Linking marketing choices with farming practices of grain producers: A farm level modeling approach applied to the South-west of France
AbstractWith the increasing commodity prices volatility over the last years and the successive agricultural policy reforms, European grain producers face greater uncertainty. To better understand consequences of a price risk increase on production decisions, marketing decisions and farm revenue as well as linkage between production and marketing decisions, we develop a multiperiodic risk farm model. Production decisions concern selections of crop mix and farming practices (conventional or integrated farming) while marketing decisions focus on four types of pricing arrangements. The model is applied to a representative farmer of a region located in the Southwest of France. The results exposed in this paper shows that with a price risk increase, production adjustments of a risk averse farmer are oriented toward less risky (environmentally friendly) farming practices unless marketing contracts allow to mitigate price risk.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 114th Seminar, April 15-16, 2010, Berlin, Germany with number 60914.
Date of creation: Apr 2010
Date of revision:
multiperiod farm model; marketing contracts; risk; common agricultural policy; Agricultural and Food Policy; Farm Management;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-05-22 (Agricultural Economics)
- NEP-ALL-2010-05-22 (All new papers)
- NEP-MKT-2010-05-22 (Marketing)
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