This concept relates to those organizations and associations who have a specific interest in a policy or area, this is the case with agriculture. A typical example would be when a producer of grain would lobby Congress for reduced prices for grain to enable it to make a larger profit. Interest groups are important players in any business scenario so it is important to learn why and how they function if the course on agriculture is to be successful.
Competitive advantage
This occurs when a company or an interest group seeks to gain an advantage over other players in the field. A typical example would be when a company which is involved in the distribution of foodstuffs puts its distribution price slightly cheaper than the market value thus gaining a competitive advantage over its rivals. Competitive advantage is important in the context of this particular course as it assists to understand the nuances and changes in the economic field.
Cost-efficiency:
Cost-efficiency can be explained as the ratio of costs made in connection with the production of a product. A typical example would be the production of soya beans with a mechanized system which eventually saves on labour costs. It is important for this concept to be understood as if cost efficiency is not practiced in any business procedure, this will surely fail so a sound grasp of it is absolutely essential.
Effectiveness:
Effectiveness is the application of some tool or concept which makes it commercially viable to produce such a product. A typical example would be the application of fertilizer to a crop to make it grow faster and thus increase the yield for the farmer and the subsequent product. This concept is important to understand as it helps one to gauge the effectiveness of certain policies in the agricultural sector.
Recurrence:
Recurrence is the repeated action of something be it an event or a procedure. An example would be the recurrence of a storm which would damage crops so the knowledge of what is coming up would be better applied in future cases. Understanding this concept is important as it assists one to plan better for the future.
Farm Bureau
Farm Bureau is a collection of farms in a state or county which pool resources together. A typical example would be the Minnesota Farm Bureau where farmers from the state of Minnesota pool their resources together. This is standard practice in American farm economy so it is essential to understand it.
Parity
Parity is when prices are on a par with each other and do not deviate to create an unfair advantage. A typical example would be the price of two types of corn. This is important to understand due to the fact that it is a term often used in agricultural studies and practice.
Agricultural Adjustment Acts
These are laws which are passed to protect the agricultural production in the country. A typical example would be the Farm Act which provides for subsidies and protection of certain business interests. Such laws are important to understand as they form the basis of the agricultural system in the US
Flexible Price Supports
Flexible price supports are none other than flexible subsidies which assist in promoting certain crops. A typical example would be a subsidy on a product which is expensive to produce. These supports are also part of the agricultural chain and thus need to be understood properly.
