Agricultural and Applied Economics

Lester H. Myers, Head

Professors: J.R. Alwang; D.J. Bosch; R.M. Chandler; C.W. Coale; L.L. Geyer; J.C. Hite (Adjunct); D.E. Kenyon; W.R. Kerns; D.M. Kohl; G. McDowell; L.H. Myers; G.W. Norton; D.R. Orden; W.E. Purcell; L. Shabman; D.B. Taylor

Associate Professors: M.J. Ellerbrock; E. Jones; .M. McGuirk; B.F. Mills; J. Pease; E.B. Peterson; D.W. Reaves; William Shobe (Adjunct); S.K. Stephenson

Assistant Professors: C.E. Hilmer; M.J. Hilmer; R.D. Lamie

Instructor: G.E. Groover

Career Advisor: L.L. Geyer

Students have a choice of five options designed to provide the skills needed to have successful careers in agricultural and small business management, governmental planning and regulatory analysis, and as policy and market analysts. They receive a broad understanding of the economics of producer and agribusiness decision making, the linkages of U.S. agricultural markets to the international economy, and economic development. Students may pursue an interest in the economics of natural resource and environmental management. The third option allows students to complete the requirements to enter veterinary school while learning basic small business management skills. Option four provides students with skills in international trade and development. The fifth option allows students to pursue interests in community economic development.

Primary areas of training and specialization are in agricultural finance, entrepreneurship and small business management, agribusiness management, international trade and development, rural and regional development, environmental policy, public policy, farm and food marketing, price analysis, farm management, real estate, and appraisal. The curriculum provides background for individuals planning a career in the public and international sectors, in agribusiness, on the farm, in resource and environmental policy, and for those entering graduate and professional schools such as law or advanced business programs. The curriculum emphasizes decision-making techniques used in the agricultural, agribusiness, small business, and governmental policy sectors.

The Agribusiness Management Option is designed to prepare people to enter the largest industry in the worldthe food industry and the giant agribusiness complex. Courses in accounting, economics, statistics, computer techniques, marketing, and agricultural policy supplement an agricultural economics base enabling B.S. graduates to obtain the skills necessary to become managers in the agricultural sector. The option allows students to concentrate in Agricultural Finance, Farm Business Management, Marketing, Futures and Prices, along with other minors. Careers in farm business and finance, farm operation and management and credit. In recent years, opportunities in the finance and credit fields have increased tremendously. The options prepare the student for entering careers of marketing agricultural commodities including investment analysis and research. Emphasis includes business, statistics, and price analysis. Especially attractive opportunities prevail in the growing field of commodity futures. The option encourages students to work towards establishing and running their own businesses.

The Environmental Economics, Management and Policy Option builds upon the broad base with courses in the economics of resource use, planning, public policy, environmental economics, and political science. This training is needed to work with agencies and organizations dealing with problems of rural poverty, use of natural resources, and provision of public services to non-urban areas.

The International Trade and Development Option requires a multidisciplinary background to help prepare students for careers in the fast-growing areas of international trade and development. Students seek careers with corporations, the Peace Corps, private voluntary agencies, and national and international government agencies.

The Community Economic Development Option prepares students to work with local and rural governments to manage issues related to improving economic conditions in rural areas. Topics include rural job creation, labor markets, growth-agriculture conflicts, and land use management. Employment in local governments has grown dramatically in recent years as these governments take increased responsibility for implementing policy. Students may also prepare for jobs in state and federal government, or for non-governmental organizations working on rural issues.

The Veterinary Business Management Option prepares students for admission to a college of veterinary medicine and the management of a veterinary practice. Students take the required science courses for admissions to a veterinary school and a selection of management courses to prepare the student to manage the veterinary practice. This option is available under a three- or four-year course of study.

Students in all options begin with the same general course work. It is not necessary to declare which option is desired until the sophomore or junior year. Each student is encouraged to visit with the faculty concerning his or her special interests and to seek advice on which curriculum option best serves his or her career goals. Flexibility is available in all options to allow for students interested in pursuing a double major or minor(s) in other departments.

Students in other curricula are invited to inquire into the requirements for either a minor or a double major in agricultural economics.

