Economics 235 Economics 235 Introduction to Introduction to

Agricultural EconomicsAgricultural EconomicsJohn D. Lawrence

Spring 2004

Course OverviewCourse Overview

An overview of agricultural An overview of agricultural and food markets and and food markets and marketing systems and how marketing systems and how these are evolving in a rapidly these are evolving in a rapidly changing global market place.changing global market place.

Course TopicsCourse Topics

Overview of food chain structure Overview of food chain structure and coordination - inputs and coordination - inputs through retail foodthrough retail food

Wholesale and retail marketing Wholesale and retail marketing activities, processing, activities, processing, transportation, marginstransportation, margins

Course TopicsCourse TopicsFarm-level price behavior, Farm-level price behavior,

pricing systems, and marketing pricing systems, and marketing managementmanagement

Price analysis, futures, options, Price analysis, futures, options, contracts, and cooperativescontracts, and cooperatives

The role of government in The role of government in agricultural marketsagricultural markets

Course ObjectivesCourse Objectives

Understand practical marketing Understand practical marketing problems and issues affecting:problems and issues affecting:The “bottom line” of a business!The “bottom line” of a business!How the system operates and how well!How the system operates and how well!Resource allocation and efficiency!Resource allocation and efficiency!

Use principles to evaluate current eventsUse principles to evaluate current events Ask and answer, “So what?”Ask and answer, “So what?”

Course ProceduresCourse Procedures

Discussion/ lecture combination.Discussion/ lecture combination.Read or complete the assignments Read or complete the assignments

before coming to class.before coming to class.Apply principles in analyzing new Apply principles in analyzing new

marketing issues or problems.marketing issues or problems.

Resource MaterialsResource MaterialsClass notesClass notesBasic texts for the course:Basic texts for the course:

Kohls and Uhl (Recommended)Kohls and Uhl (Recommended)

Reading assignments on webReading assignments on webReading room-3rd floor HeadyReading room-3rd floor Heady

Reserve materialReserve material

Guest speakers occasionallyGuest speakers occasionally

One Required LabOne Required Lab

Market simulationMarket simulationOne evening 6-9 pmOne evening 6-9 pmTwo nights to choose fromTwo nights to choose from

Tentatively late FebruaryTentatively late February

Class Web SiteClass Web Sitehttp://www.econ.iastate.edu/http://www.econ.iastate.edu/

classes/235classes/235http://www.econ.iastate.edu/http://www.econ.iastate.edu/

faculty/lawrence/faculty/lawrence/Notes posted Notes posted

Presentations can be downloaded and printedPresentations can be downloaded and printedResource materials and linksResource materials and linksSecrets are in the lectures!!!Secrets are in the lectures!!!

Contacting InstructorContacting Instructor

John LawrenceJohn Lawrence468 Heady Hall, 294-6290468 Heady Hall, 294-6290jdlaw@iastate.edujdlaw@iastate.edu

Office hours: by appointmentOffice hours: by appointment

GradingGrading

Two mid-term tests Two mid-term tests 40%40%Final exam Final exam 20%20%Homework, quizzes, projectHomework, quizzes, project

and class participationand class participation40%40%

Grading ProceduresGrading Procedures

Homework due in class on Homework due in class on assigned dateassigned date 10% per day late penalty10% per day late penalty

Test and quizzes will be Test and quizzes will be announced in classannounced in class If you know you will be gone make If you know you will be gone make

arrangements ahead of timearrangements ahead of time

Class ProjectClass ProjectTeam projectTeam projectFarm level analysisFarm level analysis

Marketing planMarketing planContract evaluationContract evaluationStrategic decisionStrategic decision

Weekly Market ReportWeekly Market ReportPick a commodity to follow all Pick a commodity to follow all

semestersemesterCorn, Soybeans, Cattle, HogsCorn, Soybeans, Cattle, HogsWeekly summary due each TuesdayWeekly summary due each TuesdayLess than one pageLess than one page

Price changeMargin accountMarket news