How to Be Agricultural Economist - Job Description, Skills, and Interview Questions

May 20, 2020 / 5 Minutes Read / By Albert

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The agricultural economist plays an important role in helping farmers manage their resources and maximize profits. This is accomplished by analyzing the economic impact of different farming practices and determining the most effective ways to use resources. By studying the cost of production, market trends, and the effects of government policies, the agricultural economist can provide insight into how different farming decisions will affect the overall profitability of a farm.

The agricultural economist also assists farmers in making decisions regarding financial planning, risk management, and marketing strategies. As a result of their research, farmers can make more informed decisions which can lead to increased yields, improved quality of goods, and higher income levels. this helps ensure the long-term sustainability of the agricultural industry.

Steps How to Become

Earn a Bachelor's Degree. A bachelor's degree in agricultural economics or a related field such as economics, agricultural business management, or a natural resource discipline is the minimum educational requirement for an agricultural economist. Students typically take courses in agribusiness, agricultural production, economics, statistics, accounting, and business law.
Obtain Relevant Experience. Many employers prefer to hire agricultural economists with some experience in the field, so internships or summer jobs can be beneficial. Working with farmers, state or federal government agencies, agricultural cooperatives, food processors, or other agricultural businesses can help students acquire the skills and knowledge necessary for a career as an agricultural economist.
Pursue a Graduate Degree. Completing a master's or doctoral degree in agricultural economics can help individuals stand out from other applicants and increase their opportunities for advancement. Graduate students typically take courses in advanced economics, agricultural marketing, and agricultural policy.
Obtain Certification. Some employers may require agricultural economists to be certified through professional organizations such as the American Society of Agricultural and Biological Engineers. Certification typically involves passing an exam and having a certain amount of experience in the field.
Consider Additional Training. Taking courses in computer programming, GIS (Geographic Information Systems), and statistical analysis can be beneficial for agricultural economists seeking to increase their skills and broaden their job prospects.

Agricultural economists play an important role in helping farmers make reliable and competent decisions. By researching and analyzing the economics of agricultural production and markets, they can provide information to farmers on price trends, market conditions and the best practices to maximize their yields and profits. Furthermore, they can help farmers develop strategies and plans to minimize risks associated with unpredictable weather or other variables that can affect their farming operations. By providing farmers with reliable and competent advice, agricultural economists help ensure that farmers have the best chance of success in their endeavors.

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Job Description

Conduct economic research related to the production, distribution, and consumption of agricultural products.
Analyze and interpret data on the supply and demand of agricultural commodities.
Develop models and forecasts of agricultural production, prices, and consumption.
Monitor the impact of weather, global markets, and other factors on agricultural production.
Design studies to assess the economic returns of agricultural investments.
Prepare reports, presentations, and policy recommendations on agricultural economics topics.
Provide guidance on the development of agricultural policies and programs.
Educate stakeholders on the economic aspects of agricultural production and trade.
Analyze the economic impact of new technologies on the agricultural sector.
Monitor developments in the global agricultural markets.

Skills and Competencies to Have

Knowledge of policy and regulations related to agriculture
Understanding of agricultural production economics
Ability to analyze agricultural data and trends
Expertise in market analysis and forecasting
Familiarity with agricultural finance and risk management
Ability to create and implement strategies for solving agricultural problems
Understanding of the global agricultural market
Knowledge of agricultural extension and rural development
Familiarity with sustainable farming practices
Knowledge of the impact of climate change on agriculture

Agricultural economists play a key role in understanding the complex dynamics of food production and distribution. They study how changes in agricultural production, trade policies, and climate affect food prices and availability. Their research also covers environmental, economic, and social issues related to agriculture, such as the impact of industrialization and population growth on farming practices.

In order to be successful, agricultural economists must be highly skilled in economics, statistics, and mathematics. They must also be able to interpret research data, make predictions about how their findings will affect the future, and communicate their findings effectively to the public. Without these skills, agricultural economists would be unable to effectively analyze and understand the complex web of factors that affect food production and distribution, leading to an inefficient and possibly harmful allocation of resources.

Agricultural Educator, Agricultural Buyer, and Agricultural Representative are related jobs you may like.

