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

2. 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 Presentation Outline

3. 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

4. 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, ….…..

5. 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

6. Drivers of Change Facing Agricultural Research and Applied Agricultural Economics Research

7. Contemporary - specific issues Upcoming global issues

8. 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

9. 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

10. 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

11. 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

12. Contemporary - specific issues (5) Globalization of food and fiber markets -- implications in terms of new opportunities (trade creation) and increased competition (trade diversion)

13. Upcoming global issues The economies of the world in the nineteen and twenty centuries relied heavily on non-renewable fossil-based sources of resources

14. 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

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

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

17. In these endeavors, however, we must think UN- CONVENTIONALLY. Examples: Inter/Intra-generational reaching research and other investments Agriculture’s contributions to human well being Agriculture’s 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 !

18. Types of contributions –Disciplinary –Cross-disciplinary

19. 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.

20. 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)

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

22. 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

23. 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

24. Roadmap for 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.