Elegy,ode or panegyric? Practising agricultural economics in Australia, 1975–99

Changes are investigated in the Australian agricultural economics profession, 1975–99, using a conventional microeconomics framework of supply and demand for agricultural economists. Aggregate exogenous factors such as changes in the agricultural and tertiary education sectors, and changes in beliefs about the proper role of government, have changed both supply and demand conditions for agricultural economists. The profession has responded by shifting its focus away from narrowly agricultural policy, especially marketing policy, towards areas of market failure such as environmental and natural resource issues.     

SOME THOUGHTS ON THE ROLE OF THE AGRICULTURAL ECONOMICS PROFESSION IN AUSTRALIA*

Does the seemingly disproportionate growth in Australia of agricultural economics, relative to other branches of applied economics, represent a misallocation of educational and research resources? Probably not, since (i) it may be better–because of the existence of increasing returns–to concentrate one's limited resources of economist brainpower in a few fields than to spread them widely; and (ii) the growth of agricultural economics has helped to correct certain weaknesses–particularly in micro-economics and econometrics–in the Australian economics profession as a whole. However, it is suggested that in the future agricultural economists might apply their skills increasingly to non-agricultural problems.     

The Crow Rate Issue: A Retrospective on the Contributions of the Agricultural Economics Profession in Canada

The Crow rate policy issue is finally being put to rest. It has been a major agricultural policy issue in Canada over the past 20 years, and agricultural economists should have had a great deal to contribute to the policy debate. The contribution of the profession is critically assessed. While much of the research undertaken was of high quality, the profession's aggregate contribution was much less than what might have been possible. A number of shortcomings of the research system are identified, and some lessons for researchers and those who fund research are provided.     

THE NATIONAL INTEREST,WESTMINSTER, AND PUBLIC CHOICE*

There has been increasing scrutiny of government policy decisions and advice in recent years. The supremacy of the national interest has been questioned and self interest theories explored. Administrative systems have been reformed, and the role of the Westminster model of government decision-making endlessly reviewed. Increased interest by economists in the policy process has created a new subject area in economics, namely, public choice theory. It places greater emphasis on individual choice and hence on the way political institutions meet society's needs. It provides a suitable framework for explaining political decision making and administrative processes. In this Address, New Zealand agricultural policies and processes in the last two decades are explored from this viewpoint and the applicability of the theory assessed.     

Policy dependency and reform: economic gains versus political pains

Economic analysis condemns market intervention in favour of farmers as inefficient and ineffective, and therefore worthy of radical reform. Practical experience, however, indicates that such lessons are hard to learn and implement. Economic analysis tends to ignore the path dependencies generated by the policy evolution process. Without reform strategies that take full account of these dependencies, policy reform will continue to be reluctant, slow and frequently counter-productive. This paper reconsiders the evolution of farm policies and the economic assessment of their costs and benefits. In so doing, it re-phrases conventional economic arguments in terms which seem to accord better with sensible intuition, which may prove more accessible and credible to policymakers and advisors. The difficulties of reconciling economic efficiency with political acceptability are identified. The paper concludes with a substantial challenge to the agricultural economics profession.     

AGRICULTURAL ECONOMICS,INTERDEPENDENCE AND UNCERTAINTY*

Interdependence has always been central to economics but assumes pressing importance for agricultural economists as they deal with industrialising agricultures. Continued unresolvable uncertainties, when properly recognised, also add to the challenge of relevant work in agricultural economics. The related roles of interdependence and uncertainty are illustrated through examples from the progress of agricultural technology and enhancement of food security.     

RANDOM THOUGHTS ON SOME PROBLEMS OF PROFESSIONAL COMMUNICATION*

Within the profession of agricultural economics are found academics, government economists, farm organization economists, and others. Although the profession is based on general acceptance of principles and judgements, the outlook and activities of an individual are conditioned by his occupational status. Employment affiliations give rise to certain restraints and strains to communication between functional groups. The paper examines this problem, and presents a case for better understanding between the major institutional groups.     

Fostering a culture of equity,diversity, and inclusion in the Canadian agricultural economics profession

The Canadian agricultural economics profession, like much of society, is faced with the important challenge of how to effectively achieve aspirational goals of equity, diversity, and inclusion (EDI). I argue that the Canadian agricultural economics society (CAES) will benefit from integrating EDI into our core mission and key activities. I focus on a select set of issues that I believe will further this effort. Given the critical role of scholarly merit and merit‐based systems and processes in the CAES mandate and activities, I also explore how meritocracy and scholarly merit can be aligned with EDI principles. The paper concludes with suggestions and recommendations for consideration by the CAES.     

