Department of Agricultural Economics

PROGRAM OBJECTIVES

1.  Create a Center for Technology and Information Management Economics.

  • Establish and fund this new Center, which will develop research and graduate education in the economics of biotechnology, information technology, contract design, and supply chain management.
  • Secure funding for eight to ten additional graduate research assistants to work in this area.
  • Add two faculty positions emphasizing informatics and supply chain management.
  • Add two faculty positions emphasizing biotechnology and contract mechanism design.
  • Revise graduate coursework to emphasize the economic analysis of biotechnology and information technology impacts.
Background and Justification:  Information technology is transforming the marketplace, and biotechnology will have profound effects on agricultural and renewable natural resource markets.  This Center will provide a focal point for students, potential employers, outside research entities and the public-at-large to engage in solving the new economic problems that will arise with the new structure of food and agricultural markets.  To lift this teaching and research area to national prominence will require new resources.

2.  Establish a Natural Resource Economics and Policy Center.
  • Establish and fund this new Center, which will:
    • Serve as a central entity for the study of policy issues related to the management of natural resources and environmental quality.
    • Evaluate economic and environmental implications of alternative natural resource and environmental policies and institutions.
    • Provide a forum for engaging stakeholders and public representatives in discussion of critical issues involving natural resource management and environmental quality in Texas.
  • Add an extension specialist position to develop outreach and public issues education programs relating to critical issues and tradeoffs involving property rights, land, water, air, and marine resources.
  • Expand course offerings in natural resource economics and policy, emphasizing water economics and climate economics, to meet the needs of students throughout the College and University.
Background and Justification:  The Department has over ten faculty specializing in teaching and research related to natural resource management and environmental economics, including major programs in water resource management, global climate change, fisheries, and land use. These programs emphasize economic and impact analysis of major policy issues involving the use of natural resources and the stewardship of environmental quality. This center will serve as a focal point for research, teaching, and extension in the area of natural resource economics, environmental economics, and related policy analyses. From its location in the Department of Agricultural Economics, this center would work with federal and state agencies, the Bush School, and other administrative units within the Agriculture Program and the University that can provide expertise in support of policy analysis.

3.  Expand Capabilities for Federal and State Public Policy Analysis.
  • Increase policy research and education in areas of sector-level modeling, international trade policy modeling, and state-level public policy issues analysis in Texas.
    • Develop capability to conduct economic analysis of impacts of alternative natural resource technologies and policies--both at the sector level, community level, and the associated risk exposure at the firm level.
  • Identify and develop resources to add three new faculty positions and expand funding for graduate assistantships and program operations.
  • Emphasize the tools of economic and policy analysis in undergraduate and graduate course revisions.
Background and Justification:  More informed policy makers lead to a better informed public policy process, which is a goal of policy research, extension and teaching. The emphasis in this areas is on the quantitative and qualitative analysis and description of existing policies and alternative options for dealing with policy problems affecting Texas producers, consumers, policy makers, communities, agribusinesses, and special interest groups. Current emphasis is on federal policies, but significant opportunities exist to expand analysis at the state level, including community impacts of changing policies.

4.  Develop an Area of Emphasis in Rural Entrepreneurship.
  • Establish and staff a Value Added Feasibility Center to evaluate the marketing and financial feasibility of value added initiatives by producers and existing agribusiness.
  • Expand fee-based extension and continuing education courses to serve regional and national markets.
  • Revise undergraduate course offerings to further emphasize the skills and knowledge required for entrepreneurship.
Background and Justification:  The Department has the potential to become the pre-eminent rural entrepreneurship program in the nation. Increased funding from state, federal and private foundation sources are focusing on rural economic development. Feasibility analysis is a critical first step in planning and financing a new venture. The proposed Value Added Feasibility Center would partner with TDA in assisting groups in evaluating the marketing and financial feasibility of value added initiatives by producers and existing agribusiness. Web-based courses for managers of existing businesses as well as start-ups, and including coverage of more advanced management topics offer the potential for fee income.

