Module Code and Title:        DEV305 Agricultural Economics 

Programme:                           BA in Development Economics

Credit Value:                          12

Module Tutor:                        Sanjeev Mehta

General objective: This module will for the study of enabling policy environment to support agricultural growth and ensure food security. Delivery of the module will be in relation to application in the Bhutanese context. 

Learning outcomes – On completion of the module, students will be able to: 

1. Describe the concepts and tools of economics in the study of agriculture. 
2. Examine the role of agriculture in economic development.
3. Discuss the taxonomy of agricultural policies  
4. Examine agricultural policies that influence incentives for farmers. 
5. Evaluate the role of agricultural price policy.
6. Analyse major arguments of the ongoing debate on input subsidies versus direct income transfer to the farmers. 
7. Analyse the relationship between land tenure system and land rights.
8. Describe the relation between of gender mainstreaming and agricultural development.
9. Examine the impact of water resource management.
10. Analyse the pattern of agricultural finance.
11. Evaluate the rationale for public extension services.
12. Debate on the impact of new areas of agricultural research.

Learning and Teaching Approach: 

Assessment Approach:

Individually submitted assignment would entail critical analysis of relevant issue covered in Unit I, and should have a maximum limit of 750-850 words.

1    Identification of a relevant issue

2    Description of the issue

2    Use of effective analytical tool

8    Analysis and discussion on findings

2    Conclusion

The project will be given after midterm exams. Each student will be required to prepare a complete report based on secondary data to review the impact of any relevant agricultural policy in Bhutan, followed by 10 minutes presentation and 5 minutes Q&A on the report. Report word limit: 1000-1200 words.

1    Description of the policy objectives

2    Appropriate tool of data analysis 

6    Discussion on findings

1    Structure of the report (Title page, executive summary, introduction, methodology, finding, and conclusion)

3    Presentation of report 

2    Defence of the work in Q&A session

Two written tests (5 marks each) will be conducted for 45 min duration each, one before midterm covering Unit II, and one after the midterm, covering Unit V. Approximately half of the questions will aim at explaining and applying a model. 

Students will watch documentaries/podcast related to agricultural technology and extension services, and write a brief analytical summary of it and upload as a blog. Blog word limit: 500-750 words.

2    Identification of relevant issues raised in the documentary/podcast 

3    Description of the issue

8    Analysis and summary 

1    Conclusion

1    Write and upload the blog on a given platform

Students will take a written exam of 1.5-hr duration covering topics up to the mid-point of the semester. The exam will comprise structured questions like MCQ, fill-in-the-blanks, matching, definition, as well as open-ended essay questions.

Students will take a written exam of 2.5-hr duration encompassing all the subject matter covered in the semester. This assessment is comprehensive and summative in nature, and will comprise structured questions like MCQ, fill-in-the-blanks, matching, definition, as well as open-ended essay questions.

Overview of assessment approaches and marks

Pre-requisites: None

Subject matter:

1. Unit I: Agriculture and Economic Development 
   1. A brief history of agricultural and economic development
   2. Contribution of agriculture to economic development
   3. Agriculture growth and poverty reduction 
2. Unit II: Strategies and Agriculture Policy Framework
   1. Sectoral strategies, need for an agricultural policy, nature of agriculture policy instruments 
   2. Taxonomy of agricultural policies: pricing policy, resource policy, access policy policies, programmes and projects
   3. Objectives of agricultural policies- national and sectoral 
   4. Principles of agricultural policies 
   5. Role of the government: institutional development, provision of public goods, research and development, 
   6. Implementation of strategies and policies new legislation, coordination, monitoring and evaluation 
3. Unit III: Broad Issues of Agricultural Policies 
   1. Agricultural policies and macroeconomic framework - the price linkage, relevancy of prices as instruments 
   2. Fiscal policy and subsidies: public expenditure, rationale for subsidies, issue of fiscal support to agriculture 
   3. Gender and agricultural development: Multiple manifestations of the gender bias in agriculture, gender mainstreaming, 
   4. Selected issues in privatisation-privatisation of processing and storage facilities, entry of foreign players 
4. Unit IV: Incentivising Agricultural Producers 
   1. Basic concept of prices- nominal price, relative price, real price, index of agricultural prices 
   2. Structural determinants of agricultural prices, 
   3. Trade policy: protection, tariff, export incentives, policies for food aid, exchange rate policy 
   4.  Macroeconomic policy for agriculture, fiscal policy and agricultural prices 
   5. Sectoral policies: price controls, farm support prices, input prices, strategic reserves and grain market liberalisation 
   6. Food security and agricultural prices, prices for the rural poor, price stabilisation 
5. Unit V: Land Tenure Polices 
   1. Importance of land tenure, issues and trends concerning land tenure, landed estates 
   2. Land rights: property rights and tenure security, land rights and farm size, transition from customary to formal systems 
   3. Communal. collective and individual land rights, the state as land owner
   4. Rationale, failure and new formulation of land reforms 
   5. Policies for land markets: land lease, rental, shared tenancy, policies regarding sale of agricultural land, improved access to land for poor and women
6. Unit VI: Water Management, Technology and Extension Services 
   1. Irrigation policy, types of irrigation systems, instruments of managing water demand- Irrigation pricing and water right market 
   2. Role of agricultural technology: Policy context, institutional considerations 
   3. Issues in agricultural research and extension, rationale for public agriculture extension, trade in agricultural technology, financing agricultural research, water resource management 
   4. New directions in agricultural research 

Reading List:

Essential Reading

Anderson, K., Martin, W.J., Ivanic, M. (2017). Food Price Changes, Domestic Price Insulation, and Poverty. In P. Pigali, and G. Feder, G. (Ed). Agriculture and Rural Development in a Globalising World: Challenges and Opportunities. Routledge. 

Cramer,G., Paudel,K., Schmitz,A. (2019). The Routledge Handbook of Agricultural Economics. Routledge.

Norton, R D (2004). Agriculture Development Policy: Concepts and Experiences. Wiley. 

Takeshima, H., Kumar A., Ahmad, A.U., Joshi, P.K. (2021). Agriculture Development and Modernisation in South Asia. In K. Otsuka and S. Fan (Ed.). Agriculture Development: New Perspective in a Changing World. Washington DC. IFPRI.

Additional Reading

Traxler,G. (2017). Institutional Constraints and Options for Expanding the Biotechnology Revolution in Developing Countries. In P. Pigali, and G. Feder, G. (Ed). Agriculture and Rural Development in a Globalising World: Challenges and Opportunities. Routledge

RGoB (2019). Agriculture Research Strategy 2018-2028. Dept. of Agriculture, MoAF.

RGoB (2019). Agriculture Extension Strategy 2018-2028. Dept. of Agriculture, MoAF.

RGoB (2012). National Irrigation Strategy (Revised 2012). Dept. of Agriculture, MoAF.

Date: June, 2022