Agricultural Economics

Decisions. Each of us makes hundreds of them every day. Economics is the science of decision making. Economics is the study of how we make decisions, why we make the decisions we make, and how the conditions under which decisions are made affect those decisions. Nearly a quarter of the economic activity in the United States is associated with the agricultural sector. Therefore, Agricultural Economics deals with decision making within the unique context of the broadly defined food and fiber sector.

This text takes a thorough look at agricultural economics from a broad perspective that emphasizes the linkages between and among financial institutions, the macro economy, world markets, government programs, farms, agribusinesses, food marketing, farm services, and the environment. The key concepts forming the foundation of how economists approach decision makingsupply and demand, opportunity cost, diminishing returns, marginality, costs and returns, and externalitiesare woven throughout the book in a style that is both clear and engaging, with real-world examples that are easily understood by any reader interested in learning about the economics of the food system.

• A new chapter on the food system introducing readers to the fundamentals of food production from the farm to the consumer
• Information on the 2002 Farm Bill, new to this edition
• Substantial revision of chapters on farm policy and market failure/environmental economics

Agricultural Economics is designed for flexible use in a one-semester (or two-quarter) undergraduate course, including Introduction to Agricultural Economics.