The Theory and Measurement of Capital Com-
plementary to and Substitutable for Land and Labor -
The definition and measurement of the kinds of capital
that substitute for and complement land and labor are
necessary. Many categories of capital are important in
agriculture. Some capital substitutes for unskilled labor.
This same capital, however, often complements skilled
labor, in the sense that highly skilled operators must be
used in fixed proportions with it. Other kinds of capital
substitutes for land. Still other kinds of capital comple-
ment poor soils to make them highly productive.
Examples are irrigation and drainage. Though we called
for SM research on these topics above, we note here that
DISC research by economists is needed as a prelude to
such research.

 Control of Overinvestments in the Private Sector -
The widely observed tendencies of market controlled
agricultural economies to overinvest in capital and labor
is a challenge for both DISC and SM research in
economics. These overinvestments led to the overproduc-
tion experienced in the U.S. in 1981 and 1982. The
theoretical explanation of these tendencies has been
developed in part (Schultz, 1945; D. Gale Johnson, 1947;
Cochrane, 1947; Edwards, 1959; Johnson and Quance,
1972). Additional theory has been produced by Baquet
(1979), Robison and Baquet (1979), and Robison and
Fleisher (forthcoming). As these theoretical advances
occur, additional DISC research will be required for
testing and application. Once tested, the theories will
provide a basis for the design of programs and policies
to alleviate undesirable and promote desirable
tendencies.





General Conclusions Concerning
Priorities for Problem-Solving,
Subject-Matter and Disciplinary Research
with Respect to Food and Agriculture

 This section will deal with balance and priorities
among PS, SM and DISC research on technological
advance, institutional change, human development and
capital growth. The essential role of publicly supported
research in the USDA and land-grant colleges of agri-
culture, along with the important role of the private
sector, is emphasized. Attention is directed to priorities
for research in the disciplines supporting PS and SM
research on technology, institutions, people and capital
growth; the need to maintain a balance between PS and
SM research, on one hand, and support DISC research
on the other; and finally, the need for DISC research
both in and outside the ARE.


Balances and Imbalances Among Research
on Technology, Institutions,
Human Development and Capital Growth
 For the past decade, DISC research has been stressed
for the disciplines that support agricultural research and
also for technical agricultural research itself. The em-
phasis has been more on crops than livestock. Agricul-
tural engineering, despite the importance of energy
shortages, has received little emphasis, and the underly-
ing disciplines of physics, chemistry and mathematics
have seldom been promoted because of their importance
to agricultural engineering. The agribusiness sector has
been moderately supported by SM and PS research
within the ARE. Little attention, however, has been
given to the disciplines in direct support of PS and SM
research in agricultural marketing, processing, distribu-
tion and utilization. Neither food science nor the other
underlying disciplines of nutrition, bacteriology,
chemistry, physics and economics have received substan-
tial emphasis. Soil conservation and maintenance have
been emphasized while DISC research important for
converting unproductive soils into usable land has been
neglected. More emphasis should be placed on
disciplinary support of agricultural engineering, the
agribusiness sector, animal agriculture, food science, soil
improvement and the underlying disciplines.


The Essential Role of the
USDA and Land-Grant Colleges
 The land-grant colleges and the USDA have an essen-
tial role to play in PS and SM research in agriculture.
Public sector agricultural research is essential to deal
with problems that the private sector will not find pro-
fitable to solve. The USDA land-grant colleges of agri-
culture, as part of the ARE, constitute a large, effective
resource base for PS and SM research not currently
matched or duplicated elsewhere.


The Private Sector Role in
Agricultural and Food Research
 The private sector is playing an increasingly impor-
tant role in PS and SM research. It is also finding it
advantageous to engage in some DISC research to sup-
port its PS and SM research programs. This is a healthy
development that should be encouraged. Though much
socially desirable research will not be done by the private
sector, agriculture can use more research resources,
private and public, with returns in excess of costs. Full
development of the research potential of the private
sector will free the public sector ARE to use its resources
to accomplish objectives not privately but still socially
advantageous.