AGRICULTURAL ECONOMICS AS A SUBJECT OF STUDY IN

THE AGRICULTURAL COLLEGE.

By KENYON L. BUTTERFIELD, A. M.,

President of the Rhode Island College of Agriculture and Mechanic Arts.

The writer has been asked to make suggestions relative to the teaching of what is coming to be called agricultural economics, with special reference to its place in the curriculum of the agricultural college. With the practical object in mind of endeavoring to outline work which may be pursued under this head, it is not desirable to discuss at length the reasons why the subject should be given attention. These reasons lie deep in the foundation of sound agricultural education, and, indeed, involve our whole educational structure. But it may not be out of place merely to indicate the direction such a discussion might take.

It may be observed, in the first place, that the aim of agricultural education has been, in large measure, to help the farmer to secure larger crops of choicer products at less cost. It has involved the application of the principles of the natural sciences to the physical problems of the farm. This of course is fundamental, but nevertheless partial. Agriculture is something more than the growing of things, and something more than the growing of more things more cheaply. And it is not a far cry from the admission of this fact to the acknowledgment that the agricultural course shall discuss those problems that go beyond the scope of studying science in relation to the soil, the plant, and the animal.

It may be urged that this need of broader instruction is being met by the study of farm management, for this subject includes a discussion of those questions that look toward the disposal of the crops, the general administration of the farm, and the relation of the farmer to the business world. Farm management is bound to occupy an increasing share of time in the agricultural course, at least so long as that course attempts to train farmers. But farm management discusses the aspects of agriculture as a business and approaches agriculture from the standpoint of the individual farmer; while agriculture is something more than a business, it is an industry.

And because agriculture is an industry and indeed ranks among the leading industries, it is related to all other industries and must be con

sidered in those relations. It is not an isolated occupation. It is subject to economic laws. It prospers or lags, not merely because of its internal phases, so to speak, but also because of its external relations. It should therefore be studied as an industry as well as an art and a business and approached from the economic standpoint.

And, finally, it may be said that the social point of view is absolutely necessary in agricultural as in all other education. Indeed, I question if it is not true that the great educational problem of the near future is to be not the conflict between cultural and vocational education, but the conflict between the technical preparation of the man as an expert and the proper training of that same man for his high duties, both political and social, in the community life. Agricultural economics should lead the student to the social viewpoint.

This sketchy statement is hardly worthy the name of an argument for the study of agricultural economies and will not be presented as a formal plea for adopting this study, but it is possible that it may hint at the fundamental nature of the reasons that lie back of this movement.

Until the material to be presented in the teaching of this subject is better organized than it is at present, a definition of agricultural economics ought to be provisional. Any definition is likely to be unsatisfactory from some point of view. Perhaps the boundaries of this subject could best be defined by indicating what lies outside of them, but contiguous to them. However, agricultural economics may be said to be the study of agriculture as an industry, using the word industry in its wide, economic sense. It is a discussion of agriculture in the light of the principles of political economy. It is the application of industrial or economic laws to the problems of the farmer. It may be distinguished from rural sociology in that the latter is the study of the social conditions under which farmers live and the social institutions that minister peculiarly to the farmers' welfare. It may be distinguished from farm management in that the latter discusses the business and commercial phases of agriculture viewed from the standpoint of the individual farmer. Agricultural economies will impinge upon rural sociology at numerous points, because, in a full analysis, the economic and the sociological can not be entirely divorced. It may impinge upon farm management even more frequently, because many of the subjects of discussion are the same, although there is a wide difference in the point of view from which the subjects are approached and in the method of treatment.

It ought to be said that no claim will be made for agricultural economics as a new science, nor is it likely that those who carry on researches under its name or who teach its subject-matter will contribute materially to economic theory. Its method will be frankly descriptive rather than theoretical. But this fact need not detract

from its value or dignity, because it is clearly evident that in modern economic study a large share of the best work is being done by those who are studying existing conditions.

There is another consideration of some importance. The subject ought to be presented by an economist rather than by an agriculturist, because the subject-matter is primarily economic and not agricultural. But the economist who teaches this subject should be a man in thorough sympathy with practical agriculture and able to approach his subject from the standpoint of the actual conditions and needs of the agriculture of this country. Where it is not at present feasible to employ a specialist for the work, the teacher of agricultural economics should at least have had a thorough grounding in economics. I trust that the little band of keen-sighted professors of agriculture who have been wise enough within very recent years to give courses bearing on this general subject will take no offense at this statement. I am speaking ideally. Ultimately, specialists in economics connected with the land-grant colleges must do this work. They have at hand splendid opportunity for labor in a field which is almost virgin soil.

