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Contracting In Agriculture: A Primer For Farm Lenders

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  • Hudson, Darren

Abstract

Contracting in agriculture has increased over the past several decades. This activity has heightened concerns about concentration, market power, and farmer welfare. The purpose of this paper is to describe some of the underlying motivations for contracting and to highlight some of the trade-offs made when making contracting decisions. These illustrations are intended to inform readers of the economic conditions for contracting, not provide empirical evidence of their implications, costs, or benefits.

Suggested Citation

  • Hudson, Darren, 2000. "Contracting In Agriculture: A Primer For Farm Lenders," Research Reports 15789, Mississippi State University, Department of Agricultural Economics.
    • Handle: RePEc:ags:missrr:15789
    DOI: 10.22004/ag.econ.15789
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    File URL: https://ageconsearch.umn.edu/record/15789/files/rr00-007.pdf
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    References listed on IDEAS

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    1. Knight, Thomas O. & Lovell, Ashley C. & Rister, M. Edward & Coble, Keith H., 1989. "An Analysis Of Lenders' Influence On Agricultural Producers' Risk Management Decisions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-13, December.
    2. Rehber, Erkan, 1998. "Vertical Integration In Agriculture And Contract Farming," Working Papers 25991, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    3. Hueth, Brent & Ligon, Ethan, 1998. "Quality Measurement And Risk-Sharing In Contracts For California Fruits And Vegetables," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20957, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. David A. Hennessy & John D. Lawrence, 1999. "Contractual Relations, Control, and Quality in the Hog Sector," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 52-67.
    5. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    6. Charles R. Knoeber & Walter N. Thurman, 1995. ""Don't Count Your Chickens...": Risk and Risk Shifting in the Broiler Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 486-496.
    7. Azzeddine Azzam, 1996. "Testing the Monopsony-Inefficiency Incentive for Backward Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 585-590.
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    Cited by:

    1. Navajas, Roberto & Hinson, Roger A. & Pinel, Raul A., 2003. "Analyzing Linkages Between Nursery Farm Growth Rates, Structural Variables, And Firm Characteristics," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35125, Southern Agricultural Economics Association.
    2. Barik, Prasenjit, 2021. "A critical analysis of India’s Contract Farming Act 2020," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 34(Conferenc), October.

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    Keywords

    Farm Management;

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