Agricultural Policy
AGEC 732

NORTH CAROLINA A&T STATE UNIVERSITY
DEPT. OF AGRICULTURAL ECONOMICS AND RURAL SOCIOLOGY

Fall 1999

Instructor: Dr. Godfrey C. Ejimakor
Office: 154-B carver Hall, Phone: 336-334-7943
Office Hours: 9 – 10am; 3 – 5pm MWF or by appointment
Meeting Time: 10:30 – 11:50am, MW
Meeting Place: 111 Carver Hall

 

Required Texts:

Helmberger, Peter G., Economic Analysis of Farm Programs,

McGraw-Hill, New York, 1991.

Ayer, Harry W.,(ed.) The Best of Choices: 1986 – 1996,

American Agricultural Economics Association, Ames 1996.

 

Course Objective: The general objective of the course is to fostr an understanding of U.S. and foreign agricultural policies, policy tools and processes. Emphasis will be given to selected agricultural commodity and input programs. Analysis of the effects of various policy options will be done using microeconomic theory. The application of theory to policy will be emphasized. Contemporary and emerging issues in agricultural policy will be discussed.

 

Grading: Grades will be determined as follows:

Attendance 5%
Midterm Exam. 25
Assignments 20
Term Paper 15
Final 35

Total 100

 

  1. Review of the Economic and Market Environment

    2. Consumer demand theory, theory of the firm, welfare economics, market failure, monopolies, public goods, externalities, income distribution, farm income risk, need for public sector intervention in the farm sector.

  2. Income and Resource Problems in Agriculture

    3. Demand and income elasticities for agricultural products, lack of substitutes for food, national (food security), buffer stocks, natural resource conservation, income risk, theories of income problems in agriculture (threadmill, average cost and fixed asset).

  3. . Agricultural Policy Tools: Use and Analysis

    4. Consumer surplus, producer surplus, social welfare, production quotas, input allotments, income support (deficiency) payments, support prices (price floors), price controls (floors), demand and supply management, taxes, marketing orders and agreements, crop insurance, producer and consumer subsidies and equivalents, import tariffs, export subsidies.

  4. Selected Commodity Program and Their Effects on Input Markets

    5. Grains (wheat, corn, sorghum), fibers (wool and cotton), milk, fruits and vegetables, beef, tobacco, sugar, Federal Agricultural Improvement and Reform (FAIR) Act provisions.

  5. Input Use Policies and Their Effects

    6. Land conservation and reclaimation, labor and human resource policy, capital and credit, technical change and bias in input use, factor shares.

  6. Environmental and Food Safety Issues

    7. Onsite and offsite damages related to farming, relations of farm programs to input use and environmental degradation, pesticide residues in food, risk assessment.

  7. International Agricultural Issues

PL 480 and its effects, agricultural market liberalization, agricultural commodity trade, common agricultural policy (CAP).