SRJC Course Outlines

2/15/2025 2:04:08 AMAGBU 7 Course Outline as of Fall 2025

Changed Course
CATALOG INFORMATION

Discipline and Nbr:  AGBU 7Title:  AG ECONOMICS  
Full Title:  Agricultural Economics
Last Reviewed:2/10/2025

UnitsCourse Hours per Week Nbr of WeeksCourse Hours Total
Maximum3.00Lecture Scheduled3.0017.5 max.Lecture Scheduled52.50
Minimum3.00Lab Scheduled06 min.Lab Scheduled0
 Contact DHR0 Contact DHR0
 Contact Total3.00 Contact Total52.50
 
 Non-contact DHR0 Non-contact DHR Total0

 Total Out of Class Hours:  105.00Total Student Learning Hours: 157.50 

Title 5 Category:  AA Degree Applicable
Grading:  Grade Only
Repeatability:  00 - Two Repeats if Grade was D, F, NC, or NP
Also Listed As: 
Formerly:  AGBUS 7

Catalog Description:
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In this course, students will explore the factors affecting demand, supply, and market pricing for food, fiber, and agricultural inputs. Students will examine the factors of production, production costs, market structures, price system, and their applications in agriculture. This course also includes the discussion of local and federal agricultural policies, including risk management and the implications for agribusiness and trade.

Prerequisites/Corequisites:


Recommended Preparation:
Eligibility for ENGL C1000 or equivalent

Limits on Enrollment:

Schedule of Classes Information
Description: Untitled document
In this course, students will explore the factors affecting demand, supply, and market pricing for food, fiber, and agricultural inputs. Students will examine the factors of production, production costs, market structures, price system, and their applications in agriculture. This course also includes the discussion of local and federal agricultural policies, including risk management and the implications for agribusiness and trade.
(Grade Only)

Prerequisites:
Recommended:Eligibility for ENGL C1000 or equivalent
Limits on Enrollment:
Transfer Credit:CSU;UC.
Repeatability:00 - Two Repeats if Grade was D, F, NC, or NP

ARTICULATION, MAJOR, and CERTIFICATION INFORMATION

Associate Degree:Effective:Fall 1981
Inactive: 
 Area:D
Social and Behavioral Sciences
 
CSU GE:Transfer Area Effective:Inactive:
 DSocial ScienceFall 1997
 D2Economics  
 
IGETC:Transfer Area Effective:Inactive:
 
CSU Transfer:TransferableEffective:Fall 1981Inactive:
 
UC Transfer:TransferableEffective:Fall 1999Inactive:
 
C-ID:
 CID Descriptor: AG - AB 124 Agriculture Economics SRJC Equivalent Course(s): AGBU7

Certificate/Major Applicable: Both Certificate and Major Applicable



COURSE CONTENT

Student Learning Outcomes:
At the conclusion of this course, the student should be able to:
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1. Describe at least three major federal policies that affect agribusiness in the United States.
2. Apply production cost principles to decision-making in agribusiness.
3. Explain the significance of agricultural trade and trade policies.
4. Apply principles of demand, supply, and price system to agribusiness.
5. Discuss the nature of farming and the most profitable business structures for farmers.
 

Objectives: Untitled document
At the conclusion of this course, the student should be able to:
1. Discuss the major components of the traditional circular flow diagram to describe the macro-operation of an economy.
2. Discuss the major agricultural products and commodities in Sonoma County.
3. Identify sources for agricultural data at the County, State, and Federal levels
4. Discuss the structure and evolution of farms and the agri-food system in the United States.
5. Evaluate consumers' role in market demand for agricultural products.
6. Discuss production cost theory and the influence of technological advances on cost of production and productivity of agricultural firms.
7. Graph and analyze utility maximization and market demand.
8. Define and discuss the law of demand and supply and the factors that affect both demand and supply.
9. Identify and describe changes and shifts in market demand and supply curve.
10. Compute, graph, and analyze elasticity of demand and supply.
11. Discuss the application of elasticity coefficients to production decisions.
12. Explain price determination and market price of agricultural goods and commodities.
13. Graph, compute, analyze and interpret production costs in agriculture business.
14. Discuss production cost and profit maximization.
15. Identify marketing channels for agricultural commodities.
16. Discuss and explain the characteristics of markets and their implications agriculture.
17. Explain imperfect markets and market regulations
18. Discuss agricultural cooperatives and potential contributions to farmer success.
19. Discuss the role of government policies in agricultural markets.
20. Identify and discuss natural resource and environmental factors that affect agricultural economics.
21. Discuss agricultural trade policies in the United States.
22. Discuss risk management tools in agribusiness.
23. Explain the impact of climate change on agriculture.
24. Explain the basic features of the agricultural futures markets.

