Every year I make a trip with family to Kansas State University to catch a college football game. I am in Manhattan, KS this weekend, and so I thought it would be appropriate to publish this SFTW Convo with Dr. Terry Griffin of Kansas State University. I had the opportunity to meet Dr. Griffin in person at his office. I have some pictures from my trip at the bottom of this email.
Dr. Terry Griffin is an agriculture economics professor at The Kansas State University. His specialties include cropping systems economics, precision agriculture, and spatial econometrics. Dr. Griffin was recently appointed to the Space Weather Advisory Group at the White House.
Dr. Griffin is a prolific writer and researcher, including somewhat geeky topics like impact of solar flares on farm economics. One of his papers is titled “Impact of the Gannon Storm on Corn Production Across the Midwestern USA” (Gannon Storm was the name assigned to the major solar storm the week of 10 May 2024. Solar storms typically occur every 11 years.)
Given I did my graduate program at Kansas State, I was very excited to talk with someone from my alma mater, especially someone like Dr. Griffin. Dr. Griffin is a systems thinker, who goes beyond dollars and cents, and thinks about the impact of decisions on the human condition.
Summary of the Conversation
Dr. Griffin and I discuss the multifaceted world of agricultural economics, exploring the importance of understanding agricultural economics as a distinct field. We focused on the role of technology in agriculture, generational perspectives on technology adoption, and the impact of automation on labor. The conversation also addresses the implications of GPS outages, the importance of cybersecurity in agriculture, and the future of AI in the sector, including a discussion on data ownership and its value.
Agriculture economics
Rhishi: What is agricultural economics? Why do we need to study it separately from other branches of economics?
Terry Griffin: A lot of universities offer an applied economics program instead of a strictly agricultural economics program because ag economics has evolved to include areas like health economics, rural development, and international programs.
I focus on the farm side, specifically farm management, which falls under microeconomics. But we also care deeply about macroeconomics within agricultural economics. What makes it distinct is that we think of it as applied economics. It’s not purely theoretical. We like to apply what we study to real-world topics.
For example, it’s not just about dollars and cents. I look at systems and I try to optimize those systems to function as efficiently as possible.
In agricultural economics, I study farm models. I try to optimize returns to land, labor, capital, and management, within the fixed costs and limited resources of the operation. So again, it’s not just about adding and subtracting.
We care a lot about utility, which means satisfaction or happiness. On a farm, it’s not just a business, there’s usually a rural household tied to it. That household includes a spouse, children, or other family members. When we analyze the system, we aim to maximize the joint utility of everyone in that household under a budget constraint.
It’s similar to what happens when a family goes to the grocery store. Let’s say they have $1,000 to spend for the week or month, depending on the family size. Their goal is to get the best mix of food that brings the most satisfaction to everyone involved. That’s optimizing within a shared utility.
Farm families operate the same way. When I look at a farm, I don’t just see a profit-maximizing business. I see a family trying to improve the overall quality of life for everyone in the household. And that’s a big part of what agricultural economics is all about.
Rhishi: When we talk about AgTech, most of the conversation revolves around ROI. People ask, Will it reduce chemical use? Will it save on labor costs? But what you’re talking about goes beyond that, and yet, it rarely enters the conversation. Why do you think that is?