Graduates of agricultural and applied economics have a wide variety of employment opportunities with marketing firms, banks and agricultural credit agencies; processing and industrial firms; brokerage and investment firms; real estate appraisal firms; small businesses; service positions with local, state, and national governmental agencies; law school, MBA and other graduate programs; and as managers.

Programs leading to the M.S. and Ph.D. are available (see Graduate Catalog).

Course Requirements for Majors

Course requirements are listed under Section I, University, College and Departmental Core requirements and Section II, specific requirements by departmental option. Section II also lists restricted and free electives by option area. For all options except Veterinary Business Management, students are allowed 29-30 hours of restricted or free electives to assist in rounding out a program of study. Restricted electives are to be taken from Animal and Poultry Science; Business; Crop and Soil Environmental Sciences; Dairy Science; Geology; Sociology; Geography; Horticulture; Economics; and other campus programs. Students are encouraged to complete minors or double majors in other departments. All options require 120 credit hours to graduate.

I. University, College and Departmental Core (Options A-D)

II. Requirements for Options

A. Agribusiness Management Option

B. Environmental Economics, Management, and Policy Option

C. International Trade and Development Option

D. Community Economic Development Option

E. Veterinary Business Management Option

University, College and Departmental Core

Satisfactory Progress

By the end of the academic year in which the student has attempted 72 hours (including transfer, advanced placement, advanced standing and credit by examination), "satisfactory progress" will consist of 1) a grade point average of at least 2.0; 2) at least 24 credits that apply to the University Core, and 3) 9 semester credits of departmental requirements.

Undergraduate Courses (AAEC)

1005-1006: ECONOMICS OF THE FOOD & FIBER SYSTEM

Economic principles that underlie functioning of the U.S. economy in general, and the food and fiber system in particular, are developed and applied to analysis of issues important to society. Emphasis on interrelationships of U.S. micro-economic and macro-economics policy, agriculture, and economic well being of world society in terms of availability and price of food and fiber, use of natural resources, and development of rural economics. (Must take 1005 before taking 1006.) I,II. (3H,3C)

1014 (HIST 1014): SURVEY OF AMERICAN ECONOMIC HISTORY

Overview of the major themes in the transformation and change of the United States economy and the economic life of its citizens from the colonial period to the present. Economic growth and change are described within contemporary social, political and cultural contexts. Broad themes include the transformation of an agrarian economy into an industrial economy, the changing nature of work, the role of government in the economy, and the performance of the economy over time. (3H,3C) I.

2244 (NECT 2244): FOOD & CLOTHING: CULTURAL TRADITIONS, CONFLICTS & POSSIBILITIES

Survey of basic ideas underlying human values and cultural traditions expressed in food and clothing. Ethical perspectives in Western and Non-Western schools of thought. Application to issues involving food and clothing, such as product liability, food and clothing safety, animal rights and the use of fur, labor sweatshops, sourcing of inputs, endangered species, rain forests, consumer sovereignty, freedom and economic justice. Sophomore standing required. (3H,3C) I,II.

2424: COOPERATIVES & THEIR IMPACT ON THE HUMAN CONDITION

An assessment of the member-owned cooperative organizational structure, including the founding Rochdale Principles (circa 1842) and how these principles and ethics are still prevalent in modern-day cooperatives. Emphasis will be on both agricultural (supply, marketing, service) and non-agricultural (employee-owned, rural electric, housing, childcare, health care, crafts, credit unions) cooperatives, with special attention to the impacts on the human condition. (3H,3C) I.

2714 (SOC 2714): COMMUNITY ORGANIZATION & LEADERSHIP

The characteristics of and variations in communities, rural and urban, are assessed, and the possibilities for change through local leadership initiatives are examined. Various theories of community and change are addressed through analysis of concrete cases. Sophomore standing required. (3H,3C) I.

2974: INDEPENDENT STUDY

Variable credit course.

2984: SPECIAL STUDY

Variable credit course.

3004: AGRICULTURAL PRODUCTION & CONSUMPTION ECONOMICS

The economic principles of production. Applications to decision-making and the allocation of resources for the agricultural firm. Consumer behavior and demand for agricultural products. Pre: 1005. (3H,3C) II.

