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Exploring the Potential Effects of Organic Production on Contracting in American Agribusiness

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  • Volpe, Richard J., III

Abstract

Organic production, while still a niche market in U.S. agriculture, is growing at a rapid rate. This paper argues that organic producers, particularly those seeking certification to sell at the retail level, share many characteristics with conventional producers who opt for contracting over independence. These include yield risk, search and transaction costs, and technological changes. Depending on the rate at which federal assistance programs grow and evolve to serve organic producers, contracting may become a popular choice within the organic sector. In turn, contracting may come to cover a significantly larger share of agricultural production as the organic sector continues to grow.

Suggested Citation

  • 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 21086, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21086
    DOI: 10.22004/ag.econ.21086
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    References listed on IDEAS

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    4. Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
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    6. Greene, Catherine R. & Kremen, Amy, 2003. "U.S. Organic Farming In 2000-2001: Adoption Of Certified Systems," Agricultural Information Bulletins 33769, United States Department of Agriculture, Economic Research Service.
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    9. Roberts Michael J & Key Nigel, 2005. "Losing Under Contract: Transaction-Cost Externalities and Spot Market Disintegration," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(2), pages 1-19, April.
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    Cited by:

    1. Lau, Michael H. & Hanagriff, Roger D. & Constance, Douglas H. & York, Mary & VanDelist, Brian & Higgins, Lindsey M., 2010. "Discerning Differences among Producer Groups and Organic Adoption Barriers in Texas," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(2), pages 1-13, July.
    2. Nelson, Mack C. & Styles, Erika K. & Pattanaik, Nalini & Liu, Xuanli & Brown, James, 2015. "Georgia Farmers’ Perceptions of Production Barrier in Organic Vegetable and Fruit Agriculture," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196868, Southern Agricultural Economics Association.

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