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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.

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File URL: http://purl.umn.edu/15789
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Bibliographic Info

Paper provided by Mississippi State University, Department of Agricultural Economics in its series Research reports with number 15789.

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Date of creation: 2000
Date of revision:
Handle: RePEc:ags:missrr:15789

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Postal: Box 9755, Mississippi State, MS 39762-9755
Phone: (601) 325-2750
Fax: (601) 325-8777
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Web page: http://www.agecon.msstate.edu/
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Related research

Keywords: contracting; asset specificity; transaction costs; Farm Management;

References

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  1. 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.
  2. Williamson, Oliver E., 1989. "Transaction cost economics," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 3, pages 135-182 Elsevier.
  3. 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.
  4. 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(02), December.
  5. Hennessy, David A. & Lawrence, John D., 1999. "Contractual Relations, Control, and Quality in the Hog Sector," Staff General Research Papers 1706, Iowa State University, Department of Economics.
  6. 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).
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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.

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