3015-3016: INTERNSHIP IN AGRICULTURAL & APPLIED ECONOMICS

Preparation for, and follow-up to, a practical experience in a selected agricultural, resource, or governmental enterprise, which takes place under the direct supervision of an owner, manager, or supervisor. 3015: offers the student a broad management horizon on understanding the value and the process of setting goals and objectives, and provides methods for evaluating one's abilities, interests, and desires for making career-path choices. 3016: provides a forum for students to share work experiences, discuss human resource issues, and apply the problem solving process to a problem or concern witnessed during the internship. (1H,1C) 3015: II; 3016: I.

3204: INTERNATIONAL AGRICULTURAL DEVELOPMENT. & TRADE

Examination of the role of agriculture in less developed countries and how that role is affected by public policies. Topics include the dimensions of world food, population, and income problems; theories of economic development and the role of agriculture; a description of traditional agricultural systems and their evolution; components of an agricultural modernization strategy; the impacts of international trade and aid; and the effects of international development on U.S. agriculture. Pre: 1005, 1006. (3H,3C) I.

3304: RURAL & REGIONAL DEVELOPMENT POLICY

Analysis of public policy issues and programs for rural America. Emphasis on economic relationships between rural and urban sectors, on economic and social impacts of public programs, and on the process of policy formation. Impact of real property taxation, regional growth, community development and the financing of public services in the rural area will be explored. The relationships between development of resources, growth of the economy, population changes, and the quality of the rural life and environment will be explored. Pre: 1005, 1006. (3H,3C) I.

3314: ENVIRONMENTAL LAW

Principles of law involved in environmental issues, survey of environmental litigation, legislation and administrative rulings. Law topics include natural resources, water pollution, private land use, air pollution, toxic substance, food, drug, pesticides, and biotechnology. (3H,3C) II.

3404: AGRICULTURAL FINANCIAL MANAGEMENT

Principles and concepts of preparing agricultural financial statements and their analysis. Application of budgeting and risk management. Time value of money concepts applied to borrowing and investing decisions in agriculture. Pre: 1005, 1006. (3H,3C) II.

3414: FARM, COOPERATIVE, & AGRIBUSINESS MANAGEMENT

Primary management tools as they relate to farm production enterprises and agribusinesses. Emphasis on comparing and contrasting the cooperative and investor-oriented business. Pre: 1005. (3H,3C) II.

3424: FOOD & AGRIBUSINESS MARKETING MANAGEMENT

Marketing tools needed to identify and solve the complexity of marketing food and agribusiness products. Emphasis will be on the marketing principles and concepts applicable to the marketing of food and agribusiness products. Contemporary trends, marketing strategies and problems in the food and agribusiness sector. Pre: 1006. (3H,3C) II.

3454 (MGT 3454): SMALL BUSINESS MANAGEMENT & ENTREPRENEURSHIP

Characteristics of small business and entrepreneurs, and their economic importance. Development and operation of a small business, including concepts and principles such as franchising, business plans, capital acquisition, venture capital, financial and administrative control, marketing, human resource and operations management. Taxation, legal, insurance and ethics in small business. Junior standing required. (3H,3C) I.

3504: MARKETING AGRICULTURAL PRODUCTS

Structure of the agricultural marketing system with emphasis on factors determining farm level prices. Emphasis on how markets coordinate consumer desires and producer costs through marketing channels. Impact of market structure, grades, information, product form, and advertising on farm prices. International trade impacts on producers, consumers, agribusiness, and government. Pre: 1005. (3H,3C) I.

3514: AGRICULTURAL FUTURES & OPTIONS

The role of agricultural futures and options in risk management strategies for producers and agribusiness firms and in the price discovery process. Fundamental supply-demand and technical analysis of the markets and pricing processes. Development and applications of effective price risk management strategies. (3H,3C) II.

3604: AGRICULTURAL LAW

Legal problems of farm and agribusiness management. Practical application of principles of contracts, negligence, debt instruments and commercial transactions of the farm and agribusiness organization. Selected state and federal laws regulating the farm and agribusiness sector; basic animal laws including state and federal regulation of agricultural sector. (3H,3C) I.