Frequent Interview Questions

What experience do you have in agricultural economics?
How does your background in agricultural economics inform your work?
What challenges have you faced in your work?
What do you consider to be the major economic issues facing agriculture today?
How do you identify and analyze trends in the agriculture sector?
How do you stay up to date on developments in agricultural economics?
How do you ensure accuracy with data analysis?
What methods do you use to ensure data quality?
How do you identify and address potential risks in agricultural economics projects?
How do you develop strategies to support agricultural policy decisions?

Common Tools in Industry

Statistical Analysis Software. Allows for an analysis of large datasets, helping to identify patterns and trends in collected data. (e. g. SPSS, SAS, R)
GIS Software. Geographical Information Systems software helps to map and analyze spatial data. (e. g. ArcGIS, QGIS, MapInfo)
Survey Software. Used to create, distribute and analyze survey data. (e. g. SurveyMonkey, Qualtrics, SurveyGizmo)
Data Visualization Software. Helps to present data in an easy-to-understand graphical format. (e. g. Tableau, Microsoft Power BI, Google Data Studio)
Crop Modeling Software. Allows the user to simulate crop growth in different environments. (e. g. APSIM, SIMCA, RZWQM2)
Economics Modeling Software. Allows the user to model different economic scenarios. (e. g. GAMS, Mathematica, EViews)
Decision Making Software. Helps the user make informed decisions based on data and analytics. (e. g. Analytica, DecideIT, Cognitive Platform)

Professional Organizations to Know

American Agricultural Economics Association (AAEA)
International Society of Agricultural Economists (ISAE)
International Food and Agribusiness Management Association (IFAMA)
Association for International Agriculture and Rural Development (AIARD)
Council for Agricultural Science and Technology (CAST)
Agricultural and Applied Economics Association (AAEA)
Food and Agriculture Organization (FAO)
American Society of Farm Managers and Rural Appraisers (ASFMRA)
International Farm Management Association (IFMA)
International Association of Agricultural Economists (IAAE)

We also have Agricultural Technician, Agricultural Loan Officer, and Agricultural Production Manager jobs reports.

Common Important Terms

Agricultural Production Economics. This is the study of economic principles and how they apply to the production, distribution, and consumption of agricultural products.
Agricultural Policy. This is an umbrella term that encompasses the rules, regulations, and laws that governments use to manage the production, distribution, and consumption of agricultural goods within their borders.
Food Security. This is a measure of the availability of food and its ability to be accessed in a safe and nutritious manner.
Risk Management. This is a systematic approach to assessing, measuring, and managing the risks associated with agricultural production.
Biotechnology. This is the use of scientific techniques to improve crop yields and animal health, as well as to create new varieties of crops and animals.
Agribusiness. This is the business of producing and selling agricultural goods, including food, feed, fuel, and fiber.
International Trade. This is the exchange of goods and services between countries.
Farm Management. This is the process of planning, organizing, directing, and controlling farm operations to ensure efficient and profitable production.
Agricultural Extension. This is a system for delivering education and information about agriculture to farmers and rural communities.
Natural Resource Economics. This is the study of how humans make decisions about using natural resources, such as land, water, and minerals.

Frequently Asked Questions

Q1: What is an Agricultural Economist? A1: An Agricultural Economist is a professional who studies and analyzes the economic aspects of the production, distribution, and consumption of food and fiber products. Q2: What tasks does an Agricultural Economist perform? A2: An Agricultural Economist performs tasks such as researching and analyzing data on agricultural production, developing agricultural policies, forecasting trends in agricultural markets, and studying the impacts of agricultural policy changes on farmers and other stakeholders. Q3: What qualifications are required to become an Agricultural Economist? A3: To become an Agricultural Economist, one must typically have a minimum of a bachelor's degree in economics or a related field. Additional qualifications may include experience in the field, knowledge of statistical software, and strong communication skills. Q4: How much do Agricultural Economists earn? A4: According to the Bureau of Labor Statistics, the median pay for Agricultural Economists in 2019 was $81,060 per year. Q5: What organizations employ Agricultural Economists? A5: Organizations that employ Agricultural Economists include government agencies, universities, consulting firms, and non-governmental organizations.