Agricultural Economics EO-I (Elective / Optional Paper- )

Preamble: The objective of this course is to provide a detailed treatment of issues in agricultural economics to those intending to specialize in this area. It intends to familiarize students to analyze the issues related with agricultural and economic development, agricultural production function, agricultural demand and supply, farm management and agricultural risk management.

UNIT I: Agricultural Economics and Theories of Agricultural Development: (15 Periods)

1.1: Introduction to Agricultural Economics: Nature & scope of agricultural economics - utility of agricultural economics, role and importance

        of agriculture in economic development.

1.2: Demand and supply behaviour in Agriculture: Elasticity of Demand – Approaches to study supply response-

      factors affecting supply response.

1.3: Theories of agricultural development: (Schultz, Mellor, Hayami and Ruttan)

1.4: Practical and applications: Contemporary Relevance of above theories

UNIT II: Economics of Agricultural Production: (15 Periods)

2.1: Basic concepts in agricultural Production: Agricultural production visà-vis industrial production – Features of modern agricultural production.

2.2: Factor- Product Relationship: Meaning & uses of agricultural production function- Agro-technology & production function

      production function with one variable factor (traditional & modern approach).

2.3: Factor-Factor Relationship: Optimum factor combination- Effects of changes in factor price on factor usage - Product-Product Relationship:

      Optimum Product Combination – Types of Enterprises Combinations- Isocline.

2.4: Practical and applications: Case studies on Agricultural Production Function

UNIT III: Economics of Farm Management: (15 Periods)

3.1: Farm management: Scope- Objectives- Farm management decisions- Types of Farming- Farm Size and Productivity – Farm 

       Efficiency Measures.

3.2: Principles of farm management: Principles of Factor Substitution- Principles of Equi-Marginal Returns – Opportunity Cost Principle -

       Minimum Loss Principle – Principle of Comparative Advantage – Time Comparison Principle

3.3: Management of farm Resources: Land, Labour and Capital.

3.4: Practical and applications: Case studies on farm management and efficiency measures

UNIT IV: Economics of Agricultural Risk Management: (15 Periods)

4.1: Nature of Uncertainty in Agriculture: Price, Yield and Technological.

4.2: Risks in Agriculture: Types of Risks: Climate, Drought, Production, Price, Financial, Market & Management Strategy.

4.3: Risk Management Strategies: National Agricultural Insurance Scheme (NAIS), Crop Insurance as Risk Mitigation Tool,

       Crop Insurance,  Weather Insurance, Farm Income Insurance, Livestock Insurance and Package Insurance.

4.4: Practical and applications: Case studies on Farm Management Strategies