Forward Contracting Of Inputs: A Farm-Level Analysis
AbstractForward contracting of inputs in production agriculture is becoming increasingly important as more farmers attempt to manage risk. Using a logit model and farm-level data, this analysis estimates the effect of factors on the probability of a producer using forward input contracting. Results suggest that use of contracting in selling of crops and livestock, technology, farm size, geographic location, participation in government commodity programs, and use of extension services are important factors affecting the choice to forward contract inputs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.
Volume (Year): 17 (1999)
Issue (Month): 2 ()
forward contracting; inputs; risk; Marketing;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holthausen, Duncan M, 1976. "Input Choices and Uncertain Demand," American Economic Review, American Economic Association, vol. 66(1), pages 94-103, March.
- Haydu, John J. & Myers, Robert J. & Thompson, Stanley R., 1992. "Why Do Farmers Forward Contract In Factor Markets?," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(01), July.
- Baron, David P, 1970. "Price Uncertainty, Utility, and Industry Equilibrium in Pure Competition," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(3), pages 463-80, October.
- Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
- Chavas, Jean-Paul & Pope, Rulon D., 1982. "Hedging And Production Decisions Under A Linear Mean-Variance Preference Function," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(01), July.
- Knight, Thomas O. & Lovell, Ashley C. & Rister, M. Edward & Coble, Keith H., 1989. "An Analysis Of Lenders' Influence On Agricultural Producers' Risk Management Decisions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(02), December.
- Ronald I. McKinnon, 1967. "Futures Markets, Buffer Stocks, and Income Stability for Primary Producers," Journal of Political Economy, University of Chicago Press, vol. 75, pages 844.
- Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
- Mark A. Edelman & Brian H. Schmiesing & Douglas R. Olsen, 1990. "Use of selected marketing alternatives by Iowa farmers," Agribusiness, John Wiley & Sons, Ltd., vol. 6(2), pages 121-132.
- Anderson, Ronald W & Danthine, Jean-Pierre, 1983. "The Time Pattern of Hedging and the Volatility of Futures Prices," Review of Economic Studies, Wiley Blackwell, vol. 50(2), pages 249-66, April.
- Hartman, Richard, 1975. "Competitive Firm and the Theory of Input Demand under Price Uncertainty: Comment," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1289-90, December.
- Batra, Raveendra N & Ullah, Aman, 1974. "Competitive Firm and the Theory of Input Demand under Price Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 537-48, May/June.
- Peacock, David & Ryan, James T. & Perry, Janet E., 1998. "Financial Prospects, Business Organization, And Management: Farm Business Challenges," Agricultural Outlook Forum 1998 33246, United States Department of Agriculture, Agricultural Outlook Forum.
- Huffman, Wallace E, 1977. "Allocative Efficiency: The Role of Human Capital," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 59-79, February.
- Leland, Hayne E, 1972. "Theory of the Firm Facing Uncertain Demand," American Economic Review, American Economic Association, vol. 62(3), pages 278-91, June.
- Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
- Hurd, Brian H., 1994. "Yield Response And Production Risk: An Analysis Of Integrated Pest Management In Cotton," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(02), December.
- Ueckermann, E.M. & Blignaut, J.N. & Gupta, Rangan & Raubenheimer, J., 2008. "Modelling South African grain farmersâ€™ preferences to adopt derivative contracts using discrete choice models," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(2), June.
- Mishra, Ashok K. & Park, Timothy A., 2005. "An Empirical Analysis of Internet Use by U.S. Farmers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), October.
- Todd H. Kuethe & Mitch Morehart, 2012. "The profit impacts of risk management tool adoption," Agricultural Finance Review, Emerald Group Publishing, vol. 72(1), pages 104-116, March.
- Riley, John Michael & Anderson, John D., 2009. "Comparison of Hedging Cost with Other Variable Input Costs," 2009 Conference, April 20-21, 2009, St. Louis, Missouri 53045, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
- Nagler, Amy M. & Menkhaus, Dale J. & Bastian, Christopher T. & Ehmke, Mariah D. & Coatney, Kalyn T., 2013. "Subsidy Incidence in Factor Markets: An Experimental Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(01), February.
- Mishra, Ashok K. & Williams, Robert P., 2006. "Internet Access and Use by Farm Households," 2006 Annual meeting, July 23-26, Long Beach, CA 21106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Riley, John Michael & Anderson, John D., 2009. "Producer Perceptions of Corn, Soybean and Cotton Price Risk," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46865, Southern Agricultural Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.