The Relevancy of Applied Agricultural Economics Research

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• The Relevancy of Applied Agricultural Economics
  Research
• Eduardo Segarra
• Professor of Agricultural and Applied Economics
• Texas Tech University

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Presentation Outline

• Research philosophy and issues influencing
  applied agricultural economics research
• Research example 1 agricultural commodity
  quality characteristics impacts at the farm
  level re-evaluation of profitability
• Research example 2 environmental externality
  impacts in the decision making process valuation
  of social welfare tradeoffs

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Research Philosophy

• To improve decision-making by considering the
  impacts of emerging technologies, public policy,
  and environmental and resource constraints likely
  to affect agricultural producers
• and society at large

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• Agriculture in the 21st Century
• will be continued to be called upon to provide an
  abundant, diverse, safe,
• and of high quality supply of food and fiber at
  reasonable prices to consumers - while minimizing
  environmental degradation being profitable (to
  producers-processors-distributors) and of benefit
  to communities and remaining globally
  competitive. Therefore, ...

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• we must strive to configure/position agricultural
  research in general, and applied economics
  agricultural research in particular, regarding
  learning, discovery, and communication engagement
  programs/activities to specifically address those
  issues

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Drivers of Change Facing Agricultural Research
and Applied Agricultural Economics Research
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Contemporary - specific issues

• Upcoming global issues

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Contemporary - specific issues

• (1) Elimination/Re-configuration of government
  lead farm support policies/programs around the
  world -- increased agricultural producers
  self-reliance for production, financial,
  enterprise diversification, and marketing
  decision-making at the farm/ranch level

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Contemporary - specific issues

• (2) Structural changes in the coordination and
  vertical integration of production, processing,
  marketing, and distribution activities of food
  and fiber products -- implications for urban and
  rural development, and the enhancement of
  relationships between communities and agribusiness

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Contemporary - specific issues

• (3) Development and identification of innovative
  production practices /approaches that are
  environmentally benign and which promote natural
  resource conservation/preservation -- must be
  ecologically sustainable, economically feasible,
  and socially acceptable

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Contemporary - specific issues

• (4) Harnessing current and expected
  technological advances in agriculture
  (biotechnology, precision agriculture, advanced
  information systems, irradiation practices,
  others) and finding out the role these can play
  in
• production, distribution, processing, and
  marketing
• enhancement of food safety, and food/fiber
  quality
• Improved management and enhancement of the
  environment

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Contemporary - specific issues

• (5) Globalization of food and fiber markets --
  implications in terms of new opportunities (trade
  creation) and increased competition (trade
  diversion)

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Upcoming global issues

• The economies of the world in the nineteen and
  twenty centuries relied heavily on non-renewable
• fossil-based sources of resources

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• In the twenty-first century and beyond, the
  economies of the world will increasingly relay on
  renewable bio-based sources of resources
• This trend will be strongly rooted in both, the
  life-sciences and various types of
  bio-engineering processes

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• Agriculture will become an important driver of
  global affairs as a significant source of
  renewable bio-based resources

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• Opportunities exist for ALL agricultural
  disciplinary and cross-disciplinary/multi-discipli
  nary programs to have a significant impact in
• the design, evolution, and performance of the
  agricultural
• economy of the future

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• In these endeavors, however, we must think
  UN-CONVENTIONALLY. Examples
• Inter/Intra-generational reaching research and
  other investments
• Agricultures contributions to human well being
• Agricultures vulnerability/opportunities due to
  climate change phenomena
• Interrelationships between agriculture and other
  potential renewable sources of energy (i.e., sun,
  wind, sea )
• Opportunities for agriculture in outer-space !

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• Types of contributions
• Disciplinary
• Cross-disciplinary

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• Agricultural and Applied Economics Disciplinary
  contributions
• Much has been accomplished, but there is room for
  innovative contributions.
• Given the current and expected level of
  complexity of the issues that we should, and are
  expected to address in the future, innovative
  disciplinary contributions are a must.

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• Agricultural and Applied Economics Disciplinary
  contributions examples
• production externality valuation (, -, air,
  soil, water pollution.)
• consumption externality valuation (human well
  being preventive vs. curative health related
  issues)
• development of measures/indices (new METRICS)
  that internalize community/state/regional/national
  /international level dependency/vulnerability of
  specific industries
• Need to know more about the operation and
  relevancy of non-homogenous output and input
  markets
• development of measures that internalize issues
  related to ecological and economic sustainability
  (which address inter and intra-generational
  issues)
• agribusiness chain interdependencies and risk
  management issues (production, processing,
  distribution, rural and urban development,
  consumption, and international trade)

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• Cross-disciplinary contributions
• There are many significant, and well documented
  contributions made by agriculturalists who work
  on inter/cross-disciplinary type efforts.
  However,.

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• many of the current issues surrounding
  agriculture, and their expected future evolution,
  
• cry out for increased cross-disciplinary
  attention
• - - -
• Future funding of research, education, and
  extension programs
• Internalization of socially driven factors in the
  decision-making process at all levels
• Increased role of local/regional level
  decision-making

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• In the future, AND across the globe, there will
  be a need for an increased emphasis in the
  coordination of programs across disciplines,
  and possibly among regions/countries. This will
  hold not only for research programs, but for
  teaching and extension activities as well. This
  will become the norm, rather
• than the exception

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Roadmapfor Cross-Disciplinary Efforts

• Sustain healthy ecosystems and effective
  conservation of natural resources.
• Enhancement of the competitiveness and the
  prosperity of urban and rural agricultural
  industries.
• Improved public health and well-being.

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