Topics and Scope
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I. Definition and Scope of Agriculture Economics
    A. Nature and scope of agricultural economics
    B. Economic aspects of Sonoma County agriculture
    C. Economic returns for agricultural products/commodities in Sonoma County
    D. Accessing and interpreting agricultural data at the County, State and Federal levels
II. 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
III. Consumer Behavior and Demand
    A. Consumer behavior and consumption
    B. Utility and consumption
    C. Budget constraints and consumer choice
    D. Factor affecting consumer demand
    E. Price elasticity of demand
IV. Input-Output Model
    A. Production Function
    B. Average and marginal physical products
    C. Stages of production
    D. Profit maximization
V. 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.
VI. 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
VII. Output-Output Analysis
    A. Production possibilities curves
    B. Isorevenue functions
    C. Revenue maximization
VIII. Concept of Supply
    A. Definition of supply
    B. Market supply curves
    C. Changes and shifts in market supply
    D. Elasticity of supply
IX. Market Price Determination
    A. Equilibrium market price
    B. Factor affecting equilibrium and disequilibrium in the market
    C. Impact of a shift in supply and demand on market price
    D. Shortage, surplus and market price
X. Market Structure
    A. Competition and the market
    B. Imperfect competition and market regulation
    C. Antitrust laws and agricultural bargaining
XI. Market Channel Orientation
    A. Marketing agricultural commodities
    B. Approaches to the study of marketing
    C. Marketing margins
XII. Solutions to the Farm Problem
    A. Orientation to agricultural cooperatives
    B. Forms of agricultural cooperatives
    C. Marketing orders and government programs
XIII. Economics, Agriculture and the Environment
    A. Natural resources used in agriculture
    B. Natural resources issues and resulting policy
    C. Natural resource management and agricultural development
XIV. Agricultural Finance and Insurance
    A. Sources of finance
    B. Farm Credit System (FCS)
    C. Agricultural Insurance
    D. Federal Crop Insurance
XV. 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
XVI. Agriculture and Development
    A. Role of Agriculture in Economic Development
    B. Agricultural development policies in the United States
XVII. Agricultural Development and climate change
    A. Adverse weather and agricultural productivity
    B. Planning for adverse weather
    C. Cost of mitigating climate change in agriculture
XVIII. 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

Assignments:
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1.  Problem sets (5)
2.  Three term papers (3 - 5 pages each)
3.  Analysis of agribusiness in the news (10 article reviews)
4.  Exams (1-3 ) and final comprehensive exam
5.  Analysis paper on the County Agricultural Crop report (3 - 5 pages)
6.  Weekly graded discussions
7.  Weekly quizzes (8 - 10 online multiple-choice questions)
8.  Reading (approximately 20 - 30 pages per week)

Methods of Evaluation/Basis of Grade.
Writing: Assessment tools that demonstrate writing skill and/or require students to select, organize and explain ideas in writing.Writing
20 - 25%
Term papers, County Agricultual Report, analyses of agribusiness in the news
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.Problem Solving
20 - 30%
Problem sets
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.Skill Demonstrations
0 - 0%
None
Exams: All forms of formal testing, other than skill performance exams.Exams
30 - 40%
Exams
Other: Includes any assessment tools that do not logically fit into the above categories.Other Category
10 - 20%
Weekly discussion and weekly quizzes


Representative Textbooks and Materials:
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Introduction to Agricultural Economics. 1st ed. Capps, Oral. Cognella Academic Publishing. 2025
Agriculture Economics and Agribusiness. 8th ed. Cramer, Gail and Jensen, Clarence and Southgate, Douglas. John Wiley and Sons Publishers, 2001. (classic).

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