AGRICULTURAL ECONOMICS AND AGRIBUSINESS (AEAB)
M. J. Cochran, Interim Head of the Department, 221 Agriculture Building, 575-2256
UNIVERSITY PROFESSOR LAFERNEY; L.C. CARTER CHAIR IN MARKET POLICY PROFESSOR CRAMER; PROFESSORS COCHRAN, DIXON, REDFERN, WAILES; PROFESSORS EMERITI BERRY, HALBROOK, HEADLEY, JACKSON, MEENEN, MORRISON, PRICE; ADJUNCT PROFESSOR MILLAGER; ASSOCIATE PROFESSORS AHRENDSEN, DILLON, GOODWIN, NEFF, PARSCH; ADJUNCT ASSOCIATE PROFESSOR ENGLE; ADJUNCT ASSISTANT PROFESSORS BRYANT, MILLER; ADJUNCT INSTRUCTOR BABIONE
The agricultural business degree program provides education suited to career opportunities in farm management, agricultural business management, and agricultural marketing in both the domestic and international arenas.
Managers of farms and agricultural businesses are continually required to make organizational and operational decisions. The basic skills and knowledge needed for these decisions will be provided by the agricultural business curriculum. Students may elect to specialize in areas compatible with their personal objectives, depending upon the extent of accounting and business orientation desired.
Students educated in agricultural business are in demand for positions in agricultural industries, farm operation and management, marketing agencies, agricultural service organizations, state and federal agencies, and numerous other positions. With careful course selection, the agricultural business degree program is also a very effective pre-professional course for students who plan to study law, medicine, or veterinary medicine.
Teaching and research positions are available with Land Grant Colleges, as well as other institutions. Students who want to pursue graduate study should plan their undergraduate program accordingly. The agricultural business curriculum may be modified to specialize in the quantitative analytical skills suited to graduate education in agricultural economics and other disciplines.
Requirements for a B.S.A. Degree with a Major in Agricultural Business: The departmental core consists of 39 hours. Courses include AGEC 1103 and 2103 from the University core; AGEC 3303 and 3403; ECON 3033 and 3133; ACCT 2013 and 2023; MATH 2043 and 2053; BAST 2903; CISQ 2013 or STAT 4003/4001L; COMM 1313, ENGL 2003, and 3 hours from ENGL 3053, COMM 2303, 2373, 3303, or 3383. Modifications in this core may be made to provide greater quantitative content for students who are preparing for post-graduate study. Requirements for alternative areas of specialization within the agricultural business degree program include 21-27 hours in addition to the departmental core.
Requirements for a Minor in Agricultural Business: 18 semester hours in addition to AGEC 1103 and 2103 from the University core; ACCT 2013; 3 hours from AGEC 3403 or 4313; 3 hours from AGEC 3303, 3373, or 4113. Nine additional hours (6 of which must be AGEC) to be selected from AGEC 3303, 3373, 3403, 3503, 4113, 4143, 4303, 4313, 4403, 4413, 4613; MKTT 3433; MGMT 3563; ACCT 2023; FINN 3003, 3043; ECON 3033, 3133; CISQ 2013; STAT 4003 and 4001L; MATH 2043. Additional upper division courses in the College of Business Administration may be substituted with approval, provided prerequisites for those courses have been satisfied outside the minor. For students interested in post-graduate study in agricultural economics, previously approved adjustments in these requirements can be made to accommodate graduate admission requirements.
Courses: Agricultural Economics (AGEC)
AGEC1103 Introductory Agricultural Economics (FA, SP) Introduction to agricultural economics, including a survey of the role and characteristics of agriculture businesses in our economic system. Basic economic concepts concerning price determination, profit maximization, and resource use are emphasized. The use of economic principles as applied to the production and marketing decisions made by managers of agricultural firms is demonstrated. Co- or Prerequisite: Math 1203. UNIVERSITY CORE COURSE
AGEC2103 Principles of Agricultural Economics (FA, SU) Application of economic principles to problems of agricultural production, distribution, and income; including a study of the interrelationships between agriculture and other segments of the economy; and the dynamic forces in the economy which affect agriculture. Co- or Prerequisite: MATH 1203. UNIVERSITY CORE COURSE
AGEC2303 Introduction to Agribusiness (FA, SP) Introduction to agribusiness issues as they relate to the food processing, wholesale and retail sectors of the agricultural industry. Coverage of methods and tools agribusiness managers use to evaluate business opportunities. Case studies serve to communicate concepts of product distribution, design, promotion and pricing in the development of a marketing plan. Prerequisite: AGEC 1103 or ECON 2023.
