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Corn and Soybean Marketing Contract Adoption and Site-Specificity

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  • Elliott, Matthew S.
  • Elliott, Lisa M.
  • Lin, Yan

Abstract

Adoption of marketing contracts represents a subtle evolution from spot markets to more formal coordination using classical bilateral contracts. The increase use of marketing contracts for corn and soybeans has been observed within the context of a changing landscape to marketing outlets. Since 2000, there has been consolidation, changes in ownership of grain merchants and processors, and an unprecedented emergence of processors for domestic bioenergy. In this study, we assess the effect site-specificity has, for a given farms location, in the marketing contract adoption decision. Our preliminary results indicate support for site-specificity as an important factor to marketing contract adoption.

Suggested Citation

  • Elliott, Matthew S. & Elliott, Lisa M. & Lin, Yan, 2015. "Corn and Soybean Marketing Contract Adoption and Site-Specificity," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205716, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205716
    DOI: 10.22004/ag.econ.205716
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    References listed on IDEAS

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    1. Ani L. Katchova & Mario J. Miranda, 2004. "Two-Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 88-102.
    2. MacDonald, James M. & Perry, Janet E. & Ahearn, Mary Clare & Banker, David E. & Chambers, William & Dimitri, Carolyn & Key, Nigel D. & Nelson, Kenneth E. & Southard, Leland W., 2004. "Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities," Agricultural Economic Reports 34013, United States Department of Agriculture, Economic Research Service.
    3. Shelanski, Howard A & Klein, Peter G, 1995. "Empirical Research in Transaction Cost Economics: A Review and Assessment," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(2), pages 335-361, October.
    4. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
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    Cited by:

    1. Frasa, Stefanie & Carlberg, Jared & Hogan, Robert, 2015. "Use of Contracts by Prairie Agricultural Producers," Working Papers 232328, Structure and Performance of Agriculture and Agri-products Industry (SPAA).

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