Advanced Search
MyIDEAS: Login to save this article or follow this journal

How much do farmers value their independence?

Contents:

Author Info

  • Nigel Key

Abstract

A farmer's decision to contract or produce independently depends on the distribution of income and the nonpecuniary attributes associated with both business arrangements. The benefits to growers from contracting (such as risk reduction) may be overestimated if the nonpecuniary benefits enjoyed by independent producers (such as the right to make management decisions and own the commodity produced) are not accounted for. This study uses data from a U.S. national survey of hog producers to estimate (1) the difference in expected net returns between contracting and independent production, (2) the premium a representative farmer would pay for the risk reduction provided by a contract, and (3) the premium a farmer would pay for the nonpecuniary benefits associated with independent production. Results indicate that growers have a strong preference for autonomy-with moderately risk-averse growers being willing to pay more for the attributes of independent production than they would for the risk-reducing benefits of a contract. Copyright 2005 International Association of Agricultural Economics.

Download Info

If 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.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0862.2005.00339.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 33 (2005)
Issue (Month): 1 (07)
Pages: 117-126

as in new window
Handle: RePEc:bla:agecon:v:33:y:2005:i:1:p:117-126

Contact details of provider:
Email:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0169-5150
More information through EDIRC

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0169-5150

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Tocco,Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "Determinants to Leave Agriculture and Change Occupational Sector: Evidence from an Enlarged EU," Factor Markets Working Papers, Centre for European Policy Studies 158, Centre for European Policy Studies.
  2. Volpe, Richard J., III, 2006. "Exploring the Potential Effects of Organic Production on Contracting in American Agribusiness," 2006 Annual meeting, July 23-26, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21086, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Musshoff, Oliver & Hirschauer, Norbert, 2011. "Naive Deckungsbeitragsvergleiche führen bei Vorverträgen in die Irre - Lieferung von Industrierüben zur Bioethanolherstellung," 51st Annual Conference, Halle, Germany, September 28-30, 2011, German Association of Agricultural Economists (GEWISOLA) 114488, German Association of Agricultural Economists (GEWISOLA).
  4. Theuvsen, Ludwig & Franz, Annabell, 2007. "The Role and Success Factors of Livestock Trading Cooperatives: Lessons from German Pork Production," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), International Food and Agribusiness Management Association (IAMA), vol. 10(03).
  5. Størdal, Ståle & Lien, Gudbrand & Baardsen, Sjur, 2008. "Analyzing determinants of forest owners' decision-making using a sample selection framework," Journal of Forest Economics, Elsevier, Elsevier, vol. 14(3), pages 159-176, June.
  6. Peter Howley & Emma Dillon & Thia Hennessy, 2014. "It’s not all about the money: understanding farmers’ labor allocation choices," Agriculture and Human Values, Springer, Springer, vol. 31(2), pages 261-271, June.
  7. Granoszewski, Karol & Spiller, Achim, 2013. "Vertragliche Zusammenarbeit bei der energetischen Biomasselieferung: Einstellungen und Bindungsbereitschaften von deutschen Landwirten," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156131, German Association of Agricultural Economists (GEWISOLA).
  8. Howley, Peter & Breen, James & Donoghue, Cathal O. & Hennessy, Thia, 2012. "Does the single farm payment affect farmers’ behaviour? A macro and micro analysis," International Journal of Agricultural Management, Institute of Agricultural Management;International Farm Management Association, Institute of Agricultural Management;International Farm Management Association, vol. 2(1), October.
  9. Peter Howley & Trevor Donnellan & Kevin Hanrahan, 2009. "Cap reform: implications for Ireland," Working Papers, Rural Economy and Development Programme,Teagasc 0904, Rural Economy and Development Programme,Teagasc.
  10. Granoszewski, Karol & Spiller, Achim, 2013. "Langfristige Rohstoffsicherung in der Supply Chain Biogas: Status Quo und Potenziale vertraglicher Zusammenarbeit," DARE Discussion Papers 1303, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
  11. Sudha Narayanan, 2012. "Safe gambles? Farmer perceptions of transactional certainty and risk-return tradeoffs in contract farming schemes in Southern India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-021, Indira Gandhi Institute of Development Research, Mumbai, India.
  12. Katchova, Ani L., 2008. "Agricultural Contracts and Alternative Marketing Options: A Matching Analysis," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 6336, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  13. Lavee, Doron, 2010. "The effect of water supply uncertainty on farmers' choice of crop portfolio," Agricultural Water Management, Elsevier, Elsevier, vol. 97(11), pages 1847-1854, November.
  14. Lips, Markus & Gazzarin, Christian, 2008. "What are the preferences of Dairy Farmers regarding their Work? A Discrete Choice Experiment in the Eastern Part of Switzerland," 2008 International Congress, August 26-29, 2008, Ghent, Belgium, European Association of Agricultural Economists 44132, European Association of Agricultural Economists.
  15. Peter Howley & Trevor Donnellan & Kevin Hanrahan, 2009. "The 2003 CAP reform: Do decoupled payments affect agricultural production?," Working Papers, Rural Economy and Development Programme,Teagasc 0901, Rural Economy and Development Programme,Teagasc.
  16. Katchova, Ani L., 2013. "Agricultural Contracting and Agrifood Competition," Staff Papers, University of Kentucky, Department of Agricultural Economics 164515, University of Kentucky, Department of Agricultural Economics.
  17. Reise, Christian & Liebe, Ulf & Musshoff, Oliver, 2012. "Design of substrate supply contracts for biogas plants," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia, Australian Agricultural and Resource Economics Society 124428, Australian Agricultural and Resource Economics Society.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:33:y:2005:i:1:p:117-126. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

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.