AGEC3210L Agricultural Data Processing Laboratory (SP) Corequisite: AGEC 3213.
AGEC3213 Agricultural Data Processing (SP) Introduction to the understanding and use of the digital computer for processing and analysis of agricultural data. Computer languages will be studied and their uses clarified through application to problems encountered in agriculture. Corequisite: AGEC 3210L. Prerequisite: MATH 1203.
AGEC3303 Agricultural Commodity Marketing (SP) Theory and functioning of markets and agencies involved in the movement of farm products from producers to consumers with a focus towards producer marketing needs. Topics include factors affecting supply and demand; derived demand; spatial and temporal price relationships; organizational structure and operation of marketing system; introduction to futures and options markets, international trade and government programs; current topics in commodity markets. Prerequisite: MATH 1203 and AGEC 1103 (or ECON 2023).
AGEC3373 Price Risk Management Using Futures and Options (FA) Theory and mechanics of commodity futures and options markets including trading, margin, fees, etc. Price relationships between cash, futures and options. Fundamental and technical price analysis. Price risk management strategies for producers and users of agricultural commodity marketing plan. Speculative and hedging simulation exercises. Prerequisite: AGEC 1103 or ECON 2023.
AGEC3400L Farm Business Management Laboratory (FA) Corequisite: AGEC 3403.
AGEC3403 Farm Business Management (FA) Application of economic principles for the profitable organization and operation of the farm business. Focuses upon agricultural production management decision-making tools: optimal input/output decisions, budgeting techniques (enterprise, partial, whole-farm, cash flow), linear programming, balance sheet, income statement, investment analysis and risk management. Lecture 2 hours, laboratory 2 hours per week. ACCT 2013 and AGME 2903 and BAST 2903 or CISQ 1121L are recommended. Corequisite: AGEC 3400L. Prerequisite: AGEC 1103 or ECON 2023.
AGEC3413 Principles of Environmental Economics (FA) An introductory, issues-oriented course in the economics of the environment. What is involved in society making decisions about environmental quality will be studied. Environmental issues important to the State of Arkansas and the United States will be emphasized. (Same as ENSC 3413) Prerequisite: AGEC 1103 or ECON 2023.
AGEC3453 Agricultural-Firm Records and Accounts (FA) Kinds of records and accounts needed for the management and operation of agricultural firms. Emphasis will be placed on the use of records for income tax reporting and managerial decision making. Prerequisite: ACCT 2013 and ACCT 2023.
AGEC3503 Agricultural Law I (FA) Examination of those areas of law especially applicable to agriculture. Fundamentals of contract law, torts law, and property law will accompany discussion of major areas of agricultural law; acquisition and disposal of farmland; farm tenancies; rights and limitations in the use and ownership of farmland; water law; environmental protection; protection of the productivity of agricultural land; and the law of sales and secured transactions in an agricultural context.
AGEC400V Special Problems (1-6) (FA, SP, SU) Special studies and readings conducted under the direct supervision of staff members to satisfy the requirements of individual students. May be repeated for 6 hours.
AGEC401V Internship in Agribusiness (1-6) (IR) A supervised practical work experience in an agribusiness firm or a governmental or industrial organization having direct impact on agriculture in order to gain professional competence and insight to employment opportunities. Prerequisite: junior standing.
AGEC402V Special Topics (1-3) (IR) Studies of selected topics in agricultural economics not available in other courses. May be repeated.
AGEC4110L Agricultural Prices and Forecasting Laboratory (FA)
AGEC4113 Agricultural Prices and Forecasting (FA) Price theory and techniques for predicting price behavior of general economy and price behavior of individual agricultural products will be analyzed. Provides practice in the application of economics and statistics to agricultural price analysis. Lecture 2 hours, laboratory 2 hours per week. Prerequisite: AGEC 1103 (or ECON 2023) and CISQ 2013 (or AGST 4023 or STAT 2023) and MATH 2053 (or MATH 2043) and BAST 2903 (or CISQ 1121L).
