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Economic Considerations Of Entering Into Agricultural Procurement Contracts For Agricultural Goods

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  • Strzebicki, Dariusz

Abstract

The aim of this article is to identify the factors which have an influence on the development of contracting of agricultural production. In the paper the author included a discussion on foreign literature in terms of contracting of agricultural production and indicated the vital theories serving to explain the contracting phenomena. In addition, the results of Polish study with regard to contracting were used in the article. One of the main factors which favour the contracting in agricultural households is the growing specialization of production. One of the main factors which disfavor the contracting in agricultural households is the direct payments to cultivation and the growing ability to storage. The main factors of contracting in food industry’s businesses are the willingness to have control over production process and the quality of raw material.

Suggested Citation

  • Strzebicki, Dariusz, 2013. "Economic Considerations Of Entering Into Agricultural Procurement Contracts For Agricultural Goods," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 6(4).
    • Handle: RePEc:ags:plecrs:264971
    DOI: 10.22004/ag.econ.264971
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    References listed on IDEAS

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    1. Martinez, Steve W. & Reed, Al, 1996. "From Farmers to Consumers: Vertical Coordination in the Food Industry," Agricultural Information Bulletins 309735, United States Department of Agriculture, Economic Research Service.
    2. Andrew Dorward, 2001. "The Effects of Transaction Costs, Power and Risk on Contractual Arrangements: A Conceptual Framework for Quantitative Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 59-73, May.
    3. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," 2002 ASAE 3rd International Conference, October 18-20, Jaipur, India 294714, Asian Society of Agricultural Economists (ASAE).
    4. Minot, Nicholas, 1986. "Contract Farming and Its Effect on Small Farmers in Less Developed Countries," Food Security International Development Working Papers 54740, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," World Development, Elsevier, vol. 30(9), pages 1621-1638, September.
    6. Jill E. Hobbs, 1997. "Measuring the Importance of Transaction Costs in Cattle Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1083-1095.
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