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Hog Producer Preferences for Marketing Contract Attributes

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Author Info
Brian Roe
Thomas L. Sporleder
Betsy Belleville

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Abstract

We use a stated preference instrument to elicit producer preferences for the attributes of risk-shifting hog marketing contracts and express acceptable producer trade-offs between contract attributes in a convenient dollar metric. Respondents value an increase in a window contract's price ceiling three to five times more than the same increase in the price floor, which suggests that hog producers dislike contracts that limit up-side price potential (limit positive skewness). The contractor's organizational form is also important. Cooperative forms are preferred by many respondents, particularly those who state that trust in the contractor is an important antecedent for any contractual relationship. Copyright 2003 American Agricultural Economics Association.

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Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 86 (2004)
Issue (Month): 1 (02)
Pages: 115-123
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Handle: RePEc:bla:ajagec:v:86:y:2004:i:1:p:115-123

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This page was last updated on 2008-9-29.


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