AGEC4123 Agricultural Cooperation (IR) An evaluation of the principles of cooperation as applied to farmers, purchasing, marketing, and service cooperatives; methods of organization and consolidations, economic possibilities and limitations of cooperatives, legal considerations, financing human relations, operating methods, trade and sales practices, interpretation and utilization of records and accounts; and cooperatives potential contribution to economic development. Prerequisite: AGEC 1103 and AGEC 2103.
AGEC4143 Agricultural Finance (FA) Methods and procedures whereby agricultural firms acquire and utilize funds required for their successful operation. Emphasis is placed upon role of finance and financial planning and consideration is given to an understanding of financial firms serving agriculture. ACCT 2013 and ACCT 2023 are recommended. Prerequisite: AGEC 1103 (or ECON 2023) and AGEC 2103 (or ECON 2013).
AGEC4303 Advanced Agricultural Marketing Management (SP) Marketing concepts will be developed and applied to the global food and fiber system. The course will use both commodity and product marketing principles and economic theory to analyze varied marketing situations. Case studies will be used to demonstrate role that demand analysis and consumer behavior play in market management. Prerequisite: AGEC 2303 and AGEC 3303.
AGEC4313 Agricultural Business Management (FA) The planning, organizing, leading and controlling functions of management as they relate to agricultural business firms. Marketing of value-added products, budgeting, organizational structure, cost control, financial statements, capital budgeting and employee supervision and motivation. Case studies are used to teach communication and decision-making skills. Prerequisite: senior standing.
AGEC4373 Advanced Price Risk Management (IR) Use of futures markets as risk shifting institutions. Students design and implement hedging and cross hedging strategies for grain farmers, country elevators, soybean crushers, poultry firms, etc. Spreadsheets and statistical techniques are used to develop optimal hedging ratios. Prerequisite: AGEC 3373.
AGEC4403 Advanced Farm Business Management (SP) Principles and procedures of decision making as applied to the allocation of resources in the farm business for profit maximization. Emphasis is placed on use of principles of economics and their application to the decision making process. Includes exercises on the application of principles to specific farm management problems. Prerequisite: AGEC 3403 and AGME 2903 (or BAST 2903 or CISQ 1121L).
AGEC4413 Economics of Environmental Management (SP) An economic approach to problems of evaluating private and social benefits and costs of altering the environment. Emphasis given to the interaction of individuals, institutions, and technology in problems of establishing and maintaining an acceptable level of environmental quality. (Same as ENSC 4413) Prerequisite: AGEC 1103 and AGEC 3413.
AGEC4513 Agricultural Law II (IR) Provides an in-depth study of business and estate planning for farmers. The different forms of business organization for farming are studied with the goal of recognizing the advantages and weaknesses of each for achieving certain objectives. Estate planning for farmers includes fundamentals of estate and gift taxation, but will emphasize the special needs and tools available to farmers. Income taxation of farmers is studied, with emphasis on those areas of the tax law which apply to farmers in particular and the planning options available to the farmer. Prerequisite: AGEC 3503 or BLAW 2013.
AGEC4613 Domestic and International Agricultural Policy (FA) Agricultural and food policies studied from domestic and international perspectives. Examines public policy in terms of rationale, content, and consequences. Economic framework used to assess policies to improve competitive structure, operation, and performance of U.S. and international food and agriculture. Farm, international trade, resource, technology, food marketing, and consumer policies analyzed. Prerequisite: (AGEC 1103 or ECON 2023) and (AGEC 2103 or ECON 2013).
AGEC500V Special Problems (1-3) (FA, SP, SU) Individual reading and investigation of a special problem in agricultural economics not available under regular courses, under the supervision of the graduate faculty. Prerequisite: graduate standing.
AGEC5011 Seminar (FA, SP) Presentation and discussion of graduate student research. Formal presentations are made by all graduate students. Consideration given to research design, procedures, and presentation of results. Prerequisite: graduate standing.
