Principles of Agricultural Economics, now in its third edition, continues to showcase the power of economic principles to explain and predict issues and current events in the food, agricultural, and agribusiness sectors. This key text introduces economic principles in a succinct and reader-friendly format, providing students and instructors with a clear, up-to-date, and straightforward approach to learning how a market-based economy functions and how to use simple economic principles for improved decision-making.

The field of agricultural economics has expanded to include a wide range of topics and approaches, including macroeconomics, international trade, agribusiness, environmental economics, natural resources, and international development, and these are all introduced in this text. For this edition, new and enhanced material on agricultural policies, globalization, welfare analysis, and explanations of the role of government in agriculture and agribusiness is included. Readers will also benefit from an expanded range of case studies and text boxes, including more international cases, which discuss real-world examples and issues, including global hunger, biofuels, trade wars, agritourism, and climate change.

This book is ideal for courses on agricultural economics, microeconomics, rural development and environmental policy.

The work is fully supported by a Companion Website, which provides users with extra content to enhance their learning and further their understanding of agricultural economics. Additional materials include flash cards, study guides, PowerPoint presentations, multiple choice questions, essay questions, and an instructor’s manual.

chapter Chapter 1|25 pages

Introduction to the economics of agriculture

chapter Chapter 2|29 pages

The economics of production

chapter Chapter 3|27 pages

The costs of production

chapter Chapter 4|31 pages

Profit maximization

chapter Chapter 5|28 pages

Optimal input selection

chapter Chapter 6|16 pages

Optimal output selection

chapter Chapter 7|37 pages

Consumer choices

chapter Chapter 8|24 pages


chapter Chapter 9|35 pages


chapter Chapter 10|19 pages


chapter Chapter 11|40 pages

Government policies

chapter Chapter 12|17 pages

The competitive firm

chapter Chapter 13|26 pages

Market power

chapter Chapter 14|25 pages

Agriculture and the global economy

chapter Chapter 15|15 pages

Economics, agriculture, and the environment

chapter Chapter 16|16 pages

Agribusiness management