources in agricultural growth and development.
18. Discuss agricultural trade policies in the United States.
19. Discuss risk management tools in agribusiness.
20. Explain the basic features of the agricultural futures markets.
I. Career Opportunities for Agribusiness Graduates
II. Definition and Scope of Agriculture Economics
III. The Farm and Food System
A. Scope, health, and extent of production agriculture
1. Business structure of farms
2. Economic size classes of farms
3. Vertical coordination and farmer cooperatives
4. Farm output and agribusiness complex
B. Overview of an economic system
C. Micro versus macroeconomics - basic assumptions
IV. Consumer Behavior and Demand
A. Consumer behavior and consumption
B. Utility and consumption
C. Budget constraining and consumer choice
D. Factor affecting consumer demand
E. Price elasticity of demand
V. Input-Output Model
A. Production Function
B. Average and marginal physical products
C. Stages of production
D. Profit maximization
VI. Costs of Production
A. Total, average, and marginal costs related to level of output
B. Pure competition in production agriculture and resultant revenue functions
C. Profit maximizing and production in competitive markets.
D. Production cost and decision-making.
VII. Input-Input Analysis
A. Production curve
B. Isoquants and marginal rate of substitution
C. Isocosts, production and consumer prices
D. Production cost and profit maximization
VIII. Output-Output Analysis
A. Production possibilities curves
B. Isorevenue functions
C. Revenue maximization
IX. Concept of Supply
A. Definition of supply
B. Market supply curves
C. Changes and shifts in market supply
D. Elasticity of supply
X. Market Price Determination
A. Equilibrium in the market
B. Disequilibrium in the market
C. Impact of a shift in supply and demand
XI. Market Structure
A. Competition and the market
B. Imperfect competition and market regulation
C. Antitrust laws and agricultural bargaining
XII. Market Channel Orientation
A. Marketing agricultural commodities
B. Approaches to the study of marketing
C. Marketing margins
XIII. Solutions to the Farm Problem
A. Orientation to agricultural cooperatives
B. Forms of agricultural cooperatives
C. Marketing orders and government programs
XIV. Economic Agriculture and the Environment
A. Natural resources used by agriculture
B. Natural resources issues and resulting policy
XV. Agricultural Finance and Insurance
A. Sources of finance
B. Farm Credit System (FCS)
C. Agricultural Insurance
D. Federal Crop Insurance
XVI. Agriculture and the Global Economy
A. Globalization and agriculture
B. Interdependence and trade.
C. Principles of comparative advantage and trade
D. Trade policies and trade agreements
E. Effects of trade policies
XVII. Agriculture and Development
A. Role of Agriculture in Economic Development
B. Agricultural development policies in the United States
XVII. Agricultural Futures and Farming Contracts
A. Definition of futures
B. Agricultural futures and risk management
C. Forwards and futures contracts
D. Cash contracts and forwards
Introduction to Agricultural Economics. 7th ed. Penson, John and Capps, Oral and Rosson, Parr. Prentice Hall. 2018
Principles of Agricultural Economics. 2nd ed. Barkley, Andrew and Barkley, Paul W. Routledge Publisher. 2016
Agriculture Economics and Agribusiness. 8th ed. Cramer, Gail and Jensen, Clarence and Southgate, Douglas. John Wiley and Sons Publishers, 2001 (classic)