In a revised definition of the Davis-Goldberg concept of agribusiness, Sonka and Hudson suggest that the food and agribusiness sector might be thought of as a sequence of interrelated subsectors made up of: (1) genetics and seedstock firms, (2) input suppliers, (3) agricultural producers, (4) merchandisers or first handlers, (5) processors, (6) retailers, and (7) consumers. In applying this ubiquitous definition to global data, Goldberg (1991a) estimates that the food and agribusiness system is the largest economic sector in the world economy representing 50 percent of the global labor force, 50 percent of global assets, and 50 percent of global consumer expenditures.

Undergraduate programs in agribusiness education have attracted much interest in recent years. Many university facilities have developed agribusiness educational programs and others are considering the development of such programs. As these programs evolve throughout the country, there are many questions which relate to the structure and future directions of these educational efforts. A review of the issues related to agribusiness program development is presented. A planning process that can be used to focus on the many agribusiness educational issues and provide insight into agribusiness program development is outlined.

For several years, universities in the U.S. have been struggling with defining and refining undergraduate and graduate agribusiness education programs. With the release of the recommendations of the National Agribusiness Education Commission, the search for the key ingredients of a Masters-level program has intensified.

Mississippi State University has been among those universities attempting to define the parameters of a “cutting edge” agribusiness program. Faculty interest within the College of Business and Industry and the Agricultural Economics Department to develop a joint program has precipitated intensive efforts to achieve this goal. A nationally recognized agribusiness group of six academic leaders served as a Cooperative State Research Service team to assess the University's potential, using the concept of an agribusiness institute as an integrating and management vehicle. Efforts in this direction have been aided by a USDA planning grant now moving into its second year. A survey of Mid-South agribusiness leaders indicates the interest of the industry in the development of the program. The final step is to address the logistical details required to convert the current Master of Agribusiness Management in the Department of Agricultural Economics to a jointly administered program of study.

This paper presents a summary of work by various groups on the potential for agribusiness research by agricultural economists over the past decade. Methodology to establish research priorities in agribusiness are reviewed. This review leads to a consideration of the agribusiness research issues including: funding sources, identifying users of agribusiness research, data needs, and limitations of agribusiness research programs.

The final part of the paper presents a potpourri of suggested research initiatives in agribusiness research for agricultural economists. Research in these areas may be difficult for a number of reasons including: decreased reliance on economic theory as the sole paradigm, providing competitive advantage to a single agribusiness firm while balancing public and private needs and funding sources, and data confidentiality. Suggestions for outlets for academic research are presented.

The market for agribusiness extension activities and programming is diverse, intensely competitive, and national or international in scope. It is a market that agricultural economists cannot serve alone. Despite these complexities, a strong agribusiness extension effort is critical to the success of agribusiness research and teaching programs. Agribusiness extension opportunities include extending traditional agricultural economics research, small business management programs, economic/technical education programs, and management education. Keys for conducting successful agribusiness extension programs include understanding client needs, locating and employing the best instructional talent available, and flawless execution of the activity. Stimulating faculty interest in agribusiness extension is a major challenge. Most schools will have the opportunity to focus their traditional extension education efforts on the non-traditional agribusiness audience. A few schools will be successful in developing a new extension program emphasis in agribusiness management education. Both types of contributions are important for the long-run viability of the profession.

In June 1991, the United States and Mexico agreed to work toward the formation of a free trade area (FTA), in which trade barriers between the two countries will be gradually reduced and eUrninated. An FTA is expected to deepen a trade relationship that has always been important to the two countries, and which has been expanded by the unilateral trade liberalization initiated by Mexico in 1983. A U.S. Mexico FTA will be an important development for U.S. agriculture. In 1990, Mexico ranked among the top four markets for U.S. agricultural exports nd imports. Mexico's share of U.S. agricultural trade has increased since the mid-1980s, and could expand further if trade barriers are removed.

The economic context for rural development has changed markedly since the 1970s. While natural resource industries have continued to decline in importance as rural employers, the internationalization of markets, reorganization of industries, new production technologies, and the rapid development of new information technologies have eroded the competitive position of many rural areas with respect to other industries. In the South, as well as in the rest of the country, the critical rural issue for the 1990s is whether rural areas will be able to find niches to replace those they lost in the 1980s. Thus far, the new economy has been primarily an urban economy, and most rural areas have been left out. This has serious implications for rural development policy.

A discussion of rural development policy could focus on a number of issues surrounding the economic well-being of rural communities and rural residents. Research shows that rural America is experiencing many problems including widespread stagnation in job creation, reduced rates of population growth, substantial outmigration, and underdeveloped human resources (Brown et al.). According to Rasmussen, the first rural development efforts (e.g., improving physical characteristics of rural areas) met with quick and quantifiable success, but unemployment, persistent poverty, and inadequate housing may be more intractable.

Economic analysis was conducted on hypothetical agronomic research on new crop cultivars for Arkansas dryland soybean and wheat producers. In relation to farmers' attitudes toward risk, the microeconomic effects and level of adoption of yield variability reducing cultivars were analyzed utilizing a production management decision-making model formulated with mathematical programming techniques. The study indicated that negative covariance between crops continues to be an effective means of reducing production risk associated with yield variability. However, under varying circumstances, agronomic research on the breeding of new soybean and wheat cultivars with reduced yield variability is worthwhile if there is only slight concurrent reduction in expected yields.

An increasing emphasis on surface and groundwater quality and food safety may result in some form of pesticide regulations. A restricted profit function model of Georgia agriculture is used to examine the short-run effects of 2 and 5 percent reductions in all pesticides. Point estimates of short-run impacts, along with their 90 percent confidence intervals are presented.