AGEC5013 Research Methodology in the Social Sciences (SP, Odd years) Logical structure and the method of science. Basic elements of research design; observation, measurement, analytic method, interpretation, verification, presentation of results. Applications to research in the economic and sociological problems of agriculture and Human Environmental Sciences. (Same as AGED 5463, HESC 5463, RSOC 5463) Prerequisite: graduate standing.
AGEC502V Special Topics (1-3) (IR) Advanced studies of selected topics in agricultural economics not available in other courses. May be repeated. Prerequisite: graduate standing.
AGEC503V Internship in Agricultural Economics (1-6) (IR) On-the-job application of skills developed in the M.S. program (credit/non-credit only).
AGEC5103 Introduction to Quantitative Economics (IR) Study of the mathematical and statistical tools necessary for the treatment of microeconomics theory and the formulation of models for the analysis of economic problems. Techniques for analysis of economic problems explored with emphasis on model formulation or interpretation of results. Prerequisite: graduate standing.
AGEC5113 Agricultural Marketing Analysis (IR) Course prepares students for some of the more common tasks in market analysis as undertaken by professional agricultural economists in industry, government, and academic institutions. Major emphasis is on the analytical procedures and techniques required in short- and long-term outlook work; forecasting and projecting supply, demand and prices; and optimal market organization. Prerequisite: AGEC 5303.
AGEC5133 Resource Economics (IR) Applications of economic theory to utilization of land and water resources by both private and public sectors. Applicable laws, future land settlement, conservation, land and water use planning and externalities in resource use are considered. Appropriate research tools and decision criteria are discussed. Prerequisite: graduate standing.
AGEC5143 Financial Management in Agriculture (IR) Covers advanced topics in agricultural finance. The general focus of the course is the financial management of non-corporate firms. Covers the basic tools of financial analysis including financial arithmetic, asset evaluation under risk, and financial analysis and planning using econometric models. Such topics covered include management of current assets, capital budgeting, capital structure, and institutions involved in agricultural finance. Prerequisite: graduate standing.
AGEC5153 The Economics of Agricultural Policy (SP) Application of welfare criteria and economic analyses to the problems and policies affecting resource adjustments in agriculture. Existing programs and alternative proposals are evaluated for both short and long term viewpoints, under the criterion of resource use and income distribution within agriculture or between agriculture and the rest of the economy. Prerequisite: graduate standing.
AGEC5163 Agricultural and Rural Development (SU) Examination of agricultural and rural development issues in less developed countries. Alternative agricultural production systems are compared, development theories examined, and consideration given to the planning and implementation of development programs. Prerequisite: graduate standing and AGEC 1103 (or ECON 2023).
AGEC5303 Agricultural Marketing Theory (SP) Survey of the structure of agricultural product and factor markets including a critique of theoretical analyses of industry structure, conduct and performance; and a review of market structure research in agricultural industries. Prerequisite: graduate standing.
AGEC5403 Economics of Agricultural Production and Resource Use (SP) Theory of production economics and the concepts of optimum resource allocation within and among agricultural firms. Emphasis is placed on development of techniques for testing the principles of production economics as they relate to efficient allocation of resources in agriculture. Prerequisite: graduate standing.
AGEC5613 Econometrics I (FA) Use of economic theory and statistical methods to estimate economic models. The single equation model is examined emphasizing multicollinearity, autocorrelation, heteroskedasticity, binary variables and distributed lags. An introduction to the simultaneous systems model is presented. Two 80-minute lecture periods weekly. (Same as ECON 5613) Prerequisite: MATH 2043 and knowledge of matrix methods, which may be acquired as a corequisite and (AGEC 1103 or ECON 2023) and an introductory statistics course.
AGEC5623 Econometrics II (SP) Use of economic theory and statistical methods to estimate simultaneous equation models of an economy. Emphasis given to the problem of identification and the methods of estimating system models. Frontier topics are introduced. (Same as ECON 5623) Prerequisite: ECON 5533 and ECON 5613 (or AGEC 5613).
AGEC5633 Applications of Mathematical Programming to Agriculture (IR) Applies mathematical programming to agricultural decision problems. Applications of both linear and quadratic programming models are covered. Prerequisite: graduate standing and MATH 2043 and MATH 2053.
AGEC600V Master's Thesis (1-6) (FA, SP, SU) Prerequisite: graduate standing.
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