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Factors Affecting the Selection of Business Arrangements by U.S. Hog Farmers

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  • Christopher G. Davis
  • Jeffrey M. Gillespie

Abstract

This study examines the influences of risk, transaction costs, autonomy, size, farm demographics, and socioeconomic characteristics on the choice of four business arrangements by U.S. hog producers. Data for this analysis were obtained from a national survey of U.S. hog producers. This research supports other studies that discuss the role of risk in the advent of contracting and transaction costs in the selection of business arrangements. The study results suggest that those who value autonomy less are currently adopters of contracts. Copyright 2007, Oxford University Press.

Suggested Citation

  • Christopher G. Davis & Jeffrey M. Gillespie, 2007. "Factors Affecting the Selection of Business Arrangements by U.S. Hog Farmers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 331-348.
    • Handle: RePEc:oup:revage:v:29:y:2007:i:2:p:331-348
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    1. Escalante, Cesar L. & Barry, Peter J., 2001. "Risk Balancing in an Integrated Farm Risk Management Plan," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(3), pages 413-429, December.
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    3. Gillespie, Jeffrey M. & Eidman, Vernon R., 1998. "The Effect of Risk and Autonomy on Independent Hog Producers' Contracting Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(1), pages 175-188, July.
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    5. Herath, Deepananda P.B. & Weersink, Alfons & Carpentier, Chantal Line, 2005. "Spatial Dynamics of the Livestock Sector in the United States: Do Environmental Regulations Matter?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-24, April.
    6. Hudson Darren & Lusk Jayson, 2004. "Risk and Transactions Cost in Contracting: Results from a Choice-Based Experiment," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(1), pages 1-19, February.
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    8. Hubbell, Bryan J. & Welsh, Rick, 1998. "An Examination Of Trends In Geographic Concentration In U.S. Hog Production, 1974-96," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(2), pages 1-15, December.
    9. Brian Roe & Elena G. Irwin & Jeff S. Sharp, 2002. "Pigs in Space: Modeling the Spatial Structure of Hog Production in Traditional and Nontraditional Production Regions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 259-278.
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