3954: STUDY ABROAD

Variable credit course.

4204: FOOD & AGRICULTURAL POLICY

Examination of the role of agriculture in developed economies and how agriculture is affected by policy decisions in the public sector. Emphasis will be placed on the economic impacts of policies on the producers and consumers of agricultural products: price supports, food stamps, tariffs and quotas. Pre: 1005, 1006. (3H,3C) I.

4304: ENVIRONMENT & SUSTAINABLE DEVELOPMENT ECONOMICS

Economics of environment and sustainable development. Topics include economic efficiency, property rights, externalities, benefit-cost analysis, economic evaluation procedures, public and private conflicts in land use, water quality, and international growth/development/environmental issues. Pre: 1005 or ECON 2115. (3H,3C) I,II.

4314: ENVIRONMENTAL ECONOMIC ANALYSIS & MANAGEMENT

Quantitative methods and computer-aided tools used in the economic analysis of environmental/natural resource issues. Economic concepts and analytical tools will be applied to realistic, problem-solving situations. Topics include cost effectiveness analysis, benefit-cost analysis, economic simulations, and statistical analysis. Pre: 4304, ECON 4014, FOR 3424. (3H,3C) II.

4344: SUSTAINABLE DEVELOPMENT ECONOMICS

Sustainable development concepts are critically explored particular emphasis on implications for domestic and international sustainable development agriculture and for economic development. Students investigate case studies illustrating problems of sustainable development and potential policy solutions. Pre: 3004 or 4304 or ECON 4014. (3H,3C) I.

4404: AGRICULTURAL MANAGEMENT & PROBLEM-SOLVING

Capstone course for students interested in agribusiness management. Application of concepts, tools, and principles including management, finance marketing, economic theory, and quantitative methods to applied agricultural decisions. Application of knowledge on selected agricultural projects that enhance team-building, written, and oral communication skills. Computer spreadsheet application and senior status. Pre: 3414, 3404, 3504 or 3424, 3604. (3H,2L,4C) II.

4504: AGRICULTURAL PRICE & MARKET ANALYSIS

Estimation of agricultural supply, demand, and price relationships. Determination of market potential for new products. Students identify problem, collect data, estimate statistical relationship(s), interpret results, and write research report. Use of probability distribution in marketing strategy development. Pre: 3004, 3504, STAT 3006. (3H,3C) I.

4514: ADVANCED AGRIBUSINESS MARKETING

Applying concepts, principles, and analytical tools in developing a marketing plan for an existing or new agricultural product or service. Students will define the market, perform competitive marketing analysis, outline market assumptions and objectives, and perform a three-year financial evaluation of the action plan. Course can be repeated once. Co: 3504 or 3004. Variable credit course. Pre: 3404, 3414 or 3424. I.

4754: REAL ESTATE LAW

The law of real property, legal framework, law of estates in land, conveyancing, landlord-tenant and non-possessory interest in real property. Zoning, easements, restrictive covenants. Mortgages, deeds of trust, and taxation of real estate. Junior standing required. (3H,3C) I.

4764: REAL ESTATE APPRAISAL

Application of economic principles to the valuation and appraisal of property. Income, cost and comparable approach to value. Rural property, commercial, residential and transitional will be evaluated. Ethical and professional requirements. Variable lab credit available to meet Real Estate licensing requirements. (Course credits may vary from 3 to 5 hours.) Junior standing required. Variable credit course. II.

4804 (STAT 4804): ELEMENTARY ECONOMETRICS

Economic applications of mathematical and statistical techniques: regression, estimators, hypothesis testing, lagged variables, discrete variables, violations of assumptions, simultaneous equations. Pre: 1006, STAT 3005 or STAT 3604. (3H,3C) II.

4974: INDEPENDENT STUDY

Variable credit course.

4984: SPECIAL STUDY

Variable credit course.

4994: UNDERGRADUATE RESEARCH

Variable credit course.

Please see the Graduate Catalog for graduate course listings.

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Virginia Tech -- Undergraduate Catalog, 2002-2004
Last update: August 2002

URL: http://www.vt.edu/academics/ugcat/ucdAAEc.html