The major objectives of the course are twofold. The first one is to show how the economic theory can be applied to analyze farm programs. This purpose is accomplished through modifying competitive models to take account of government intervention and through comparing the predicted performance of markets with and without intervention. The economic models are developed with the aid of graphic presentation. Comparative-static models compare the performance of markets in equilibrium under alternative economic circumstances such as different farm programs. The market performance includes prices and quantities of farm outputs will be discussed for various farm programs. Considerable attention is also given to the benefit-cost implications of farm programs for consumers, taxpayers, farmers, and farm input suppliers.
A second major objective of the course is to make the students acquainted with a variety of farm commodity programs. The programs receiving great attention are those that have been in effect in the Western countries off and on since World War II. Examples include marketing orders; price supports; direct payments; price support together with production controls of various kinds; and agricultural trade policies. Although the focus of attention is on US or EU programs, some examples from other countries will be considered. The Japan and Korea are the cases in point.