CRITIQUE OF THE METHODOLOGY OF AUSTRALIAN AGRICULTURAL ECONOMICS

In this article attention is drawn to serious methodological weaknesses in Australian agricultural economics. It is frankly polemic in style and after a discussion of the philosophies of science of Popper and Kuhn the author argues that Australian agricultural economists ought to be more critical of the assumptions on which current theory is based and should be seeking to establish a new approach to the problems of the agricultural economy which would place more emphasis on social justice than on 'growth and efficiency'.     

Dairy productivity and climatic conditions: econometric evidence from South‐eastern United States

Climate change and food security have become critical issues in the agricultural policy agenda. Although global warming is expected to increase both the frequency and severity of heat stress on dairy cattle, there are very few economic studies focusing on this issue. This paper contributes to the literature by integrating the frontier methodology, commonly used in applied production economics, with heat stress indexes used by animal scientists but largely ignored by economists. Our econometric models are useful to quantify gross benefits expected from adaptation to climatic conditions represented by the Temperature Humidity Index (THI) and alternatively by the Equivalent Temperature Index (ETI). Stochastic production frontier analysis is used to measure technical efficiency for an unbalanced panel of 103 dairy farms located in Florida and Georgia. Five alternative model specifications are evaluated. The results reveal that both THI and ETI have a significant nonlinear negative effect on milk production. The climatic indexes when incorporated in the frontier specification absorb some of the output shortfall that otherwise would be attributable to inefficiency. The results indicate that using fans combined with sprinklers is an effective adaptation to offset output losses stemming from heat stress conditions.     

Communicating Economic Concepts and Research in a Challenging Environment

This address explores the communication challenges facing the economics profession and agri‐food and rural economists in particular against a background of reputational damage to the profession and an apparent loss of trust in experts. It argues that a common thread linking many of the challenges is the need for more effective models of communication so that our economic concepts, ideas and research findings can be more timely, better understood and, most importantly, have greater impact. Five important challenges are examined: loss of trust in experts; emotions and decision making; the role of the media; the roles of agri‐food and rural economists; and competition from other disciplines and interests. A good practice communications framework is then proposed embodying ten important communication principles: understanding the target audience; understanding the political context of decision makers; generating a robust evidence base; building reputation and credibility; need for cross disciplinary working; consulting with stakeholder groups; getting the timing right; producing high quality presentations; making use of social media; and being prepared for challenges. Four stereotypical categories of communication incorporating different standards of rigour and relevance are identified: Ivory tower; Gold Standard; Populist; and Quicksand. Responses by the Agricultural Economics Society and the European Association of Agricultural Economists to the need for more accessible communications via the development of the innovative outreach journal EuroChoices are outlined.     

Judging agricultural policies: a survey

This survey provides a structured picture of 40 years of literature which uses welfare economic tools to judge agricultural policy. Challenges and developments of normative agricultural policy analysis are discussed in an easily accessible graphical framework. It is shown how the literature has gone from examining a very small discrete set of simple policies to a much broader (often continuous) set of policies that combine policy instruments simultaneously. The importance of the Pareto criterion, used to explore the limits of how government can affect welfare, is revealed. Moreover, given the importance of the objective of income redistribution in agricultural policy, agricultural economists have often departed from the purely efficiency‐oriented tradition in economics. It is shown that they have tried to incorporate equity considerations by either adding these criteria as constraints to the social welfare function, or directly incorporating these criteria in the functional form of the social welfare function.     

Will China Become a Major Force in World Food Markets?

From the perspective of China's trading partners, few policy issues are as important as China's emergence onto world agricultural markets. In this essay, we argue that if China is to become a modern developed country, a massive structural transformation of China's agricultural sector must occur. We offer a forward-looking vision of China's food economy and its links with the world in the 21st century. We believe that gains from specialization when China moves to a country with specialized family farms will be huge compared to the returns that have resulted from decollectivization. Following a structural revolution in China's agricultural sector, China will become a major force in world food markets. This transformation will be characterized by land reform, a massive shift of labor out of agriculture, expanded farm size, a significant change in regional cropping patterns, more interprovincial trade, and greater international trade. This structural transformation will occur as long as there is strong economic and political pressure to raise agricultural labor productivity, liberalize markets, boost the rule of law, and increase per capita farm incomes relative to urban incomes.     

