Teaching/Communication/Extension/Profession,

Halvorson, Lloyd C.

English

Research Papers in Economics

SOUTHERN  JOURNAL OF AGRICULTURAL  ECONOMICS  JULY,  1976
ON A QUARTER  CENTURY OF AGRICULTURAL  ECONOMICS
IN RETROSPECT  AND IN PROSPECT:  A REPLY*
Lloyd C. Halvorson
I  am not surprised  at my critic's reaction.  He  is a  an  empirical  scientist,  must  know  not  only  theory
gentleman  and  a  scholar  in  the  way  he  made  his  and  quantitative  methods,  but also a great deal about
comments,  but I  see  clearly that a great philosophical  (1)  the  technology  of  agriculture,  (2)  the  structure
chasm separates  us.  and  organization  of agricultural  production  and  mar-
Any  definition  of  agricultural  economics  has  to  keting,  (3)  the  agricultural  community  and its institu-
be  subjective,  personal,  and  arbitrary  to  a  large  tions  and  (4)  the  goals,  values  and  aspirations  of
extent.  It  is usually  the author's  prerogative,  or even  agricultural  people.  I  even  go so  far as  to  say  that an
responsibility,  to  define  his  terms.  In  some  instances  agricultural  economist,  a  "full  blooded"  one,  relates
conventions  lie  behind  definitions,  but  I  know  of  to agricultural  people.  He  feels like  a  member of the
none  governing  agricultural  economics.  If  one  con-  fraternity.  He  should  have  a  desire  to  look  after the
suits  the  dictionary  as  to  the  meaning  of  "agri-  economic  welfare  of  agricultural  people  in  our
cultural,"  he  might  conclude  my  definition  is  too  imperfect  economy.  The most important decision any
broad, not too narrow.  scientist  makes  is  subjective:  choosing  a problem  for
The  real  question  is what purpose  is  a definition  research and  even conceptualizing  a problem  is largely
to  serve.  My  critic  apparently  wants the  definition  of  subjective.
agricultural  economics  to  be  broad  enough  to cover  An  organizational  unit  that  takes  a  compre-
about  anything  he  wants  to  research.  I  have  some  hensive  and systematic  approach  to research needs of
very special reasons for wanting it narrow.  commercial  agriculture,  rather than ad hoc approach,
I  do  not  want  to  stop  research  in  natural  is  badly  needed  right  now.  An  organizational  unit is
resources  development  and  human  and  community  needed  that  feels  a  sense  of  responsibility  to  the
development.  I just  do  not want to  see  such research  entire  agricultural  industry  and,  in  my  opinion,  a
"flying  the  flag"  of  agricultural  economics  because  strict  definition  of agricultural  economics  will  work
this  flag  has  a  special  meaning  to  most  important  in that direction.
clientele  and  supporters  of  agricultural  colleges.  Re-  My critic  appears  to condemn  research geared  to
search  in  natural  resources  and  human  and  com-  giving producers  a  "handle on imperfection"  whether
munity  resources  should  gain  its  own  clientele,  its  by  federal  programs  or by cooperatives.  This  attacks
own  supporters  and  its  own  budget  share.  This  will  the  profession  rather  than  one paper.  He  even points
become  increasingly  important  as  rural  America  out  that  for  the  past  25-30  years  the  JFE  and  the
becomes increasingly  industrial and commercial.  AJEA  have  had many  articles  on how  better  to take
In  my  opinion,  agricultural  economics  is  an  advantage  of  a  market  situation  in  anything  but  a
empirical  science  and  an  applied  science.  If someone  perfectly  competitive  way.  Instead  of repenting  for
just  knows  quantitative  methods  and  economic  these accomplishments,  I  am proud  of them; perhaps
theory,  he  is  still  a  long  way  from  being  an  that  bothers  him.  Cherished  institutions  might  not
agricultural  economist.  An agricultural  economist,  as  survive without  such help.
Halvorson  is Agricultural  Economist for Cooperative  State Research Service,  USDA, Washington,  D.C.
*The  views  expressed  in this  paper  are  personal,  not  necessarily  those  of  the Cooperative  State  Research  Service,  U.S.
Department  of Agriculture.
225Does  my  critic  believe  the  real  economic  world  maker's  calculus or his optimization  strategy.  We may
of  today  fits the  pure  competitive  model? Would  he  be  able  to  help  him  improve  it.  This  is  all  in  the
have  farmers  wait  until  he  and  his  colleagues  can  normative  area.  After the  normative  model  has been
make  it  perfectly  competitive?  Has  he  ever  heard  of  developed,  then  is  the  time  for positivistic  research.