5.  Expand Efforts in Community Economics and Policy.
  • Develop and deliver a Master Rural Developer Program and associated web-based curriculum and educational materials.
  • Enhance research and teaching capabilities to model and analyze impact analysis and strategic community adjustments and to study alternative growth scenarios for rural areas.
  • Identify and develop resources to add three new faculty positions in extension, research, and teaching.
Background and Justification:  Community Economics involves evaluating the rationale for and the impacts of decisions that are made collectively and the impacts of outside forces on communities and other governmental and civic organizations. Community leaders and policy makers need help to understand the forces that drive local economies. Also education and research are needed to identify the impacts of local decisions and the economics of alternative development strategies. The most challenging feature of this area is the economic diversity of communities and rural areas. The diversity is seen in terms of natural resources, ethnic backgrounds, types of businesses, and government and civic organizations.

6.  Develop a Center for Agribusiness Studies.
  • Establish and fund the Center for Agribusiness Studies, which will:
    • Provide a vehicle for MAB and PhD students to conduct research and develop expertise in agribusiness management.
    • Develop, sponsor, and conduct executive education.
    • Establish partnerships with at least five key agribusiness firms.
    • Focus on quantitative analysis, forecasting, and strategic management applications.
    • Develop and fund endowed chairs pertaining to this area of emphasis.
  • Develop Internet-based agribusiness coursework that enhances both domestic and international graduate programs (e.g. the agribusiness degree program in Guatemala).
  • Add an extension faculty position to respond to the need for human resource management education and executive development training.
Background and Justification: The Department currently has 14 faculty engaged in agribusiness-related management education, training, research, and technology transfer that enhances business-level decision making in the areas of valued-added marketing, supply chain management, food systems management, consumer preferences, strategic and financial planning, and e-commerce. Industry trends, such as more value-added food processing and greater concentration of firm ownership, are changing the nature of agribusiness research. A vital role of the Center for Agribusiness Studies, which would work synergistically with the IFSE's Center for Consumer and Food Marketing Issues, would be to facilitate the delivery and dissemination of research efforts and address areas such as human resource management and executive development training. The Center for Agribusiness Studies would also foster linkages with agribusiness firms, which might include firm-sponsored internships, assistantships, fellowships, endowments, research support, and jobs for new graduates of the program.

7.  Expand the Agribusiness Education in the Americas Program.
  • Expand the offerings of Masters-level coursework in international agribusiness management based on the availability of funds to provide appropriate faculty incentives.
  • Use the Internet and distance education technologies to deliver courses through joint ventures with the College of Business, other U.S. and foreign universities, public agencies, and private entities.
Background and Justification: The Department's involvement in international agribusiness education and training program was initiated in Guatemala five years ago. The effort was organized as an educational alliance between Texas A&M University faculty and the Universidad del Valle de Guatemala (UVG). A similar Masters-level program was initiated in Nicaragua last year. A number of related educational development programs are also underway, including curriculum development, undergraduate student exchanges, graduate training at Texas A&M University, seminars, workshops, and consulting for agricultural industries in Central America. These programs also have generated a high level of interest across Central America, as indicated by the requests from Costa Rica, Panama, El Salvador, and Peru. Future plans call for cooperation with IICA and TAMU distance education experts to develop the most efficient teaching modules for delivery to students in the Americas.

8.  Emphasize the Knowledge and Skills Needed to Anticipate and Manage Change.
  • Continue and expand programs related to strategic risk management.
    • Develop partnerships to expand the availability of the FARM Assistance program to individual producers.
    • Expand the Master Marketer concept to develop a market risk management program for lenders, and initiate a comprehensive training program for new producers.
    • Develop capability to work with small agribusiness firms (<$5 million sales).
    • Utilize database in all these areas to provide a vehicle for research, teaching, and extension to reach a broader audience in strategic risk management
  • Add a research faculty position in marketing to analyze the emerging, changing, and existing markets for Texas food and fiber commodities.
  • Add a research and teaching faculty position in price analysis to study the price discovery process in emerging market systems and assist extension specialists to conduct price and market outlook analyses.
  • Maintain a strong complement of extension faculty with commodity market specializations to interpret changing market relations and participate on research teams through succession planning.
Background and Justification: Changing policies, regulations, technology, and ways of doing business, such as e-commerce, will impact the structure of agricultural market systems and affect Texas producers, consumers, policy makers, communities, and agribusinesses. To assist in anticipating and manage this change, these groups will need quantitative and qualitative analysis to understand the driving forces and their implications. Programs are needed to expand markets for Texas agricultural products, educate producers and other agribusiness on the use of tools that can be used to reduce or manage market risk, and educate clientele on the economic impacts of current and alternative marketing structures.

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