THE AUSTRALIAN AGRICULTURAL ECONOMICS PROFESSION: AN APPRAISAL OF SOME CURRENT TRENDS*

Using the results of the first part of their 1994 membership survey, Ahmadi-Esfahani and Brakey (1996) examined the structure, conduct and performance of the Australian Agricultural and Resource Economics Society qualitatively. This paper extends that analysis by appraising some current trends in the Australian agricultural economics profession quantitatively. It concentrates on the second part of the survey to address a number of fundamental questions. A comparison of the US and Australian agricultural economics professions is made. The implications of the analysis for the product mix of the Society are explored.     

EXTENSION ECONOMICS—THE NEXT TEN YEARS1

In summary, let me emphasize a few highlights of the subject—Extension Economics—the next ten years.

• 1 Changing farm problems will require major adjustments by agriculture and its advisors.
• 2 Structural reform in farming and marketing arrangements of one kind or another will lead these adjustments.
• 3 Clientele of extension economists will include producers (in two basic groups), agri-business, non-agricultural rural residents and consumers.
• 4 Our approach should be on the basis of educators and we must keep up-to-date in the teaching methods and media used. Agricultural extension could logically become the center for a new broad program of continuing adult education.
• 5 Subject matter areas of concern to the economist must be broadened to actively include marketing, processing and public affairs.
• 6 A sound program of physical and economic research must be provided as a companion to effective extension work. Greater collaboration is necessary—both ways.
• 7 Personnel for extension economics will be forthcoming only if salary adjustments are made and university curricula revised to better train extension people.
• 8 Extension economists must use care and diplomacy in their relationships with University, Federal and Provincial officials.
• 9 We still have responsibility to more completely demonstrate the usefulness of our knowledge to other extension workers, administrators, and the farm public. Recognition must also be given to working closely with advisors in agri-business and private consulting firms.
• 10 Program evaluation, internal and external, are essential for a healthy program in extension economics.

     

Agricultural and resource economics and economic development in Aboriginal communities

Economic development is seen as the best way for Aboriginal communities to improve their welfare and lessen the considerable disadvantages they suffer. Unfortunately, the economics profession has shown little interest in their plight. Agricultural and resource economists have much to offer in helping to foster economic development in Aboriginal communities throughout Australia. Suggestions are made as to various ways in which our particular interests and experiences can hopefully be applied.     

Are returns to research quality lower in agricultural economics than in economics?

We compare effects of research quality and quantity on the salary of academics in agricultural economics and economics departments of the same universities. Agricultural economists get a significantly lower payoff to research quality, whether measured by quality‐weighted journal articles (based on nine different weighting schemes) or by citations. Instead, salary depends on the quantity of journal articles, while article counts have no independent effect on economist salaries. These differences in the reward structure for research are not due to either the extension focus of agricultural economists or to disciplinary differences in publishing with students and instead may reflect institutional factors that govern incentives within universities. One‐third of academics in the agricultural economics departments studied here have doctoral training in economics; the very different disciplinary reward structures may cause frustration for these faculty due to the muted returns to research quality that agricultural economics departments seem to offer.     

NO FIXED ADDRESS—PRESIDENTIAL ADDRESS

After an initial excursion into the role of Presidential Addresses, the author examines the growth and shape of the agricultural economics profession in the UK suggesting that, over nearly one hundred years, there have been four distinct phases — and that we might be on the threshold of a fifth. The one thread that has run through this entire history is farm management and some recent developments in the field — in particular the need for net margins as well as gross margins — are examined. The address closes with some personal reflections on ‘being an agricultural economist’.     

Farmers' adoption of ecological practices: A systematic literature map

Understanding the factors associated with adoption of ecological farming practices is a well-established topic of interest to agricultural economists. As the transition to more sustainable agriculture has become a policy priority for the European Union, broad and balanced reviews of this literature are important. We develop a systematic map of quantitative observational studies which describes the ecological practice(s) adopted, the frequency of inclusion and significance of a range of independent variables, and how the dependent variable is measured. We also conduct a quality assessment. We find that while socio-demographic variables and farm structural variables are frequently included, they were insignificant more often than they were significant. For behavioural factors we find stronger evidence for the importance of cognitive or attitudinal variables compared to dispositional attitudinal variables. We also find a growing interest in social factors which will be valuable for researchers to explore further and reflect on the policy implications of our findings.