countervailing  power  and that  farmers  need  it?  Does  Sometimes  positivistic  coefficients  are needed  in the
he  realize  that society  seems  to be as concerned with  optimizing equation.
equitable  income  distribution  as  with  efficiency  of  The  quality  factor  in  normative  research  is  not
resource  use  (or  GNP  enhancements)?  Could  it  be  just  a  matter  of  mathematical  sophistication.  If  it is
that  my  critic  "worships"  at  the  throne  of pure  or  to  be  of  this  world,  knowing  what  the  clientele  are
perfect competition  and  that  one  of his tenets  is that  really  trying to maximize should  be the first concern.
one  should  lead his  life  as  if it  really exists  even  if it  The  econometrician  is  not an  agricultural  economist
does not and  even  if others "sin"  and profit thereby?  until  he  has  good  knowledge  of  the  objective  func-
Is  "sainthood"  worthwhile  even  if  one  loses  house  tions of decision makers in  agriculture.
and home?  If  econometrics  is  more  than  sets  of  empty
Agricultural  price  and income  programs do result  equations,  its  advance  was  surely  aided  greatly  by
in income  transfer  to farmers but such programs  must  computers.  It  would  hardly  be  practical  to  pursue
never  be  thought  of as  being even distantly related to  large empirical  models with hand calculators.
welfare  programs.  When  farm  people  work  hard and  It is  a mistake  not to  distinguish  between clients
efficiently  from  sunup  to  sundown  and  produce  and  beneficiaries.  Our  clientele  are those who use the
abundantly,  but still  do  not share  correspondingly  in  knowledge  we  produce  in  their  decision  making-
the  American  level  of  living,  or  face  loss  of  their  farmers,  agribusiness  firms,  farm  leaders,  politicians,
homes,  it is  the  economy  that  is failing,  not farmers.  public  officials,  voters,  etc.  Consumers  are  largely
This  is  not  to  deny  that maybe  there  are better  innocent  beneficiaries  of  agricultural  research.  How-
ways  than  supply  control  and  market  power  for  ever,  we  need  to make  the  blessings  of  agricultural
helping  farmers  achieve  equal pay  for equal work and  research  available  to consumers  in an  orderly  fashion
investment,  but we are  still awaiting them.  Maybe my  so that farmers  are not crushed by surpluses.
critic can  produce them as needed,  when needed.  This  A  quantitative  economic  analyst  becomes  an
is  not to  say monopoly  is good:  war  is  not good but  agricultural  economist only upon gaining considerable
we engage  in it.  empirical  knowledge of the  socioeconomic  systems of
Anyone  who  would  advise  farmers  to  accept the  agriculture  and  this he  gains  as much  by  observation
slings and  arrows of outrageous  economic fortunes,  or  and  participation  as  by research.  Social science  is the
even  conspiracies  against  him,  rather  than  advising  only  science  where  researchers  can  talk  with  the
him  on  accepted  means  of economic  defense,  is  not  subjects  of their research  or the actors in  the systems
an agricultural  economist  in  my  definition.  He  might  and, even at times, become agents  in the reaction.
be a  quantitative  economic  analyst  or some kind of a  A  quantitative  economic  analyst  tends  to  be  an
cultist.  ad  hoc  researcher.  A  good  mathematician  can  be
My  view  on  the  place  of  normative  and  posi-  useful  in  many  disciplines,  that  is,  if  someone  gives
tivistic  research  must  be  viewed  in  a  broad  social  him  the problem. Jumping  from one empirical  area to
context.  All  economic  research  findings  should  be  another  is  inconsistent  with  achieving  excellence  in
relevant  to  decision  making,  and  decision  making  is  research  and  is  called  for  only  when  some  empirical
the  normative  area.  Before  we  can  do  our  research  system ceases to be important to society. We need more
well,  we  need  to  know  not  only  what  kind  of  specialization  by  empirical  areas  within stations  and
important  decisions  people  are  making,  but also  just  among  stations.  The  services  of  a  pure  quantitative
what  the  decision  maker  is  trying  to  optimize.  economic  analyst  should  be  provided  to agricultural
Secondly,  we need to take a good look at the decision  economists  as  are  the  services of a station statistician.
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ON A QUARTER CENTURY OF AGRICULTURAL ECONOMICS IN RETROSPECT AND IN PROSPECT: A REPLY

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