Cisco Junior College

Ranger College Agriculture 2317

I. Instructor: Herman Glueck AG. Office: 254-631-5772 Email: [email protected]

II. Course Description

This course is designed to introduce students to fundamental microeconomic principles of demand, supply, elasticity, market structures, role of government, etc., and the application of such principles in solving problems associated with agriculture and agribusiness. Graphical and mathematical approaches will be used to augment the economic theories. Credit: 3 semester hours

III. Required Materials

A. Each unit is covered during theory time giving the students time to discuss and ask questions pertaining to the economic theories and situations presented. Each class period the students review the current events relating to the economic conditions for the week and discuss the causes and the results.

B. Each student is assigned two commodities to follow on the futures market, and two non-agriculture stock on the stock market. Each week the student reports to the class the progress of his investment. At the end of the semester the student charts his or her investments and writes a summary of events.

C. Application forms and other procedure forms from the various government agencies that finance agriculture enterprises are studied in class and students fill out applications for a farm loan.

D. Each student is assigned a semester project on one farm enterprise. He or she must then complete a financial statement and a project projection of profit or loss.

E. “Introduction to Agricultural Economics” – Penson, John B. Jr. – ISBN #0-13- 117312-X

IV. Course Objectives A. Students will be able to employ the appropriate methods, technologies, and data that social and behavioral scientists use to investigate the human condition. B. Students will be able to analyze, critically assess, and develop creative solutions to public policy problems.

C. Students will be able to analyze farm summaries, market reports, and outlook material.

D. Students will have knowledge of the relationship of U.S. and the world economics to agriculture.

E. Students will understand the principles of consumption and demand.

F. Students will be able to recognize and assume one’s responsibility as a citizen in a democratic society by learning to think for oneself, by engaging in public discourse, and by obtaining information through the new media and other appropriate information sources about politics and public policy.

V. Grading Policy

A. Daily and major test 25% B. Semester assignment 25% C. Stock market 25% D. Final exam 25%

VI. Course Outline Lecture I. Introduction to Economics, Agricultural Economics, and Economic Growth. A. The why and what of economics. B. Agriculture and agriculture economics. C. Economic growth

II. Development of Economic Life A. Principal stages of economic development in history.

III. American Economic Development A. Colonial American 1607-1776 B. The Transition period 1776-1865 C. Commercial Agriculture since 1860

IV. The Role of Natural Resources in Economic Growth A. Land B. Water C. Mineral

V. Population and Economic Growth A. A look at population B. Factors affecting population growth C. Population and economic growth potential D. Theories of population growth E. Population checks and balances F. Population mobility

VI. The Role of the Labor Force in Economics A. Growth B. The Labor Force C. Employment D. Labor force characteristics E. Productivity of the labor force F. Quality of the labor force G. Employment

VII. The role of Capital in Agriculture and Economic Growth. A. Ways to define capital B. Ways to measure capital C. Characteristics of capital D. Evaluation of capital E. Role of capital in economic growth and agriculture F. Sources of capital in agriculture G. The future of capital in farming H. The Farm Credit System

VIII. The Role in Technology in Economic Growth A. What is technology? B. Technology is cumulative. C. Reduces cost and increases output D. Two kinds of technical knowledge E. Diffusion of technology and technological change

Part II

IX. Characteristics of Farms and Farm Production in the U.S. A. Farm Definitions B. Relative importance of farming C. Farm characteristics D. Farm production yields and expenses E. Gross and Net farm income F. Farm operators

X. Marketing Farm Products A. Activities consumer oriented B. What society wants from its marketing system C. The development of our marketing system D. The functional approach to marketing E. The institutional approach F. The commodity approach G. Organizational aspects of marketing H. The costs for marketing food; some important trends I. Agriculture cooperatives

XI. Consumption of Food A. The current world situation B. Factors influencing food consumption C. Trends and patterns in food consumption in the U.S.

Part III

XII. Production Principles A. Elements of the production process B. General differences between farming and industrial production

XIII. Production costs, supply, and revenue A. Types of input costs B. Effect of technology on costs C. Revenue considerations D. Concept of supply

XIV. Principles of Profit Maximization A. Management B. Maximum profit in terms of output

XV. Economic Principles of Consumption and Demand A. Concept of utility B. Demand C. The demand for food products

Part IV.

XVI. Managing the Farm Business A. What is farm management B. Role of the farm manager C. Types of farm planning decisions D. Production management E. Marketing management F. Financial management

XVII. Managing the Agri-Business Firm A. Functional organization of agribusiness firms

XVIII. The problem solving Approach and Policy Formulation A. Policy defined B. Goals of policy makers C. Some criteria of policy formulation D. The problem solving approach E. The problem solving environment

XVIV. Farm Price and Income Problems A. The background B. The farmer’s dilemma C. Farm policy goals D. What are the policy alternatives?