Ideally, again, the study of agricultural economics would not be an isolated subject, but would be a feature of a lengthened study of social science, extending over two or three years' time, with a fair preparation in the principles of economics and sociology and politics, followed by some consideration of the more important problems of the day that are economic, sociological, and political. With this general preparation the student could then well spend at least one year in the study of agricultural economics and rural sociology. The immediate task, however, is that of endeavoring to outline what might be given in a course of agricultural economics to occupy a period of perhaps three hours per week for a term of from twelve to twenty weeks.

It is hoped that the appended outline may be suggestive of what can easily be given in the average agricultural course of the land-grant colleges. It is not designed to be a final analysis of the subject of agricultural economics.

OUTLINE FOR A SHORT LECTURE COURSE IN AGRICULTURAL ECONOMICS.

I. Characteristics of the agricultural industry.

Dependence upon nature.

Capital and labor as applied to agriculture.

The laws of rent and of decreasing returns in agriculture.

Relation of agriculture to other industries and to the welfare of mankind.

II. History of the agricultural industry.

In ancient times.

Status in Europe prior to the eighteenth century.

The struggle to maintain its standing after the advent of commerce and manufacture.

II. History of the agricnitural industry-Continued.

In the United States.

The pioneer stage.

Development of commercial agriculture.

The new farming.

III. Present status of the farming industry.
The world's food supply.

Agricultural resources of the United States.
Geographical factors.

Soil, climate, fertility, natural enemies.
Statistics of farms, farm wealth, production, etc.
Leading subindustries cereals, stock, etc.
Distribution of production.

IV. The agricultural market.

Description of the market-local, domestic, foreign.
Mechanism of the market.

Banks and local exchange facilities.

Middlemen.

Boards of trade.

Prices of agricultural products.

Movements of.

Agricultural competition.

Depressions in agriculture.

Influence of "options."

Transportation of agricultural products.

Primary transportation-wagon roads and trolley lines.

Railroad and water transportation.

Facilities.

Rates.

Discriminations.

Delivery methods.

Incidents of the transportation system-elevators, etc.

Imperfect distribution of agricultural products.

Development of the market.

Increase of consumption of products-manufacture of farm products as

a factor.

The factor of choicer products.

The factor of better distribution of products.

The local market as a factor.

The foreign market as a factor.

V. Business cooperation in agriculture.

Historical sketch.

Present status.

Production.

Marketing.

Buying.

Miscellaneous business cooperation.
Difficulties and tendencies.

VI. Agriculture and legislation.

Land laws and land policy of the United States.

Agriculture and the tariff.

Agriculture and monetary legislation.

Taxation and agriculture.

Food and dairy laws.

Government aid to agriculture.

VII. Some current problems.

Agricultural labor.

Machinery and agriculture.

Interest rates, indebtedness, etc.

Tenant-farming.

Large versus small farming.
Business methods.

Immigration and agriculture.

If time permits, and the students have had adequate preparation in general economics, it would be profitable to dwell at some length upon the first two chapters of the outline. In the first the industry of agriculture may be described in economic terms and its economic character fully analyzed. In the second one could well spend some time in discussing the development of agriculture and its changing relations to other industries. But in the ordinary course likely to be given to agricultural students it will hardly be wise to do more with these topics than to make them a slight foundation for the subsequent descriptive work. It will be observed that American conditions naturally form the point of view of this outline.

The most serious difficulties in offering this subject will arise in those institutions where the agricultural course is relatively inflexible and where the elective system has made small headway. Here the prime objection will be, "There is not time." It may be urged in reply that this same objection has been raised against almost every study that has been introduced in the last twenty years. But in spite of the objection the new subjects flourish and multiply exceedingly. Perhaps it will be a rather harsh and unsatisfactory answer to this objection to say, "Take time." Of course, if the subject is not more important than something else, it will be difficult to find a place for it in this inflexible curriculum. But if agricultural educators once concede the importance of the subject, a place will be made for it.

Another objection will arise through the contention that there is "no body of knowledge" that has been put into pedagogical form relating to this subject. That is true. It was true ten years ago of a score of subjects which are now taught successfully in our agricultural courses. Theoretically, it is a powerful objection; practically, it never long stands in the way of adopting a new course of study. There is already abundance of material at hand for a moderately satisfactory course in agricultural economics. The recent publications of the Department of Agriculture, the various reports of governments and States, the Federal census, the files of our best farm papers, and finally the valuable reports of the Industrial Commission, are easily accessible. All this information needs digesting and arranging, but it is far from being in a chaotic condition, and the requisite "body of knowledge" can be fairly well organized without serious difficulty. It may be said in passing, however, that no phase